Advanced Human Capital™

Human Equity Valuation™

Executives generally agree that employees are a corporation’s greatest asset, while they recognize that workforce cost is typically their company’s first or second largest operating expense. But GAAP accounting and standard financial statements are ill-suited to managing this “asset” or quantifying this expense, nor to providing the requisite insight for managing and optimizing them. Traditional performance ratios including Return on Assets (ROA) and Return on Invested Capital (ROIC) are poorly correlated with Compounded Annual Growth Rates (CAGR) and corporate value, and can be misleading to executives seeking to maximize investment returns. Human Equity Valuation™ is a much stronger predictor of growth and corporate value creation.

Human Equity Valuation™ enables any company to quantify, track and systematically improve its Total Workforce Productivity Impact and Retained Human Equity Value over time in a way that is auditable, comparative, predictive, prescriptive, and appeals to the rigorous sensibilities of chief executive officers, chief financial officers, and private equity investment managers alike.

Most executives, in their quest to drive top- and bottom-line growth, do not have the means to understand and track Human Equity Value™, thus they are flying blind when it comes to managing their largest operating expense and greatest asset.

Moreover, Human Equity Value™ enables chief human resources officers and other human resources executives to be more vocal and influential stewards of corporate value and to set an agenda for its creation that resonates in the C-Suite. Ankura developed the Human Equity Value™ methodology as a means of driving profitable growth via workforce performance improvement in the contemporary economy.

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Gerard F. McDonough
Senior Managing Director
David M. Lynn
Managing Director
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