As I mentioned a few days ago I have been asked to help re-write a topic in AHRI’s Professional Diploma of HR looking at measuring and reporting on the effectiveness of HR and selection and implementation of HRIS systems. Over the last few days I have been re-reading lots of books and articles I have floating around to develop the content.
One of the first areas I have begun looking at is Return on Investment, or ROI. ROI is critical for both understanding the effectiveness of an HR organisation/program and critical to justifying expense on an HRIS system.
This lead me to dig out an old book of mine, “Third Wave Project Management” by Rob Thomsett, written in the early 1990’s much of the content is a bit dated but still a very good read. I was looking for references to Gane & Sarsen’s software development methods from the late 70’s. In the book Rob works through how to use Cost Avoidance, Improve Service and Increased Revenue to measure value when building business cases.
By the way Improving Service, which is what lots of HRIS business cases are built on, should always have a secondary benefit ofÂ avoiding costs or increasing revenue.