Quest for a dialogue: HR's imminent role in improving communication between boards and investors

This paper describes the context in which a deeper 'dialogue' between Boards and the capital markets can be facilitated through more systematic human capital analysis, particularly in knowledge-intensive environments. Human capital is defined as management systems which are designed for people within the firm to execute strategy, and which, ideally, are internally consistent and consistent with the broader strategic direction of the firm (Royal and O'Donnell, 2003). This quest for deeper dialogue will require the HR profession to respond to the new information needs of capital markets. This may involve a process whereby HR professionals become interpreters of human value creation, becoming, in effect, internal human capital analysts. In anticipation of an imminent global shift in the role of human capital information in investment decisions, the Star Model of human capital analysis (O'Donnell, Kramar, and Dyball, in preparation) is presented as one framework which can be used by HR professionals to deepen dialogue on the trajectory of human capital value within knowledge-intensive listed firms.