Value Creation Index : “Measuring the Strategic Worth of Every Role”

Origin

The concept builds on strategic HR and business value frameworks, particularly value chain analysis (Porter) and human capital ROI models. It emphasizes how each role contributes to overall organizational performance beyond simple output measures.

Associated Theories

* Porter’s Value Chain: Roles are assessed for how they add value across key activities.

* Human Capital Theory: Employees are seen as assets whose contributions can be quantified.

* Balanced Scorecard (Kaplan & Norton): Links role performance to strategic objectives and outcomes.

How HR Can Use This

* Role Prioritization: Rank roles by their direct and indirect contributions to strategic outcomes.

* Talent Investment: Allocate resources and training to roles that yield the highest organizational value.

* Succession Planning: Identify high-value roles critical for business continuity.

* Performance Management: Move beyond activity-based metrics to strategic impact measurement.

* Workforce Strategy: Align hiring and retention to roles with higher value creation potential.

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Dr. Vishal Verma