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The field of human resource management faces a significant dilemma. While emerging evidence, theory, and practical demands are increasing the visibility and credibility of human capital as a key to organisational success, the measures used to articulate the impact of human resource management decisions remain misunderstood, unwanted by key constituents, or even counter‐productive. This article proposes that the key to creating meaningful HR metrics is to embed them within a model that shows the links between HR investments and organisational success. The PeopleVantage model is proposed as a framework, the application of the model is illustrated, and the potential of the model for guiding research and practical advances in effective HR measures is discussed.

Kibok Baik is a professor of management at the College of Business and Economics, and Head of Strategic Leadership Center, Kookmin University, Seoul, Korea. He earned his Ph.D. in organizational behavior from the University of Houston. His research interests focus on leadership, cross-cultural issues, and human resource development in multinational corporations. He currently advises dozens of firms in Korea.John W. Boudreau, Ph.D., Professor of human resource studies at Cornell University is recognized worldwide for breakthrough research on the bridge between superior human capital, talent and sustainable competitive advantage. His research has received the Academy of Management’s Organizational Behavior New Concept and Human Resource Scholarly Contribution awards. He consults and conducts executive development with companies worldwide and has published more than 40 books and articles, including the best-selling Human Resource Management (Irwin, 1997), now in its eighth edition in multiple languages worldwide. In addition to HR metrics, Dr. Boudreau’s large-scale research studies and highly focused qualitative research have addressed decision-based HR, executive mobility, HR information systems and organizational staffing and development. Winner of the General Mills Award for teaching innovations, Dr. Boudreau also founded the Central Europe Human Resource Education Initiative, and directed the Center for Advanced Human Resource Studies (CAHRS).Janet L. Bryant is a doctoral student in the Ph.D. program in industrial and organizational psychology at Old Dominion University. Her research interests include leadership, virtual work and cross-cultural issues. She completed her undergraduate degree at the University of Tennessee-Knoxville.Maxine Dalton is an industrial/organizational psychologist who received her education at the University of South Florida. Her research interests include adult learning and executive development. Her current research is on leadership and social identity conflict in organizations. She has published numerous book chapters, articles and a recent book on global leadership.Donald D. Davis received his Ph.D. in psychology from Michigan State University in 1982, where he also served as assistant director of the Center for Evaluation and Assessment. He has been a professor of organizational psychology at Old Dominion University since that time. He served for seven years as director of the Ph.D. Program in Industrial and Organizational Psychology and has served as a member of the board of directors of the Institute for Asian Studies since its creation in 1989. He has been awarded two Fulbrights – Asian Scholar in Residence (with Zhong-ming Wang, Hangzhou University – now Zhejiang University – Hangzhou, China) and Senior Scholar (Wuhan University, Wuhan, China). He has also held a visiting appointment at the University of Virginia. His research interests include virtual organizations, organization change, technological innovation, cross-cultural organization and management practices, and Chinese organizations. He has published one book and a number of papers on these topics.Jennifer J. Deal is a Research Scientist at the Center for Creative Leadership in San Diego, California, concentrating on global leadership and managing the Emerging Leaders project, which focuses on generational issues in the workplace. She has published a number of articles on topics including generational issues in the workplace, working globally, executive selection, and women in management, and a recent book on global leadership. She holds a B.A. from Haverford College, and a Ph.D. in industrial/organizational psychology from The Ohio State University.Daniel Denison is Professor of Management & Organization at the International Institute for Management Development (IMD) in Lausanne, Switzerland and is the Founder of Denison Consulting in Ann Arbor, Michigan, USA. He is former Professor of Organizational Behavior and Human Resource Management at the University of Michigan in Ann Arbor, Michigan. He is the author of Corporate Culture and Organizational Effectiveness (1990) and a number of articles on the link between culture and business performance. His survey assessments of culture, teams, and leaders are widely used by many organizations around the world. His website, www.denisonculture.com has extensive information on his work.Joseph John DiStefano is Professor of Organizational Behavior and International Business at IMD International Institute for Management Development (Lausanne, Switzerland) and Professor Emeritus of the Richard Ivey School of Business, The University of Western Ontario (London, Canada). He was educated at R.P.I., Harvard Business School and Cornell University and has been active as a teacher, researcher and consultant on issues of cross-cultural effectiveness since the early 1970s.Peter J. Dowling (Ph.D., The Flinders University of South Australia) is Pro Vice-Chancellor and Professor of International Management & Strategy in the Division of Business, Law & Information Sciences, University of Canberra. Previous appointments include Foundation Professor of Management at the University of Tasmania, Monash University, the University of Melbourne, and California State University-Chico. He has also held visiting appointments at Cornell University, Michigan State University, the University of Paderborn (Germany) and the University of Bayreuth (Germany). His current research and teaching interests are concerned with International HRM and Strategic Management. His co-authored text International Human Resource Management: Managing People in a Multinational Context, published by South-West, is now in a third edition. He is a former national Vice-President of the Australian Human Resources Institute, past Editor of Asia Pacific Journal of Human Resources (1987–1996), and a Life Fellow of the Australian Human Resources Institute.Chris Ernst is a Research Associate at the Center for Creative Leadership with an international background, and a Ph.D. in Industrial/Organizational Psychology from North Carolina State University. His work centers on advancing the capacity for leadership in a diverse and globally interconnected world.Ping Ping Fu is an assistant professor of management at the Chinese University of Hong Kong. Her research interests are mainly in leadership and cross-cultural areas. She was the coordinator for the Chinese part for the Global Leadership and Organizational Effectiveness (GLOBE), and is now leading the CEO study in China. She has published in Journal of Organizational Behavior, International Journal of Human Resource Management, Journal of International Applied Psychology and Leadership Quarterly.Paulo Goelzer is President of the IGA Institute, an educational foundation providing training to 40 countries in five languages and oversees their international operations. He began his career in the food industry very early, working in a family food business. He has also worked as a senior consultant for Strategy and Food Package Goods Industry Practice for a German/Brazilian consulting company, a researcher and consultant for the Brazilian Wholesaler Association (ABAD), and as a Marketing Director for a grocery wholesale company.

It is widely accepted that global competitive advantage frequently requires managing such complex situations where traditional organization and job structures are simply insufficient. Increasingly, in order to create a flexible and integrated set of decisions that balance local flexibility with global efficiency, organizations must rely on more social, informal and matrix-based shared visions among managers and employees. Research on global strategic advantage, global organizational structures and even shared mindsets has suggested that dimensions of culture, product and function provide a valuable organizing framework. However, typical decisions about organization structure, HRM practices and talent often remain framed at such a high level as to preclude their solution. We maintain that there is often no logical answer to such questions as, “Should the sales force be local or global?” or “Should product authority rest with the countries or the corporate center?” However, we propose that embedding business processes or value chains within a Culture and Product matrix provides the necessary analytic detail to reveal otherwise elusive solutions. Moreover, by linking this global process matrix to a model that bridges strategy and talent, it is possible to identify global “pivotal talent pools,” and to target organizational and human resource investments toward those talent areas that have the greatest impact on strategic advantage. We demonstrate the Value-Chain, Culture and Product (VCCP) matrix using several examples, and discuss future research and practical implications, particularly for leadership and leadership development.

Aligning employees with the organization’s strategic goals has become increasingly important as organizations struggle to gain or sustain a competitive advantage. This article defines “line of sight” as employee understanding of organizational objectives and how to contribute to those objectives. There has been much discussion among academics and practitioners, yet we have limited knowledge about what line of sight is, how to measure it, how it can be enhanced, and what it makes happen. Human resource professionals from leading organizations completed surveys and participated in focus groups to begin to explore these critical issues. Fruitful directions for future research and innovative practice are discussed.