Patent Document ID: 7983945
Application ID: 11873034
Patent Flag: 1

Claim One:
1. A method for managing an organization's financial investment in human capital resources, the method comprising: providing an information processing system comprising a microprocessor for executing programs, a memory operatively connected to said microprocessor, and a program stored in said memory and executable by said microprocessor: operating the information processing system to: cause the microprocessor to execute the program to receive as inputted data information gathered from the organization's financial statements; cause the microprocessor to execute the program to calculate revenue, material cost, financial capital cost, and human capital cost as a function of the inputted data; cause the microprocessor to execute the program to determine the organization's human capital productivity as a function of the organization's revenues related to human capital costs in relation to the organization's total human capital costs and financial capital costs for a defined period; cause the microprocessor to execute the program to determine the organization's return on human capital as a function of the organization's income in excess of its financial capital costs in relation to its monetary investment in human capital for the defined period; determining cause the microprocessor to execute the program to determine the organization's profit sensitivity as a ratio between budgeted, profit-driven incentive compensation and profit to determine how sensitive the organization's profitability is to changes in incentive compensation; cause the microprocessor to execute the program to determine an index value as a weighted sum of the organization's human capital productivity, return on human capital, and profit sensitivity, the index value providing a single composite measure of the organization's financial investment in human capital resources; cause the microprocessor to execute the program to identify a specific value to be adjusted to improve the index value, the specific value being selected from the group consisting of a metric value, an argument used to calculate a metric values, and information used to calculate an argument; and making a business decision to adjust the specific value, the business decision causing changes in operations of the organization that will necessarily change a calculated value of at least one of revenue, material cost, financial capital cost, and human capital cost, and thereby adjust a calculation of the specific value.