36 THE ROI OF HUMAN CAPITAL
system of measurement that illustrates the desired connec-
tions.
How to Become a Business Partner
For HR to assure that it is aligned with the business, it needs
to know the intricacies of the business. It needs to know
what is changing within the business. Human resources
needs to know the fundamentals of the business, including
the following:
• What drives revenues?
• Who are the major customers?
• What is our market share?
• How do our gross margins compare?
• Are earnings per share rising or falling?
Figure 2-1 shows the linkages among the enterprise level,
business unit level, and human capital level. Notice I did not
say the human resources level. The focal point is human
capital, or the employees of the company. Human