WHY THE BOTTOM LINE ISN’T
By Dave Ulrich and Norm Smallwood

HR people have always known that there is more to the “value” of an organization than what appears on the balance sheet in the annual report. Things like investor confidence in leadership, employees, and culture all contribute to the overall value of an organization. These things are measured and accounted for in very different ways than the hard assets of the company. Ulrich and Smallwood make a strong case for the value of these intangibles. The intangibles Ulrich and Smallwood discuss are almost all within the realm of the HR professional. The book provides a roadmap for HR professionals to follow as they demonstrate how their work and profession adds value to the bottom-line value of the organization. As the authors say in the preface:

“We should also note that our work lays out where human resource professional can and should focus their attention. With an increasing scrutiny of ideas and programs, HR professionals must ensure that their work adds value. They can do so when their concepts, tools, and advice help build or protect market value. [For example] the outcome of leadership training is not just happy leaders, leaders with more skills, or leaders able to implement products through action learning, but also leaders who build confidence in customers and investors and who deliver more shareholder value as a result.”

I read the book in one sitting and have referred to it regularly since then. Why the Bottom Line Isn’t is available from the SHRM bookstore ($23.95) (shrmstore.shrm.org).

(Submitted by Doug Turner, August 2003)

Note: We invite book reports from members on specialty or general interest publications related to the Human Resources field. Submissions are published in the monthly newsletter and posted on the Chapter website.

Additional Reviews:

- HR From The Heart
- Human Resource Management In The Knowledge Economy
- Assimilating New Leaders: The Key To Executive Retention