Formed in 2007 Human Potential Accounting (HPA) measures the financial impact of an organisations HR investment, in terms of both the value which is created by individuals and the risks to the business which they represent, simply because they are people and not any other kind of asset.
The development of such a twin audit was the impetus behind the creation of HPA.
Our People
Dr Michael Reddy, Director of Human Potential Accounting
Michael Reddy, the Director of Human Potential Accounting, is probably best known as the Founder and former Chairman of ICAS, the psychological services company, which he ran for 20 years and brought to international status with 17 offices overseas. The business has now been merged with AXA-PPP, the health services group, to form an integrated physical and mental health services provider.
"My years with ICAS were fruitful and enjoyable, and left me with one more thing to do," says Dr Reddy. "AXA-ICAS takes 300 calls a day from employees with practical, emotional and health needs, so we've always known we were giving an enormous amount of help, as well as saving the NHS a great deal of money. One thing that was more difficult was to tackle problems where the source was as much within the organisation as in the individual."
"Part of the problem was the lack of clear audit tools to demonstrate, measurably and predictably, the impact of Human Resource Management policy and practice on the bottom line - supposedly, and tantalisingly for me, an impossible challenge."
"A lot has been done in recent years, and sophisticated models built by HR specialists. Human Potential Accounting, with its dual approach to measuring value creation on the one hand, and behavioural risk on the other is part of this movement, connecting HR and Finance in a new way and designed eventually to bring changes to standard balance sheet and P&L accounting." Click here for more information.
If you would like to hear more from Michael regarding Behavioural Risk and HCM, or to intive him to speak at your organisation please click here
Our vision
To change the way people are valued and managed as workers, to the equal benefit of the organisation, commercially or in anyway it measures success.
Our Mission
To develop tools which link, causally and predictably, Human Capital Management policy and practice with fulfilment of the organisation's ends and objectives, finally or otherwise.
