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| Business Strategy, Financial Strategy, and HR Strategy | |
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| Is HR Weakest in the Most Critical Areas? | |
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| You Don't Need to Be a Quant to Make Good Business Decisions | |
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| Which HR Decisions Are Important? | |
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| What This Book Attempts to Do | |
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| The Income Statement: Do We Care About More Than the Bottom Line? | |
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| Income Statements | |
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| Profit Can Be Measured at Various Levels | |
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| Seeing the Big Picture | |
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| The Bottom Line | |
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| The Balance Sheet: If Your People Are Your Most Important Asset, Where Do They Show Up on the Balance Sheet? | |
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| Assets on the Balance Sheet | |
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| Liabilities on the Balance Sheet | |
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| Which Numbers on a Balance Sheet Can You Believe? | |
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| Use Caution When Using Published Financial Ratios | |
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| Cash Flows: Timing Is Everything | |
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| Cash Flow Information from the Income Statement | |
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| Cash Flow Information from the Balance Sheet | |
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| Financial Statements, as a Window into Business Strategy | |
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| Common Size Financial Statements | |
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| Connecting the Dots | |
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| Return on Equity | |
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| Differential Impact of Financial Leverage | |
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| The Big Picture | |
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| The link Between HR Strategy and Business Strategy | |
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| Stocks, Bonds, and the Weighted Average Cost of Capital | |
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| Why Is the Cost of Capital Important to HR Managers? | |
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| Where Does the Money Come From? | |
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| Is Your Company of Above Average or Below Average Risk? | |
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| Capital Costs in 2012 | |
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| Capital Budgeting and Discounted Cash Flow Analysis | |
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| Calculating Present Values | |
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| Do the Future Benefits Justify the Upfront Costs? | |
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| Using DCF on the Job | |
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| HR Applications | |
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| Money Has Time Value Because of Interest Rates, Not Because of Inflation | |
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| Financial Analysis of Human Resource Initiatives | |
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| Decisions Involving Cash Flow That Occur at Different Points in Time | |
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| Allocating Budgets When There Are a Larger Number of Alternatives | |
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| Calculating NPV of Specific HR Initiatives | |
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| Determining Program Impacts Using Pre-Post Changes | |
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| Determining Program Impacts Using Comparison Groups | |
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| What Is Your Firm's HR Budget? | |
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| Is Your HR Budget Allocation Optimal? | |
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| Maximizing the ROI on Your Analysis Efforts | |
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| Financial Analysis of a Corporation's Strategic Initiatives | |
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| Estimating the NPV of a Strategic Initiative Such as a New Product Introduction | |
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| Using the Spreadsheet to Structure the Deal | |
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| Using Monte Carlo Simulations to Model Risk and Uncertainty | |
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| Equity-Based Compensation: Stock and Stock Options | |
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| How Do Stock Options Work? | |
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| What Is tire Intrinsic Value of an Option? What's the Time Value of an Option? | |
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| Are Options High-Risk Investments? | |
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| Do Employees Prefer Options or Stock? | |
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| Understanding the Inputs to the Black-Scholes Model | |
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| Firms Must Disclose the Methods and the Assumptions They Use to Cost Stock Options | |
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| Using Monte Carlo Simulation to Determine the Value of Employee Stock Options | |
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| Dilution, Overhang, and Run Rates | |
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| Equity Compensation Is One Tool for Aligning Executive and Shareholder Interests | |
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| Financial Aspects of Pension and Retirement Programs | |
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| Defined Benefit (DB) Plans | |
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| Defined Contribution (DC) Plans | |
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| Hybrid Plans | |
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| The Shift from DB Plans to DC Plans | |
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| Pension Accounting | |
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| Why Base Costs on the Expected Rather Than the Actual Return on Plan Assets? | |
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| How Do Firms Select the Appropriate Discount Rate? | |
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| DB Plans Encourage Retirement | |
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| The Future? | |
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| Creating Value and Rewarding Value Creation | |
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| Aligning Pay with Performance | |
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| Managing EPS Expectations | |
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| Putting It All Together | |
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| A Sample of Financial Measures Currently in Use | |
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| Bibliography | |
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| Endnotes | |
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| Index | |