Large Workshop Format (*500+ Participants)
101

Appreciating Human Capital: An Interactive Case Study in Stakeholder Capitalism at the Intersection of People and Financial Performance

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SESSION SUMMARY:

It was Adam Smith in Wealth of Nations who noted that “no society can surely be flourishing and happy of which the far greater part of the members are poor and miserable.” The same is true at most companies. And sponsors who are able to drive improvements in ESG and HCM across their portfolio will help these businesses deliver a better competitive alternative, enhancing returns in the process. It’s not a compromise; it’s a win/win scenario in which the fortunes of all stakeholders can be enriched.

Learners will participate in an immersive experience guided by an interactive case study centered around a fictitious company. This company’s financial and human capital data will be used to illustrate opportunities for business performance improvement (e.g. profitability, liquidity, loan risk, etc.) alongside human capital value creation (e.g. diversity, inclusion, pay equity, succession management, etc.) embedded in an interactive demonstration of AlphaCalc, a SaaS-based business intelligence platform combining financial and human capital data, benchmarked to 2600 industries and over one million private US companies.

Learners will take part in a facilitated, online dialogue sharing the insights they experience from the case study. This interactive discussion will be led by subject matter experts in ESG, Human Capital, Business Performance and M&A. Discussions will highlight the collective participants’ wisdom and experience and request that they each pledge to take at least one action to effect immediate positive structural change toward inclusion, equity, racial justice and more purposeful capitalism.

PURPOSE/OBJECTIVE(S):

  1. Explore tools which can be used to structure immediate and positive actions toward an economy based on inclusion and equity
  2. Establish a foundation for standardized measures of social/human capital performance for businesses and investors
  3. Connect these measures with tangible financial and important ESG (specifically Human Capital) outcomes
  4. Learner Pledge: One immediate positive structural change toward greater inclusion, equity, racial justice, and more purposeful capitalism

FORMAT: Large Format Workshop

  • This workshop type is meant for up to 500 participants
  • Our content is designed for audiences of LPs, GPs, Financial Advisors, C-Suite Execs (including CEOs, CFOs and CHROs), and Academics/Researchers
  • Learners will interact using live chat and live polling processes
  • Proposed live discussions include 1) a fund manager who is focused on investments in women and minority owned businesses, and 2) a valuation expert who advises organizations on valuing intangible assets.

PROPOSAL BACKGROUND in response to:

The moment is now to create real structural transitions and scalable solutions. How do we seize this moment to take swift, courageous, and vulnerable action to shift toward an economy based on inclusion and equity? (SOCAP)

On the same day in October, the buyout of G/O Media (owner of Deadspin, the Onion, and other media titles) hit turbulence when the bulk of Deadspin’s reporting staff quit en masse. The investment initially encountered bumps almost immediately, though, when Deadspin’s journalists began reporting on the hiring practices of the sponsor, sketching a picture in which experienced women and people of color were overlooked for open management roles that instead went to predominantly white males from outside the company.

Measure What Matters

Almost all executives claim their people are the most important asset of their company. Some would argue that it has become a cliché. Yet, from a financial standpoint, employees are only recognized as an expense line on the balance sheet bundled in with “other” intangible items. This not only conceals the impact of people in driving company growth, but characterizes employees solely as a cost. One of the biggest advances in HCM and ESG, however, has been the development of new metrics that re-orient analysis to focus on the latent opportunity within the workforce.

In HCM, for instance, more sophisticated programs will measure the return on human capital investments or track the total cost of the workforce (TCOW) as a percentage of operating expenses. Investors, meanwhile, have begun looking at productivity of workers (versus profits alone) as a driver of value. In ESG, alternatively, relevant metrics might include days lost to illness per full-time employee or statistics around gender balance and diversity across the organization.

Follow Through

Societally, we are at a crossroads. Sustainable change will only happen through structural response.

It’s one thing to know what’s material and what isn’t; it’s another to track and measure progress; but none of this will create the desired impact without following through. This goes without saying, but in our experience the impact is often far greater than most anticipate.

As investors attempt to get their arms around everything that goes into Human Capital Management, it can seem overwhelming. To suddenly add ESG considerations on top of everything else is more likely to create despair and a sense of hopelessness. We continually remind our clients to avoid the tendency to try to boil the ocean. The most successful GPs determine the issues that are most important to a given business and then prioritize the initiatives that are most material. It’s often the case that what matters most can be determined by understanding how it impacts the end customer or market.

Excerpt from: https://29bison.com/human-capital-management-a-gateway-into-esg-2/#

Confirmed Panelists

PROGRAM FACILITATORS:

Jason Wood, Chief Innovation Officer, 29Bison
Laura Queen, Chief Executive Officer, 29Bison
Brian Lo, SVP Northeast Private Equity, TriNet Inc.
Jessica Schultz, HR Consultant, TriNet Inc.

CURRICULUM COLLABORATORS:
Sharadiya Dasgupta, ESG Advisory Lead, 29Bison
David Bookbinder, Valuation Expert and Author, CFGI

Unconfirmed Panelists

PANELISTS:

William Andreoni, Senior Director, RSM US LLP
Sarah Kim, SKH Capital

Supporting Materials

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