Glossary of terms

Business activities are what the organisation does to create value for itself and its stakeholders (including society). Activities are what an organisation does in order to convert business inputs into business outputs.
Analytics is the analysis of data (typically in statistics) to model the effect of a variable(s) on particular aspects of a business. The use of analytics enables modelling and prediction and gathers insight from data. Analysis can be used to create scenarios, understand realities and predict future states.
This describes how advanced an organisation’s analytical capabilities are – how well they can analyse and derive insight from the data they have collected. An analytically mature organisation will be able to conduct complex analysis of individual variables and use that insight to predict or model the outcome of potential decisions.
An organisation's business model is its system of transforming inputs, through its business activities, into outputs and outcomes that aim to fulfil the organisation's strategic purposes and create value over the short, medium and long term.
This is the term for the broad range of resources and relationships that are affected or transformed by an organisation in its business activities. Those most often reported on by businesses are the financial and manufactured capitals, but increasingly organisations are assessing and reporting on their natural, intellectual, social and human capitals as well.
Describes how advanced an organisation is at collecting, storing and categorising their data. Organisations with advanced data maturity are able to identify which data to collect, how to collect it, and how it can best be used to derive useful insight.
Human capital is the knowledge, skills, experience and abilities that reside in individuals, which can be of economic benefit to an organisation. This is the capital that humans take with them when they leave. The word ‘talent’ is shorthand for this.
This is the analysis (usually statistical) of people and business data to explore scenarios and solve people-related business problems. Human capital analytics enables better decision making by providing an organisation with insights about the workforce and the business activities that support them.
Enables organisations to make more productive use of people through measurements, analysis and evaluation, rather than guesswork. It provides guidance on the development of HR and business strategies that enable improvements in levels of employee engagement and business performance by such means as better selection, training and leadership.
Aims to provide quantitative as well as qualitative data on a range of measures (for example labour turnover or employee engagement levels) to help identify which HR or management practices drive sustainable business performance.
Describes the set of people-related measures used by organisations to understand the value of their workforce. Metrics might include employee turnover or engagement scores.
The process of measuring the practices and activities organisations undertake in order to manage their people. This can include data or people measures such as cost of hire, turnover, and engagement.
Inputs are the resources, relationships, and other forms of capital that the organisation depends upon or which provide a source of differentiation.
Integrated reporting is a global movement to transform how businesses tell their value creation story, recognising that traditional financial accounts all too often fail to recognise key drivers of value – in particular people (relationships, intellectual capital, communities) and the natural environment. Integrated reporting provides a shared narrative for stakeholders within and beyond the business.
Describes the process of thinking is about relationships and connections within your organisation; how people work together, how they create value and how in practice organisations ‘value their talent.
Measures (or metrics) are used to report on operational business activities; these can be collated and used in conjunction with financial data to explain and communicate performance in management information and company reporting.
Outcomes are defined as the internal and external consequences resulting from an organisation’s business activities and outputs. Outcomes can be both internal (employee satisfaction and engagement, revenue) and external (customer satisfaction, tax payments) as well as either positive or negative.
An organisation's outputs can be identified as its key products and services, as well as any by-products, waste, or emissions
See 'human capital management'
Enables organisations to make more productive use of people through measurements, analysis and evaluation, rather than guesswork. It provides guidance on the development of HR and business strategies that enable improvements in levels of employee engagement and business performance by such means as better selection, training and leadership.
See 'human capital metrics/measures'
Describes the set of people-related measures used by organisations to understand the value of their workforce. Metrics might include employee turnover or engagement scores.
These are approximate indicators or indirect measures that are used when organisations are unable to use a direct measure. For example, employee satisfaction may represent a proxy indicator of workforce engagement.
Describes all the people in an organisation, not just those who have high potential, who have a role to play in contributing to its success.