Performance improvement has been the focus of both public and private sector organisations for decades, but the extent to which human capital and human capital resources play a central role, has come into sharp focus only in recent years. Human capital, whether it is enhanced through local or foreign direct investment, can be turned into a dynamic capability, optimising and continually transforming collective human skills, competencies and expertise to improve performance and competitive capability. However, to understand the true contribution of human capital to dynamic capabilities, managers and team leaders require the ability to measure and manage the results of human capital improvement or training. Yet, they hardly do, for various reasons. In this chapter, the risk and return on human capital is highlighted, as well as the successes and improved relations organisations and countries may enjoy from understanding, managing and reporting on this important building block to human capital development.
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