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Some organizations are beginning to develop effective metrics systems. Nevertheless, many still have not realized a return on investment because even the best metrics cannot guarantee action at the line level. Consequently, organizations are struggling to focus their metrics resources to spur action down to the lowest organizational levels. Their goal is to encourage response to the "people-related" health of the business that maximizes return on investment.

The Corporate Leadership Council conducted more than 60 interviews with HR executives from around the world to identify key obstacles to maximizing the business impact of HR metrics. Through the course of these conversations, members encouraged the Council to examine three specific challenges that stand in the way of high returns on HR metrics investments:

• Identifying high-value metrics
• Facilitating metrics implementation
• Analyzing metrics: developing insight

Executives indicated that HR measurement is a top priority and that it is likely to become even more important. Accordingly, they expect their organizations to increase investments in HR metrics. Because of this increased emphasis, organizations must learn how to use the metrics data for decision-making. To become adept at this, they must develop even keener insights as to the present and future implications — what the data is really telling them.

In this section, we will discuss ways to gain understanding from the data and to use this understanding to make decisions that will improve the organization's future. We will examine both organizational and HR metrics and explain the relationship between them.