The Balance People PortfolioTM Model Overview Up and until the mid 1970’s, employees were referred to as "personnel" and considered little more than property that was owned by the company. Even when the term Human Resources began to emerge and we started to hear cliches such as "People are our greatest asset", the implication remained that individuals and employees were expendable and their value, as all fixed assets, depreciated over time. Although the rhetoric may have called for "investing in our employees", employees were still viewed as operating expenses. Investing meant training and often the training was similar to retro fitting of the older machinery. The paradigm had not changed. People were still resources that were to be chewed up and spit out. They were renewable resources all right; another human resource was waiting in the wings. In the mid 1990’s a newer paradigm has begun to surface. Senior management is being called to see employees not as renewable resources worth developing but as investors themselves in the organization. This model implies a whole different view of how we treat our employees. They have become shareholders and by definition management becomes accountable to them. Unfortunately, we know from experience that the small shareholder is generally ignored. This too is our fear using this model. On the other hand, it seems that people tend to place inordinate value on the "almighty dollar". In this vein, a financial paradigm has been adapted to define, evaluate and categorize all business components.  What happens if we equate each individual as a type of investment?   We believe that the financial paradigm that has extrapolated to the world of human resource management can be repositioned to provide a more meaningful perspective. The author has developed an investment strategy model known as the Balanced People Portfolio ModelTM . This model helps decision-makers clarify their approach to establishing and maintaining a productive organizational culture.  Human Resource professionals who understand the business principles, especially those who are comfortable with financial, are in a better place to strategically assist senior management in their quest for better performance and return to shareholders. When one invests one’s savings with a financial planner, a portfolio is developed based on one’s long term financial goals, propensity to risk, and age. When an individual goes through a major life change (e.g. marriage, birth of a child, job change, health considerations) it is time to review one’s investment portfolio to see if the objectives have changed and hence the portfolio mix also should be adjusted.  When organizations merge or are involved in an acquisition, the same review of current staffing is required. Organizations, in their rush to cut costs and "right size", are prone to loose sight of ensuring that a balanced people portfolio is left in place. There is a tendency to keep the high potential growth investments and terminate the lower performing income investments. The Balanced People Portfolio Model provides a quick overview of the benefits and risks associated with type of employee group early on in the process of integration. The purpose of a model, be it a LegoR version of Mount Rushmore, or an architect’s scaled down replica of the new US Embassy in Ottawa Canada, is to depict in a simpler framework of the "real thing".  It is not meant to show every little nuance or complexity in absolute terms. We have chosen to build upon the concept of a financial framework because it is one that most individuals, particularly business executives, find appealing.  We are, by no stretch of the imagination, trying to imply that individuals are specific investment instruments and should be treated as such. We wish to present another model that we believe will view individual employees with the value and respect that is often lacking compared to the lip service paid to them. Table 1: Balanced People Portfolio ModelTM Investment Instrument Growth / Income ROI Main- tance Risk Equivalent  Human Talent Insurance G Low Low Low Corporate memory Collectibles G Low –to High High High Myths, Legends Eccentrics Real Estate G Low to Medium Very High Medium Prima Donnas Gold & Metals G Low to High Low Low Marginal performer who knows a niche Bonds, GIC’s & Money Markets I Low Low Low Reliable old guard Closer to retirement Preferred & Debentures I Low Low Low Long service and solid performers Blue Chip / Index Stocks G & I Medium Medium Medium Sr. Management Professionals Common Stock G & I Low to High Medium Medium Specialists Future workforce NASDAQ Indexes G Low to High Medium / High Medium / High Knowledge workers Recent grads Generation X Mutual Funds G Medium Low Medium / High Outsourcing Alternate Service Delivery IPO’s / New Stock Offers G Low to High High High New Grads Stock Options G Low to High Very High Low Free agents Some Gen. X Commodities / Futures G Minus to High Very High Very High Creative genius Chart 2 of the Balance People PortfolioTM, which is not presented here, looks at the benefits, drawbacks and retentions strategies of each human investment group.  Both tables can be viewed or downloaded by clicking below.  Adobe Reader required. Balanced People Portfolio Model

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