EY Supports Development of Human Capital Visualization Tools to Boost Regional Economic Growth
EY Strategy and Consulting, located in Chiyoda, Tokyo, has recently announced its collaboration with the Kinki Economic Bureau of Japan’s Ministry of Economy, Trade and Industry. The goal is to support the LOVED Project, which emphasizes the importance of employee satisfaction in driving sustainable growth within companies. To facilitate this, EY assists in developing a tool called the 'Human Capital Correlation Visualization Tool' that aims to make practical knowledge of human capital management visible. This tool is designed to help companies understand their current human capital management status and guide improvements based on a foundation of employee happiness.
As Japan's population decreases and labor shortages worsen, businesses are increasingly called upon to reframe their view of human resources. Rather than viewing labor as a cost, companies should recognize their workforce as a source of value creation. This shift is crucial for enhancing business value through ongoing employee development.
For over four years, the Kinki Economic Bureau has been investigating small to medium-sized enterprises (SMEs) that prioritize employee happiness. This research covers more than 70 such companies, analyzing common factors and practical knowledge that contribute to sustainable growth. The results have led to the creation of the 'BE THE LOVED COMPANY MAP,' which identifies a circular structure where the organizational manner, work process, and individual attitudes foster autonomous employees who contribute to elevated company value.
However, one emerging challenge is to make this practical knowledge of human capital management accessible and comprehensible to a wider range of businesses. This is where EY's support becomes essential.
EY utilized the extensive knowledge and frameworks they possess regarding human capital management to assist in the development of the Human Capital Correlation Visualization Tool. This innovative tool comprises three major elements:
1. Correlation Framework: This element organizes the interactions between organization, work, and human resources, elucidating how they contribute to enhancing company value.
2. Indicator Area and Output Area: This section visualizes the state of the organization and human resources, considering aspects such as psychological safety, self-understanding, relationships, and job design. Additionally, it categorizes success indicators linking organizational attributes to human capital, economic capital, and social relationship capital.
3. Survey Instrument: Through surveys targeting employees and management, this component helps visualize the current state of people and organizations.
The development process was attentive to aligning EY's theoretical frameworks and the practical knowledge gained by the Kinki Economic Bureau. Care was taken to ensure that the essence of the LOVED Project was maintained while abstracting the indicators.
The completed tool was trialed by ten companies, resulting in confirming shared tendencies among organizations focused on 'employee happiness' that support growth. These companies demonstrated favorable results across various aspects of human capital, economic capital, and social relationship capital. Additionally, the diverse strengths and organizational characteristics of each company were identified, revealing a range of practical patterns in human capital management.
Furthermore, the initiative has also organized events in Osaka, Fukuoka, and Tokyo, fostering a community for shared learning and networking around human capital management concepts. This effort has verified wide resonance beyond the Kinki region, showing promise for the LOVED Project's expansion on a national level.
Akihito Mizuno, a Partner in People Consulting at EY, remarked, 'While the significance of human capital management is widely acknowledged, many companies continue to struggle with establishing effective practices. This initiative embodies an advanced challenge by systematizing and visualizing the practices of companies achieving growth through a foundation of 'employee happiness.' Our goal is to harness local insights into manageable data and frameworks, ultimately promoting management transformation and elevating corporate value. We believe this endeavor is significant not just regionally but across the nation.'
For more information about this innovative project and its implications for regional economic growth, please refer to the detailed overview. Eyewitnessing the unfolding of human capital management in Kinki as it accelerates local progress – showcasing exemplary small and medium-sized enterprises.
EY is committed to creating new value for clients, team members, society, and the planet while establishing trust in capital markets to contribute to a better world. By leveraging data, AI, and advanced technologies, EY supports clients in confidently shaping the future and resolving pressing challenges both now and in the future. EY's comprehensive services span assurance, consulting, tax, strategy, and transaction, facilitated by over 150 countries and regions' expertise and networks.
Every endeavor is aimed at shaping the future with confidence.
Background: The Need for Human Capital Management in an Aging Society
As Japan's population decreases and labor shortages worsen, businesses are increasingly called upon to reframe their view of human resources. Rather than viewing labor as a cost, companies should recognize their workforce as a source of value creation. This shift is crucial for enhancing business value through ongoing employee development.
For over four years, the Kinki Economic Bureau has been investigating small to medium-sized enterprises (SMEs) that prioritize employee happiness. This research covers more than 70 such companies, analyzing common factors and practical knowledge that contribute to sustainable growth. The results have led to the creation of the 'BE THE LOVED COMPANY MAP,' which identifies a circular structure where the organizational manner, work process, and individual attitudes foster autonomous employees who contribute to elevated company value.
However, one emerging challenge is to make this practical knowledge of human capital management accessible and comprehensible to a wider range of businesses. This is where EY's support becomes essential.
EY's Contribution: Developing an Integrated Tool for Visualization
EY utilized the extensive knowledge and frameworks they possess regarding human capital management to assist in the development of the Human Capital Correlation Visualization Tool. This innovative tool comprises three major elements:
1. Correlation Framework: This element organizes the interactions between organization, work, and human resources, elucidating how they contribute to enhancing company value.
2. Indicator Area and Output Area: This section visualizes the state of the organization and human resources, considering aspects such as psychological safety, self-understanding, relationships, and job design. Additionally, it categorizes success indicators linking organizational attributes to human capital, economic capital, and social relationship capital.
3. Survey Instrument: Through surveys targeting employees and management, this component helps visualize the current state of people and organizations.
The development process was attentive to aligning EY's theoretical frameworks and the practical knowledge gained by the Kinki Economic Bureau. Care was taken to ensure that the essence of the LOVED Project was maintained while abstracting the indicators.
Achievements: Visualizing Commonalities and Diversity in Human Capital Management
The completed tool was trialed by ten companies, resulting in confirming shared tendencies among organizations focused on 'employee happiness' that support growth. These companies demonstrated favorable results across various aspects of human capital, economic capital, and social relationship capital. Additionally, the diverse strengths and organizational characteristics of each company were identified, revealing a range of practical patterns in human capital management.
Furthermore, the initiative has also organized events in Osaka, Fukuoka, and Tokyo, fostering a community for shared learning and networking around human capital management concepts. This effort has verified wide resonance beyond the Kinki region, showing promise for the LOVED Project's expansion on a national level.
Expert Insights: Comments from EY Partner
Akihito Mizuno, a Partner in People Consulting at EY, remarked, 'While the significance of human capital management is widely acknowledged, many companies continue to struggle with establishing effective practices. This initiative embodies an advanced challenge by systematizing and visualizing the practices of companies achieving growth through a foundation of 'employee happiness.' Our goal is to harness local insights into manageable data and frameworks, ultimately promoting management transformation and elevating corporate value. We believe this endeavor is significant not just regionally but across the nation.'
For more information about this innovative project and its implications for regional economic growth, please refer to the detailed overview. Eyewitnessing the unfolding of human capital management in Kinki as it accelerates local progress – showcasing exemplary small and medium-sized enterprises.
About EY
EY is committed to creating new value for clients, team members, society, and the planet while establishing trust in capital markets to contribute to a better world. By leveraging data, AI, and advanced technologies, EY supports clients in confidently shaping the future and resolving pressing challenges both now and in the future. EY's comprehensive services span assurance, consulting, tax, strategy, and transaction, facilitated by over 150 countries and regions' expertise and networks.
Every endeavor is aimed at shaping the future with confidence.
Topics Business Technology）
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