For over a hundred years, baseball statisticians looked at the same data for each player, depending on the position. Then in the early 2000s, Billy Beane came along and changed the way baseball statistics were viewed. It began the era of Money Ball, a point in time that continues until today where sabermetrics has become an important role in evaluating a professional baseball player.
What’s interesting about Money Ball and sabermetrics is that in years past if a player hit .285, drove in 85 runs and hit 25 home runs, he was considered a star player. But, when further looking into the important situations a player was in, say for example with runners in scoring position, his batting average was far below the .285 he hit during the regular season, his value may have actually decreased.
Anyway, there’s lots more to talk about with regard to Money Ball. In today’s business world, the valuation of a business is being examined. We are in the era of pre-Money Ball for business. Dave Bookbinder’s recent book entitled The NewROI –Return on Individuals has shed a different light on the value of human capital. We can now draw a direct correlation between something called the Brand and Culture Index of Alignment, Employee Engagement and the Human Capital Value Equation.
We have amassed a community of companies or businesses who are working on the value of the human capital equation and we are finding some revealing statistics. We are in the throes of a revolutionary paradigm shift in the valuation of businesses based on the human capital element. Want to learn more?