How the business actually makes money
Step 1 / 3·Why HR proposals get turned down
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Learning objectives — after this module you will:
- Read the three financial statements well enough to use them
- Know which metrics matter in your industry
- Understand why HR proposals get turned down
Why HR proposals get turned down
See the language gap between HR and the executive team.
A typical HR training proposal sounds like this: 'We need a leadership development programme for 30 middle managers, budget 400 million, running six months, to build management capability and improve team engagement.'
The executive team hears: a 400 million cost, an unmeasurable benefit, and nothing to compare against the other proposals competing for the same budget. They do not refuse because they undervalue people — they refuse because they have no basis on which to say yes.
The gap is not that HR lacks data. It is that HR presents ACTIVITY and OUTPUT, while executives decide on IMPACT to revenue, cost, risk or competitive capability.
This does not mean everything must be in money
Some things are genuinely hard to quantify — culture, reputation, the ability to attract talent. But if you can NEVER present anything in numbers, every proposal you make sits in the 'take it on faith' pile, and that pile is always cut first when budgets tighten.
Key takeaway: Executives decide on impact to revenue, cost and risk — not on activity and output.