Friday, February 10, 2012

Human Capital - The Only Unique Advantage

What are key success parameter of any organization in this fastest growing global business environment?
Capital - Money? ... Capacity to Invest? where banks and Equity Funds are eager to provide capital.... then whats so significant about capital these days?
Product? ... Where the taste and preferences of individual is changing faster? where there is all possibility that competitive rivals will modify their product accordingly and introduce better product than you...
Process?... which could be learned and implemented in shortest possible time....

Then What?

The answer is simple -  PEOPLE - HUMAN CAPITAL

I found lots of mangers says that their people are their greatest assets... if they are correct then...
Why do these managers read their mails daily? pay their bills monthly? Check their inventories quarterly? Service their machinaries half yearly AND CHECK ENGAGEMENT AND PERFORMANCE OF PEOPLE ONLY ONCE A YEAR?

Human capital practice have not caught up with financial management practices and still tuned to the industrial age. At this stage, the amount of money spent on human development is termed as EXPENSE and not INVESTMENT. Just think here, Nurturing your only competitive advantage is Expense, however doing research on product is termed as sunk cost or investments

Today's learner have had 14 jobs by the age of 38, that's an average job duration of 1.5 years and during this 14 jobs, he/she may spent around 2240 hrs spent during Induction or On Job Training / Mentoring.... In that time you could have gone to Venus and come back. ... Hence we need productive employees, who learns fast, implement faster and improve profitability in the fastest way. We wont get such employees randomly or by chance.... We must look at human as Capital and we must INVEST in them... We need environment which retain employees and not attract employees....

The key changes required are
1) Focus on Retention and Not How to attract employees
2) Learn how to take effective interview and do not just take them to finish recruitment budget
3) Be a mentor and not a boss. Employees are Intellectuals and not Machines...
4) Lets call Amount spent on human capital as INVESTMENT and not Expense.
5) Do always think on GOAL CONGRUENCE... is organization goal matching with individual goal?
6) Review performance not for the sake of review but Review Meeting should be treated as POSITIVE FEEDBACK MECHANISM and COLLECTIVE BRAINSTORMING SESSIONS.

Regards,
Kaushal Mandalia
Corporate Trainer
kaushalmandalia@gmail.com

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