Finances are not the alpha and the omega
Financial targets are important, but getting financial outcomes requires human input. Many companies do not reach the next level because they ignore their intangibles.
The aim of this page is to highlight the importance of selecting the right people, training them, looking after them and turning them, one by one, into emotionally engaged team members.
Human Capital, Information Capital and Organisation Capital
Heed the importance of mobilising your company's intangibles, represented by the three ovals: Human Capital, Information Capital and Organisation Capital. All of these assets are centred within the people of your company: Your company is based on the knowledge and skills of your people, their ability to learn and grow, to create the right systems and the right culture; and on their ability to be innovative and to make huge contributions. And company success often hinges on their ability to provide a solid service, to eliminate hassle and create loyal clients.
Major listed companies are marketing their Human Capital in their annual reports and on their Web sites. Share and financial analysts base their advice to shareholders primarily on what they learn about the intangible assets of a company. Who is the CEO/MD? Who are the managers? Is the company well run? Does it have the technical expertise to meet future challenges?
Companies do not perform - people do
- People develop customer relationships that lead to loyal customers
- People create innovative new products, new services and unlock new markets
- People mobilise their skills for continuous improvements; and people meaningfully deploy information technology, databases and systems
- People determine the growth of your company and the success thereof
- People determine the climate and especially the culture of your company - and whether it is a great place to work in
Start with your people
The BSC is a simple yet highly sophisticated management tool. Start with the Learning and Growth Perspective. In order to grow your company you have to grow your people and if you are the owner/MD, start with your own growth.
Do not make the mistake of giving scant attention to this perspective. Many of my clients are initially in a hurry to get their systems going, to reach their markets and to increase revenue growth. They are not used to giving special attention to their people. They do not initially make it a daily habit to create a "best day" for those around them. (Do you know that an MD's toxic behaviour ever so often translates into lost creativity, mental shutdown and poor performance? See...Small wins)
Get your people behind you
You cannot do much if your people are not emotionally committed and totally behind you. Start by giving attention to your people. Recruit and select for talent with which to execute your strategic plan. Do not recruit to cover only a present urgent need, but for a position as you visualize it will be in 5 to 10 years. Place individuals in roles which fit their talents. Train and coach to strengthen talent. Provide appreciation and reward outcomes which build your business; outcomes which have a positive impact on clients; and which build your team and your company culture.
Build your people and they will build your company.
We suggest that you might also visit leading change and company culture.
As arriving at agreement is an important soft skill consider visiting building agreement.
Last modified: 06-02-2012
Client Quote
"Albert provides wise counsel and inputs to a complex and fast-growing business.
We count on him and not only in times of need.
He brings clarity to our business thinking."
Elsje - Elsje Designs