The Human Capital Economy

By Dr. David Beighley, Vice-President & Chief Smoke-Jumper

During a Presidential campaign in the early 1990's a slogan emerged that was used as a benchmark against which the two candidates were measured. That slogan was, "It's the economy, stupid!," and the economy was used as a turning point for many people who were feeling disenfranchised and economically ignored at that time.

Since that slogan came into being, there is still not much cheering to be done about the economy. This is true not only in terms of jobs lost to foreign competition, sending American work abroad, NAFTA, and the volatile fuel and housing industries which have not only driven the DOW and NASDAQ into the gutter, but also driven 1 in 8 American homeowners into foreclosure proceedings. Retirement funds and savings accounts have been depleted and an entire segment of the American population has been delegated to "survival mode," hoping they can hold on long enough for things to change in their favor enough to even slightly recover.

While the original slogan pointed to dollars and cents, I believe the concept of economy is transferable to people and sense...good, old-fashioned common sense. It seems that in the rush to make more, cheaper, quicker, and with larger profit margins, business owners and large corporations have forgotten about the most important element of business--the economy of human capital...the "people" part. The role of entitlement among corporative executives, lack of affirmation toward the employees, lack of knowledge about what the employees need to be motivated and incentivized to perform at the highest levels of excellence...all of these things have contributed to the decimation of morale and motivation of the most important asset an organization has...it's people. In forgetting that the top-down mentality does not stop after the uppermost executive level, the segment of the workplace that actually performs to accomplish the mission is feeling more and more disenfranchised and disconnected at work, which will inevitably transfer to stress at home, resulting in fewer and fewer healthy family systems...seemingly because we have failed to focus on the most important economy of all...the HUMAN economy.

Here are a list of questions I would like to suggest Ownership, Corporate CEOs and Boards, and Tier I--Tier II Management personnel ask themselves.

1. Do I know the first and last names of every individual two levels BELOW me on the corporate ladder? This is important even if you have to take notes in your PDA and refer to them until you know what you need to know.

2. What two things do I know about that individual's family, interests, or passions?

3. Have I ever offered an assessment to this individual that would help both them and me to better understand their areas of strength or areas that might require special attention wherein I could assist them in professional development?

4. How do I evaluate my own people reading skills and what are the tools I use to do so?

5. Is the financial bottom line in my organization so important that I have been willing to overtly or inadvertently sacrifice the well-being of my people to accomplish those numbers?

6. What is my turnover rate, and, in my exit interviews (if you do them...and if you don't--START NOW) what am I finding as common themes in the reasons people leave?

7. In the terminations I have had to execute on, what common themes seem to arise: lack of expertise, lack of motivation, lack of knowledge of the company and/or product, lack of a good attitude toward co-workers or authority, lack of ability to advance, difficulty at home that transfers to the office?

8. What might I have done, had I noticed or intervened early enough to make possible a difference that could have allowed that employee to stay, grow, and thrive in my organization?

9. Am I satisfied with my level of knowledge of and involvement with those individuals who work for me two levels below my position?

10. If so, what makes it so?

11. If not, what makes it not so?

12. What have I done, specifically and behaviorally, to insure that EVERY employee is clear about the mission, vision, passion, and principles that this company espouses?

13. Do I even believe that what the company espouses about mission, vision, passion, and principles are true and acted on at the highest levels?

Although the answers to these questions are more subjective than objective, more qualitative than quantitative, if you will look very deeply into your "corporate soul" it will not be difficult to ascertain whether or not you are doing your part to enliven, inspire, motivate, lead, and teach the human capital in your charge. Doing this will inevitably have a positive impact on the financial bottom line, but more importantly on the most important bottom line...the organizational human capital that makes it all work for you.

Focus on them...always and all ways...PEOPLE are your greatest corporate asset.

Date: Mon, 07 Jul 2008 07:40:05 EDT