The Importance of Human Capital
Successful execution can only be achieved through your people. These individuals are the organization's most precious assets, while also being the least controlled. Employees walk out of your facility at the end of each day, and many have not been physically into the office much within the last year.
The pandemic created an unusual dynamic, as voluntary turnover abated during 2020, and employees hunkered down. It is expected that once GDP growth is firmly established there will be a massive talent exodus, as changing jobs becomes less risky. If you are the lucky recipient of that talent, your retention stakes will be raised even higher.
The pandemic highlighted what good crisis leadership and a supportive culture looked like. Even as the pandemic dissipates, employees will expect the same going forward. So how will you retain your talent and ensure that they are driving your execution?
Answer the questions below to assess if your human capital is powering or hindering your ability to execute.
Are your managers fully aware of the motivational needs of their team members?
Is your organization fully able to attract and retain your top talent?
Are your development, learning, and training programs fully aligned with your business strategy?
Is knowledge widely shared across the organization?
If you answered “No” at least once, your talent is disrupting your execution and the success of your business strategy is at risk.
Managers are instrumental in the motivation and retention of employees. Bad leadership is the #1 reason employees leave organizations. Counter that risk by training managers to be self-aware and conscious of all team members' behavioral drives and needs. The Predictive Index is one of the behavioral assessments that can be used for that purpose. However, regardless of the tool, retention is maximized when managers apply the “platinum rule”: leading employees in a way they want to be led.
While self-aware managers are the key to retaining employees, the question remains how to attract them in the first place. Consider the fundamental premise of talent optimization: have the right people in the right positions. Harness the power of objective data, hiring people who possess the behavioral profile consistent with the position you are filling. While skills can be taught, behaviors generally won’t change. Get it right the first time.
Advancements are consistently increasing across all industries, thus individuals must continuously evolve to ensure effective execution. Ongoing training is now more critical than ever, for both technical and “soft” skills, including leadership development. It is important that your training and development align with your company strategy, meaning the company’s needs have been anticipated 12 to 36 months ahead. Companies should utilize competency maps in conjunction with their L&D programs to develop current employees in addition to hiring externally.
Finally, execution will become more efficient if information can be freely exchanged within the organization. Sharing knowledge will contribute to personal growth and power innovation. Innovation includes not only product development but also daily adjustments and enhanced practices that will continuously improve execution.
In our next blog, we will consider how the pursuit of best practices in execution may actually put your market differentiation at risk.
How well is your business executing? To find out, contact us and we will initiate an assessment of your execution capabilities.