From Financial Capital to Human Capital


The new corporation differs from the old in both goals and basic assumptions. In the industrial era, when the strategic resource was capital, the goal of the corporation could only have been profits. In the information era, however, the strategic resource is information, knowledge, creativity. There is only one way a corporation can gain access to these valuable commodities—that is, through the people in whom these resources reside.

So the basic assumption of a re-invented company is that people—human capital—are its most important resource. What used to be one of the radicals’ favorite slogans, “People before Profits,” is finding its way into the boardroom and being transformed into a more businesslike but equally humanistic “People and Profits.”

In an information age society, human resources are any organization’s competitive edge.

One expression of the importance of human capital is the new corporate preoccupation with health and fitness. Corporations are treating their human assets with new concern, encouraging their people to stop smoking, lose weight, exercise, and learn to manage stress. What might have been considered an intrusion into one’s personal life in the past is fair game when people are a company’s strategic resource.

The new re-invernted corporations stress inordinate regard for the two most important types of people in an enterprise: employees and customers.

They have discovered that by being both pro-people and pro-profits, a company can earn more than it it had targeted profits as its only goal.

It is not a question of being nice to people. It is simply a recognition that human beings will make or break a company.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

Preparing Salespeople


A new product is an intrusion. It takes time. It disrupts schedules. It involves change and risk. Salespeople are known for wanting new items to sell, but there are still negatives. Salespeople are not usually given reduced territories when asked to sell a new product.

 

It is important (1) to investigate in advance any possible reasons why salespeople might object to the new product, (2) to give them all the training and materials they need to be effective, and (3) to make sure the product is available, in their territories, when they start writing orders for it.

 

The key is to do your job such that they can do their job. That means to have a product that customers will understand to try, and to train the sales force to understand and communicate the story. This training should use the latest technologies

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight