Human capital: a key performance asset 1/5

by Jan 17, 2019Knowledge Base

The new economy is characterized by constant change: strategies are devised and implemented in a context of great uncertainty and heightened global competition, whether for resources, customers or skilled labor.

Are you interested in your organization’s performance? So it’s urgent to develop your human heritage…

An ultra-competitive economy

The new economy is characterized by constant change: strategies are devised and implemented in a context of great uncertainty and heightened global competition, whether for resources, customers or skilled labor.

Differentiation from the competition is based on the ability to execute the strategy; in particular, it’s all about having the right people and the right skills to achieve it. Matching strategy and employee skills is a source of considerable competitive advantage, and can even help to sustain a business over the long term.

Skills-based management at the heart of our development strategy

People are therefore the key to business performance. The implementation of competency-based management (CBM) is becoming strategic, placing the HR function at the heart of corporate strategy and success.

At the end of the ’80s, some thought that MPC would be nothing more than a managerial fad, possibly necessary but fleeting. In fact, it is a driving force for change and sustainable development.

Just like investment in technology, investment in human development is becoming critical, on pain of seeing one’s assets eroded, as highlighted by the Boston Consulting Group’s annual survey entitled “Creating the Human Advantage”.

It is therefore vital to identify the right support systems and tools, in order to generate a competitive advantage rooted in the company’s collective. An MPC based on Human Assets enables us to respond to this challenge by placing people at the heart of organizations, with a medium/long-term approach.

A comprehensive, dynamic approach

Focusing on Human Heritage also invites us to reconcile individual and collective logics through a global and dynamic approach: each person is the main actor in the deployment of his or her own heritage, which is built and enriched through cooperation and “working together”.

This process of transmission between people, organizations and nations leads to mutual, non-mechanical enrichment, a source of performance for both individuals and organizations.

Over the next few weeks, we’ll be taking you through the 4 components of a Human Capital-oriented MPC, detailing the different challenges, the associated MPC focuses and, finally, the performance drivers.

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