Return on Humans

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Most business leaders are familiar with the notion of return on capital, funds invested, etc, and those same leaders often say something along the lines of “our people are our  most important asset” weather they believe it of r not, behave like it is the truth or not.

However, here is the rub of 2014.

Our machines are becoming rapidly more capable. Apple launched the iphone in 2007, and the App store a year later, creating a revolution that is evolving and spreading at huge speed, disrupting everything in its path.

Forget Angry Birds, the nonsense hit game of 2011, and its ilk, but look at  the way Apps are being used in medical  science, geo location, and a thousand other places, disrupting as  they go.

As this all progresses, the machines take over from people, the gap between the smart, innovative, educated and creative people and the rest is widening.

On average we are  degrading the value of the people around us, an increasingly small number are hugely valuable, the rest are being replaced, the return on capital is increasing, the return on people is decreasing.

I do not think it is 1984 yet, but leaders should be adding the calculation of return on humans into their strategic matrices as they plan the next 3-5 years capability building initiatives.

Of greater concern should be the social consequences of this trend, and the steps our communities should be taking to address the problems that will become generational, way, way beyond an election cycle.

Wake up Canberra, and the rest of our closeted, self interested pollies.

 

 

 

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
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