Human Capital and the Bottom Line

Human Capital and the Bottom Line


What do we mean by Human Capital? Well says that Human Capital is,

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.’

So which is more important – the computer or the brains that created the computer?

There is little doubt that brains trump products very time.

Products become obsolete. Brains don’t (unless you let them).

But, brains require competent cultures in order to flourish and to be engaged and herein lies the twist!

Deloitte’s summed it up very nicely in its Global Human Capital Trends Reports 2015:

“This year, culture and engagement was rated the most important issue overall, slightly edging out leadership (the No. 1 issue last year). This challenge highlights the need for business and HR leaders to gain a clear understanding of their organisation’s culture and re-examine every HR and talent program as a way to better engage and empower people.”1

The conclusion is straightforward: Engage and empower your workforce to improve your bottom line.

A key conclusion of the Deloitte report was that “Softer” areas such as culture and engagement, leadership, and development have become urgent priorities.

Easier said than done, as these are outcomes of organisational culture which itself is the outcome of the values of the organisations dominant alphas. Sadly, there is a lingering attachment to the ‘Chainsaw Al’, style of leadership!2

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  1. Global Human Capital Trends 2015 Leading in the new world of work. Deloitte University Press. []
  2. see Al Dunlap Ten 10 Worst Bosses by Dan Fastenberg Monday, Oct. 18, 2010 Time Magazine,28804,2025898_2025900_2026107,00.html []