Your Company’s Value in Your Strategic Action Plan is?
Your Company’s Value in Your Strategic Action Plan is?
A 1978 study by the Stern Business School revealed that there existed a 95% correlation between a company’s value and its balance sheet. By 2005, this correlation almost did an 180 with only a 28% correlation between a company’s value and the balance sheet. What this suggests is that the tangible value in the 1978 has been replaced with an intangible value in 2007.
This dramatic change is in alignment with the changing economy from tangible products to intangible products or what is called intellectual capital. Today’s economy is all about knowledge and more importantly how to apply that knowledge quickly for the greatest gain.
So where is the source driving this intellectual economy? Simply speaking it is your human capital, your people who will more than ever before make or break your company.
To recognize human capital as our greatest asset again requires that we change our paradigms. For example, we have a variety of C-Level Executives:
Chief Executive Officers (CEO)
Chief Operating Officers (COO_
Chief Information Officers (CIO)
Chief Financial Officers (CFO
Yet, where are the Chief People Officers? Until we value people at the top, they will not be truly valued at the bottom of the organization.
Another paradigm is within the profit and loss statement. When salaries are listed as an expense instead of an asset, what message does that send about how you value your human capital?
A third paradigm resides within the traditional training and learning departments. To improve performance thereby improving value, the real question needs to change from “Do they know it?” to “Do they want to do it?” For performance improvement is much more about attitudes and habits than skills and knowledge.
Take action, revisit your strategic action plan. Begin to understand the real source of your company’s value.
Your Companys Value in Your Strategic Action Plan is - To learn more about this author, visit Leanne Hoagland-Smith's Website.
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To outlive and outlast the competition in today’s marketplace where the click of the mouse may cost you thousands of dollars demands an understanding of your company’s value and how it relates to your balance sheet.
A 1978 study by the Stern Business School revealed that there existed a 95% correlation between a company’s value and its balance sheet. By 2005, this correlation almost did an 180 with only a 28% correlation between a company’s value and the balance sheet. What this suggests is that the tangible value in the 1978 has been replaced with an intangible value in 2007.
This dramatic change is in alignment with the changing economy from tangible products to intangible products or what is called intellectual capital. Today’s economy is all about knowledge and more importantly how to apply that knowledge quickly for the greatest gain.
So where is the source driving this intellectual economy? Simply speaking it is your human capital, your people who will more than ever before make or break your company.
To recognize human capital as our greatest asset again requires that we change our paradigms. For example, we have a variety of C-Level Executives:
Chief Executive Officers (CEO)
Chief Operating Officers (COO_
Chief Information Officers (CIO)
Chief Financial Officers (CFO
Yet, where are the Chief People Officers? Until we value people at the top, they will not be truly valued at the bottom of the organization.
Another paradigm is within the profit and loss statement. When salaries are listed as an expense instead of an asset, what message does that send about how you value your human capital?
A third paradigm resides within the traditional training and learning departments. To improve performance thereby improving value, the real question needs to change from “Do they know it?” to “Do they want to do it?” For performance improvement is much more about attitudes and habits than skills and knowledge.
Take action, revisit your strategic action plan. Begin to understand the real source of your company’s value.
Your Companys Value in Your Strategic Action Plan is - To learn more about this author, visit Leanne Hoagland-Smith's Website.
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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