Insider107
25th Jul 2001, 15:59
Readers are invited to compare and contrast the following Elysian world with the stony reality of present day SIA. The article quoted has been abridged and the bold type is mine.
The Business Times, Singapore, 17 July 2001
Human capital holds the key to corporate survival in the knowledge economy and companies need to work effectively with their highly individual, creative employees to create economic value. Michael Loh offers some pointers
A CEO asked me recently, “I keep hearing about the knowledge economy and the knowledge worker. What’s it all about, Mike? Is there some kind of a revolution going on?”
If you’ve asked the same questions, brace yourself. Grab a seat. Listen hard: The revolution is over! It’s already happened. (Where were you? Were you asleep at the driver’s seat?). The knowledge economy is the economy my dear Watson.
Economic value is no longer about physical assets. It is not about your chauffer-driven Jaguar, or your semi-D. It is not about buildings and roads or share certificates or your vacations in Majorca. Is it about how much a person makes? Nada! It lies in the unique knowledge, the intellectual firepower and the talents that each individual brings to the job. “Human capital” (or “intellectual capital” ;), though a term coined way back in the 50’s, is a term CEOs encounter more and more these days. CEOs start to run into problems, though, when they begin to assume that human capital can be treated pretty much the same way as the more traditional capital of machines, buildings and rolling stock.
Knowledge workers define human capital as the accumulated value of an individual’s intellect, potential and commitment that contributes to the achievement of an organisation’s vision and goal. Phew! That certainly changes the way the world has to view individuals and their value, right?
The people we work with today, products of decades of double-digit growth and crass materialism, are people who not only talk about having quality of life, but also are people who would actually go and get it. Young people I meet with don’t want to be treated like doormats. They want time off for fishing. They want quality time with each other and with their kids. They want to be able to teach English in Nepal or build hospitals for the Ahkas in the hills of Chiang Rai. -------------- (Edited)
------------- Thankfully, now almost everyone in corporations is encouraged to use their brains. The question is, what can corporations do to work most effectively with knowledge workers? How can corporations encourage employees to think? How can organisations make these individuals feel valued?
The fundamental fact about the knowledge worker is that he is not a machine ticking day after day on the factory floor or another clueless Dilbert in some pathetic cubicle. The knowledge worker is a human being with his own individual talents, experiences, connections, history and feelings. And, as corporations are becoming painfully aware, these folks can always take their knowledge, experiences, contacts and relationships and simply go elsewhere where they are better appreciated.
There is a deeper issue with the knowledge economy. Because it is human capital, after all, that we are concerned with, the quality of the work environment becomes a much more significant issue than it has been in the past. I Mean, how do you build a world-class organisation and attract talent when you stick a guy in a different cubicle each day or make him take a bus to KL, so you can save the airfare money? ------------ (Edited)
------------ A different sort of worker is important to the survival and success of companies. This new person is not predictable, obedient or even necessarily loyal. Rather, he or she is resourceful, creative and responsive. This is a person who makes decisions on the spot - frequently in direct face-to-face response to customers. It is not someone who passes the buck, checks with the boss, covers his bases, kills time, or buries a request so that someone on the next shift will have to deal with it. This is the guy with a somewhat colourful employment record.
What can companies do about the knowledge economy?
Gauging Value: Put a value on your human resource.
Assessing Contribution: Once you’ve put a value on people determine how much value creation comes from each individual.
Holistic Training: Training should emphasise the whole person. --------- (Edited)
--------- Firms must ask, “What are we doing to attract, motivate and retain good people?” I recently asked another young person, “What do you say to companies who go around saying, “Ours is a reputable, solid organisation and you should consider it an honour to work here. Others are standing in line to join us”?” My young friend said, “I’ll tell them to go to hell. I have no time in my life for such corporate arrogance.” Just because your company is rock-solid means nothing in and of itself if it dehumanises people and behaves like a big bully. Out of the box CEO’s must be creative in bringing about employee retention and not bully people into loyalty. You can’t force loyalty.
Above all, the company must be willing to trust its employees. How many organisations are built on trust? Too many HR policies are based on the premise that everyone is a crook until proven innocent.
By trusting employees, the company goes a long way towards creating a workforce that can think. Because people are going to be wanting to deliver on the trust that you’ve placed in them. It’s a self-fulfilling prophecy; if you don’t trust people, they become untrustworthy. And that will erode your company’s knowledge base as everyone holds back his or her best.
The writer is principal & practice leader for e-business strategy & change at IMB Global Services. Personal web site drmikloh.com
The Business Times, Singapore, 17 July 2001
Human capital holds the key to corporate survival in the knowledge economy and companies need to work effectively with their highly individual, creative employees to create economic value. Michael Loh offers some pointers
A CEO asked me recently, “I keep hearing about the knowledge economy and the knowledge worker. What’s it all about, Mike? Is there some kind of a revolution going on?”
If you’ve asked the same questions, brace yourself. Grab a seat. Listen hard: The revolution is over! It’s already happened. (Where were you? Were you asleep at the driver’s seat?). The knowledge economy is the economy my dear Watson.
Economic value is no longer about physical assets. It is not about your chauffer-driven Jaguar, or your semi-D. It is not about buildings and roads or share certificates or your vacations in Majorca. Is it about how much a person makes? Nada! It lies in the unique knowledge, the intellectual firepower and the talents that each individual brings to the job. “Human capital” (or “intellectual capital” ;), though a term coined way back in the 50’s, is a term CEOs encounter more and more these days. CEOs start to run into problems, though, when they begin to assume that human capital can be treated pretty much the same way as the more traditional capital of machines, buildings and rolling stock.
Knowledge workers define human capital as the accumulated value of an individual’s intellect, potential and commitment that contributes to the achievement of an organisation’s vision and goal. Phew! That certainly changes the way the world has to view individuals and their value, right?
The people we work with today, products of decades of double-digit growth and crass materialism, are people who not only talk about having quality of life, but also are people who would actually go and get it. Young people I meet with don’t want to be treated like doormats. They want time off for fishing. They want quality time with each other and with their kids. They want to be able to teach English in Nepal or build hospitals for the Ahkas in the hills of Chiang Rai. -------------- (Edited)
------------- Thankfully, now almost everyone in corporations is encouraged to use their brains. The question is, what can corporations do to work most effectively with knowledge workers? How can corporations encourage employees to think? How can organisations make these individuals feel valued?
The fundamental fact about the knowledge worker is that he is not a machine ticking day after day on the factory floor or another clueless Dilbert in some pathetic cubicle. The knowledge worker is a human being with his own individual talents, experiences, connections, history and feelings. And, as corporations are becoming painfully aware, these folks can always take their knowledge, experiences, contacts and relationships and simply go elsewhere where they are better appreciated.
There is a deeper issue with the knowledge economy. Because it is human capital, after all, that we are concerned with, the quality of the work environment becomes a much more significant issue than it has been in the past. I Mean, how do you build a world-class organisation and attract talent when you stick a guy in a different cubicle each day or make him take a bus to KL, so you can save the airfare money? ------------ (Edited)
------------ A different sort of worker is important to the survival and success of companies. This new person is not predictable, obedient or even necessarily loyal. Rather, he or she is resourceful, creative and responsive. This is a person who makes decisions on the spot - frequently in direct face-to-face response to customers. It is not someone who passes the buck, checks with the boss, covers his bases, kills time, or buries a request so that someone on the next shift will have to deal with it. This is the guy with a somewhat colourful employment record.
What can companies do about the knowledge economy?
Gauging Value: Put a value on your human resource.
Assessing Contribution: Once you’ve put a value on people determine how much value creation comes from each individual.
Holistic Training: Training should emphasise the whole person. --------- (Edited)
--------- Firms must ask, “What are we doing to attract, motivate and retain good people?” I recently asked another young person, “What do you say to companies who go around saying, “Ours is a reputable, solid organisation and you should consider it an honour to work here. Others are standing in line to join us”?” My young friend said, “I’ll tell them to go to hell. I have no time in my life for such corporate arrogance.” Just because your company is rock-solid means nothing in and of itself if it dehumanises people and behaves like a big bully. Out of the box CEO’s must be creative in bringing about employee retention and not bully people into loyalty. You can’t force loyalty.
Above all, the company must be willing to trust its employees. How many organisations are built on trust? Too many HR policies are based on the premise that everyone is a crook until proven innocent.
By trusting employees, the company goes a long way towards creating a workforce that can think. Because people are going to be wanting to deliver on the trust that you’ve placed in them. It’s a self-fulfilling prophecy; if you don’t trust people, they become untrustworthy. And that will erode your company’s knowledge base as everyone holds back his or her best.
The writer is principal & practice leader for e-business strategy & change at IMB Global Services. Personal web site drmikloh.com