Tuesday, August 01, 2006

Our Workforce Is Our Greatest Asset. . . Really?

Our Workforce Is Our Greatest Asset. . . Really?

We have all heard it countless times, from CEO's and managing officers:

"Our People Are Our Greatest Asset."

And they seem to believe it. After all, it stands to reason: if there were no workforce - i.e. management and workers - there would be no company; if that workforce were in poor shape, the company would fail. It makes sense at every level.

But there is something about that claim that doesn't gibe with reality. Let's look:

Traditionally, the value of a company is defined as its assets, its liabilities, and its capital. (See! no people.) And because of their importance we put numbers on them, we measure their improvements and declines. And we do so unit by unit, profit center by profit center, and for the company as a whole.

Also, we audit them, very carefully, at considerable expense; such is their importance. And because we have measures for them, we can manage them.

Now let us look at our Greatest Asset: There are no measures. No numbers. Nothing to show its current value. Nothing to show its trajectory. Nothing that is the equivalent of the balance sheet and income statement.

It seems we have no measures. We guess about our greatest asset.

If our people are all that important, why don't we have measures like the balance sheet and P&L? Why don't CEO's and corporate boards insist?

But there is help. Since the early 1980's, FitzGerald Associates have been providing CEO's and CFO's with the ability to measure the value and trajectory of their workforce - management and workers.

Now, CEO's have a reliable tool that puts a numeric value on the workforce and its trajectory. And, because the performance of todays workforce - management and workers - determines tomorrow's bottom-line, CEO's can predict how the company will perform tomorrow.

So, let us ask again: If your workforce is your greatest asset, how are you measuring it? How are you managing it?

If you would like information on this technology, please contact us at info@ManagementConsultants.com or 847-599-9960. There is no obligation, we know that this is not for everyone.