Any successful leader knows that people are their most valuable asset. And hiring the best people possible is one key to the success of any company or organization. Good leaders hire people who are smarter then they are and more skilled in their given discipline. A successfully serial entrepreneur who I know likes to say that “A players hire A players; but B players hire C players”. His point is that a true leader knows their strengths and weaknesses and has the self-confidence to hire “above” themselves to make the organization stronger.
However, though fundamental and challenging, just hiring good people is not enough to creating a sustainable enterprise. Good people need good tools, good metrics and a healthy culture in order to thrive and create true sustainability. In addition to solid hiring practices, leadership must invest in training, professional development, process, technology, competitive compensation and performance metrics. Leaders must also develop and demonstrate strong values and operating principles in order for those good people to perform to their potential.
Human Capital is one of the four types of capital required to create sustainable business models. But like other types of capital, it must be invested wisely in order to grow and create ongoing value.
