What is human capital? How to measure human capital? How to grow human capital and build best in class teams? A book for busy executives and small business owners. Ditch the guesswork involved in appraising and selecting job applicants. 5 simple steps builds a scorecard model: a one page spreadsheet with embedded formulae.
Experts are unable to agree on what constitutes Human Capital. Not surprising, as Human Capital is not a one-size fits all definition.
Human Capital depends on 5 variables:
1: Management Style (your preferred style)
Human Capital requirements rely on your management style. There are two basic styles: authoritative and consultative, and all the different shades of grey in-between.
2: Hard Skills
Human Capital includes all the hard skills a person brings to the table: skills, training and experience. These are fairly easy to identify and even quantify.
3: Soft Skills
Human Capital includes all the soft skills a person possesses: personal attributes. For example, between diligence and detail-oriented, as a manager what do you prefer in your employee? How do you compare apples to oranges?
4: Team Human Capital
Business success demands team effort. Team Human Capital is the collective of all the individual human capital. How do you quantify this? If you cannot quantify it, how do you know you are adding or growing your human capital?
5: Business Sector and Lifecycle Stage
Different challenges require different sets of hard and soft skills. For example even for a given business, skills required at the entrepreneurial stage differ from those at the growth and maturity stages.
Human Capital consists of several complex variables and to give an extra spin to mess up everyone-the requirements keep changing. That's why they are called variables.
'Listen bud, this is how we do things around here' - does not cut it.
The Human Capital Growth Model offers a simple and systematic means to tackle all the challenges thrown up by the above 5 variables.
And it takes only 5 steps:
- Step One: List the Attributes
- Step Two: Rank the Attributes
- Step Three: Assign Weights to Attributes
- Step Four: Construct Questions
- Step Five: Interview and Assign Scores
Download a copy or order a print version. Even if you learn only one new thing-it is money well spent.
It is a thin book, thin on theory, and based on several decades of hands-on experience.
Cut to the Chase. Win the Race!
(Updated 26 August 2018)
