People = Profit

The Boston Consulting Group and the World Federation of People Management Associations (WFPMA) have conducted major research study into the relationship between people management capabilities and financial performance.   They found that companies which consistently appeared in the Top 100 Companies to Work For list, outperformed other Fortune 500 companies, in eight of the last ten years.  Moreover the difference in performance was significant – in some cases generating two to three time as much profit.  The report also includes a survey of 4,300 HR professionals, examining in depth their people practices.

What we do not understand is how organisations fail to understand this?  Actually most CEOs probably know that managing employees leads to success , but fail to implement it. And we suspect that it is not HR practices that achieve it, but getting the organisational culture right.   If you’ve ever been in one of our classes, you’ll know that we cannot stress too much, how important culture is in successfully managing operations…

This entry was posted in Chap 11 Jobs and people, Sector: Energy & Utilities, Sector: Entertainment & Sport, Sector: Hospitality & Tourism, Sector: Manufacturing, Sector: Public Services & Charities, Sector: Retail and tagged , , . Bookmark the permalink.

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