What is the next source of sustainable competitive advantage for organizations? Over the years, companies placed their bets on different things. Some companies placed their bet on technology. But soon, other organisations would acquire the same technology and before long, the advantage would no longer exist. Others thought that the advantage was in hiring the ‘star CEOs’, again, the market never ran out of star CEOs.
As firms approach the productivity frontiers, that point where they all start to look the same, there’s going to be one true differentiator- the human capital. The only sustainable competitive advantage that organisations can have, is human capital. And it’s not just about hiring top performers, it’s about how the human capital is managed across the lifecycle from the onboarding to the off boarding. That integrated set of choices around the human capital is the DNA of the organisation.
As such, human resource management in organisations must be approached with a strategic lens. The question should be ‘how do we transform how we manage our people and performance so that we achieve the company’s goals?’ How do organisations build this DNA? Everything about the organisation can be copied, but how the human capital is organised, that can never be copied. That’s the true source of sustainable competitive advantage.
Human Capital: Building the DNA of African Organizations
What is the next source of sustainable competitive advantage for organizations? Over the years, companies placed their bets on different things. Some companies placed their bet on technology. But soon, other organisations would acquire the same technology and before long, the advantage would no longer exist. Others thought that the advantage was in hiring the ‘star CEOs’, again, the market never ran out of star CEOs.
As firms approach the productivity frontiers, that point where they all start to look the same, there’s going to be one true differentiator- the human capital. The only sustainable competitive advantage that organisations can have, is human capital. And it’s not just about hiring top performers, it’s about how the human capital is managed across the lifecycle from the onboarding to the off boarding. That integrated set of choices around the human capital is the DNA of the organisation.
As such, human resource management in organisations must be approached with a strategic lens. The question should be ‘how do we transform how we manage our people and performance so that we achieve the company’s goals?’ How do organisations build this DNA? Everything about the organisation can be copied, but how the human capital is organised, that can never be copied. That’s the true source of sustainable competitive advantage.
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