People

Employees aren’t just boxes on an org chart

In this economy, people are the only true capital.

Companies today face a landscape of ambiguity where old structures, familiar routines, and reliable channels often yield disappointing results. At the same time, competitors, unfamiliar strategic models, and new business techniques threaten to overthrow decades of business-as-usual.

For many companies, people are the prime source of competitive advantage. Creative people, in the right kind of culture, have better ideas, are able to execute more quickly — and even develop other people better.

At the core is the question of participation. Creativity is a social process — it doesn’t work without interplay. The best way to stimulate interplay is to bring in new kinds of people.

The challenge is to increase variance in what people think, say, and do. So when companies recruit, they must do what doesn’t come naturally.

First hire people who ignore or reject how things are ‘supposed to be done’ and focus on getting on making results. Second, hire people who make you uncomfortable — who seem talented but have different beliefs, knowledge, and skills. These are the people who will scout out new trends and directions for your company.

And remember, you cannot compel innovation from knowledge workers. Only by cultivating an environment where workers choose to opt in — will companies be able to leverage these new ideas into real, tangible results.