When I prepare to speak to a company about the topic of Human Capital, the first thing I do is map out their industry, highlighting how their environment is changing through digital transformation. Each industry is different of course, but in general I follow these themes: New technology that is a part of their industry’s digital transformation, customers that are expanding into their business, complementary companies that have now become competitors and large and small natively digital companies such as Amazon or a startup that is entering this space.
If you are reading this blog, you likely know my discussion will go down the path that a highly engaged workforce will make sense of all this and figure out a path forward.
The feedback I received in my first couple of meetings is generally along these lines: We agree we need a highly engaged workforce and thanks for the ideas to help us achieve/maintain ours. But even with a highly engaged workforce, there are so many moving parts and the pace of each is so different, how do we point our workforce in the right direction…we have limited resources!
To answer this, I went back to the research I performed on the companies highlighted in my book Your Last Differentiator: Human Capital. Each of these companies already has a highly capable, highly engaged workforce. But the workforce isn’t enough on its own. In addition to a great workforce, these companies are successful at executing in three very specific areas.
- Innovate relentlessly
- Focus on what I call utilization^3 (pronounced utilization cubed – sorry, formatting is a little limited in a blog)
- Deliver a superior customer experience
Each company approaches these in different ways, but each of these elements are present in every company.
My guess is that most understand 1 & 3 but might question the second. Utilization cubed means that these companies have identified ways to unlock underutilized resources in a dramatic way that their competitors have difficulty copying. As a result they themselves are highly productive or they offer a product or service that enables the downstream supply chain including their end customers to be highly productive.
The first dimension of utilization is simply the effective use of a resource whether it is a person, machine or material. All companies understand this dimension and apply methodologies such as Lean to achieve it. The second dimension of utilization is redesigning jobs to ensure that the skills of people are highly utilized. I write about Walgreen’s and Southwest doing this in my book. The final dimension of utilization is the ability to use crowdsourcing to unlock underutilized resources of others through technology. The most obvious of this is Airbnb leveraging underutilized homes, but there are an increasing number of interesting examples around this.
In researching these areas further, I have found a number of creative examples in each of these areas. I’ll share what I consider good practices in future posts to spark your imagination. If you have any you’d like to share, please let me know.