Human Capital needs to be Planned - Building A Foundation For Success

Noted recruitment and talent management expert, Allan Schweyer, has stated that "Human capital is a core corporate asset, just like financial and physical assets.  As such, it must be managed the way companies manage other assets.  This requires thinking strategically about how to invest in human capital, and figuring out how to optimize and measure its return." 

When laying a foundation for an entrepreneurial venture, planning is crucial.  Planning for every aspect of the future must be a priority.  An important part of planning for the future is developing a plan for full and effective utilization of human capital.   By human capital, I mean the employees, contractors, advisors, vendors, etc. who will help implement the mission of your enterprise.  Ms. Denise Rolark-Barnes, an owner of a Washington, D.C. based newspaper, recently shared with me that one of her greatest challenges as a business owner is getting and keeping great people.   Ms. Rolark-Barnes states, however, that she is not alone in this challenge.  According to her, all business owners will face this challenge at one point or another.  She advises that devising a plan for addressing this issue is something that all entrepreneurs should do to ensure the continuity and longevity of their business. 

Ms. Rolark-Barnes suggests addressing the issue of acquiring and retaining great employees in the following phases: Recruitment (create an attractive idea which will interest people in joining you); Training (mine potential by cultivating growth); Retention (“give 'em an excuse to stay”); Career Path (provide hope for upward mobility); Mentoring (encouraging model behavior); and Promotion (“move 'em along' and compensate accordingly”).  Ms. Rolark-Barnes’ work and forethought in this area have resulted in recent instances of highly talented individuals coming to her organization.  She believes these talented individuals will ensure that her company is well-positioned and ready for future shifts in her industry.

Planning for the human capital needs of your company is something all entrepreneurs must do.  Without a plan for attracting and retaining the best talent, you may find yourself unable to effectively utilize one of the most important resources your business will ever have.

Align Yourself with the Right People - the Path to Being an Entrepreneur

Building an enterprise with sufficient capacity to fully capitalize upon an idea and compete in the marketplace is a key component to building wealth. One way to ensure that an organization has the capacity to compete in the business world is to hire the right people. While hiring smart, dedicated, and loyal people is a critical step in the right direction that alone is not enough. It is also important to develop a strategic plan for hiring employees. Initially, Washington, D.C. based real estate developer, Adrian Washington, hired his employees based on instinct. Early on, he looked to hire smart people who would work hard for his young company. As his business matured, however, Mr. Washington became more strategic in his hiring practices. He began to focus his hiring strategy by evaluating needs and identifying voids in his company. He then implemented a plan for identifying and attracting individuals who possess the requisite skills and qualifications to fill those needs and voids. In this regard, Mr. Washington developed a strategic, incremental plan for growing his enterprise. Having a plan for effectively utilizing the skills of those with whom you align yourself is just as important as identifying the individuals with whom you would like to work.

Mr. Washington stresses the importance of communicating to new hires the importance of their position and how it relates to the overall mission of the organization. As one noted business author, Michael Gerber, has suggested, "As an employer, you are going to have to create an environment in which 'doing it well' is more important to your people than not doing it." Having your employees buy into the vision and mission of your organization is key. The strength and capacity of your company depends on your employees’ dedication to its success.

As you continue seeking to align yourself with the right people, don’t forget these other key points. Remember always to surround yourself with the best and brightest minds you can find. Balance experienced veterans with young, hungry, smart, talented people. Give people enough autonomy and freedom to develop confidence in their ability to perform their job. Expect people to "know their stuff," and demand excellence without excuses. Create an environment in which hard work is rewarded. Allow employees to make mistakes, but fire people who fail to deliver results. Always lead by example, and make sure your employees see you working harder than them. Finally, make decisions quickly and definitively. Never allow issues to linger without resolution.

The Path to Being an Entrepreneur

An entrepreneur is a person willing to take-on the various risks related with bringing an idea alive--to bring it to market.  As defined by Wikipedia, an entrepreneur is a person who undertakes and operates a new enterprise or venture, and assumes some accountability for the inherent risks.

Have you ever wondered, “Do I have what it takes to be a successful entrepreneur?” Or, have you ever thought, “I’m just not sure I’m the ‘entrepreneurial type’.  If so, you’re not alone.  Many talented people with great ideas believe they don’t have what it takes to be a successful entrepreneur.  For many, the thought of running their own business leaves them feeling anxious and apprehensive.  For most people, the notion of leaving a secure job or profession creates a host of questions, fears, and uncertainties that kill their dreams before they even have a chance to breathe.  I believe the fear of becoming an entrepreneur stems from a flawed thought-process, which if corrected, can help you find your inner entrepreneur. 

Most people believe that entrepreneurs somehow emerge from the womb at birth.  Many of us believe that being an entrepreneur is an innate skill, and you’re either born with it, or you’re not.   While I agree there are certain people who know virtually from birth that their one mission in life is to found a start-up “widget” company, take it public, and then spin it off into several international widget conglomerates, most of us don’t find our inner entrepreneur quite as naturally. My conversations with many successful entrepreneurs of all ages, sexes, and races have led me to this conclusion.  Entrepreneurs are not born.  They are made.  Being entrepreneurial is not an innate quality that some of us get and others of us don’t.  Rather, an entrepreneur emerges from an individual’s identification of his or her talents, which he or she develops through a course of intentional acts and persistent conduct.  I hope to share insights from my personal journey through this blog and hope that it might be helpful to you in finding your inner entrepreneur.