Manage human capital

The improvements in workplace productivity once brought about by automation, technology and developments in management techniques have inevitably started to bring diminishing returns. In the future, information, and the people who possess and deploy it, will become at least as important as the technology they use.

But the increasing value of knowledge workers lies at the heart of a paradox. In the past, employers owned the means of production. Today's knowledge workers own the means of production — the knowledge in their heads. As a result, they have become both assets and costs. But while costs must be managed and reduced, assets have to be increased. How do you square this apparent circle?

The answer lies in an approach we have used with successful organizations all over the world. Our approach is simple, direct, powerful and effective. It drives out fixed costs and replaces them with variable costs. It increases efficiency. The business becomes so lean and responsive that profits can go up, even if revenue falls.