You can't start soon enough. That was one of the key themes of the inaugural, weeklong Startup Phoenix event. Hundreds of sessions delivered by experienced business owners and consultants were available at 5 different locations in the Phoenix area. Attendance was extraordinary, and the quality of the content presented was remarkable. As you can imagine, there was a big emphasis on the following three startup drivers:
1. Do you have a product that the market values?
2. Do you have the right team to realize your business goals?
3. Can you outcompete your competition?
Phoenix Strategic Performance delivered a session entitled, The Impact of Human Capital: Human Capital Strategy As a Business Differentiator. The focus of the presentation was that it’s never too early to start managing people, your most important asset.
Startups, by their very nature, are fast-paced and change continually. Every person in every role will make a critical, strategic difference. There is no room for error, nowhere to hide and no place for people who are stagnating. Given the recent research stating that the shelf life of both knowledge and skills is now 2.5 years, think about the impact that scenario can have on lean, start up operations. How quickly can robust human capital become obsolete? Through a rigorous, business-focused assessment system, startup companies can quickly and accurately assess their human capital in terms of productivity percentages, value creation, stagnation and erosion, and positive, neutral and negative trends. When seen through those lenses, how would an investor evaluate a start up for investment potential?
As soon as an organization has more than 10 people, it requires thoughtful planning, definition, structure and a disciplined rigor that may seem counterintuitive to the start up mentality. However, every startup needs to plan for their future – right from the beginning. The issues of human capital should not be left to chance or to the thought that ‘we are not yet big enough to worry about human capital.’ Every startup needs to think about business results and about increasing the ROI of their people. They must be continually focused on improving financial results by unlocking human capital potential.
2 Ways Startups Should Think about Human Capital Planning:
1. Determine RoleFit©: Business Strategy, Role and Competency Alignment
Clear role definition and assignment, together with objective, strategically benchmarked competencies that are properly aligned, can prevent missed opportunities.
Increase the value of your organization by ensuring the full performance of your human capital resources and their optimal assignment, in the right roles. Startup roles are in a constant state of flux operating in growing and fast-changing environments. Make sure the right people are in the right role.
2. Create a Sustainable, High-Performance Culture, Right From the Start
Culture is the glue that keeps an organization together and establishes key operating norms. It is directly linked with strategy and determines key outcomes.
Culture can be very fragile in startup and growth companies. Change is constant and dynamic creating constant ‘culture stress’. Creating a high-performance culture right from the beginning must be a strategic initiative. The sooner start-up companies focus on culture as a real strategic differential, the more likely that culture will be alive, productive and robust.
We invite you to download our presentation from the recent Phoenix Startup Week to learn more about human capital as a strategic differentiator at your startup.