Creating value through people

One point that most of the companies overlook these days is the importance of its people. “Management through spreadsheet” is becoming more common these days. Costs are being managed quarterly in a rush to satisfy wall-street expectations and lay-offs have become a norm! This narrow focus on quarterly performance has put companies on a downward spiral.

The financial performance of a business is not something you can or should directly control. It is achieved by providing superior value to the marketplace. Marketplace value is a consequence of energizing and focusing employees to create and deliver value. To make money, managers should not spend their time managing money, but should instead devote their efforts to the things that produce the money: the enthusiasm, commitment, and drive of the labor force.[1]

More and more executives these days are focused on trying to make money, and mostly disregard the motivation and feelings of the people who are the real engine of the company.

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[1] Creating Value Through People by David Maister