Professors of strategy at world’s top business school, INSEAD, W. Chan Kim and Renee Mauborgne, say that successful strategy hinges on three propositions, namely, Value Proposition, Profit Proposition and People Proposition. The value proposition attracts buyers, the profit proposition helps the company make money and the people proposition helps motivate people working with the company to execute the strategy.
Most of the companies it seems, are working on only the two of these three mentioned propositions. But if you have already woken up to this fact, here are 3 reasons how you can create a people strategy for your business that is as good as (or even better) your product strategy:
- Create a company culture: Your company culture is a reflection of what your business stands for. Look at Twitter. Employees can’t seem to stop raving about their work culture- rooftop meetings, free food, yoga classes and a motivated work group to learn from and work with. More importantly they believe that they are doing something that matters. You can’t really beat that combination that inspires dedication in any kind of industry.
- Hire the right people: Did you know that 93 per cent of organizations expect the war for talent to intensify next year? The term, war for talent, was coined in 1997 by McKinsey’s Steven Hankin but the whole magnitude of it has hit home since the unemployment rates fell below 5 per cent. It has become important to focus on ‘who’ the candidate is rather than ‘where’ s/he has been or ‘what’ they have accomplished. The need of the hour is to go looking for people with a wider skill set than just what the job demands.
- Plan to train people: According to a report in PwC’s 18th Annual Global CEO survey, 81 per cent were reported to always equip employees with new skills through continuous learning and mobility programs. This is a great way to create an adaptable work force that will be able to stand the test of the changing times.