A 15-PointA 15-Point Human Capital Human Capital

Asset Development Asset Development ManifestoManifesto

Tom PetersTom PetersWorld Strategy ForumWorld Strategy Forum

The New Rules: Reframing CapitalismThe New Rules: Reframing CapitalismSeoul/13 June 2012Seoul/13 June 2012

I was intimidated by the title of a conferenceI was intimidated by the title of a conference I addressed in Seoul, Korea. Namely, I addressed in Seoul, Korea. Namely,

“Reframing capitalism.” And by the fact that a “Reframing capitalism.” And by the fact that a passel of Nobel laureates in economics would passel of Nobel laureates in economics would

be addressing the issue.be addressing the issue. Then it occurred to me Then it occurred to me that the mid- to long-term “reframing” was that the mid- to long-term “reframing” was

more about recasting the nature of work/jobs more about recasting the nature of work/jobs in, for example, the face of 2020’s artificial in, for example, the face of 2020’s artificial

intelligence than about whether the Spanish intelligence than about whether the Spanish bailout is $100 billion or $400 billion—as bailout is $100 billion or $400 billion—as

nontrivial as the latter is. nontrivial as the latter is. I.e., what the hell I.e., what the hell will the world’s four billion or so workers be will the world’s four billion or so workers be doing, say, 10 years from now? I’m not sure doing, say, 10 years from now? I’m not sure

that sophisticated econometric analyses will be that sophisticated econometric analyses will be all that helpful in determining an answer.all that helpful in determining an answer.

A 15-Point Human Capital Development ManifestoA 15-Point Human Capital Development Manifesto

1. “Corporate social responsibility” starts at home—i.e., 1. “Corporate social responsibility” starts at home—i.e., inside the enterprise! MAXIMIZING GDWD/Gross inside the enterprise! MAXIMIZING GDWD/Gross Domestic Workforce Development is the primary source Domestic Workforce Development is the primary source of mid-term and beyond growth and profitability—and of mid-term and beyond growth and profitability—and maximizes national productivity and wealth. (Re maximizes national productivity and wealth. (Re enterprise profitability: If you want to serve the customer enterprise profitability: If you want to serve the customer with uniform Excellence, then you must FIRST effectively with uniform Excellence, then you must FIRST effectively and faithfully serve those who serve the customer—i.e. and faithfully serve those who serve the customer—i.e. your employees, via maximizing tools and professional your employees, via maximizing tools and professional development.)development.)2. Regardless of the transient external situation, 2. Regardless of the transient external situation, development of “human capital” is always the #1 development of “human capital” is always the #1 priority.priority. 3. Three-star generals and admirals (and symphony 3. Three-star generals and admirals (and symphony conductors and sports coaches and police chiefs and fire conductors and sports coaches and police chiefs and fire chiefs) OBSESS about training. Why is it an almost dead chiefs) OBSESS about training. Why is it an almost dead certainty that in a random 30-minute interview you are certainty that in a random 30-minute interview you are unlikely to hear a CEO touch upon this topic? unlikely to hear a CEO touch upon this topic? 4. Proposition/axiom: The CTO/Chief TRAINING Officer is 4. Proposition/axiom: The CTO/Chief TRAINING Officer is arguably the #1 staff job in the enterprise, at least on a arguably the #1 staff job in the enterprise, at least on a par with, say, the CFO or CIO or head of R&D. par with, say, the CFO or CIO or head of R&D.

A 15-Point Human Capital Development ManifestoA 15-Point Human Capital Development Manifesto

5. The training budget takes precedence over the 5. The training budget takes precedence over the capital budget. PERIOD. capital budget. PERIOD. 6. Human capital development should routinely sit atop 6. Human capital development should routinely sit atop any agenda or document associated with enterprise any agenda or document associated with enterprise strategy. strategy. 7. Every individual on the payroll should have a 7. Every individual on the payroll should have a benchmarked professional growth strategy—her or his benchmarked professional growth strategy—her or his leader should be evaluated on the collective leader should be evaluated on the collective imaginativeness and execution of said strategies.imaginativeness and execution of said strategies.8. Given that we ceaselessly lament the “leadership 8. Given that we ceaselessly lament the “leadership deficit,” it is imperative, and just plain vanilla common deficit,” it is imperative, and just plain vanilla common sense, that we maximize the rate of development of sense, that we maximize the rate of development of WOMEN leaders at every level—little if anything has a WOMEN leaders at every level—little if anything has a higher priority.higher priority. 9. Maximum utilization of and continued development of 9. Maximum utilization of and continued development of “older workers” (to age 70—or even beyond?) is a “older workers” (to age 70—or even beyond?) is a source of immense organizational and national growth source of immense organizational and national growth and wealth.and wealth.

A 15-Point Human Capital Development ManifestoA 15-Point Human Capital Development Manifesto

10. The practical key to all human asset development 10. The practical key to all human asset development activities is the 1st-line manager. “Sergeants run the activities is the 1st-line manager. “Sergeants run the Army” is an accurate, commonplace observation Army” is an accurate, commonplace observation supported by development resources; this stricture supported by development resources; this stricture should be applied to all enterprises.should be applied to all enterprises.11. The national education infrastructure—from 11. The national education infrastructure—from kindergarten to continuing adult education—may well kindergarten to continuing adult education—may well be National Priority #1. Moreover, the educational be National Priority #1. Moreover, the educational infrastructure must be altered radically in terms of infrastructure must be altered radically in terms of both content and delivery (e.g., MOOCs) to underpin both content and delivery (e.g., MOOCs) to underpin support for the creative jobs that will be more or less support for the creative jobs that will be more or less the sole basis of future employment and national the sole basis of future employment and national growth and wealth creation.growth and wealth creation.12. Associated with the accelerated priority of the 12. Associated with the accelerated priority of the national education infrastructure is a dramatically national education infrastructure is a dramatically enhanced and appreciated and compensated role for enhanced and appreciated and compensated role for our teachers—the “best and brightest” MUST be our teachers—the “best and brightest” MUST be induced, a la Teach For America, to pursue at least a induced, a la Teach For America, to pursue at least a short-term teaching “career.”short-term teaching “career.”

A 15-Point Human Capital Development ManifestoA 15-Point Human Capital Development Manifesto

13. The great majority of us work in small 13. The great majority of us work in small enterprises; hence national growth objectives based enterprises; hence national growth objectives based upon human capital development MUST necessarily upon human capital development MUST necessarily extend “downward,” perhaps with governmental extend “downward,” perhaps with governmental incentives, incentives, to even 1-person enterprises. to even 1-person enterprises. 14. Needless to say, the activities imagined here will 14. Needless to say, the activities imagined here will only be possible if aided by a peerless National only be possible if aided by a peerless National Information and Communication Infrastructure.Information and Communication Infrastructure.15. Associated with the above is a RADICAL 15. Associated with the above is a RADICAL reorientation of leadership education and reorientation of leadership education and development—throughout the enterprise/civil development—throughout the enterprise/civil service/ education/continuing education service/ education/continuing education infrastructure.infrastructure.