How the Right Management of Human Capital Creates Value in Times of Uncertainty
In his book “The Black Swan” Nassim Nicholas Taleb has shown that the world is driven primarily by the big unexpected changes rather than the small ones you find considered in your business forecast scenarios. To put the book into a nutshell, we could say: “Expect the Unexpected, which is almost always Underestimated in its Impact!”.
Why is all this relevant for Human Capital Management?
Well, apart from the fact that risk management teams often operate in the way criticised by Taleb, one single team cannot transform an organisation into one that has the best chances to excel under uncertainty. Getting your business Black-Swan-Ready constitutes a fully-grown business transformation requiring different skills, different people, new ways to manage and reward people, different KPIs, … you name it. Above all, it requires a cultural transformation, because, as we have seen above, there are mindsets that need to be changed. This all sounds to me as if a change in Human Capital Management definitely needs to be a strong driver here, whether led by an HR department or not.
This article shows, how the Management of Human Capital can drive the execution of a Black Swan ready business strategy. Click here to read “HR-Strategy and the Black Swan”.
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