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We can argue over specific metrics, but we’d all agree that we have to account for physical as well as mental/emotional health. As with individuals, there will be disagreement over metrics, but clearly we have to consider financial performance, internal stakeholders (employees), and external stakeholders (community).
They create and refine the organizational culture to free the teams to solve those problems. We need to understand our organizational constraints—the policies, procedures, and everything else that creates our culture. If the team delivers something useful every day, the manager doesn't need to know any metrics inside the team.
Third, they’re focused on optimizing what I’ll call the human capital balancesheet, making sure their workforce dollars are creating the right kind of impact in the way that their workforce is showing up day in and day out in the workplace. And let me just give you an example of how we do that. Angelia Herrin, HBR.
Many of these effects may have long-term consequences, like reduced innovation, that are not captured in short-term financial metrics. Accordingly, we examined intangible resources (captured through Tobin’s q, a measure of the value of the firm not captured by its balancesheets), financial resources, and physical resources.
As you purposefully build your company and your corporate culture, selecting the right talent—the talent that fits the job and your organization—is critical. You should come up with a targeted list of the knowledge, skills, motivations and competencies needed to perform the job successfully in your unique workplace culture.
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