Assets or Liabilities?

 It’s no secret that people should always be your greatest assets. 

But are your people the right people, and are they given the right tools and environment to thrive and excel? Peter Drucker, famous author and quality guru, noted that most organizations have deceptive and erroneous accounting systems when it comes to people. 

Why? Because in most organizations, people are placed in the liability column on the balance sheet, while equipment and inventories are considered assets. Reality is that the right people are your greatest assets. 

If you believe this, it’s time you took a focused look at your management style and organizational environment. Consider the following recommendations:

First, as my friend Mike Humphrey, VP of Operations at David Weekley Homes, says: “you’ve got to get the right people on the bus, in the right seats, going in the right direction. You’ve also got to get the wrong people off the bus.” Recruiting and retaining the right people isn’t easy – it takes time and money. There are lots of great folks out there. Make sure you grab and retain the best. Mediocre is a malignant virus. 

Once you get the right team together, don’t forget to train them, continually. Give them the tools they need to excel. Send them to classes, seminars, and conferences. Offer them reading lists, tapes and DVDs. Keep them fresh and growing. And when you discover you’ve made a hiring mistake or someone has simply stalled and starts “stinking up the place”, be quick to act. 

Next, examine your company’s and employees’ purpose. Are they in sync with one another? In other words, are your goals and objectives compatible? The individual purpose of your employees and your company are intricately and inseparably linked. Remember that people will never do for a company what they won’t do for themselves. 

And lastly, employees who feel appreciated not only stay longer, they contribute more. Appreciation can be the ultimate currency in your organization. Instead of throwing dollars at problems, try showering your players with sincere appreciation. The results will blow you away. 

Best wishes as you redefine your accounting systems and rethink your company culture. Help your people become the very best versions of themselves.