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Tuesday, September 20, 2005

Reactions Are Not Solutions

Much of what happens in human capital today is a response to external pressures. Many best practices are little more than an efficient way to respond to some change in labor law. We don't come up with these ahead of the time, but react to the change. Overall, the human capital arena wouldn't have as much attention if labor were plentiful. So, since the early '90s when it became hard to find good people, the economic pressures brought on by labor shortage has been a hot topic. With the onset of ASP technology, automated tools have sprung up. We have been reacting to technological advances since then. [On a side note, it's a shame the tool of choice became the ATS. An ATS is an automated filing cabinet. You can't solve material shortages with filing cabinets. You need more material. For those who would argue, next time you're hungry go buy a refrigerator. Tell me how it satisfies your appetite.]

Increased attention to the labor shortage is a straightforward economic response. More attention is paid to the shortage. Substitutes in the form of outsourcing and automation are increasing. But the economic reaction is just that, a reaction. The urge to redesign human capital energy is not there because it's worth doing but because it needs doing. If it can be deferred or delayed in any way it will be. And that's where we are. Since there are problems with greater short term urgency they get solved first. For those companies who believe their number one issue is human capital, I wonder what they're doing to solve it? Not treat it, but solve it. Our reactions to external pressures tends to result in adjustments, not solutions. While we approach our work this way we are unlikely to solve anything long term. We're just corporate ants following the bread crumbs wherever they may be. I don't know about you, but I aspire to more.

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