Enter the People Balance Sheet – the diagnostic tool that provides the blueprint of where executives need to take their people in order to execute strategy by providing executives with an immediate bird’s-eye view of their people’s capabilities through the lens of ‘as is’ and ‘to be’ states.
Just as financial balance sheets are an indicator of an organisation’s financial health the People Balance Sheet provides a strategic overview of the organisation’s health from a people competency, capability and talent perspective, to deliver on the strategic business objectives.
Once strategy has been written, the leadership team should stop to deeply interrogate and ask: “Do we have the right people skills and strengths to execute on the strategy?”
Organisations struggle to define their People Balance Sheet in a productive way because they either neglect to measure what their current state is, focusing far too much on the future state, or vice versa. Without scrutinising the delta between where we are and where we need to be, we cannot formulate a roadmap for the future. A weak People Balance Sheet indicates that the organisation is poorly positioned to execute and will therefore result in mediocre strategy execution.
According to a recent IBM study, almost 60% of organisations do not have the requisite people skills and resources to execute their business strategy. This is because executive leaders cannot articulate the capability and skills required for future fitness.