Most CEOs talk about “human capital.”
I cringe every time. People aren’t capital. They’re not resources to be optimized. They’re stakeholders with skin in the game.
After 50 years of building companies and backing entrepreneurs, I’ve learned this: The companies that win treat employees like they are—co-owners of the mission.
Not just the C-suite. Everyone. The customer service rep who saves a million-dollar client? She deserves to know the company’s financial health. The developer who spots the security flaw at 2 AM? He should understand how his work impacts valuation. The office manager who negotiates a lease saving $200K? She’s earned a seat at strategic discussions.
[Email-readers,continue-here…]
Most founders hoard information like its proprietary gold.
But transparency creates accountability. Accountability drives performance. Performance builds value for everyone.
I’ve seen startups with average talent outperform teams of rock stars. Why? Because everyone understood their role in the bigger picture. Everyone felt the weight of ownership.
The best companies I’ve invested in don’t have employees. They have partners. Partners who know the runway. Partners who understand the metrics. Partners who celebrate wins and own failures together.
Stop managing people like expense line items. Start treating them like the stakeholders they actually are.
Your company isn’t just yours anymore the moment you hire your first person.
Act like it.
Employees are stakeholsers in the game. Thanks.
Dave, this is great background for our Culture Discussion at next week’s Round Table (and tomorrow’s). Thanks! Mimi