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 what they actually 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.
[Email readers, continue here…] 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.
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.
Hi Dave:
I’m impressed that you still provide interesting and useful information for your readers. Our employees were the ones who made us successful. My partners and advisors (including YOU) made a huge difference when we finally sold our company – THANKS. I hope that you’re doing well.
All the best,
Dan Hoefflin
Following the theme of your argument, I am submitting a paper to a management journal arguing, in part, that employees bear similar residual risk as shareholders, but don’t have the same opportunities to diversify, hedge or avoid that risk as do shareholders in this modern equity market.
Seems so obvious???