IS FINANCIAL CAPITAL OR HUMAN CAPITAL MORE IMPORTANT?

IS FINANCIAL CAPITAL OR HUMAN CAPITAL MORE IMPORTANT?

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Is it better to invest in an A product with a B person than in an A person with a B product and should the starting point and ongoing foundation of a successful strategy be financial capital instead of human capital?

As the famous American economist and author Peter F. Drucker explained: “The organization is, above all, social. It is people.” In other words, developing people means developing organizations.

So the answer is: Human capital is more important than financial capital and other assets of a company. And “if your CFO is more important than your CHRO (Chief Human Resource Officer) you’re nuts!” says Jack Welch, former CEO, GE (General Electric).