There is a major opportunity for businesses to transform the way they manage their human capital. By doing so, they can achieve benefits both in reducing HR costs and in positive behaviour changes and resulting improvements in performance.

Many businesses have claimed that ‘people are our most valuable asset’ or ‘people are at the heart of our business’, but there is a critical gap between the rhetoric and the reality. Senior managers believe that HR departments have under-delivered and that the greatest opportunities to reduce costs and improve performance exist in the management of people.

To realise the opportunities in managing people, organisations need to focus on the activities that have the greatest impact on performance, both individual and organisational. In short, they need to carry out a Human Capital Transformation (HCT) programme that explicitly values human capital, and focuses on the key drivers of improved people performance.

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This article is part of Axon's Human Capital Transformation Process.  To view other articles in this process please visit the Human Capital Transformation page.