Editor's page

Citation

Norris, M. (2001), "Editor's page", Strategy & Leadership, Vol. 29 No. 4. https://doi.org/10.1108/sl.2001.26129daa.001

Editor's page

Most business leaders are well aware of the unparalleled change we are experiencing in technology, communications, operations and strategy, as the information age has replaced the industrial age. They may, however, be less aware of how these changes have affected the workforce. Some of the most recent data suggest that:

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  On average, companies will lose half of their employees in five years (Bain & Company).

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  In 1995, almost six million US workers quit their jobs to take better offers. In 2000, that number was predicted to reach 17 million (Saratoga Institute).

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  The young person leaving school today will have nine jobs before reaching the age of 32 (US Department of Labor).

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  Replacing a worker costs roughly half of that person's salary, in addition to the burden and stress put on colleagues and the organization as a whole (US Department of Labor).

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  While many companies can and do calculate the direct cost of unwanted turnover, it is the indirect costs of loss of talent, customer satisfaction, employee morale, productivity and quality that are even more critical (Aon Consulting).

No less than respected business leader Jack Welch, CEO of General Electric, said in a USA Today interview that the top 20 percent of a workforce should be "rewarded in the soul and wallet, because they are the ones who make magic happen. Losing one of these people must be held up as a leadership sin." He said the middle 70 percent should be energized to improve, while the remaining 10 percent should be shown the door. He believes that not getting rid of the lowest 10 percent early "is not only a management failure, but false kindness as well – a form of cruelty," because they will eventually be fired and "stranded" in mid-career.

On the following pages, our authors present ideas that may assist leaders in understanding the challenges of leading and managing people in today's business environment, as well as ideas for improving their own experiences in the workplace:

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  David Stum reports on new research that reveals the dynamics of the new "commitment contract" that will forge employee/employer relationships in the twenty-first century.

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  Jeanne Harris and her co-authors describe the findings of a study that outlines the competencies needed to manage effectively in an e-business environment.

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  Robert Cooper shows how all workers, leaders included, can use calm energy to improve their creativity and productivity, strengthen their relationships and enjoy life more.

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  Göran Roos and his co-authors explain the use of an intellectual capital navigator to model how people resources are used in the organization and the application of this information in formulating and implementing strategy.

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  Orit Gadiesh and her co-authors demonstrate the importance of considering strategic intent in every step of the mergers and acquisitions process, from choosing a candidate to setting the price and then negotiating the deal.

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  And do not miss David Fleming's commentary on how to use personal and organizational stories to guide employees through change.

Walt Disney said, "You can dream, create, design and build the most wonderful place in the world, but it takes people to make the dream a reality." The same can be said for any business leader's vision. In this issue of Strategy & Leadership, we have tried to provide some insight into how to optimize the human capital on which every organization depends.

Marilyn NorrisEditor