Learn to lead, rather than manage...

1. My training and coaching business provides me the
Human opportunity of associating with human resources from a
Liability variety of industry sectors, both during direct work
assignments and in my travels. During one of my trips I
Human began to consider the possibility that human resources
Resource is a label that fits only a portion of a company’s
employees. Let me explain my theory with the following
Human illustrative story.
Asset On a recent trip to Miami I boarded a small plane for a
10-minute flight from my island home to the mainland airport. Upon entering the plane I
was greeted by a tired employee busily conversing with her counterpart. The two were
complaining about their employer’s incompetence, which made me quite uncomfortable.
Do you think I’ll fly that carrier again? Not if I can help it. If the carrier’s employees don’t
protect the company image, how can I expect them to protect me? I don’t consider these
employees human resources; I consider them human liabilities.
My flight from the mainland airport to Miami with a different carrier proved to be more
comforting. During the flight I asked a flight attendant if she could please find me a
blanket. After five minutes of searching she came back empty-handed and apologizing,
“I’m sorry sir, but we only have a limited number of blankets on board, and they’re all
being used.”
“That’s fine”, I replied, and placed my seatback in the reclined position and nodded off to
sleep. When I awoke my senses were surprised by the feel and scent of a female flight
attendant’s overcoat covering me.
Do you think I’ll fly that carrier again? You bet I will. Not only will I fly with that airline, I’ll
recommend it to everyone. Not because a flight attendant was kind enough to see to my
comfort, but because that company obviously employs human assets. People who add
value to a company. People who not only protect it, but improve it.
Why is it that everything a company either owns — i.e., production assets, capital and
inventory — or has the benefit of — i.e., market share or branding image — is labeled
an asset, yet the people (employees) are labeled resources? The plane I am sitting on is
a physical asset. The fuel is a resource. It may be that the company considers
employees resources because they perform a resource function; however, every
employee has the opportunity to perform at a level of excellence, increase profits
through efficiency, or increase market share through effectiveness.
Now, companies can argue that personalities play a role in attitude, and that determines
into which category an employee fits. I certainly wouldn’t argue against that. We know
personalities vary from person to person, from day to day. Some people just aren’t
happy with their job status. Some people hate going to work, dislike their jobs, are
unhappy with the compensation, and are motivated only by weekends off. Is more
money the answer? No. I’ve been paid very well for some work assignments I’ve
accepted. The ones that gave me the most satisfaction were not the highest paying ones
but the ones where I was recognized for my performance.
In my experienced opinion, a pacesetter company, a company focused on asset and
resource performance excellence, should recognize my theory as an opportunity and
make it their first step in reaching for performance excellence. This means the company
must begin a management of change initiative to improve asset performance. Assets, in
Ted Lister is a performance and change management trainer and coach
Copyright 2005© www.listermanagement.com

2. this case, being of the human class. Pacesetter companies have found that any
improvement to human performance results in an equal or greater improvement in
company assets such as production. There is also the added benefit of satisfaction that
spills over to the employee’s personal life, making work life that much more productive.
Personally, my employment history includes a position in which I was a human liability (I
didn’t always treat company property with respect), another in which I was a human
resource (assembly line production with no quality control opportunity), and finally a
position in which I am a human asset (providing individuals and businesses a substantial
return for investment dollars in the area of performance and change management
training and coaching).
So where do you begin? Well, think of it like this: If a vehicle is an asset to a company
and fuel is a resource, wouldn’t it make sense that if an employee were an asset to the
company, then education would be the resource. Education and involvement. If you want
to turn human liabilities into human resources and human resources into human assets,
you need to educate them and involve them in the business. I don’t mean that they need
to be partners or major shareholders, only that they understand the nature of your
business. Human resources should know how you make your money, why you make
money, who benefits and what it means in the overall scheme of things. Many
employees don’t even know the difference between profits and revenues. Some don’t
understand market share and competition. Most don’t understand what a common vision
and mission can do to make a business successful. Many have never managed a
business, written a business plan, been responsible for meeting a payroll, or lost a major
contract. But every human knows what it feels like to be an asset. To benefit someone.
To be recognized for their contributions. Changing the sign above the Human Resource
Department to read Human Asset Department would be a radical, first step toward
enhanced employee performance. Will anyone take the challenge? I’m not so sure. It is
a rather far-reaching movement, with potential risks of stupidity and fear of failure.
Nevertheless, I think companies should quietly tempt this ideal theory and begin the
process of change toward asset and resource performance excellence. The first one to
succeed might just find themselves at the very top of the heap, and there to stay.
Ted Lister is a performance and change management trainer and coach
Copyright 2005© www.listermanagement.com

3. Human Liability Human Resource Human Asset
• Revenue generator at • Revenue generator at • Profit generator, both
very low profit margin acceptable profit financial and market
• May be positioned at margin share
any level of the • Typically positioned as • May be anyone at any
organization shop-floor or first level level of the
• Requires more management of the organization
leadership and organization • Requires very little
management time and • Understands leadership or
effort position’s roles and management time and
• Talks poorly about the responsibilities effort
company to other • Requires less • Typically creates own
employees leadership and roles and
• Talks poorly about the management time and responsibilities
company to outsiders effort • Speaks highly of the
• Thinks he or she can • Wages less than or company to other
do the job of boss or equal to return on employees and
manager better investment outsiders
• Discourages • Often not interested in • Wages less than
customers from seeking a better return on investment
continuing business position • Overall protection of
by their negative • Overall protection of company assets is
attitude and actions company assets is highly regarded –
• Wages greater than secure – assets are assets are kept in
return on investment used, not abused good operational and
• Overall protection of • Can be replaced repair condition
company assets is relatively easily if he • Seeks better positions
dangerously low – or she resigns • Knows the company
assets are abused • Generally thankful for Vision Statement
• Doesn’t follow the position because they most
company policy • Adheres to company likely helped create it
• Quite often does not polices • Understands
know roles and • May know company completely their
responsibilities Vision Statement Department Mission
• Does not know • May understand • Measures own
company Vision Department Mission performance based on
Statement • Takes advantage of Mission - promise to
• Does not understand company training deliver output
Department Mission • Performance is measurement of
• Asks for training but measured regularly by quality and quantity
shows no output quantity and (service or product)
improvement quality based on roles • Upgrades self at their
• Performance is and responsibilities own expense
measured annually • May own shares in the • Most likely to become
• Difficult and costly to company a partner or major
deal with in terms of shareholder
termination and
severance
• Owns no shares in the
company
Ted Lister is a performance and change management trainer and coach
Copyright 2005© www.listermanagement.com