Luciana and Javier started a company called Pipiripao that organizes social events but they lacked leadership skills and proper human capital management. As a result, the company had high employee turnover because there was no onboarding process, poor work conditions such as unpaid overtime, and a failure to consider employees' well-being. While Luciana and Javier were good in their roles, they lacked empathy and leadership abilities needed to help the business grow. Developing leadership skills through understanding different styles and prioritizing employee welfare could help improve human capital management and the company overall.

1. 1. What happened?
I would like to talk about an example I have close to me. There is this person, let’s call it
Luciana, she is married to Javier and together they have created a company called
Pipiripao, that makes social events such as graduations, weddings and so on.
Luciana is mostly in charge of all the operations of the company, and Javier takes charge
of finance and legal aspects. They have few employees, around 12, but they have a
constant personnel rotation.
I had the opportunity to work with them and I realized that at first, they didn’t have a
stablished cultural organization about their company. Then, there is no onboarding for new
people coming to work, which may detonate they don’t get to feel truly welcome, and finally
work conditions may be exhausting. For example, working until late, doing extra hours
unpaid, having to solve things that have nothing to do with their actual positions, working
on holidays or weekends without extra payment, no consideration of bonuses, and low
retribution for new ideas.
Of course, I realized this is why they have a long personnel rotation. I consider that not
having a human capital adequate management, is directly connected with leadership. And
although in their roles are good, they both lack leadership skills which are basic for their
business growth and development.
2. Why did this happen?
This may be due to the fact that any of them have a previous formal job before, and don’t
know how to behave in these situations. Also, they might not have the enough preparation
for managing human capital. Finally, maybe they lack of empathy, so it is hard for them to
understand how they are failing, and how to implement better work conditions.
3. What class concepts are relevant to this situation?
There might be different leadership styles, so there is not only one correct answer to how
the “perfect boss” should be. But there are lots of examples and information regarding
leadership styles, and how to develop those skills. That anyone who wants to have a
venture, should be perfectly aware of.
4. What did you learn from this?

2.  Empathy is one of the most important values, that anyone, but mainly
entrepreneurs, should develop.
 A boss is not a leader.
 There are different types of leadership, but they all have in common the concern of
other’s wellbeing.
 Having the knowledge is not enough, it is all important to apply it.
 A good human capital management results in a company’s general improvement
and development.