With service and knowledge-based industries now dominating the
Australian economy, even greater emphasis is required on human capital.
People – and their management skills – determine a company’s future
value and its share price. Yet regulators and analysts remain
substantially focused on yesterday’s financial information. In an era of
increasing talent scarcity, a company’s bench strength of in terms of
leadership, development and performance must be scrutinised, urge
Australian School of Business researchers Loretta O’Donnell and Carol
Royal. Want to know what that business will be worth tomorrow? Beyond
the profit and loss statements lies a telling set of people indicators.
But do analysts know what they are looking for?