It's not the Stock Index, it's the Human that Determine the Longevity of an Enterprise
June 21, 2021
According to Forbes, a company’s stock in the S&P 500 stock index has an average lifetime of 33 years. This number drops to 24 years in 2016 and shrinks to 12 years in 2027. This information might bring some leaders an extra sour taste in their morning coffee - if they are among those who believe the Stock index is the definite representation of the life span of a business. The current trends have shown that the new human-centered management method is a more solid foundation to help extend the "life expectancy" of an organization.
To define this concept, IBM Corporation – one of the world’s largest information technology companies, shares: “A human-centered organization means that everything is invested in the experience of the employees, the shareholders and partners, similar to how they care about their customers, users and the community.”
Centering on the human to increase the “lifetime” of enterprises
Gone are the day when companies and corporations were referred to as machines, since studies have proven that customers buy a product or use a service based on both values and emotions. From this new perspective, it is necessary to consider each business as an “entity” whose backbone is the company structure, the brain lies at the leadership, and the operating cells are the workforce. A member of the Forbes Coaches Council said that the happier employees are, the stronger the company will be in the future: “Addressing and satisfying the needs of the workforce is the key for enterprises to survive in the next decade.”. A member of the Royal Phillips Executive Board also affirmed the importance of human resources on MIT Sloan Management Review: “We must always remember how important the roles humans play in building teams, communicating with customers and making great organizations.”
Amidst social distancing due to COVID-19, enterprises did have to accept and implement various forms of remote working. Since then, numerous problems have arisen as they were unable to meet, discuss face-to-face and monitor the employee’s work progress as before. Within these times, putting faith in the employees and applying a people-centered strategy is an act of practicality. While many enterprises are still considering adopting this new approach, two companies had and have created an impression in the human resources industry, even during this pandemic.