Why People Matter More Than Ever in Business

“The most powerful force ever known on this planet is human cooperation - a force for construction and destruction.” - Jonathan Haidt

In the complex world of business, where strategies, technologies, and processes intertwine, there’s one element that stands out - People. At the heart of every business, regardless of size or sector, are people. Their strength, leadership quality, and relationships with customers and partners are what drive a company’s success. This success is amplified when there’s confidence in the leadership, strategy, product, and their ability to achieve their goals and objectives.

However, it’s unfortunate that many companies view people as mere numbers, a means to propel the business to the next stage. They believe that the next person through the door will be better, that forcing people to quit or making redundancies will solve the fundamental problems causing the business to miss its goals or not hit their revenue target. But this is far from the truth. People are indispensable. They are the lifeblood of any organisation.

In this blog post, we will explore why people matter more than ever in business, and how you can leverage the power of people to grow and sustain your company.

People Drive Innovation

Innovation, the heartbeat of business growth and sustainability, is driven by people. While machines and algorithms can optimise and execute, it’s the human mind that dreams up breakthrough ideas and drives innovation. The best people in business are those who are invested in the cause, open to learning, eager to improve, willing to take risks, and hold themselves accountable for their actions and outcomes.

Think of some of the most innovative companies such as Sage, Ocado, or Sky. These companies have revolutionised the way businesses manage their finances, deliver their products, and entertain their customers. They have also fostered a culture of innovation, where employees are empowered to experiment, learn, and share their ideas.

People Shape Culture

The culture of an organisation is a reflection of its people. The values, behaviours, and attitudes of every employee shape the company’s culture. A positive and inclusive culture boosts employee engagement, lifts morale, and enhances productivity. Leaders play a crucial role here. They set the tone for communication, model the behaviour they expect to see, and ensure that the company’s values are more than just words on a wall. A strong culture not only attracts talent but also retains it, creating a competitive advantage that’s hard to replicate.

Consider the example of Zappos, an online shoe retailer that is famous for its customer service and culture. Zappos has a set of core values that guide its decisions and actions, such as “Deliver WOW through service”, “Be humble”, and “Create fun and a little weirdness”. These values are not just slogans, but are lived and breathed by every employee, from the CEO to the customer service representative. Zappos also empowers its employees to make their own decisions, rewards them for their performance, and celebrates their achievements. As a result, Zappos has a loyal and happy workforce, and a loyal and happy customer base.

People Create Experiences

In this era, where products and services are increasingly commoditised, businesses stand out through the experiences they deliver. Employees, especially those in customer-facing roles, are the architects of these experiences. They listen to customer needs, address their concerns, and build relationships that go beyond transactions. The empathy and understanding that humans bring to these interactions can turn satisfied customers into loyal advocates, driving repeat business and word-of-mouth referrals.

Take the case of Monzo as an example of a company that delivers exceptional customer experiences. Monzo trains its employees, or “co-ops”, to personalise each customer’s experience, remember their names and preferences, and engage them in friendly conversations. Monzo also creates a welcoming and comfortable atmosphere in its online community, where customers can relax, work, or socialise. By focusing on the human element, Monzo has created a loyal community of customers who love its bank and its culture.

People Navigate Change

The business landscape is constantly evolving, with disruptions becoming the new normal. It’s the people within an organisation who navigate these changes, adapt to new realities, and drive the company forward. Their resilience and ability to be antifragile in the face of challenges, their eagerness to learn and upskill, and their ability to collaborate and innovate enable businesses to not just survive but thrive amid uncertainty.

Look at how Ocado, an online grocery retailer that provides solutions for other retailers and partners, has transformed itself over the years to stay ahead of the curve. Ocado has revolutionised the way groceries are delivered, using advanced technology, robotics, and AI. They have also fostered a culture of innovation, where employees are empowered to experiment, learn, and share their ideas. Ocado has constantly adapted to the changing customer demands, market conditions, and competitive pressures. Ocado’s people have been the key to its success, as they have embraced change, learned new skills, and delivered value to its customers and shareholders.

People Are the Core of Business

While technology and processes are critical, they can be bought, replicated, or reverse-engineered. What truly sets a company apart is its people—their skills, their experiences, their perspectives, and their relationships. This human capital is unique to each company and when nurtured, becomes a source of sustainable competitive advantage.

However, many leaders fail to recognise the value of their people, and treat them as disposable assets. They think that by adding or removing people, they can improve the product, the revenue target, or the business outcome. This is a misguided and harmful approach, as it erodes the trust, loyalty, and commitment of the people who work for them. It also damages the company’s reputation, as it signals a lack of respect, integrity, and responsibility.

Instead of seeing people as a problem to be solved, leaders should see them as a solution to be leveraged. They should invest in their people, by providing them with the resources, training, feedback, and recognition they need to grow and excel. They should also take responsibility for their own behaviour, and model the values and standards they expect from their people. By doing so, they can create a culture of excellence, where people are aligned with the company’s vision, mission, and goals, and are motivated to contribute to its success.

The Power of People

In the mechanised and digitised world of modern business, it’s easy to overlook the fundamental human element. However, the most successful businesses recognise and embrace the fact that people are not just part of the business equation—they are the core of it.

People are the source of innovation, the shapers of culture, the creators of experiences, and the navigators of change. They are the unseen force behind successful businesses.

So, here’s a challenge for you. Take a moment to reflect on the role of people in your business. How do you value, support, and empower them? How do you foster a culture of collaboration, learning, and excellence? How do you leverage the power of people to achieve your business goals?