The results are in. People management and development are the drivers of business success in the 90s. At The Institute of Personnel and Development’s (IPD) recent National Conference, the message is loud and clear: People Mean Business.
IPD’s research indicates that the way people are managed and developed is the determining factor in sustainable success for companies today. The organization says that many companies tend not to incorporate people strategy within the business strategy. This could be a company’s fatal flaw.
People are the heart and drive in a business. According to IPD, the ability of a company’s employees to adapt, initiate, learn, and continuously apply new techniques in a changing environment can point to success or failure for the business.
A seven-year research project conducted by IPD sets the stage for the 21st century. It compared management and development practices of comparable firms. Firms that incorporated people strategies with business strategies led others in productivity and profitability by 20%. This was three times the next most significant factor, research and development.