2/13/2004
Leading Firms Innovate - Comments Winter 2004

By DENISE OSORIO, Learning Manager

What do companies like Intel and GE have in common besides the fact that both are large global business titans? Many factors, such as size, market leadership and capitalization, but in this article, I will explain how, and more importantly, why they invest a large portion of their resources in their greatest asset – their people.

Progressive companies realize that, in this economy, the only certainty, the only sure source of lasting competitive advantage is knowledge, otherwise expressed as “human capital.” Another term, “intellectual capital,” is surfacing in progressive Human Resource journals and magazines. This type of capital is produced when the application of ideas, knowledge or skills produces higher-valued assets and opportunities of enormous value.

At Soberman LLP, we recognize the importance of our greatest asset, our people. As one of the leading mid-sized accounting firms in the marketplace, our team is second to none. In order to continue to build on our current and past successes, steps are being taken to ensure that we continue to foster an environment where innovative ideas and concepts are part of daily work activities, and that human and intellectual capital are not inhibited by policy and non-valued added activities. The creation of the full-time, in-house role of Learning Manager is a bold step forward for any company, particularly a professional services firm.

It has been demonstrated that the learning cost to payback ratio or Return on Investment (ROI) is a large one. Unfortunately, part of the difficulty that some companies have had is that they have myopically viewed the training costs as pure expenses with little consideration to the long-term benefits such as improved productivity, reduced attrition rates and employee fulfillment. This short-sighted approach is one that ensures those firms who take this view are mired in a never-ending cycle of mediocrity.

Motivated people – dedicated by intelligent policy – innovate. The most valuable capital is human capital; the most powerful technology is people. Companies like Intel and GE understand this as does Soberman LLP.

A recent study at the University of Toronto found a correlation between organizations’ performance and the amount they invest in people. It found that the best Fortune 100 companies to work for outperformed their industry competitors. It also found that organizations compete on the basis of technological innovation, capital and people.

Organizations will eventually adopt the technology of their competitors. The cost of capital can only be reduced so much. That leaves the employees to differentiate one organization from another. My role as the Learning Manager is to assist in further developing a learning culture where people are empowered to innovate.


This article has been prepared for the general information of our clients. Specific professional advice should be obtained prior to the implementation of any suggestion contained in this publication.