Saturday, 12 January 2008

Private equity and HCM

OK, maybe that was going a bit too far.

Using this updated diagram from one of my earlier posts, I think the key thing in HCM is to have a position, and then support it. This is much more important than what this position is. There is plenty of room for different positions, and many different ones can work.

What the diagram shows is that HCM in private equity will work, as long as there's a clear strategy on making money (which obviously there is), the firms employ people who want to make money too (cheatas from my previous post) and that HR processes support both the strategy and the cheatas.

OC in the middle is organisational capability - the particular focus that the firm is going to be built around which in this case is efficiency and a laser like focus on profit.