There’s a market for talent, and as long as you’re willing to pay what that marketplace demands, you can attract talented people. The real challenge is making profits off those talented people. That’s where the big opportunity is. The leading companies today are combining talent and technology and organizational design to generate much higher profits per employee than was possible in the past. So the trick becomes, “How do I hire talent that I can profit from?”
In any field of human endeavor you ultimately reach a point where you can’t solve the new problems using the old principles. I think we’ve reached that point in the evolution of management. When you go back to the principles upon which our modern companies are built—standardization, specialization, hierarchy, and so on—you realize that those are not bad principles but are inadequate for the challenges that lie ahead.
Great interview with the authors of two recent management books.