You don't have to dig very deeply into
Collins' management classic "Good to Great" to find references to the capability of the company's employees
that is a major determinant of the 'Great' company. His mantra of 'get the right people on the bus' is just one of the attributes
of the Great company. Then again Collins mentions Packard's Law: "No company can consistently grow revenues faster than its ability to get enough of the right people to
implement that growth and still become a great company.
[And] If a company consistently grows revenue faster than its ability to get enough of the right people to implement
that growth, it will not simply stagnate; it will fall."
Stock
Performance Over Peers Linked to HR Practices
More evidence appears in the study performed by Lauri Bassi where she tied specific HR practices to stock market
performance. By isolating specific HR practices and gathering the data on those practices Bassi created an investment
portfolio that outperformed peer companies. Bassi has expressed frustration with the HR Profession in not becoming more proactive
in getting this message out.
