How many companies are there in the FTSE100?
Daft question right?
So how about this one….what percentage of UK companies do they constitute?
The answer is less than half of one percent. And even if you take out sole traders the number doesn’t quite reach 1%.
SME’s employ 13.6m people within the UK and firms employing less than 100 people account for 65% of new jobs created each year. If you include the companies sub FTSE100 but not classified as SME you get somewhere near to 90%.
So why is it that we seem so fixated by a limited number of companies explaining the “right” way to do HR and people management? If you look at any conference list or journal article you will invariably see the usual suspects arise.
Now I should add that I don’t have anything against these companies or the people who speak per se. But I don’t think that the constant focus on a select group does anything to improve the collective knowledge of a profession or helps creativity, entrepreneurialism or innovation.
When I was learning my trade it was Marks and Spencer’s that were being hailed as the people to aspire to. That was in the mid 90’s and of course not many years later they were experiencing the worst, self-imposed, decline in their history. Likewise not so long ago Royal Bank of Scotland were being hailed and recognized for their success in people management – I don’t need to add much more to that. And one of the latest entrants to the scene seems to be Nokia, which I find curious given their current “burning platform”.
So given that there s why does this happen? Well I think there are a couple of factors at play,
– We think that big is beautiful and assume that because an organisation is large it is good. The only reason a company is in the FTSE100 is because of its financial muscle, not its intelligence
– Once you’re on the circuit, you’re on the circuit – easy for lazy conference organisers and big brands require no explanation (is there anyone in American HR who hasn’t been made aware of Zappos?)
I’m not saying that interesting ideas can’t come from the big boys (although I do think size inhibits not enhances innovation) but by the law of averages there must be a whole host of other people out their doing good things. If we’re really interested in driving innovation and creativity in the profession then we need to hear from companies and HR Directors who are doing truly intelligent people interventions, ones that are culturally sensitive, business focussed and have demonstrable value (no this isn’t a pitch for business!). And from the feedback that I heard recently, I’m not alone.
Conference organisers/journalists – take note.