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People-intensive services have to be very productive if you are to make money.
People-intensive companies and business units ought to be managed and measured in ways that reflect their unique economics.
"They tend to be more people-intensive.
"They're people-intensive, and the results are unpredictable".
They feel that service is people-intensive, while the rest of the economy is capital-intensive.
Interestingly, for a long time, doing detailed analytics has been quite labor- and people-intensive.
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First, many intermediaries are people intensive, so running them requires familiarity with the local language and culture.
Even when a company isn't people intensive overall, a people-based business embedded in the company often drives corporate performance.
A business that is not only people intensive but also future oriented is different in some important respects from the people businesses that focus on generating current value.
The matrix presented here looks at the distinct economics and strategic challenges facing businesses categorized along the two dimensions: current value versus future value and people intensive versus capital intensive.
Companies often live or die on the quality of their workforces, but because service businesses are typically people intensive, a relative advantage in employee management has all the more impact there.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com