These are, without a doubt, tough economic times.  And yet, a subset of firms (along with the employees who have the good fortune to be working for them) are prospering. 
 
For some (e.g., those in the repo business), prospering in tough times is the result of being in the right business at the "right" time.  But for most others who are doing well even in the current economic climate, it is the result of being better than the competition.
 
What is it that distinguishes this group of firms - those that rise above their competition?  An increasing body of evidence (ours and others) points to the centrality of superior human capital management. 
 
For example, KnowledgeAdvisors, a large provider of learning and talent measurement solutions, has recently invested a portion of its corporate assets in a portfolio of its clients that have developed significant expertise in measuring (and managing) talent.  Preliminary performance data suggests that this investment strategy represents a good way to "beat the market," because these firms out-perform their competitors.
 
The confluence of globalization, technological change, and rapidly-shifting demographics means that developing the necessary corporate competencies to measure and then optimize human capital is no longer optional.  In developed countries, it is the only remaining source of sustainable, competitive advantage.
 
Smart shareholders will increasingly demand information on, and insights into, the human capital strategies of the firms in which they invest.  So too will smart employees.
 
Smart firms will not wait until then to step up to the plate.