The Butterfly Effect refers to the principle that any action (even in business), no matter how small or insignificant it may appear, will have consequences further down the line. Experts in human capital management (HCM) believe there has never been a better time for employers and employees alike to understand the ripple effect of action and reaction in business.

The current commercial climate is one driven by data management and the advantage of collaboration and unified communications. The emphasis is on a more connected environment which enables processes and procedures to be streamlined, which, in turn, leads to operational efficiency and more value to the market.

Many service providers focused on the fast-changing Human Resource environment are applying serious effort in reminding the market that all resources are interlinked to the corporate system.

“This means that all actions, however minor, will have a knock-on effect. From a business point of view, this can have a profound impact on operations,” says James McKerrell, CEO of CRS Technologies South Africa.

As a leading provider of HR & payroll services and solutions, CRS Technologies South Africa is positioned at the forefront of HCM and HR trends and market developments.

The Company believes it is critically important for all members of staff to not only understand their respective roles, but, perhaps even more significantly, that they appreciate their positions with respect to the objective and goals of the organisation.

“As much as we speak about aligning resources to push forward the goals of the business, the reality is that success depends very much on people’s mind-set and ‘buy-in’,” says McKerrell.

This “buy-in” is decidedly important because, within HCM, it is rare for a business to progress when people work independently from the core objectives and development roadmap.

The Butterfly Effect is not a new phenomenon and is a well understood concept in specific trades and industries, particularly within the natural and scientific community. However, as McKerrell explains, it is being increasingly applied within the business fraternity because, as a principle, it makes sense and speaks to the focus on agility to achieve competitive advantage.