Imagine telling your CFO that you want to capitalize on leadership coaching. Or that onboarding a new executive with a dedicated transition coach isn’t just a “nice-to-have," but a strategic investment. You’d probably get the same look as if you suggested listing your dog as a board member advisor.
But here’s the bold truth: If your company still treats training, coaching, and personal development as expenses to be minimized rather than as capital to be invested in, you're not just behind the curve. You're part of the problem.
The catalyst for this article was a powerful comment by Denis Machuel, CEO of the Adecco Group, during a recent Q&A at the University of Zurich following his lecture, “The Human Edge: Leadership in the Age of AI and Transformation.” He asked the audience the question along the lines, “Why don’t we call out personal development or training for employees as an investment in the P&L?
That question struck a nerve with me because he’s right. And because we’re long overdue for a structural rethink.
Psychology: What Happens When People Are Treated Like Line Items
Here’s the corporate contradiction: we claim that people are our greatest asset, yet we treat their development as a disposable expense.
The psychological impact? Employees often feel unrecognized, viewing themselves as merely numbers. Leaders tend to hesitate in seeking assistance, suffering in silence. Additionally, high-potential talent may go unnoticed and leave. They look for cultures that actually walk the talk.
Why does this happen? Because traditional P&Ls are designed for mechanical growth, not human development. Machines depreciate; software gets amortized. But people? People are expected to generate exponential returns without a single entry to support their development.
We are comfortable with “investing” in ERP systems and AI pilots. At the same time, we hesitate with the idea of external onboarding coaches, confidential executive coaching, or leadership sabbaticals. Why? Because these don’t feel tangible. They don’t fit neatly into current accounting practices.
This logic is costing us our future!
Companies in the top 1% of their industries already know this:
· If you want high performance, start with belonging.
· If you want transformation, start with trust.
· And if you aim for world-class leadership, invest in it. Don’t just expect it to appear.
Three Mechanisms to Shift from P&L to PI&L (Profit, Investment & Loss)
Let’s be clear: This isn’t about adding fluff. It’s about accuracy. Reframing OpEx related to people as a structured, tracked investment in Human Capital. It is about ensuring it's managed with the same rigor as other financial areas CapEx.
Here’s how we make it real:
1. Create a “Human Investment Ledger” within the P&L
Break out personal development and leadership initiatives as a new line item: not under G&A, but under a dedicated “People Investment” category. Think of it as CapEx for cognitive capacity, decision-making resilience, and strategic execution.
Examples:
Executive Coaching
External Onboarding Coaching (especially for C-Level)
Resilience & Mental Agility Programs
Succession Pipeline Development
2. Track ROI on Development, not just Delivery
Set metrics beyond attendance or satisfaction scores. Tie investment to outcomes like retention, internal promotion rate, time-to-performance for new leaders, and engagement lift post-coaching.
Yes, ROI on people is harder to quantify. So was digital transformation, until we figured it out.
3. Make Leadership Vulnerability Budgetable
Stop waiting for executives to struggle before funding their support. Proactively include coaching in C-suite compensation packages, not as an optional perk, but as a requirement for performance. Normalize the conversation that even high performers need a sounding board that isn't politically entangled.
The New PI&L: What It Could Look Like
Just as we do for CapEx or JV investments, we need a structured view of people investment.
Here’s a side-by-side illustration:
1. Investment in Leadership Coaching (Human Capital)
- ❌ Not a one-time “training expense” in G&A.
- ✅ Logged in “People Investment Ledger” on the balance sheet as a strategic leadership asset.
- ✅ Hits the PI&L via amortized impact over tenure (e.g. productivity uplift, retention, time-to-decision reduction).
In the PI&L it appears as:
- People Investment (Leadership Enablement): CHF 120,000
- ROI target: 3x through retention and strategic impact
2. Investment in Onboarding Coach for C-Level
- ❌ Not booked as “consulting expense.”
- ✅ Pre-built into transition cost modeling for executive onboarding.
- ✅ Reported in PI&L under “Strategic People CapEx” for leadership integration.
In the PI&L it appears as:
- C-Level Transition Integration: CHF 30,000 per hire
- Benchmark: 25% reduction in time to strategic contribution
3. Organization-wide Mental Resilience Program
- ❌ Not lumped into HR wellness budget.
- ✅ Tied to productivity and risk mitigation metrics.
- ✅ Measured by decrease in absenteeism, increase in discretionary effort.
In the PI&L it appears as:
- Resilience & Energy Management Program: CHF 300/employee
- Target: 15% reduction in burnout-related leave
Final Word: The Future Belongs to Human-Centered PI&Ls
The future of your business doesn’t depend on machinery, software, or even market timing. It relies on the people who choose to show up or leave.
So, ask yourself:
· Are you building a company that capitalizes on curiosity or cuts coaching?
· Are you treating people like expenses, or the exponential investments they truly are?
It’s time to stop treating humanity as a footnote and start building People-Investment-and-Loss statements that reflect the real engine of growth: YOUR PEOPLE.
“You don’t need another AI strategy. You need a Human Strategy.”
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