Unlocking Human Potential: From Capitalization Rates to Organizational Responsibility

Even in the most innovative organizations, enormous human potential goes unused. James Flynn introduced the idea of capitalization to describe how well a society or organization realizes the latent capabilities of its people. In other words, capitalization is the rate at which we turn potential into performance. The cost of underutilized human capacity is impossible to ignore.

From ladders to lattices

Traditional career ladders assume limited space at the top, which fuels competition and bottlenecks. A lattice or skills-based model offers a more fluid alternative, where people can grow laterally, diagonally, or deeper into their expertise, even when vertical roles are limited.

In organizations such as BetterHelp and Circle Medical, I collaborated with leadership teams to cultivate cultures that unlock potential at every level. My role was to design and facilitate systems that identified capability early, supported mobility across functions, and rewarded learning agility. Together, we created opportunities for people to grow across disciplines rather than being confined to a single path. Some of the most impactful leaders began in clinical or patient support roles and progressed into operations, product, and people leadership positions, because those roles allowed their strengths to emerge and expand.

Potential takes intentional design

But spotting and developing potential takes intentional design. In his Harvard Business Review article '21st-Century Talent Spotting,' Claudio Fernandez-Araoz explains that in fast-changing environments, past performance and static competencies are less predictive than potential traits such as motivation, curiosity, insight, engagement, and determination. That kind of growth does not happen by chance. It requires leadership that sees talent as an investment, and People teams that enable it through thoughtful structures, coaching, and decision-making frameworks.

Unlocking potential is not a side initiative. It is how organizations evolve, create value, and sustain performance over time.

What is one untapped potential your organization has not yet capitalized on?