Issue Capability managed as a portfolio with depreciation curves

Summary

This issue proposes treating an organization's capabilities like an investment portfolio. EY argues that the traditional talent pipeline of hiring, training, retaining and promoting was built for a world in which skills changed slowly, and that world is gone. Organizations must instead manage portfolios of capability assets that mix human expertise, AI models and collaborative tools. Each asset has its own performance profile, rate of depreciation and horizon for reinvestment, so managing capability becomes a continuous judgment about returns and where to invest next. EY suggests that heads of human resources and talent borrow methods from portfolio managers, diversifying across human and machine capabilities and optimizing risk and return through fast learning cycles. As the half-life of skills shrinks, capabilities that are not continually renewed lose value and erode competitive advantage.