Age Management Is Not HR. It Is an Execution Discipline Investors Cannot Ignore
with Michaela Hrdlickova and Pavlina Walter
Capital does not fail because of ambition. It fails because systems break under pressure.
After two decades of building clinical trial infrastructure and investing across Europe and Asia, I have learned one consistent lesson. Most execution risk is human before it is technical.
Yet human capital remains the least structured variable in healthcare investing.
We diligence molecules.
We model markets.
We debate regulatory pathways in granular detail.
But we rarely apply the same analytical rigor to the workforce expected to deliver clinical milestones across a decade or more.
That gap is becoming increasingly expensive.
In a recent episode of Clinical Capital Conversations, Pavlina Walter and I spoke with Michaela Hrdlickova about a concept most investors have never been taught to evaluate properly. Age Management.
Not as an HR initiative.
Not as a generational inclusion program.
But as a system originally designed by the Finnish Institute of Occupational Health to measure and extend work ability across full career lifecycles.
For capital allocators backing long-horizon healthcare assets, this framework deserves serious attention.
Where Execution Actually Breaks
More than half of clinical trials fail due to design and execution flaws, not scientific validity.
We know this. We quote the statistic. Then we repeat the same structural mistakes.
Underpowered teams. Burned-out leaders. Inexperienced managers are promoted too fast. Motivated scientists trapped in misaligned environments. These are not personality problems. They are system failures.
Age Management was created precisely to address this class of risk.
It emerged in Finland in the 1980s when demographic realities forced a question most governments avoided.
How do you keep an aging workforce productive, healthy, and engaged without sacrificing output or innovation?
The answer was not ideology. It was a measurement.
Work Ability Is a Measurable Asset
The core concept behind Age Management is work ability.
Not motivation slogans.
Not engagement surveys designed to confirm leadership bias.
A standardized, data-driven index that evaluates how well an individual can meet the demands of their role across four dimensions:
Health and functional capacity
Skills, knowledge, and experience
Motivation and psychological resilience
Leadership environment and management quality
This matters because work ability does not correlate cleanly with age.
Younger employees often show declining work ability due to stress, mental health challenges, and misalignment.
Older employees frequently outperform when placed in environments that respect experience and autonomy.
Investors often assume execution risk increases linearly with workforce age.
The data does not support this assumption.
Poor leadership and unmanaged environments are far more predictive of failure.
Why Investors Should Care
If you allocate capital to biotech, medtech, or clinical infrastructure, you are underwriting timelines measured in years. That means you are underwriting people. When leadership fails to sustain work ability, the consequences show up in familiar ways:
Missed enrollment targets
Protocol deviations
Talent attrition mid-trial
Escalating CRO costs
Founder burnout
Delayed partnerships
Regulatory friction
Each of these erodes return profiles long before valuation discussions begin. Age Management provides a framework to identify these risks early. Not through sentiment. Through data.
From Measurement to Intervention
One of the most compelling aspects of the Age Management model is that it does not stop at diagnostics.
Once work ability is measured across a representative sample, organizations engage in structured interventions.
Leadership style adjustments
Ergonomic redesign
Role realignment
Mentorship programs
Education pathways
Mental health support
Lifecycle-specific career planning
This is not generic wellness spending. It is targeted capital deployment into the exact variables degrading execution capacity.
For investors, this mirrors how we think about operational value creation.
Measure the constraint.
Allocate resources precisely.
Monitor outcomes.
Leadership Is the Hidden Variable
One insight from the conversation with Michaela stood out clearly.
Work ability often collapses not because people lack capability, but because leadership environments suppress it.
Poor leadership accelerates burnout.
Inconsistent management erodes trust.
Misaligned incentives destroy motivation.
This is particularly dangerous in science-driven organizations where technical brilliance often substitutes for leadership training. Age Management forces leadership quality into the data set. For boards and investors, this creates accountability that goes beyond anecdotes.
The Generational Myth
Age Management is frequently misunderstood as a generational harmony initiative. That framing misses the point. The Finnish model never focused on age groups competing with each other. It focused on lifecycle optimization.
Early-career professionals require education and structure.
Mid-career professionals face pressure from career acceleration and personal obligations.
Late-career professionals need autonomy, purpose, and adaptability to sustain performance.
Ignoring these differences creates inefficiency at every stage. Addressing them creates resilience.
A Capital Allocation Lens
From an investor perspective, Age Management belongs in the same category as:
Embedded clinical networks.
Operationally backed venture models.
Hybrid CRO investment platforms.
Founder operator alignment structures. It is infrastructure for execution. In markets where timelines are long and regulatory stakes are high, infrastructure matters more than narrative. Funds that integrate human capital diagnostics into diligence will avoid many of the failures that never make headlines but quietly destroy IRR.
The Broader Demographic Reality
Healthcare systems across Europe, Asia, and North America face the same structural challenge.
Populations are aging. Talent pools are tightening. Clinical complexity is increasing.
Ignoring workforce sustainability is not conservative. It is negligent.
Governments in Scandinavia, Germany, the Netherlands, and increasingly Central Europe have already adopted Age Management principles at scale. Private capital is lagging.
Why This Fits Clinical Capital Conversations
Clinical Capital Conversations exists to explore what actually moves innovation from idea to impact.
Not hype. Not theory. Execution.
Age Management sits squarely at the intersection of science and capital.
It translates demographic reality into operational strategy.
It transforms workforce risk into measurable variables.
It aligns leadership behavior with long-term value creation.
For founders, it provides a blueprint to scale without burning people.
For investors, it offers a framework to protect downside while enabling upside.
Final Thought
Capital is patient. People are not.
The firms that will outperform in the next decade will not be the ones with the boldest slides. They will be the ones that understand how human systems sustain execution under pressure.
Age Management is not a trend. It is a missing layer in investment-grade thinking. And it deserves a seat at the diligence table.
Timecode:
00:00 Introduction to Misa Hrdlickova and Age Management
00:41 The Concept and History of Age Management
03:01 Implementing Age Management in Companies
05:50 Solutions and Processes for Age Management
14:07 Misa Hrdlickova's Background and Career Journey
21:24 Advice for Future Generations
23:09 Conclusion and Final Thoughts
Links:
Peter M. Kovacs LinkedIn: https://www.linkedin.com/in/petermkovacs/
Peter M. Kovacs Personal Website:https://www.petermkovacs.com/
PMK Group Website: https://www.pmk-group.com/
Guests:
Michaela Hrdlickova: https://www.michaelahrdlickova.eu/
Pavlina Walter: https://www.linkedin.com/in/pavlinawalter/
Transcript:
Pavlina Walter: I would love hear it to introduce and welcome Misa Hrdlickova We met a few months ago on a very interesting, actually presentation about age Management. Until that time, I absolutely didn't have a clue that there is something as a age management. Misa has also a very interesting background. And I hope you will introduce yourself to our audience and share with you, share with us more information about this age management. What is it and what is the mission?
Michaela Hrdlickova: Thank you very much for inviting me. Really that's great that I had chance to speak about the age management concept, and I'm glad that you like this. So maybe I will start with the, the concept. So the age management is, um, you know, it happened. In, uh, 1980 in Finland because Finland has the one of the oldest generation
So the government asked the Institute for o Occupational Health for helping them to somehow define. Um, you know, what's needed for people to keep them healthy and productive and keeping the long career. So the, the study started in 1980 and they, uh, the, the scientists started to study, you know, the impact of, uh, of, uh, age of.
On work and work ability. And in 1990s they started to create some, uh, systems and, and like advices, you know, and norms for, you know, creating positive environment, which is keeping, you know, uh, people healthy and productive and, and educated and ready for longer. Career. Um, and later in 2000, you know, they defined, you know, the mentoring sessions, uh, and ergonomy systems and so on.
And the the, what does it mean? Uh, the, the, it, you know, they, they define something like workability. Which is like a measured, um, it's, it's measured by tool workability index. This is like a standardized tool, which is now existing in 30 languages, and this tool is to measure workability of individual workers.
Towards, um, job demands, you know, so, uh, job, so, so the age management means caring of people in any age, in any life cycle, you know, to keep them healthy and, um, and productive and educated and, and ready for long, uh, long work. So this is age management and sometimes, you know, the, uh, people think, and especially employers that.
Age management means multi-generation collaboration. So this is part of it, you know, but the concept of finish concept, which was adopted by many European countries, is that one what I describe now.
Pavlina Walter: So if I would be a director of a big company, I would like to implement age management. Mm-hmm. To my company for my employees, what I should do.
Michaela Hrdlickova: Um, you, especially here in Czech Republic, for example, but, but I think there are many organizations in, in countries or directly Finland, you know? So, uh, you could, um, measure workability, uh, in, um, statistically important part of your, uh, employers, you know, and then, you know, you can, um. Take your results, you know, and then work together managers together with employers, uh, employees, sorry, uh, to create really improving processes and improve exactly the, the parts of the working environment, which is lowering, uh, workability of people.
Mm-hmm. So here I would say, this is my part because I love it, you know? If you are a leader, if you really care of your people, if you understand that, uh, uh, employee, they are really the, the key asset, you know, of, of your, um, company. You know, so then if you are really leader and you are caring of people, so then you would be interested in to hear from people what they need, how they feel, and especially work. Uh, age management means to tailor every individual workplace to. Measured work ability to individuals, you know, so. It's about to understand motivation of people, uh, to work with their talents, with their experience. Not sure what what's happening. Quite often, you know, to divide people on young and older and, and to have some, some doubts, you know, but really to work with facts, with data to measure, because it does not mean that the young people has higher workability and older people, therefore lower. This is not the case, you know, because. It's about health. And we know that especially in young generation, we can more and more observe, uh, psychological troubles and, and some issues, you know, issues, you know, which is really lowering the work ability, you know, so it's very important to really take care of, of this education, of this, remind people how important it's to take care and to, to be aware of prevention.Uh, you know, so, so. This, this is in, in, in nutshell,
Dr. Peter M Kovacs: but what kind of solutions we can offer or you can offer. So because we measure it, we, we know that we, we, we, we perform this evaluation, let's say. Mm-hmm. Within our company, within our network, uh, or, or, uh, or, or, um, environment. But what kind of solutions we can provide. Mm-hmm. To, to them.
Michaela Hrdlickova: So maybe let me shortly describe you the process of age management if you want to implement, you know, so Yes, they, if you are this, um, innovative leader Yes. And you, you want to implement, uh, this, this age management means to improve work environment. So it's, uh. Really caring of people from the beginning to the end, you know, of their work ability.
So you invite, for example, in Czech Republic here in my country, uh, us from age management at the organization, uh, we could measure, um, with work Ability Index, so we could have this data about the. Work demand and healthier people, you know, about their fitness and that exist. Another questionnaire, which is more focused on, uh, leadership style and, uh, and the other areas, you know, because work ability is, uh, composed from four levels, you know?
Mm-hmm. Important is your health, but then your knowledge and and experience. The third one is your motivation. And the last one, but not least, is leadership style. Some people are ready to work, but unfortunately with not the right leadership style, they are losing their, uh, work ability or motivation. You know, sometimes they are burnt, you know, so if you have this data.
So then you collect the data, you establish the focus groups of, uh, employee who participated in the, in the, in the questionnaire together with managers. And you, uh, you see, you know, what are the most important areas for improvement, and then you are working on it. And there are many. You know?
Michaela Hrdlickova: In ergonomic, in leadership style, in anything you can imagine. Yeah. And maybe for you to explain to, to understand better, you know, everybody has like a life cycle, you know, young people entering new job, they need education, for example. Then, uh, the, the middle generation, you know, they need like a help with their pressure from. Sites, you know, like a career demands and they're like a sandwich generation, you know, and care of children and mortgages and so on. And the, the, the oldest people, you know, they need to be ready for like a longer career. How to care their job, how to keep their work ability, you know, so, so this is really, there are many processes, there are many things that you, we can do for people, but it needs to be done, uh, by. You know, by knowledge of the data, the facts. Yes. Because typically employers ask questioners questions, but maybe questions which they want to hear, but not about what's the reality? Yes.
Dr. Peter M Kovacs: So it is much, much beyond the the physical health. Absolutely.
Michaela Hrdlickova: Yeah. It's motivation about knowledge about talent, mental health. Emotional mental health. Yeah. And, um, long life, uh, education and, um, preparing yourself for longer career, you know, because we all know. And, uh, what's very important, you know, that it is Finnish Institute, uh, advice is that employer. Companies are responsible for helping their individual people in stay houses, stay educated, stay, um, ready for long, long, um, I dunno, productivity of course, because only on, it depends the results of the company.
Pavlina Walter: How example, for example, are Czech companies open to this new system?
Michaela Hrdlickova: Um, they are now learning, you know, about, and maybe you, based on your experience, you could hear that many people. After my presentation, they said, wow, you changed really what we heard before about, uh, age management because everybody was like, okay, it's about collaboration among generations, you know, so, so now we are, so let's say, you know, the very important person, my friend. And she's the director of, uh, age management, uh, nonprofit organization in Czech Republic here, and she's really. Great Lady Elva, and she made advocacy since 2012. You know, here really educating government and everybody about this, this, uh, concept. Um, what we can see that still in Czech Republic, we did not adopt. I mean the, the, the government, this, this approach, you know, but I can tell you in Germany, in in Scandinavian countries, in Holland. Now newly in Slovakia, they're using this concept as a, as a government. So I hope soon will be here. So Elena started with the advocacy in, in government. At the same time, she is helping to, um, to initiate these processes in companies now, for example, um, au and, and this, uh, you know, area. They got the European, um, grant and they implemented in many, uh, organizations. Age management currently, for example, DAF experts mm-hmm. Is very successfully, uh, implementing, uh, this, uh, process. Now we are in discussion with Allianz, um, insurance company. Uh, so yeah. Um, you know, after they understand what's behind and how it could help to solve the challenges they are now, uh, they could see now in companies, they say, wow, yes, let's go for it, you know? Mm-hmm. But they need to understand.
Pavlina Walter: And if you have this group of young met and older generation, who is the most active in this kind of, um, process that you are having this five day course with them, how to implement this age management. So if you see this group, so
Michaela Hrdlickova: I would not say now you are speaking about the, the, the grant because uh, now, yeah, very special is existing.
Very special grant, you know, which is great. Which is offering just like what for free for companies, you know, to understand. So it's for five days, you know, um, it's for 12 people from each company and one certain needs to be plus 55, you know? Mm-hmm. And, uh, so at first day, uh, they have chance to learn about the concept, you know? Mm-hmm. What is the theory and what are the positive, uh, experiences in other countries? Mostly. In few companies here in Czech Republic. Then we have like two days workshop. Then fourth day is the leadership, um, multi-generation collaboration, um, mentoring, coaching, um, uh, basics. Mm-hmm. And then the last day is about halls and how to care and how to, you know, compare of your physical and psychological health. So. Interestingly, um, all types of generations. Mm-hmm. You know, young leaders or, or you know, older people. It's more about who leader, interested in people and, um, you know, wanted to like, uh, so you, you asked me, you know, who mostly, and I'm just mm-hmm. Just really now thinking of, you know, I would say it's not about age, it's about the.
The vision approach about, you know, if somebody is really like, um, inspirational, innovative leader who understands, you know, the role of people and how important they are, these are the people who go for this, this project. Mm-hmm. Typically, you know, unfortunately, I could tell you that what my observation. Maybe there is more people who are still, uh, operational managers. Mm-hmm. Not caring so much of people, uh, unfortunately working very often with like, doubts, you know, that like older people do not know about it. New, um, media and, you know, and young people, they don't want to work and, and so this helps, you know, like aging. Mm-hmm. You know, so I would say. This, they are like a majority of managers, but they are still existing people, leaders who go in this, this right approach. So these are the people I'm working with.
Pavlina Walter: Excellent. And, um, you actually didn't mention, uh, your background. If you can a little bit share with us your background.
Michaela Hrdlickova: I, my background, I'm scientist. Mm-hmm. I studied, uh, biology. In university in Berno. I'm specialized in microbiology molecular biology. I, I have attestation from, from microbiology, so I spent few years in the hospital, in microbiology laboratory and in genetics. But then. It circumstances. Actually, it was very, um, you know, soon after, uh, the revolution here. Mm-hmm. So I started in, um, uh, in company. First company was wired is it was pharmaceutical company, which unfortunately don't, does not exist anymore after acquisition with, with, uh, with another company. So, but I was really lucky because they, um, developed, uh, drugs based on, uh, you know, the. The, the science, like genetic, uh, molecular, uh, engineering, you know, uh, very innovative drugs that I could really use and build on my education. Mm-hmm. You know, so I had chance to launch really very innovative drugs in, in, uh, in Czech Republic. And then the, the second company was Biogen is one of the biggest biotechnology companies with, um, headquarter in Boston. Um. Really great company having their own, uh, scientific, um, background, you know, being focused on, um, neurodegenerative diseases.They, maybe you heard about the first. Drugs for Alzheimer thesis or, you know, I'm really happy I can share with you that I, um, launched first, um, treatment for spinal muscular atrophy here in Czech Republic with my team. So, so my background is scientific, but I really nicely used my knowledge and my, my background in, in.In the business, you know,
Dr. Peter M Kovacs: in corporate work.
Michaela Hrdlickova: Yeah. And, and this is maybe like a bridge too, you know, you probably are interested in how, how is that? I am from this science and, and pharma, uh, and Pharmac pharmacy and, and this business here where I am now. So I spent like 17 years in, in the company and, uh.
At the beginning, you know, my, my key focus was on science and, and medicine and helping patients, you know, but then, you know, and I, I did not know if, if I really wanted to, to lead people. Yeah. I, I knew nothing about leadership, you know, but then coincidentally I was offered to, to lead the team. And, you know, my, my friend, she was like, Michaela a Biogen is looking for director in Czech Republic. And, uh, I was like. I don't know whom I would advise. And she said, no, I'm asking you if you want to, to try. You know, so yes, it happened, you know, and, uh, I had chance in the, in the American company, uh, naturally learn about leadership, about, uh, company culture, about, um, potency of understanding the motivation of people in general about leadership.And I really like it, you know, and I know how important it is. If you want to really keep like a. Not only people happy, but business successful, you know? And so I tend to understand people from bigger, uh, not, not people, but, but things from the, uh, higher perspective, you know? So it was, for me, it was not only like a selling drugs, you know, and bring drugs to people.It was more about understanding healthcare system, social environment. And then I learned, I know how Czech population is aging, and uh, I was really surprised that no, no. No strategic exists. Mm-hmm. You know, and coincidentally, I met, Ilona Stravova whom I already mentioned, you know, she explained to me, you know, about the age management and about this, this concept, you know, so I, I became a member of the organization just voluntarily, you know, and about the concept, you know, and I was like a voting for people to really have access to, to innovative drugs and to really.Stay healthy, you know? So it was like a beginning, you know? And in 2023 I decided to, to leave the company and to, um, to create my own business, you know, to be more focused on work-life balance. Not to work anymore, like so much time of my life, but, but really to use the experience I learned, uh, during my previous career, you know, which was like, uh.N because I know the healthcare system. I think in Czech Republic and, and abroad, I learned a lot about, uh, people motivation and potency of leadership. And I learned a lot about, um, aging population. And, you know, what's needed and what's missing here in Czech Republic. And I did not mention that during the, the time I was that country director, uh, I was, uh, contacted by, um, like Lea Chestna she was the, the, uh, the one who created here, business professional woman, um, organization.And thanks to this I learned about mentoring, you know, and she was organizing, um, equal pay day, which is like a mentoring sessions for, uh, junior. Um. Ladies and, and, and junior managers for women, you know? Yeah. And in that way I learned, you know, how much my experience could help to others, you know, and, and thanks to their feedback, you know, I said, okay, make it.I can do so. After I finished my career in corporation and started my own business, so I decided, okay, I will, I will build on this experience. So I will use my experience in head in, in house care, in age management and leadership. And so. Mostly I do consulting and mentoring now. And where,
Dr. Peter M Kovacs: where do you see yourself in the next five years?
Michaela Hrdlickova: Where I am now? Yes. Yes, yes. Maybe, maybe no, because you know, I am already in, in the age, you know, when maybe other people would say, now I go for like, you know, but. You know, many, many people in my age, you know, if they're healthy, they can still live Like 30 active Yeah. Active 30 years, you know? Yes. So, of course it's up to me, you know, how I care of myself, my health, my, my, uh, show a good example.
Yeah, exactly. You know, I could be like a good example. What maybe I would love to do more is because all my life I spent in contact with, uh, with broad, with uh, um, you know. People in, in Europe and, and the, in the us you know, which I really love. So maybe if I do what I do here in Czech Republic, I do for more like international audience, this is maybe one step more I could do.But in general, I would love now to, uh, to live my, my dream to partially work, but then to have more time on my hobbies and, and myself.
Pavlina Walter: And what would be your advice for a young generation, but also for the old generation?
Michaela Hrdlickova: Hmm. For everybody. Mm-hmm. Um, my advice, my advice would be to really think about, um, your why.To really keep your why, and, and it, it should be directional where you go your, your life. Um, take care of your, uh, healthy, you know, do what you want, not what others want you to do. Um, yeah. And, and keep your workability forever.
Dr. Peter M Kovacs: Yeah. You mentioned this, why, and I was just really recently served, uh, really surprised that, uh, I try to hire a couple of, uh, colleagues and I, I raised this question of why the most of the people that, especially young generation, they can give me any answer for that.
Michaela Hrdlickova: I, maybe I can give you the answer. Yeah. And I know it's quite pro provocative, but I, I don't think it's only in Czech Republic, but in Czech Republic there, it was done some, some survey. Very often decision of what young generation is doing. Was decision of parents not, not to themself.
Dr. Peter M Kovacs: Yes.
Michaela Hrdlickova: And many people study schools or anything, which was a decision of their parents or anybody.Directly. Indirectly, but Exactly. Yeah.
Dr. Peter M Kovacs: They end up the same thing. And I can
Michaela Hrdlickova: tell you, I, I, I'm working with many young people. Like a mentoring sessions, you know, who are not happy because they did not follow their why and dreams. They followed what was advised to to them by parents. Yeah. And then these people are not happy.Yes, yes. Usually.
Dr. Peter M Kovacs: It's, I, I can confirm. Yeah.
Pavlina Walter: So hopefully we can, uh, change this situation and we wish you all good luck. And for more information we'll definitely share with our audience more information about age management and with the companies your grant, which is for free, and they can use it and implement it in their companies. Thank you. Thank you for inviting me. Thank you so much. Pleasure. Yeah, it was a very interesting topic. Thank you. Thank you. Thank you.