The real balance sheet of your organization is about much more than economics. The truth is, there is a lot of capital running around your organization. We all know how important it is to have access to Financial Capital, either by creating it, borrowing it, or collecting it. Businesses don’t exist without working capital to pay the bills.
More recently, organizations have come to understand the importance of Human Capital. The talent inside an organization determines the everyday choices that propel an organization forward or not. Talent is a huge differentiator when organizations collect and nurture it.
Of course, we can’t forget about Intellectual Capital, those proprietary ideas and processes that allow us to compete in the marketplace.
Anything we can invest in, grow in capability and employ to provide a distinct advantage in the marketplace is a source of capital. Using the metaphor of capital, we can better understand the strength of any organization. Organizations need many sources of capital to prosper.
For example, Social Capital represents the many stakeholders that promote and support an organization. Relationships turn the wheels of just about everything that matters in an organization. When it comes down to how an organization executes, Systems Capital represents the infrastructure essential for success — the many systems, including technology, that allow an organization to hum. A strong organizational culture pays big dividends in recruiting, retaining, and engaging the team. Culture Capital grows as we invest in the expression of the organization’s values and principles. An organization’s Philosophy Capital underpins just about everything, as it is the articulation of why we do what we do and the working premises that guide our thinking — thinking that makes or breaks us. Think Mission and Vision.
Good leaders have their eye on many different sources of capital that propel an organization forward.
How strong is your organization’s balance sheet?
