Capital

We've all experienced how various forms of capital can contribute significantly to your organizational goals. There are essentially three types of capital.

One, that is capital in the form of financial capital or money. Every organization needs money to survive, to grow, to make a profit. Which is one of the reason why when financial institutions are threatened, like the current crisis, governments need to step-in to ensure it does not collapse. As with a credit freeze, the entire economy gets affected. Businesses do not have access to capital to grow or do business; individuals face increased criteria for borrowing money to make purchases.

Two, that is capital in the form of intellectual capital. In other words, its an idea that has a value, which if is protected can bring about tremendous returns for the organization. Look at Microsoft, where the "idea" of the Windows operating system, which essentially is a protected idea that accrues the rights to MS to sell it at a price. This form of capital is subjected to imitations and copy-cats; where can over time lose its value.

Three, that is capital in the form of human capital. This form of capital is, by far the most difficult to accumulate but if done properly can bring about exponential benefits. There are various ways of developing or nurturing human capital. It can be developed through training and talent grooming. There is, however, a more sustainable and self regenerating manner and that is through building a culture where individuals are not just productive or committed' but engaged.

To build a culture where individuals are engaged requires efforts at all four dimensions. These dimensions include (i) people dimension, (ii) customer dimension, (iii) stakeholders dimension, and (iv) internal dimensions.
Respectfully yours,
Melvyn Tan
(Sent from my Blackberry Bold)