#pm_ngt-018 Forms of capital are Culture, Procedures, Fixed Assets and Money. When capital interacts effectively we get benefits
These four forms of capital in human endeavours could be re-described as human, intellectual, physical and financial.
- Human capital is an unattractive term because it sounds inhumane:
- it simply describes shared understanding and shared values about acceptable responses to events that arise and the intellectual capital that applies to each.
- Culture is a ‘happier’ description.
- Intellectual capital is a term that is, perhaps unnecessarily grandiose:
- it simply describes the knowledge of how to conduct some process.
- Human description of process is Procedure.
- Procedure is useless until turned into skilled use of techniques and tools. This is competency.
- Competency is useless until combined with resources with capacity.
- Capacity plus competence equals CAPABILITY.
- Capability is when Human Capital can do fluently what we know. (People share the same Mental Model to enact a coordinated set of interdependent actions that achieve a desired result in the face of emergent challenges. They also have the Will. Think Chess and Football or war or market-places. Your every move is responded to by other self-interested players). The more people needed with shared mental models and shared motivations then the greater the challenge is. Organisational (and societal) achievements need many abilities to interact in a coordinated manner. The elements of the shared procedures – what we call company culture in total – are individually items of intellectual property.
- Physical capital is simply a label to group all the machinery, buildings, tools etc by which the physical world is manipulated by the people employing intellectual capital in a culturally accepted manner. Also Known As – aka – Fixed Assets.
- Financial capital is both simpler, trickier, the most abundant, easiest and hardest to acquire.
- Sometimes it is money at rest. Cash in the bank: then it is often called ‘capital’.
- But it might be a building – so a fixed assets – or sometimes it is in motion like customer payments flowing through a variety of hands and systems to become employee salaries. While fixed assets are in use, such as a machine, they are actually wearing out. Day to day it may appear ‘stationary’ but in reality and in tax law it is slowly depreciating. Tax law recognises depreciation to allow the owners of other forms of capital to replenish them free of repeated tax on every replacement.
Our training spans first line “I’m a technician, I’ve been asked to lead a project” through to board “How do we apply control so we get the return on investment promised” and of course the “I’m a professional project manager and I have the PMP and PRINCE2Agile certifications to prove it”
You’ll find the collection of options at https://learn.logicalmodel.net
#pm_ngt training provides the tools and techniques required to preserve, build and transform capital. A ‘project’ is a journey in capital transformation that requires senior decision makers to set strategy, middle management to translate strategy to tactics and execute the tactics and participants with technical expertise to deliver specified results. Its a balance of Run the Organisation versus Change the Organisation. The wider set of skill is New Generation Thinking for Project Management – #pm_ngt – ‘New thinking’ because the full capital cycle of renewal is an end to end journey for decision makers that spans from the top to the bottom of the organisation with focus on what is relevant to reality – end2end, top2bottom relevant2reality IS NOT found in the text books!.