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Ric

The only reason the lane is slow, is that the other one has had sympathetic systems built around and for it ... give the "slow" lane the right support and infrastructure and it will speed up plenty. Unfortunately, so many of our employers still see people as a liability rather than an asset (there's Pacioli at work again!) - they are condemned to watching their value creators move slowly ...

sig

Ric,

true, true - one could argue that it's five (or even more) lanes - one for industrial value add, four (or more) for services value add: Services; twice the value add already, and only half (or less) capital potential in use!

Luca Manassero

Althoug we all recignised the intellectual capital as "capital", we can easily see the limits of this analogy when we work on a balance sheet or with a bank. Service industry has apparently no available capital to "grab" when things start getting in the wrong direction. And here sadly ends the analogy.
We probably should stop defining as "capital" an intellectual resource which is not easily moveable.
Knowledge or experience or intellectual property can be "trasformed" into capital, but (despite all cultivated discussions) it is not capital, yet.
This reminds me an example our professor of Accounting told us at Harvard Business School: to tell that "our employees are our most valuable asset" is plain wrong, as technically an employee can never show up in the asset section in your balance sheet :-)

sig

Luca,

yes and no (as always :))!

Agree that Capital takes different forms - reflected on the balance sheet as Current or Fixed (or similar), the former being cash or near cash, the latter being quite stuck. But both has the same purpose, to be used as basis by the firm to create more value.

Now to that iffy intellectual capital - as long as it stands today, lodged in people's brains you cannot flip it to anything, your only option is to use it to create value.

My point is that it should be captured by the firm (they pay for the work don't they?) so it can be reused by anybody, freshmen and old hands alike. In fact the moment that happens, the intellectual capital becomes a real asset that in theory could be sold just like machinery, property or other fixed assets!

Another good argument why Thingamy should be used - you amass a real book-able asset every day! Just have to have a good word with the accountants... ;)

Sunil

Sig,

Great post as usual. You should write a book!

Since you took the trouble of walking me through a build of Thingamy, I have more than a fuzzy idea about how it captures each and every event of a 'project' transaction.

1. It becomes a 'live' log of whatever's being done/needs to be done and a flow is captured dynamically.
2. It also gives you a way to reassign the 'flow' to be able to overcome contingencies of time and availability.
3. It is intuitive, well I'll have to change that, intuition helps when you have to guess whereas Thingamy gives you a way to capture each 'event' in the flow.

I do have some concerns however about how others can use the 'log' meaningfully in their own context. Trending apart, I wonder if we need a meta layer that facilitates storing the essence of the interactions or transcations to augment organisational knowledge.

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