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What types of
capital
are you developing?
Question # 1
What types of digital capital are you developing?
Question # 2
What types of physical / manufactured capital are you developing?
Question # 3
What types of financial capital are you developing?
Question # 4
What types of human capital are you developing?
Question # 5
What types of social / cultural capital are you developing?
Question # 6
What types of natural capital are you helping to improve?
Question # 7
What questions can we ask to improve our strengths?
7questionsforyou
Question # 1
What types of digital capital
are you developing?
1. Servers.
2. Routers.
3. Online-purchasing platforms.
4. Basic Internet software.
http://www.mckinsey.com/Insights/High_Tech_Telecoms_Internet/Measuring_the_full_impact_of_digital_capital
4 examples of tangible digital capital / assets
1. Designs that engage users.
2. Analytic competencies.
3. Revenue models that monetize digital activity.
http://www.mckinsey.com/Insights/High_Tech_Telecoms_Internet/Measuring_the_full_impact_of_digital_capital
3 examples of intangible digital capital / assets
Further inspiration
https://www.teacherspayteachers.com/Product/Internet-of-Things-2056421
Question # 2
What types of physical /
manufactured capital
are you developing?
 Buildings.
 Machines.
 Tools.
 Other equipment.
 Infrastructure, for example roads, ports, and bridges.
Manufactured capital - examples
Further inspiration
http://www.theiirc.org/wp-content/uploads/2013/03/Business_Model.pdf
http://www.projectsigma.co.uk/Guidelines/Principles/Capitals/ManufacturedCapital.asp
http://www.ey.com/Publication/vwLUAssets/The_concept_of_capital_in_Integrated_Reporting/$FILE
/EY_'Capital'%20in%20Integrated%20Reporting%20April%202013.pdf
Question # 3
What types of financial
capital are you developing?
Types / forms of financial capital
1. Equity, i.e. money from owners.
2. Debt, i.e. money from lenders.
Financial capital refers to an individual’s
total saved assets, while human capital
refers to the individual’s future potential
savings from income earned.
https://www.cnbank.com/uploadedFiles/Site_Framework/Home_Page/December_2013_-_CIUN_-_Canandaigua[1].pdf
Actively reallocating corporate resources is important
in the best of times, and even more so during economic
downturns.
There’s something like a 4 percentage-point difference
in the average return to shareholders year on year for
those who are in the top third of re-allocators versus
those in the bottom third.
http://www.mckinsey.com/insights/strategy/breaking_down_the_barriers_to_corporate_resource_allocation
Further inspiration
https://www.princeton.edu/~achaney/tmve/wiki100k/docs/Financial_capital.html
http://ageconsearch.umn.edu/bitstream/122846/2/FM_WP19%20Determinants%20of%20financial%20capital%20use.pdf
Question # 4
What types of human capital
are you developing?
A
Knowledge of your values
https://www.teacherspayteachers.com/Product/Questions-to-discover-your-values-1329394
B
Knowledge of
how you learn well?
https://www.teacherspayteachers.com/Product/Learning-strategies-1487708
C
Professional skills
http://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/Enduring_Ideas_The_business_system_2379
What are you really good at and will you do yourself?
What will you outsource? An example.
Intangible assets are estimated to account for
up to 80% of the value of large companies.
Thus, people contribute to businesses more
than any other factor of production.
http://www.linkedin.com/groups/Intangible-Assets-nonmonetary-assets-that-3901119.S.71807779
Human capital is the only company resource that
supplies the organization with the ability to create
ideas, relationships, knowledge and models.
Every other financial, physical and cultural resource
depends on the active mental, social and psychological
talent necessary to fulfill it.
Source
Poppler, Paul & Stark, Ernest: Rare and Inimitable: Creating Human Capital Advantage.
Chief Learning Officer, May 1, 2010.
Intellectual capital is recognized as the most
important asset of many of the world’s
largest and most powerful companies.
http://www.wipo.int/sme/en/documents/value_ip_intangible_assets.htm
http://sloanreview.mit.edu/the-magazine/articles/1998/winter/3922/intellectual-capital-competence-x-commitment/
Intellectual capital =
Competence X commitment
http://thisisindexed.com/2014/09/commodity/
Human capital can be increased by investing
in education and health care.
http://www.economist.com/economics-a-to-z/h#node-21529828
Although companies' percentage of intangible
assets, for example research & development, has
increased, accounting rules have not kept pace.
http://www.investopedia.com/articles/03/010603.asp#ixzz2Iij3mEe8
Question # 5
What types of social / cultural
capital will you develop?
Aspects of social / cultural capital
 Strength of relationships with other people,
for example with customers.
 Degree of involvement in communities.
http://www.ey.com/Publication/vwLUAssets/The_concept_of_capital_in_Integrated_Reporting/$FILE/
EY_'Capital'%20in%20Integrated%20Reporting%20April%202013.pdf
Question # 1: Impact
How large is the impact that the potential partner / stakeholder has on your performance?
Question # 2: Clear expression of need
How clearly can you identify what you need from the stakeholder?
Question # 3: Interest in developing the relationship
How interested are you in further developing the relationship with the stakeholder?
3 questions to identify strength of relationship with a person
Adapted from
https://hbr.org/2014/03/five-questions-to-identify-key-stakeholders/
Social capital is generated by the connections in a social
network, and the trust, reciprocity, and resource-sharing
qualities of those connections. It can be activated by
individuals to gain social support or social leverage, or by
collectivities to facilitate organization and collective action.
Social capital is commonly viewed as a positive resource,
but can become negative when used to exclude outsiders.
http://cvp.evans.washington.edu/library/definitions
For production workers, productivity is readily
measured in terms of units of output; for transaction
workers, in operations per hour.
But for knowledge workers, what might be thought of
as collaboration productivity depends on the quality
and quantity of interactions occurring.
http://whatmatters.mckinseydigital.com/internet/using-technology-to-improve-workforce-collaboration
Further inspiration
https://www.teacherspayteachers.com/Product/Social-competence-1600674
Question # 6
What types of natural capital
are you helping to improve?
Types of natural capital
1. Air.
2. Water.
3. Land.
4. Forests.
5. Raw materials / minerals.
6. Biodiversity and ecosystem health.
http://www.ey.com/Publication/vwLUAssets/The_concept_of_capital_in_Integrated_Reporting/$FILE/
EY_'Capital'%20in%20Integrated%20Reporting%20April%202013.pdf
Environmental changes
http://www.slideshare.net/frankcalberg/environmental-changes-28839188
Question # 7
What questions can we ask to
improve our strengths?
Question # 1
What do users / customers find that you do really well?
Question # 2
What can only you do?
What is unique about what you do and how you do things?
Question # 3
Why would someone invest their money with you?
3 questions to find out why people love what you do
Ikea’s stylish, utilitarian, and inexpensive furniture combines expertise in
 design,
 sourcing,
 manufacturing,
 pricing,
 packaging,
 logistics,
 the customer experience in retail stores, and
 cost management.
All of these competencies reinforce the others.
http://www.strategy-business.com/article/00161?pg=all
With which product / service do you create most value for people?
Your answer: _____________________
Description of competencies
to create and deliver that product / service
Competence # 1
Competence # 2
How valuable is a competence, that
you have, for people you serve?
On a scale from 1 to 100, to what extent is
the product / service / technology you
deliver scarce / rare / in short supply?
On a scale from 1 to 100, to what extent can
a competence you have be transferred to
other people?
How difficult would it be for others to copy
a competence you have?
How difficult would it be for others to substitute
a competence you have with another competence
that satisfies needs customers have?
The strategic
sweet spot
http://flowingdata.com/2010/06/18/profitable-sweet-spot-for-startups/
External
threats
Make the most
of these
External
oppor-
tunities
Internal
weaknesses
Internal
strengths
What will you start doing right now to
make the most of your strengths?
What do you need to do to
use your strengths more?
How can you improve your biggest strengths?
Some sources of inspiration
http://www.bqf.org.uk/innovation/2013/07/15/quickly-assess-your-strengths-and-weaknesses/
http://hbr.org/2000/03/meeting-the-challenge-of-disruptive-change/ar/1
http://hbr.org/tip?date=012313
http://www.thoughtyoushouldseethis.com/post/15189657543/samuel-palmisanos-guiding-framework-for-ibm
Thank you for your interest. For further inspiration,
feel welcome to visit http://frankcalberg.com/
Have a great day.

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