Chapter from: "Five Eyes on the Fence: Protecting the Five Core Capitals of Your Business"
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Business Expert Press
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Abstract
This chapter is excerpted from ‘Five Eyes on the Fence: Protecting the Five Core Capitals of Your Business'. This book debunks the myth that a business's health is judged by its bottom line alone'by its financial capital. Instead, the book proves that financial capital is a byproduct of four other capitals: (1) human capital, defined by a company's and its employees' soft and ingrained attributes like personalities, intelligences, behavioral traits, values, attributes, and motivators; (2) intellectual capital, defined by the company's and its employees' knowledge and experience; (3) social capital, or the company's network of people and associates; and (4) structural capital, the glue that holds all of these capitals together in the form of processes, systems, and modes of delivering a product or service. When these capitals are combined, a business can create a pixie dust of sorts, allowing its financial capital to grow and thrive. By exploring both positive and negative case studies, readers learn to consider these five capitals as an intricate web, making decisions according to the interplay between each of the capitals rather than focusing all of their energies on the cold, hard, and logic-driven financial statement.
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Abstract
This chapter is excerpted from ‘Five Eyes on the Fence: Protecting the Five Core Capitals of Your Business'. This book debunks the myth that a business's health is judged by its bottom line alone'by its financial capital. Instead, the book proves that financial capital is a byproduct of four other capitals: (1) human capital, defined by a company's and its employees' soft and ingrained attributes like personalities, intelligences, behavioral traits, values, attributes, and motivators; (2) intellectual capital, defined by the company's and its employees' knowledge and experience; (3) social capital, or the company's network of people and associates; and (4) structural capital, the glue that holds all of these capitals together in the form of processes, systems, and modes of delivering a product or service. When these capitals are combined, a business can create a pixie dust of sorts, allowing its financial capital to grow and thrive. By exploring both positive and negative case studies, readers learn to consider these five capitals as an intricate web, making decisions according to the interplay between each of the capitals rather than focusing all of their energies on the cold, hard, and logic-driven financial statement.