How Does Strategic Capital Influence Results?

by Jay Deragon on 05/30/2013

Chess-pieceCan you imagine a professional sports team going into a game without practicing? What if the team did not have the right talent in the right positions with the right training in the right mental frame of mind? What if the team was never taught the rules of the game or did not understand the purpose of the game? What if the coaching team had not thought through a series of offensive and defensive plays, considered the time of the game, the weather conditions or the fans or shareholder expectations for winning the game?

If none of the above elements were considered, designed, engineered, taught, lead and managed effectively then the team’s performance would suffer and so would all the related stakeholders.

The same is true for business. Strategic Capital is the glue that gives human, structural and relationship capital the framework that enables the parties to fulfill a purpose. Without the purpose there is no mental and emotional identification or connection with the organization, its activities, its products and the people that provide them or the people that buy them.

The difference between professional sports and business is in identifying and studying the competition. In sports the competition is the other team. In business the competition is our own mind and its limitations to see new ways to create more value perpetually. Learning to continuously leverage and improve upon your organizations intangible capital is the competitive advantage of the 21st century that requires a collaborative strategy.

The purpose of a collaborative strategy is to accelerate learning so you can use knowledge to create more value than anyone else. You simply can’t do it without having the right strategic capital in place. That is the essence of how strategic capital creates results.

Study to show thyself approved. May the smartest company win!

{ 1 comment }

Copi Valdiviez May 31, 2013 at 12:52 am

Excellent article, especially for the newbie! Thank you. I was quite confused about what seed fund and venture capital finances were. Just figured out that it is related to what stage a startup is.

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