Friday, July 13, 2007
Tuesday, July 03, 2007
Financial capital is the sum of the depreciation, amortization, depletion, rent, interest, and maintenance expenses associated with holding or using commoditized financial assets (both tangible and intangible). Human capital is the sum of wages, benefits, commissions, and other expenses associated with employing people (i.e., those who go home at night). Structural capital is what remains after accounting for the financial and human capital of the firm.
While the competition between financial and human capital has been the subject of classical and neoclassical economic debate, ad nauseam, it is the emerging recognition of structural capital as the ternary equivalent to these traditional capital forms that provides the vantage point for visualizing the topological landscape which stands guard before the vista of strategic success.