HRATIO: building organisational capital

 

The more technology drives value from the emotions of, and relationships between, people over the outputs of machinery and sale of inventory, the more enterprises will depend on their organisational capital.

Organisational capital is defined as the philosophies, knowledge and systems that provide the infrastructure for creating intangible asset value. Intangible assets can be broadly considered to include all the benefits an enterprise enjoys as a result of the knowledge, know-how, ideas, processes and methods, competencies, relationships, designs and creativity, loyalty and commitment, and decisions made by people on its behalf.

Few enterprises consider the importance of their organisational capital, let alone have a formal approach to managing it. Instead, it is usually treated as a part of human capital management.

Organisational capital management considers the generation of intangible asset value a function of the organisation, whereas the human capital management considers the value generated, and the management of it, a function of the people it employs. The difference may seem nuanced, but the importance of understanding how intangible capital should be managed is more than theoretical differences.

 
When millions of people can be connected onto a single platform to create billion dollar businesses with few physical assets, or a single video of a poorly managed customer situation can wipe millions from a firm's share value, it can all come down to how, or even whether, the enterprise's organisational capital is managed.

HRATIO is a software program under development by Meta Management designed to help neterprises of any type and size develop and maximise the benefits of their organisational capital.

HRATIO is currently in a trial stage. Contact us if you would like to be updated on the development of HRATIO, or to apply to be an early test site.

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