Saturday, 24 November 2007

Organisation capital

From my book:

Organisation or structural capital is the infrastructure that supports people to do their work. It includes elements like the fitness of the organisation structure, operational and management processes, procedures, routines, general use of information, IT systems and databases, existence of a knowledge centre, explicit knowledge and know-how. Some of these elements may be legally protected and become intellectual property rights, legally owned by the firm, for example patents, copyrights, design rights, trade secrets, trademarks and service marks. Organisation capital has the advantage of being fully owned by the company – it remains in place when the employees leave - and is therefore to some extent easier to manage and change than human capital.