Organizational Capital

Organizational Capital

Organizational Capital Jonathan Poland

Organizational capital refers to the intangible assets and resources within an organization that support its operations and enable it to achieve its goals. It includes the systems, processes, policies, and culture that are in place within the organization, and is independent of individual employees. As a type of intellectual capital, organizational capital represents the knowledge and expertise that is embedded within the organization, and can be accessed and utilized by multiple individuals.

Organizational capital can play a key role in the productivity and creativity of employees, as it provides the structures and support needed to enable them to work effectively and efficiently. It is often overlooked or undervalued compared to tangible assets such as physical capital and financial capital, but can be a crucial source of competitive advantage for an organization. The following are common examples.

Mission & Vision
A documented mission and vision that serve as a purpose and direction for a firm.

Organizational Structure
The structure of a firm as represented by an org chart. For example, a flat organization with few levels versus a tall hierarchy.

Principles
Guidelines designed to direct decision making and strategy.

Policy
Policies such as a code of conduct.

Stories
Documented stories designed to create a culture or explain a firm’s legacy.

Training
Training materials such as onboarding documentation and media.

Tools
Tools that are relevant to organizational culture such as a knowledge management system or anonymous feedback tool.

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