Intellectual Capital: The new wealth of organization [Paperback]

Through clear examples and studies of well known and familiar marketing "phenomenon," we come to realize that we often misdiagnose both our successes and our failures when it comes to understanding why certain social changes stick. We are given the "real analysis" of why Blue's Clues and Sesame Street are great successes while other more deliberate attempts at "hooking" our children on educational TV failed. We find out why the New York City crime rate was drastically reduced by cleaning up graffiti on the trains and arresting the squeegee men at the toll booths. More importantly, we learn how to challenge the status quo in our ideas of why products and services might take off or fail in our business and non-profit organizations.

We also learn why growing an organization from 100 people to 150 people presents no difficulty, but growing that same organization from 150 to 200 is all but doomed to fail. Mr. Gladwell explains why context matters in our quest to understand the social trends around us. And we learn why telling medical students to rush makes them calloused citizens despite their normally compassionate tendencies. All of this information is important to those of us working to grow our institutions and manage our company cultures. Change management is doomed to fail without a deep understanding of the "Tipping Point" as clearly and eloquently explained in this excellent book by Malcolm Gladwell. This is a must read for anyone serious about understanding why little things can make a very, very big difference!

I immediately found myself thinking of ways to apply the various forms of intellectual capital (human, structural and customer) to my work in higher education. In fact, Stewart's work provided important insights that proved helpful to my doctoral dissertation on higher education/business partnerships.

Admittedly, there is little here in terms of practical strategies for applying the ideas in the marketplace. However, it does encourage those who are interested in the topic to pursue more in depth and practical works on the subject of knowledge management.

According to Stewart, Intellectual Capital is consisted of three interconnected parts, namely, Human Capital, Structural Capital and Customer Capital. Human Capital means the knowledge and skill level of corporate personnel. If an organization has a personnel inventory whose knowledge and skills are vital in the long-run, the first part of the capital forms a strong base to capitalize on. The other part of Intellectual capital, Customer Capital, means that organization is producing value for its customers and accordingly custemers have a strong loyalty to the company. The last part of Intellectual capital is Structural capital which connects Human Capital and Customer Capital to each other. Organizations need structural systems to use human resource in order to meet customers' needs and wants in a more effective way which other companies can not imitate without incurring high costs and time loss.

You will find a lot of living examples intended to make these abstract concepts understandable to readers who are accomodated to hear many pop-ups regarding human capital and its value. Overall, I strongly recommend with five stars.