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Tuesday, January 08, 2008

Intellectual Capital/Stewart 89-91

90 Four quadrants of workforce
Difficult to Replace, Low Value Added------------Informative
Difficult to Replace, High Value Added------------Capitalize
Easy to replace, Low value Added-----------------Automate
Easy To replace, High Value Added---------------Differentiate or Outsource

91 A company's human capital is in the upper-right quadrant, embodied in the people whose talent and experience create the products and services that are the reason customers come to it and not to a competitor. That's an asset. The rest--the other three quadrants--is merely labor cost. (Incidentally, placing yourself on the grid is useful way to evaluate your job security or to analyze whether you would find yourself closer to the upper-right quadrant in a new position in the company or with a different employer.

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