Five eyes on the fence : protecting the five core capitals of your business

134 Pages·2014·1.286 MB·English

by  Rose, Tony A

THE BUSINESS Five Eyes on the Fence R Entrepreneurship and Small
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EXPERT PRESS Protecting the Five Core Capitals SE Business Management Collection
DIGITAL LIBRARIES
of Your Business Scott Shane, Editor
EBOOKS FOR
Tony A. Rose
BUSINESS STUDENTS
Curriculum-oriented, born- Five Eyes on the Fence: Protecting the Five Core Capitals of
digital books for advanced Your Business debunks the myth that a business’s health
business students, written is judged by its bottom line alone—by its fi nancial capi- Five Eyes on
by academic thought
tal. Instead, the book proves that fi nancial capital is a
leaders who translate real-
byproduct of four other capitals:
world business experience the Fence
into course readings and (1) human capital, is defi ned by a company’s and its
reference materials for employees’ soft and ingrained attributes like personal-
students expecting to tackle ities, intelligences, behavioral traits, values, attributes,
Protecting the Five
management and leadership and motivators;
challenges during their
(2) intellectual capital, defi ned by the comp any’s and its
professional careers.
employees’ knowledge and experience; Core Capitals
POLICIES BUILT (3) social capital, or the company’s network of people FI
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one-time fee readers learn to consider these fi ve capitals as an intri- HE
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fi nancial statement.
The Digital Libraries are a Tony A. Rose
comprehensive, cost-eff ective Tony A. Rose is a founding partner of Rose, Snyder &
way to deliver practical
Jacobs, a partnership of certifi ed public accountants.
treatments of important
Intuitive and personable, Rose is a Legacy Wealth
business issues to every
Coach® and a Certifi ed Kolbe Method Consultant® as
student and faculty member.
well as the author of Say Hello to the Elephants (2008).
Rose is the past president of the National CPA Health
Care Advisors Association and a member of the Ameri-
For further information, a can Institute of Certifi ed Public Accountants and the
free trial, or to order, contact:  California Society of Certifi ed Public Accountants.
[email protected] Entrepreneurship and Small
www.businessexpertpress.com/librarians Business Management Collection
Scott Shane, Editor
ISBN: 978-1-63157-039-1
Five Eyes on the Fence

Five Eyes on the Fence
Protecting the Five Core
Capitals of Your Business
Tony A. Rose
Five Eyes on the Fence: Protecting the Five Core Capitals of Your Business
Copyright © Business Expert Press, LLC, 2014.
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted in any form or by any
means—electronic, mechanical, photocopy, recording, or any other
except for brief quotations, not to exceed 400 words, without the
prior permission of the publisher.
First published in 2014 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-63157-039-1 (paperback)
ISBN-13: 978-1-63157-040-7 (e-book)
Business Expert Press Entrepreneurship and Small Business Management
Collection
Collection ISSN: 1946-5637 (print)
Collection ISSN: 1946-5645 (electronic)
Cover and interior design by Exeter Premedia Services Private Ltd.,
Chennai, India
First edition: 2014
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
To business owners everywhere—who are, by my assessment, heroes.
And, specifically, to my clients, who have allowed me the time,
the insight, and the resources to evaluate the five core capitals.

Abstract
Five Eyes on the Fence: Protecting the Five Core Capitals of Your Business
debunks the myth that a business’s health is judged by its bottom line
alone—by its financial capital. Instead, the book proves that financial
capital is a byproduct of four other capitals: (1) human capital, defined
by a company’s and its employees’ soft and ingrained attributes like per-
sonalities, intelligences, behavioral traits, values, attributes, and motiva-
tors; (2) intellectual capital, defined by the company’s and its employees’
knowledge and experience; (3) social capital, or the company’s network
of people and associates; and (4) structural capital, the glue that holds all
of these capitals together in the form of processes, systems, and modes of
delivering a product or service.
When these capitals are combined, a business can create a pixie dust
of sorts, allowing its financial capital to grow and thrive.
By exploring both positive and negative case studies, readers learn to
consider these five capitals as an intricate web, making decisions accord-
ing to the interplay between each of the capitals rather than focusing all
of their energies on the cold, hard, and logic-driven financial statement.
Keywords
conation, financial capital, human capital, innovative business management,
intellectual capital, multiple intelligences in business, social capital, strategic
advantage, structural capital, value-based business

Contents
Acknowledgments ...................................................................................xi
Introduction: Minding Your Business: The Four Missing Pieces ............1
Chapter 1 Human Capital ................................................................11
Chapter 2 Social Capital ...................................................................35
Chapter 3 Structural Capital ............................................................59
Chapter 4 Intellectual Capital ..........................................................77
Chapter 5 Financial Capital..............................................................89
Chapter 6 Keeping Five Eyes on the Fence .......................................97
Notes..................................................................................................111
Bibliography .......................................................................................113
Index .................................................................................................115