Treat capital like ATP
18 June 2020 at 12:00:00
As businesses we often carry capital. But capital can weigh us down. The body does not store huge amounts of capital, but it can produce it, when needed, on demand.
Capital is the perhaps the principal fuel that propels organisations.
We need to be intelligent in how much we carry.
Adenosine Triphosphate (ATP) is the primary chemical, where from which, we derive the energy we use for exercise.
Given that we can exercise for long periods of time, it would be sensible to draw the conclusion that we store inordinate amounts of ATP in our muscle cells. Wrong.
We store enough ATP for approximately 6 seconds of intense exercise, after which it runs out. What’s remarkable, however, is the ability our cells have for the regeneration of ATP.
We don't store it, we generate it on demand.
This makes our bodies, light, agile and energy efficient. Highly responsive to our needs.
What if we applied the same principle to capital in our organisations?
Any type of capital - financial, technology, human.
Stowing enough to make us supple, responsive and able to keep pace with our changing environment, but not so much that it drags us, slows us, leaving us open to being wrong-footed by our competitors.
Treat capital like ATP.