1. Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Strategic Management: Text and Cases, 4e 4 Recognizing a Firm’s Intellectual Assets: Moving beyond a Firm’s Tangible Resources

2. How do companies create value in the knowledge- intensive economy? Human capital Human capital Social capital Social capital Knowledge Knowledge

3. Ratio of Market Value to Book Value for Selected Companies Exhibit 4.1 Ratio of Market Value to Book Value for Selected Companies

4. The Challenge……. Exhibit 4.2 Human Capital: Three Interdependent Activities

5. Attracting Human Capital Hire for attitude, train for skill Emphasis on … Sound recruiting approaches Networking

6. Developing Human Capital Train and develop at all levels Encouraging widespread involvement Transferring knowledge Monitor progress and track development Evaluate human capital

7. Retaining Human Capital Build Loyalty Challenging work and stimulating environment Financial and Non-financial Rewards and Incentives

8. The Role of Social Capital Human talent is a necessary but not sufficient condition Knowledge workers often more loyal to colleagues and profession Hiring via personal (social) networks

9. Challenges of Social Capital Groupthink Cost of financial resources Managerial commitment

10. Using Technology to Leverage Human Capital and Knowledge Technology can leverage human capital and knowledge Sharing knowledge and information Using networks to share information and develop products and services Codifying knowledge for competitive advantage

11. Human Capital and Strategy Leveraging human capital and business-level strategy (Chapter 5) Leveraging human capital and corporate-level strategy (Chapter 6) Leveraging human capital and international- level strategy (Chapter 7) Leveraging human capital and entrepreneurial strategies (Chapter 8)

12. Food for Thought Reflecting on your past experiences, think about how your organization dealt with: Hiring employees Hiring employees Developing employees Developing employees Retaining employees Retaining employees