Such talents, however, are hard to measure by traditional metrics. They are also difficult to sharpen through traditional learning and business practices. While the efforts of some are more formal than others, all are exploring new ways to accelerate learning and leverage knowledge. One of the earliest challenges to this fledgling movement is conceptual. Human capital, he explains, is the accumulated capabilities of individuals responsible for providing customer solutions.
Structural capital refers to the capabilities of the organization to meet market requirements.
Unlike human capital, structural capital can be formally captured and embedded. Customer capital points to the extent and intensity of the organization's relationships with customers. The organization's true vitality and promise or, conversely, its weaknesses and sources of potential disaster lie below the waterline. If all goes as planned, CIBC will have created a meaningful system for intellectual measurement within the next year. We need to measure intellectual capital assets and concentrate more on the developmental factors that keep the organization healthy, vibrant and strong in its marketplace.