Capitalism: Act I Reigns Supreme

“They say…the price of my war’s not a price they are willing to pay. Insane.” So goes the opening line of What Comes Next from a comedic King George toward the tail end of Broadway musical Hamilton’s Act I. In our real life American production we have stormed into 2021 with quite the opening act led by just as equal of a buffoon. So this week we’re here to talk about Capitolism. Ahem, Capitalism.

The key, you see, is capital. Those “insane” enough willing to pay to provide the capital. The benefits of our financial system accrue primarily to the providers of capital. A big giant elephant hiding in plain sight and Act I of our economic system (if you will).

Companies, the artistic vehicles within which we perform are funded by capital providers in the form of debt, equity or as rarely as a Rhino on the Sahara, operations. That is where we allocate the capital provided (Act II). Then come the rest of the labor needed to carry out a mission’s execution (Act III). As managers of different shapes, sizes, and responsibilities you’ll more than likely find yourself somewhere between Act II & III.

As we begin another year in this brand new decade and sit down to set goals for what may come next…here is a secret for all of the managers finding their theatrical way forward. Lean in closer so you can hear. Now down a little bit more:

*Whispers softly*: Get closer to the capital

The closer you are to the capital the more valuable and economically advantaged you will be. Hard work is one boilerplate pre-condition but getting closer to the important capital allocation decisions reigns supreme. You’ll learn more too!

Whether it’s product development, pricing strategies, hiring or pushing through team efficiency projects the more potential you have to accrue to you the benefits of capitalism’s invisible hand.

  • What are the decisions, teams, or projects that drive capital allocation in your organization?
  • How can you increase the operational efficiency or leverage with the resources you’ve been given?
  • What bold new ideas could unlock new markets and opportunities?

Our economic system, currently housed within a delicate democratic shell, needs your skills. Get closer to the capital in order to drive us all forward into a better, brighter new decade. The more valuable you become by proximity the more you can help strengthen this country’s private institutions for these crazy public times. If this week has shown us anything it’s that we need courageous capital allocators to fight against injustice and insanity in an uneven age of infinite leverage.

What about when you are the capital…?

“Oceans rise…Empires fall…It’s much harder when it’s all your call” continues King George’s Hamiltonian melody. An entirely different topic for a much more normal week. Keep your head about you out there and, unlike our President, may you remain platformed so that you’re not out there all alone!

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