Is investing during a pandemic possible?

Guide to grow your capital in challenging times!

Do you remember when the term VUCA was trending, the buzz word featured in just about everything that was ever written. Thinking back, I ran trainings on it, helping organizations think through what it meant to be agile, have flexible systems and pivot with speed. Anyway, in case you are late to the party, VUCA stands for Volatile, Uncertain, Complex, Ambiguous, and in case you missed the memo too, VUCA=COVID-19. If we are totally honest with each other, COVID-19 seems to be VUCA with a vengeance. Not only has this virus had devastating impacts on the health care system, caused the pre-mature loss of thousands of lives, but the entire world has been turned upside down and inside out. There is not a single person on the planet that has not been affected, then again, if there is life on other planets, COVID-19 is probably there too (sneaky virus). Needless to say, that if every person has been affected, then every single sector has been affected, globally the financial markets are crashing all around us. Such economic downturns bring with it, increased fuel and food prices, decreased employment opportunities and a loss of livelihoods for those who need it the most.

When we think about investing, we think Rands and cents and consider the financial return on an investment, basically, will it bring me more money. Now, I know that I explained above that the financial markets are on a blink (let’s hope a temporary one) but it’s not all doom and gloom actually, what we fail to realize is that there are other capital markets that can be invested in, capital which is completely within your control, and capital which, if invested in wisely can bring you a valuable return.

There are five kinds of capital, all of which are highly valuable, and all extremely important in the sustainability of economic development. These capitals are; financial, natural, human, social and emotional capital. Stick with me whilst I try to explain each in an over-simplified way.

Financial capital refers to the system of ownership or control of physical capital (machinery, equipment, infrastructure etc.). Natural capital is resources that exist in the natural world (water, sunlight, wind etc.). Human capital refers to the productive capacity of an individual, both inherited and acquired (education, training). Social capital consists of trust, mutual understanding and shared valued, and finally, emotional capital refers to emotional resources and abilities held by an individual (self-esteem, emotional energy, resilience, creativity etc.).

When it comes to financial and natural capital, our locus of control is limited, and I am hopeful that you are doing your fiduciary duty when it comes to your financial investments and being environmentally responsible when investing in natural resources. Yet, human, social and emotional capital are fully in our control. These capital investments set most people apart, when the masses are grumbling about things they cannot change, you will find the successful growing the capital that keeps on giving. Let me show you how!

Human Capital:

Human capital are our assets like education, training, intelligence, skills, health including loyalty, punctuality, work ethic and adaptability, just to mention a few. These assets are not only profitable to a company, but to you the individual who owns it, understands its value, and continues to grow it.

As we move deeper and deeper into a knowledge-based economy that depends on information, knowledge and high-level skills, human capital will become increasingly important. Human intellect is the producer that drives a knowledge-based economy. Simon Sinek called this pandemic the “great revealer,” and the dispensability of those who have grown comfortable has been revealed. I trust that you are among those who are life-long learners, constantly adding new tools to their toolbox, making you relevant, fit for purpose, indispensable and highly valuable. An investment in your human capital, is the gift that keeps on giving.

Social Capital:

According to social psychologist Robert Putnam, social capital “refers to the collective value of all ‘social networks’ and the inclinations that arise from these networks to do things for each other.”

Your social capital can be measured by:

- your participation in social organizations (how many organizations are you an ACTIVE member in?)

- your trustworthiness (do family, teammates, neighbors etc. trust you, and want to be around you?)

- support actually received (how many sources of support (from whom) can you confidently rely on?)

- your willingness to contribute/volunteer for wellbeing of others in your community

Research has shown that social capital has a direct link to securing employment or paid work, potential promotions and organisational influence.

Investments in your social capital not only has the potential to open doors for you, but bring you into a room and give you a seat at the table. A word of caution when growing your social capital – check your motives! No one appreciates transactional relationships, and true social capital is built on genuine, authentic connections driven by our value for people, and wanting to add value to people.

Emotional Capital

Emotional capital is the level of positive, focused energy you invest in your work and in your personal life. You inspire or demoralise others first by how effectively you manage your own emotional energy and second, by how well you mobilize and focus the collective energy of the people you lead. Leadership roles are occupied by individuals who have high emotional capital and strong technical skills (human capital).

There are several competencies that make up emotional capital; self-awareness, self-management, social awareness, social skills and adaptability.

Our emotions show up in everything and determines whether or not people will work well with you, buy from you, hire you, or enter into business with you. An investment in emotional capital is one of the better investments you may ever make. My emotional capital grew the day I hired a coach, and highly recommend you consider one too.

If you are reading this sentence, well done, that was some uphill reading right there, but as John Maxwell says, “everything worthwhile is uphill.” This journey through COVID-19 may feel like an uphill journey, but it is the investments that you make in this season that will set you apart in a Volatile, Uncertain, Complex and Ambiguous world. 

Here is some insider information, I founded and built an entire company purely on growing my human, social and emotional capital….. when others are spending big budgets on marketing and am investing in capital that yields bigger and better returns, and you can too.

So basically, is investing during a pandemic possible, it’s a resounding Yes! and now you know how!

Make that Move!

Living in the South African Bushveld, I get to see nature at its best;  daily sightings of bold buck making their way past my office to the nightly frog infestation in my kitchen (yes, you heard right!). In case you are a nature lover, and thinking omg! that is so cute, it’s not, it was, the first few nights, but seven summers on, I really would like them to leave now. Moving along, among all the beauty that exists here, you can find the odd jackal, a cutesy dormouse my cat finds, or an inquisitive snake who chooses my car’s engine for a home. That, my friend is a story for another day. As you might have gathered by now, some sightings are more welcomed than others of course.

Which brings me to my arch nemesis. I am aware that I am being a tad dramatic, but not only am I highly allergic to these little critters, but they are just a plain nuisance. Their sight and sound is annoying, and together with their sting makes it a trifector of pure irritation. (Oh! Don’t judge me). There isn’t a day that I don’t have a run in with one. They basically zooming in and out of my house, bringing their babies food in the multiple nests that they built in the most inconvenient and inconspicuous places.  Whilst writing this, there is one flying above me. Argh! Oh right, I didn’t mention what it is, these unwanted kamikaze flyers are the….. wait for it….. the deadly Wasp! (deadly to me, I’m allergic not dramatic). One sent me to the emergency room, and yet, another story for another day. 

Whilst sitting at my desk not so long ago, my attention was captured by a wasp in its endless endeavour to fly outside, it flew towards an open window, but kept missing the opening by 2cm at least. It  flew into another room, and then back to my office in the pattern of the infinity sign, and kept hitting the exact same spot on the window, each time slam, bang, slightly dizzy and then, at it again. I don’t know how many times it did it, all I know is that my mind started to wander away, while watching this wasp follow the same pattern yet missing the opening, thinking this must be the dumbest wasp ever to have flown the open skies, if it would just adjust its pattern, it will get out. 

As that thought left my mind another popped right in, “are we not exactly the same as people?”

Don’t we do the same things over and over and expect a different result? It was a sobering thought, and I felt a little guilty for judging the wasp (I know, it’s just a wasp, but hey, I’m just being honest here.)

This awareness certainly made me think about what “holding patterns” I might be having. Oh right, what is a holding pattern you may be asking.  Well, in aviation terms, a holding pattern is the flight path maintained by an aircraft awaiting permission to land. Have you ever just wanted to get home after a long flight, to be freed from your little congested seat, having sat way too close to complete strangers for way too long, and just needing to breathe in some clean fresh air.  Then you hear the pilot saying that we are waiting to be assigned a bay, and we shall be in holding (circling above the airport) for a while. Nothing is more frustrating than being home, seeing your city below, but being unable to get there yet. That is being stuck in a holding pattern.

The Collins Dictionary describes a holding pattern like this, “If something or someone is in a holding pattern, they remain in the same state or continue to do the same thing while waiting for something to happen." Wiktionary goes on to describes it like this, “Any failure to advance; useless or unproductive activity.” 

I like the Wiktionary definition, it shocked me into reflection on what could be contributing to my failure to advance, and what are some of my unproductive activities. 

Here are some familiar holding patterns that might ring true to you:-

• Relationships: Ever dated someone - and it felt like your previous relationship except with a different face? Yep holding pattern!

• Self-sabotage: Want to give up a few kilograms, but your shopping list/cart  hasn’t changed? Yep, another holding pattern!

• Friendships:  You tend to hang out with the same people, who are just like you , think like you, and hang out in the same places as you. Yep you know it, holding patterns!!

Einstein tells us that doing the same thing over and over and expecting a different result is Insanity….. keeping the same hold patterns in different areas of your life, amounts to the same thing. Beyond just making your list of holding patterns, I trust that you are able to make the SHIFT! Don’t be like the wasp stuck in my office, adjust your pattern, and take flight toward to the life of your dreams.