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!
