There are many kinds of capital in a business: Human capital, financial capital, and intellectual capital are well-known types. In the context of the sales team, human capital is the people who do the sales work, and financial capital is the budget available to pay them and help them do their jobs. Intellectual capital is the stored knowledge, experience, and information your sales department owns.
There is another type of capital that is less commonly discussed in terms of sales: “strukturkapital” as we say in Swedish, or, in English, Structural capital. Structural capital refers to the infrastructure, processes, and databases that form the structural backbone of how your organization is organized. This is the “how you work” aspect of your company, and unlike other forms of capital, it is a more stable asset that can’t be easily lost or stolen.
Here are the essential components of structural capital in sales.
Focusing on these can help you grow a stronger, more resilient, and more successful sales organization.
Often referred to as your “tech stack,” the software you use can form part of your structural capital. However, if your organization’s “tech stack” is a hot mess of bolted-together components, you may have a Frankenstack in place of valuable structural capital.
Sales leaders who are constantly chasing the latest technological “solution” to their problems often fall prey to the Frankenstack problem, and/or the point pollution trap. They make the mistake of thinking that the technology itself is the structural capital. But it’s only an asset if it serves your sales team effectively in helping them win more and better deals.
Software infrastructure becomes structural capital when it is aligned with sales strategy, and implemented in a way that enables the sales team to execute on other aspects of structural capital, including sales process and sales databases.
An effective sales process that helps sales teams win more deals is a form of structural capital. Unfortunately, many companies think they have a sales process when, in fact, they only have a series of dropdown boxes naming vague stages.
An effective sales process must be aligned with sales strategy and contain not only stages but milestones, steps, checklists, and methods to ensure salespeople can be consistent and effective in working with prospects and customers. It should also be dynamic and continually evolving to include new best practices and adapt to the market.
Many think they have a sales process when, in fact, they only have a series of dropdown boxes naming vague stages.
Furthermore, it has to be embedded into the sales team’s workflow and reinforced through the sales platform. Without this, it becomes a dusty book on a shelf, not so much structural capital as dead weight.
The software infrastructure should be aligned to support effective sales processes and make your sales strategy executable. When all of that is true, then your organization will be more effective. It is difficult for anyone to steal, copy, or undermine your structural capital, even if key employees leave the company.
Your sales databases can be a form of structural capital, but only if they are effectively managed, organized, and accessible. Lists of names and phone numbers scraped off a purchased list is not structural capital. However, that same list, when contacted by salespeople, qualified (or disqualified), tagged, categorized, and attached to sales projects in the database that are either in process or archived for later follow-up and integrated within your sales process: That’s structural capital.
A sales organization with strong structural capital is hard to beat. Structural capital makes it easy to onboard, get sales teams up to speed, and help them continually grow their effectiveness. It also makes it easier to forecast, launch new initiatives, and outperform the competition.
Membrain is designed to create the structural capital that enables your human capital to execute their jobs. You build your sales processes directly into the system, and then your salespeople have it at their fingertips all day long. It organizes your data, holds your team accountable, gives them what they need when they need it, and provides the data and insights you and the rest of the sales team need to make decisions, improve performance, and win more deals.
We would love to show you how it works!
George is the founder & CEO of Membrain, the Sales Enablement CRM that makes it easy to execute your sales strategy. A life-long entrepreneur with 20 years of experience in the software space and a passion for sales and marketing. With the life motto "Don't settle for mainstream", he is always looking for new ways to achieve improved business results using innovative software, skills, and processes. George is also the author of the book Stop Killing Deals and the host of the Stop Killing Deals webinar and podcast series.
Find out more about George Brontén on LinkedIn
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