The Three Circles and the Resource Engine

Audio Transcript

Having looked across a range of social-sector organizations, I’d like to suggest that the resource engine in the social sectors, that third circle of the Hedgehog Concept, really consists of three components, unlike the business sector’s, which has one component. In the business sector, it’s the economic engine. It’s the profit engine. It’s profit per “X”—financial capital. But in the social sectors, where you don’t even have a profit motive, that third circle has three components: time, human capital; money, financial capital; and brand, brand capital.