Resource & Environment

Army has hundreds of inputs. Among them, some of the most important are human capital, financial capital and intellectual capital. Human capital in the U.S. Army includes soldiers, officers and support staff. The importance of human capital cannot be understated. The Army undertakes an enormous amount of work. Their labor requirements are massive and varied. Specific to the U.S. Army is that each individual person has a specific, defined role. The degree of interdependence between the different roles is intense, such that the success of any individual undertaking of the Army depends on each person doing the right thing at the right time.

Financial capital is another crucial input to the U.S. Army. The Army's undertakings require substantial investment in technology, training, employees, and equipment. Enormous amounts of financial capital are therefore required. Yet, the U.S. Army does not generate its own money. The U.S. Army is essentially a burner of capital. Therefore, financial capital is a key input, and must be acquired from outside sources. Because the Army is not financially self-sustaining, and does not have access to capital markets, it relies upon other sources of funding, primarily governmental.

Intellectual capital represents the collective knowledge and experiences of the organization. For the U.S. Army, history, strategy and training all represent vital inputs. Task complexity is high; the equipment is varied and modern. This places high emphasis on training. The training programs are based on knowledge that has been built within the organization over time, highlighting the best practices and methods. Strategy is critical, and this body of knowledge is built through both training and experience. Top generals have acquired first hand combat design experience and incorporate that into their strategies. Much of the success of the Army is based on its strategies and training, which makes collective knowledge a critical input.