Profit can be earned from resources to the extent that they are valuable, rare, imperfectly imitable, non-substitutable and exploitable.
Note: these criteria are based on the human resources of the firm leveraged to supply a product rather than the from the product itself.
Distinctive Competencies are competitively valuable capabilities that a company performs better than its rivals. Distinctive competencies are the basis for sustainable competitive advantage. Valuable, rare resources can only be sources of sustainable competitive advantage if firms that do not possess them, cannot obtain them. They must be “imperfectly imitable.” In other words, it must be impossible to perfectly imitate those valuable, rare resources. Research has identified three principal ways imitation can be avoided: unique historical conditions, causal ambiguity and social complexity.
- Unique Historical Conditions – an unusual evolutionary pattern of growth that has contributed to the development of competencies in a manner that is unique to those particular circumstances. For example, Disney created Mickey Mouse when animated motion pictures were new. It would be difficult to create a character as iconic today.
- Causal Ambiguity – resources that create a sustainable competitive advantage are not widely known (sometimes not even by the firm owning them). Imitating firms cannot duplicate the strategy since they do not understand why it is successful in the first place.
- Social Complexity – occurs when the firms capabilities are the result of complex social phenomena such as interpersonal relationships, trust, friendships among managers, or a firm’s reputation with suppliers and customers. For example, a competitor could hire everyone from Apple and relocate them to a new facility but the dynamics, culture and atmosphere would not be the same.
As we attempt to understand our organizational uniqueness, we must understand that we cannot create this. All we can do is build a solid foundation for it to flourish.
The HR Futurist 
I would like to use golf to contribute to “social complexity”. Many view golf solely as boondoggle, but I see it as team building and internal networking. If aligned with strategy I see it as an investment of time, not a waste. The skills of playing golf are so similar to those needed by a leader, especially emotional intelligence, respect, ethical behavior, creativity, learning from mistakes, keeping ego in check and others. I also see golf as a great way to bring down the walls of silos and transfer knowledge. It is an excellent way to improve mental, physical and even spiritual health.
Is anyone using golf in new an interesting ways to improve their culture and leverage their human capital?