From Goods-Dominant to Service-Dominant Logic in Human Capital

Human capital development and placement solutions still rely on goods-dominant (G-D) logic. Training providers, universities, and workforce development organizations claim to be “customer-centered,” but their approach assumes value is embedded in the product they sell — a course or a credential.

That logic is flawed. A product has no value until someone acts on it. Workers aren’t looking for those products; they’re seeking experiences that enhance their pursuit of well-being.

Why G-D logic fails

• Value isn’t embedded. It’s subjective.

• A good or service isn’t valuable in itself, but only through its use.

• Marketing promises don’t matter if workers and employers can’t make progress.

The S-D alternative

Service-dominant (S-D) logic reframes markets around interactions:

• Value is co-created, not delivered.

• The important unit isn’t the product but the interaction.

• Relevance comes from enabling progress toward well-being.

Placement Loop’s approach

Placement Loop builds this into its architecture using the P2I2W2E model:

• Platform: Infrastructure like an Order Management System (OMS), Worker Data Accounts (WDA), Data Economic Networks (DEN), and Life Stage Roadmaps (LSR).

• Intermediary: Recruiting Firm or Workforce Dev Org Licensees and their Career Coaches who distribute advice.

• Worker: The central actor who owns their data and measures their own success.

• Employer: The beneficiary of better matches, retention, and reduced costs.

This isn’t just theory. By operationalizing S-D logic, PL creates a worker-centered smart service system that learns, adapts, and scales. It puts workers at the center as participants who co-create value for themselves, their employers, and the broader system.

That’s the shift from G-D to S-D logic. And it’s the shift the industry needs.