Intellectual Capital
Today, the market value of a company can be considerably higher than the
book value. This is particularly the case in knowledge intensive industries like
in the IT and new economy industries.
Part of the difference between the book value and the market value can be
explained i.e. by market expectations and industry growth and other
macroeconomic trends. The other part can be determined by Intellectual Capital:
the knowledge and the intangible assets that the company has to create
innovations and to produce products and services. These skills and knowledge do
not show on the traditional balance sheet.
However, many companies have realised the necessity to create a measurement
system to follow up the development of the most critical resource of a company -
the Intellectual Capital.
Measuring Intellectual Capital will help you and your company with the following
challenges:
- Do you want to align your company´s HR competencies with your business
goals?
- Do you want to ensure that you have the necessary skills in your
organisations to maintain your competitive advantage and business performance
over the long-term?
- Do you want to know what your company´s skills and knowledge consists of?
- Do you think you should manage and measure your company´s most important
asset - the intangible assets?
EXTEND YOUR STRATEGIC PERFORMANCE MANAGEMENT SYSTEM TO INCLUDE MEASUREMENT
OF INTANGIBLES
Looking only at financial information of a company, may give you misleading
information about your competitiveness in the future, because financial
information is based on the past, on historical data.
In order to get a more longer-term view of your company´s competitiveness in
the future, it is necessary to extend the perspective beyond the financial
issues. Balanced Scorecard and other
performance management systems offer an optimal way to measure your performance
and follow up the outcome of your strategic plans. In the diagram below
Intellectual Capital is considered as an extension to the traditional
performance management systems.
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