"You cannot survive without understanding them."
Benefit From A Kaytek Management Consulting Perspective
Why is Understanding and measuring Intangible Capital so important ?
Organizations are experiencing pressures of globalization, corporate governance and shareholder activism for an increased transparency of operations and information.
Globalization is creating world-scale, world-class operations.
Brands are becoming the key to connect to global customers wherever and whenever.
There was an earlier article in Harvard Business Review which spoke of the increasing clash between the forces of Organizational Capital, Labor and Talent.
Each of these consituents demand an increasing pound of flesh from a common (maybe) shrinking pool.
Since talent is today globally mobile, smart knowledge workers have a larger leverage both in decision making and in the allocation of resources.
The sources of competitive advantage are dynamic and fast changing.
People in an organization not only play a key role, they are the only key between success and doom.
Consider the following scenarios :
A Key Employee suddenly resigns from an organization.
Can the management measure the future loss of business opportunities due to the employee's resignation ?
Key Members of a Critical Project of any organization cannot communicate with each other due to problems in their inter-personal relationships.
Can the organization measure the depth and degree of the intensity of relationships between these two members and within their organization ?
Casual Conversations between 2 people facilitate exchanges of Knowledge Capital.
At a marketing conference, a dealer channel partner learns of a valuable fact as regards the competition.
But they choose not to share the same with the principal manufacturer.
Can the organization measure the loss due to this reluctance on information sharing ?
Organizations not only have to ensure that their products convey a positive brand experience in the consumer's minds but also work on their organizational workplace brand having a positive effect in the minds of their potential employees in the talent marketplace.
Can the value of an intangible asset such as the overall organizational brand be classified and measured under different categories such as the product brand, workplace brand and so on ?
For publicly listed organizations, corporate governance challenges are increasing in an exponential proportion.
A Key company executive is discovered of violating the company's ethics policy. This threatens to snowball into a major ugly media expose which will hurt the company's share prices.
Can the organization measure the potential fall of share market capitalization due to such an event ?
Complex Issues, Few Answers.
Increasingly, Invisible Intangibles are becoming a key to understanding, measuring and possibly even predicting the performance of organizations.
The key to unlocking the potential of key talented human resources, brands and other seemingly invisible intangibles has never been so important for both business and other organizations.