Michael D. Moberly March 28, 2012
As stated many times previously, steadily increasing percentages of most company’s value, sources of revenue, and building blocks for growth and sustainability evolve directly from intangible assets! The important take-away from that statement for management teams, is that, while its important to know what intangible assets are and which one’s your company produces and possesses, it’s equally important today to:
- know precisely how those (intangible) assets contribute to company value, revenue, and growth potential…
- put in place effective techniques for their consistent stewardship, oversight, and management…
- understand how to leverage, position, and/or bundle those assets to maximize their usefulness and the competitive advantages they produce…
- recognize strategies to extract value from those assets…
Familiarity with intangible assets can also produce numerous multipliers, e.g.:
1. Add predictability to business transactions when intangible assets are in play…by knowing how to identify and assess their stability, defensibility, and sustainability.
2. Elevate the probability for achieving projected returns, sustaining competitive advantages, enabling asset synergies-efficiencies, and affirming projected exit strategies.
3. Reduce probability of costly, time consuming, momentum stifling legal challenges…by recognizing circumstances that can ensnare and/or entangle (intangible) assets to impede, erode, or undermine transaction value, competitive advantages, and/or projected performance.
4. More effective convergence of accounting, reporting, and valuing assets…by providing portals to (a.) knowledge management programs, (b.) intellectual property development and enforcement, (c.) Sarbanes-Oxley and FASB, and (d.) balanced scorecard approaches.
5. Build an ‘intangible asset’ company culture…that (a.) recognizes, produces, and sustains control, use, ownership, and value of intangibles, and (b.) provides more timely awareness and pursuit of asset rights issues, i.e., ownership, value, infringement, misappropriation, theft, etc.
6. Develop more comprehensive business continuity-contingency (organizational resilience) planning…that encompasses all forms-contexts of intangible assets to produce stronger and quicker recovery following significant business disruptions and/or disasters.
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