Intangible Asset Operational Familiarity

May 10th, 2017. Published under Intangible asset training for management teams.. No Comments.

Michael D. Moberly May 10, 2017 ‘An intangible asset business blog where attention span really matters’!

Today, IA intensive-dependent (business) environments are rapidly becoming a managerial – operational norms with the IA’s in play, being just that, collaboratives of intangible – non-physical elements primarily in the form of intellectual, relationship, competitive, and structural capital. The ‘intangibleness’ of these assets variously contribute to management teams exhibiting hesitancy and/or reluctance to engage – act upon assets which are not necessarily subject to being seen, heard, felt, or touched, versus tangible-physical assets which can be, obviously.

Anecdotally I suspect, such cautionary perspectives influence many management teams to not recognize the economic – competitive advantage benefits crossing the chasm into the realm of IA’s, even though they consistently play a dominant role in business (transaction) outcomes. Preferably, readers will find this book leaves no doubts about and mitigates any reluctance to engage IA’s, but do so having achieved operational level familiarity with IA’s as conveyed throughout this book.

There are two words – phrases frequently expressed by management teams insofar as describing the materialization and impact of risk to a company’s IA’s, one being ‘speed’ and the other being ‘cascading affects’. Obviously, the ubiquitous smart phone and social media, IA risk materialization, particularly reputation risk, can commence and cascade (go viral) at keystroke speeds.

Absent continual flow and monitoring of data, observations, and experiential insights regarding the performance and state of a company’s intellectual, structural, competitive, and relationship capital under various circumstances and stressors, operational know how for preempting-mitigating IA risk, aside from Ouija boards or crystal balls, will fall short. More specifically, decision-makers, absent that operational familiarity will have little, or no, foreknowledge regarding the (potential) ‘scalability’ of IA risks, i.e., when-where-why-how they will materialize, and their adverse impacts as they cascade.

When IA outcomes to a business initiative or transaction are obscured because they have been compulsorily packaged as mere goodwill, any conventional ‘GPS’ a company may have will likely be unable to identify, unravel, and ‘plug’ the source of (IA) value, revenue, and/or competitive advantage compromise because their IA’s have not been factored (pre-programmed). Circumstances such as this, clearly suggest, at least through this authors’ lens, that relying solely on reviews of financial statements or subjective anecdotes as primary venues to acquire comprehensive portraits of a company’s financial – competitive advantage health or have timely awareness of important IA predicaments that warrant attention are likely to be insufficient, arbitrary, and ultimately fail.

Unless – until business leadership acknowledge IA operational familiarity is a legitimate and forward looking (managerial) requisite, then, its likely, subjectivity will remain the dominant driver. And, those doing so, should be prepared to incur numerous, and often irreversible missteps, miscues, and oversights (strategic as well as tactical) that lead to disillusionment, under-performance, and even failure.

That said, it would be imprudent to infer every financial – operational contest a business experiences is born from unfamiliarity with, acting dismissively toward, or mishandling, or under-utilizing a company’s IA’s. On the other hand, prudent leaders and management teams are obliged to internalize this economic fact – business reality, 80+% of most company’s value, sources of revenue, and competitive position lie in – emerge directly from IA’s.

Comments are always welcome and encouraged. Respectfully, Mike.

Leave a Comment