Michael D. Moberly May 4, 2012
I start with the premise that management teams and boards have a fiduciary responsibility to routinely and objectively ask…is our company properly positioned, insofar as possessing the expertise and skill sets, to identify, unravel, develop, bundle, utilize, and extract as much value as possible from its intangible assets while simultaneously protecting and monitoring risks to those assets’ value, sustainability and materiality’?
As noted numerous times in this blog, the key requisite to managing and overseeing a company’s intangibles, in my judgment, is the ability to sustain control, use, ownership, and monitor the assets’ value and materiality. In many instances, if a company is either unable or unwilling to do this, or fails, little else matters, because asset value can quickly ‘go to zero’!
An intangible asset specialist can therefore benefit a company by…
1. Providing on-going guidance to business units and management teams about managing intangibles, i.e., monitoring and extracting value, delivering competitive advantages, and developing useable methods for measuring asset performance, monitoring risks and materiality.
2. Adding predictability to business transaction outcomes by assessing – monitoring the stability, defensibility, value, and sustainability of the intangible assets in play.
3. Conducting periodic intangible asset assessments to monitor competitive advantages and ensure asset synergies and efficiencies are being effectively utilized.
4. Reducing the probability that the momentum of a project, transaction, or deal will be stifled or undermined by identifying and mitigating circumstances (risks) that can (a.) ensnare and/or entangle the assets in costly and time consuming legal challenges, (b.) erode asset performance and value.
5. Improving the valuation, reporting, and accounting of intangibles and integrating same in (a.) asset development, (b.) company governance processes, and (c.) specialized asset management initiatives, i.e., knowledge management and balanced scorecard.
6. Building an intangible asset focused ‘company culture’ that’s aligned – converged with a company’s mission and business objectives.
7. Designing an organizational resilience (continuity, contingency) plan that encompasses mission essential intangible assets to provide quicker recovery following a significant business disruption or natural disaster.
8. Monitoring intangible asset value chains, i.e., the inter-connectedness between the production, acquisition, and utilization of intangibles relative to their contributions to company value, revenue, and creating and sustaining competitive advantages.