Michael D. Moberly May 7, 2015 ‘A blog where attention span really matters’!
We’re well into the 21st century and the contributory role IA’s (intangible assets) consistently play as value, revenue, and competitive advantage generators, is recognized at the 5,000 foot elevation among business communities globally, but, there is little corresponding evidence that business leaders are actually engaging their IA’s.
At the 5000 foot level, it’s a well known economic fact – business reality that steadily rising percentages, i.e., 80+%, of a most companies’ value and sources of revenue emerge directly from IA’s.
THE question is, what factors are being assumed by business leaders that influence substantial numbers to dismiss, disregard, and otherwise over ride this economic fact – business reality even though engaging their IA’s could benefit their company in numerous ways.
Frankly, I sense no particular urgency, among the leadership of the U.S., and perhaps global business communities to willingly engage their companies IA’s in strategies to maximize and extract as much value and revenue as possible.
Cutting to the chase! I, like other national – international voices advocating greater recognition and utilization of intangible assets, meet with astute, intelligent, and extraordinarily talented and successful business leaders who are apt to use sophisticated techniques to schedule employee work schedules to minimize overtime pay, but, mention the words intangibles or intangible assets and eyes glaze over!
Equally puzzling is, why aren’t these business decision makers acting on this factual, irrefutable information, whether it comes from blog posts like this or other ‘higher’ sources? Why are these sources of – contributors to organization-wide value and revenue which are literally‘ within hands reach’ being overlooked, neglected, or, in some instances, dismissed outright?
In part, the lack of business leader enthusiasm for intangible assets can be attributed to…
- accountant’s governed by law and practice standards, have no particular motivation or obligation to delve too deeply in clients’ IA’s other than what is attributable to goodwill.
- faux strategic planning which is more akin to near term – quarterly-based projections that preclude discussions regarding IA utilization or monetization…
- ill-informed inclination to assume – characterize IA’s as being synonymous with IP (intellectual property), which serves as rationale for business leadership to attach little relevance because IP matters are contextually structured to be legal only.
- self-deprecating assumptions by some business leaders, irrespective of their success, that their company neither produces nor possesses any valuable – competitive advantage intangible assets, worthy of the time and expense to identify and assess.
- intangible assets absence of physicality, i.e., having no tangible or conventional physical presence.
- presumed consultants’ who inappropriately, and perhaps unwittingly, characterize the identification, unraveling, assessment, and extraction of value, revenue, and competitive advantages from intangible assets as being too complicated, time consuming and producing little ROI.
Understanding and taking affirmative steps to maximize and extract as much value and competitive advantages as possible from the IA’s a company develops, is not rocket science, it’s just good business!