Michael D. Moberly January 4, 2016 ‘A business blog where attention span really matters’.
If it can’t be measured, perhaps, just perhaps, it can’t be managed either! An adage which I have taken some liberties is widely attributed to Peter Drucker. In my view, it carries more relevance today than when it was initially uttered. My rationale for saying this is rooted in the economic fact that increasing percentages, 80+%, of company/organization value, sources of revenue, competitiveness, sustainability and growth lie in – evolve directly from IA’s (intangible assets).
Rooted in my experiences as an IA strategist and risk specialist, I believe most all IA’s evolve from company-organization mission and culture variations of intellectual, relationship, and structural capital. Optimally, these assets meld together to serve as foundations for, among other things, sustaining and enhancing company-organization value, brand, reputation, goodwill, competitiveness, growth, profitability, and specialized know how, etc. Simply put, there are few other occasions in company – organization governance history when measuring the performance of and managing (inventorying) the contributory – collaborative role, value, and materiality of IA’s has become more necessary, i.e., akin to fiduciary responsibilities (ala Stone v. Ritter).
Materiality in this context translates as monitoring – assessing each asset’s role and contributory value throughout its respective ‘life – value cycle’, i.e., contribution to a particular project, process, and/or initiative.
The benefits – returns for IA inventories, among other things, is ensuring decision makers are consistently positioned to recognize, in a timely manner…
- any changes in assets contributory value-materiality including obsolescence.
- opportunities to sell, barter, safeguard, mitigate risk, seek collaborations, or discard non-contributing IA’s.
But, an inventory of a company’s – organization’s IA’s must be much more than a mere snap-shot-in-time reference point. Instead, it’s economically – competitively prudent to seamlessly integrate IA inventories as routine fixtures to company – organization sustainability. Absent that, IA value and materiality is known to fluctuate prompted at least in part by competitive advantage erosion or undermining through (asset) obsolescence and/or product-process misappropriation or infringement.
When these and other comparably adverse events/acts occur, IA’s value and ability to sustain its value, competitive advantages, and profitability, etc., can be significantly impaired along with their contributory value becoming irreversibly undermined or stifled.
Therefore, having the capability to consistently monitor and measure (inventory) key IA’s at will, positions companies and their management teams to be more responsive to meeting their expanding fiduciary responsibilities, i.e.,
- the inevitable challenges, disputes, and external targeting that routinely occurs.
- allocating – directing asset safeguard-risk resources more efficiently and effectively commensurate with an assets’ life and contributory value cycle.
Mr. Moberly is an intangible asset strategist and risk specialist and author of ‘Safeguarding Intangible Assets’ published by Elsevier in 2014. email@example.com