Methodology For Assessing IA’s Contributory Value To Companies!

Michael D. Moberly   December 31, 2016    ‘A business blog where attention span really matters’!

The methodology I developed to assess the contributory role and value of IA’s (intangible assets) is designed to influence – guide clients toward recognizing how-ways in which IA’s underwrite their company’s-businesses value, serve as starting points for generating revenue, competitiveness, and future wealth creation.  This methodology commences by identifying-examining, among other things…

• centers or clusters of standalone, under-utilized, under-valued, or under-performing IA’s.
• how or whether key IA’s are (collaboratively) effectively interwoven to favorably influence a particular project, initiative, or transaction.
• how the IA’s collectively – collaboratively contribute to a company’s overall IA intensity and dependency.
• the compatibility of its IA’s with the company’s mission (statement), strategic planning, and its cultural – structural capital.
• the prevalence and speed which particular risks, threats, vulnerabilities, and liabilities manifest to adversely affect any-all IA’s in play.
• evidence of IA losses, compromises, materiality changes, and presence of current and/or horizontal risks.
• projected returns from its IA’s and contributions to the company’s competitive position within its market-sector.
• IA’s contributions to producing synergies, efficiencies for the company.
• how-ways which IA’s contribute to executing (new) market entry planning.
• evidence of IA’s contribution to enterprise wide (IA intelligent) company culture.
• how-ways which IA’s are incorporated into business continuity/contingency (organizational resilience) planning.
• life, value, functionality, and risk cycles of IA’s in play.

Regardless of the venue which clients-companies prefer for the delivery of IA advisory services, I consistently draw their attention to this ‘contributory value’ process.  In large part, that’s because I believe this methodology reveals far more than conventional snap-shot-in-time portraits of IA assessment.  IA’s contributory value is the asset’s assessed relationship, connection, collaboration with other IA’s within a company.  After all, today, and for the foreseeable future, only 20+/-% of the stock price of S&P companies is explainable via conventional balance sheet – financial statement (book value).

The contributory value methodology framed above is executed with the view…

• that IA’s can exist as standalone or integrated clusters-bundles of intellectual, structural, relationship capital, and
• how those IA’s contribute to (current, future) projects, products, services, ventures, R&D, efficiencies, materiality, competitive advantages, and/or revenue streams, including foundations (or, building blocks) for company’s future wealth creation and sustainability.

The rationale for encouraging IA assessments – valuations be conducted using this ‘contributory value’ approach is to…

• provide business leadership with the frequently overlooked aspects about the integral role IA’s play in a company or transaction.
• develop descriptive paths (roadmaps) for company IA values, and materiality to be readily recognized, monitored, measured, safeguarded, and ultimately preserved, i.e., banked.
• provide business leadership with much needed and practical insight to optimize IA’s in timely (bottom line) relevance.