Business Culture to Fit Intangible Asset Intensive – Dependent Business’s…

Michael D. Moberly, Principal, Founder, kpstrat

Edgar Schein…a preeminent scholar of business operating culture, among others, describes company cultures as emerging from management teams, boards, and employees which are, in turn, collectively (ultimately) recognized as delivering beneficial outcomes accruing to each group, especially as each (successfully) solves problems by applying (particular) shared norms, values, and beliefs.  

A business (operating) culture…is preferably an intertwined body of shared, variously agreed upon, and sustainable perspectives and values which variously serve as guides, boundaries, and/or parameters which define how to do thingshow things are to be done (normatively) in various circumstances which a business will encounter. Michael D. Moberly

What’s different now…business operating cultures include interlacing sets and layers of intangible assets, each of which are obliged to be recognized,…

  1. particularly forms of ‘structural capital’ which mesh with various other relevant intangibles,
  2. not-the-least-of-which are, in my judgement, ‘relationship’ and ‘intellectual’ capital which universally (unarguably) permeate most business (work) environments today which are increasingly and irreversibly intangible asset intensive + dependent.

Collectively, business operating cultures get translated (a.) internally to-for employees + practices, and (b.) externally to-for publics, clients, and consumers insofar as,

  • defining and distinguishing things (processes, practices) which are presumably deemed relevant to becoming + remaining attractive, competitive, valuable, and (variously) sustainable, and
  • how those various values blend – interact with various other perspectives, conventions, past practices, etc., (emerging, evolving internally + externally) and are (subsequently) accepted or rejected (whole or in part) as appropriate/relevant attitudes, perspectives and/or practices. 

What is a intangible asset intensive – dependent business operating culture…the phrase ‘knowledge-based economy’ was popularized, if not invented by Peter Drucker (as the title of Chapter 12 in his book) The Age of Discontinuity.  A knowledge-based economy refers to the use of various  knowledge technologies such as knowledge engineering and/or knowledge management to produce economic benefits for a company.  In a knowledge-based economy, knowledge essentially becomes a tool, not necessarily a product.

The center piece of 2020 knowledge-based economy + business practice (in my judgement) are the intangible assets business cultures thrive on and produce, i.e.,

  1. respectfully, developing a company – business operating culture to fit and reflect intangible asset intensive + dependent business operating cultures means acquiring a level of familiarity with and an attitude toward intangible assets,
  2. that permit management teams, boards, and employees to be able to identify, build, protect, and effectively utilize intangibles to for example, enhance a company’s value and competitive advantages, generate revenue, and/or lay a foundation for future growth.

Why is an intangible asset business culture necessary…first, it’s an economic fact that 80+% of most businesses value, sources of revenue, future wealth creation and sustainability lie in – are directly linked to intangible assets.  

  • Unfortunately, but, all too frequently, the existence and contributory role and value of business things intangible do not appear (straightforwardly) on business leadership + management radar screens or reported on conventional balance sheets.
  • In no small part, that has to do with the reality that many of those screens still dwell – remain focused on tangible-physical (business) assets and resources, due to an absence of operational familiarity with business things intangible.
  • True, business things intangible may appear elusive insofar as differentiating, valuing, and extracting (strategic + sustainable) value and competitive advantage.

Here, now, with kpstrat, the desired outcome forbusiness things intangible, is to…

  • develop enduring and flexible business operating cultures which recognize their value + revenue generation capacity + competitiveness + sustainability lie with business things intangible.
  • consistently (repeatedly) fostering + developing same to the point they routinely deliver (independent and perhaps standalone) returns. 

Based on my experiences, many of those outcomes may also translate as (a.) newly created efficiencies, (b.) stronger + more resilient competitive advantages, (c.) greater reputational value, (d.) customer-client relationships, and (e.) ways to receive and incorporate new business things intangible!


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