A significant number of company management teams and boards believe ‘the right things to measure’ insofar as revenue and profitability are concerned, are only those things (assets) that get reported on balance sheets!
Intangible Valuation & Monetization
What does my company possess or produce that is valuable and provides competitive advantages, but is not included on the balance sheet?
Management/leadership teams and boards should engage the economic fact that 65+% of their company’s value, revenue, and future wealth creation is rooted in intangible assets.
If you build a better mouse trap (tangible asset) the world will beat a path to your doorstep. In the knowledge-based economy, that time hnored cliche’ has given way to ‘if you build better knowledge paths (intangible assets) you will achieve sustainable value and long term competitive advantages’.
It is incumbent on leadership teams and boards today, regardless of company size, industry sector, or product/service lines, to manage and protect their intellectual capital (IC) as both a fiduciary responsibility and economic necessity.
Dedicating an individual to be responsible for identifying, managing, using, and protecting (a company’s) intellectual capital is a prudent business decision with a strong and defensible value proposition!