Michael D. Moberly December 1, 2009
Lest we forget, its an economic fact – business reality that 65+% of most company’s value, sources of revenue, sustainability, and foundations for future wealth creation today lie in – are directly linked to intangible assets. With such significant value being embedded in a company’s intangible assets its imperative that management teams have, in place, effective strategies to (a.) consistently identify, utilize and enhance those assets, and (b.) safeguard those assets, i.e., sustain their control, use, ownership, and monitor their value and materiality.
Here are some key best practices that apply to every company, regardless of size, worth, or industry sector:
1. Bring personal, managerial, operational, and fiscal clarity to the term ‘intangible assets’.
2. Identify (determine) the types and categories (range) of intangible asset that exist in your company, e.g., go to https://kpstrat.com and ‘click on’ brochure in menu and scroll to ‘Examples of Intangible Assets’.
3. Unravel the developmental origins of those intangibles and create a company specific ‘tool’ to assess their status, i.e., their fragility, stability, durability, sustainability, contributory value, and ownership. It’s important to note that the development/production of intangibles is routinely tied to people (employees).
4. Determine how (or if) those assets are consistently being captured and utilized (or, under-utilized, not utilized) within the company, e.g., determine specifically how they contribute to – linked to enhancing particular operations, processes, an/or procedures by delivering efficiencies and/or competitive advantages, enhancing customer/client relations, influencing additional revenue sources, etc.
5. Determine how (if) the development and use of intangibles within your company are (effectively) aligned and integrated with the company’s core (strategic) mission.
6. Regularly communicate your company’s ‘intangible asset strategy’ to employees and institute mechanisms to ingratiate that strategy as a ‘company culture’.