Institute of Management Accountants Event: Intangible Capital, the real value of a business
The NH Chapter of the Institute of Management Accountants is hosting Trek principals, Mary Adams and Michael Oleksak, at their February meeting. From the event announcement: Did you know that a balance sheet presented under U.S. generally accepted accounting principles can only explain 20% of the value of the average company? The rest is lumped [...]
Ben Bernanke talks Intangible Capital
Fed Chief Ben Bernanke gave the opening address, speaking about intangibles, innovation and job growth. Bernanke did not bang his shoe on the podium or make any hand gestures while speaking about this, probably to avoid sending signals to the intangible stock market about his intentions.
Seeing the hidden value in companies
How’s this for making intangibles tangible? This photo shows my partner, Mary Adams, sharing the summary graphs from two IC Value Driver Reports that we recently completed: The photo was taken earlier this week at the Exit Planning Exchange Summit 2011. The twist was that the legend for the graphs was hidden by a red [...]
Manage Reputation by Managing Intangibles
It is actually interesting and somewhat perplexing to us that sustainability reporting has received more attention to date than intangibles reporting. The reason this book has a chapter on reputation is that we feel that intangibles management is a key determinant of corporate reputation. The current lack of information available to stakeholders about intangibles puts [...]
Reputation and Intangibles – Connecting the Dots
My last few posts have been about reputation. There are some out there that would ask what the big deal is. What’s different now? Companies have always had employees and customers. Why do they have more influence now?” Why do I need to think about reputation more than before? There are actually several forces driving [...]
Reputation: beyond shareholder thinking to stakeholder thinking and back again
When we talk about the core intangible capital of an organization, we spend most of our time focusing on the intangibles that drive customer value creation and revenue generation. This is a helpful perspective for operational performance and strategies. In this view, relationship capital focuses on the partners that help support your business model: your [...]
Intangibles, the Bottom Line and Shareholder Value
U.S. business culture is very much about results. Two of the ideas that best capture this perspective are the concepts of the “bottom line” and “shareholder value.” The bottom line is a financial calculation. As we have made clear throughout this book, the integrity of financial statements that are used to calculate the profit or [...]
Reputation Is the New Bottom Line
In both the tangible and the intangible economy, the ultimate metric for all companies is and will be their ability to generate profits—a strong bottom line. Profits and the cash they provide ensure an organization’s survival. But in the knowledge economy, it is no longer enough to just produce a strong bottom line.
The Emperor Has No Clothes and why we still have not addressed the intangible information gap
One of the most graphic depictions of the shift from the industrial to the knowledge economy can be seen in this graph prepared by Ocean Tomo a number of years ago (here’s a larger version). The top line is total corporate value of the companies in the S&P 500. The gray band at the bottom [...]
Triangulation – Getting a complete picture of your intangibles
Once you have a full set of data about your intangibles, how should you use it? We like to use the image of triangulation seen here as a way of explaining how you can use the three kinds of data that we have described to come up with a unified measurement of your intangibles. Triangulation [...]
