A collection of best practice articles to help grow companies with an emphasis on finance. The goal of the blog is to explain how these best practices work, enabling anyone to put these ideas to immediate use. Articles are written by Matt H. Evans, CPA, CMA, CFM
NOTE: Effective January 1, 2017, I will no longer post new articles since I am now fully retired.
Increasingly, businesses need to pay attention to growing the intellectual capital of the business. Hard assets (facilities, vehicles, equipment) lose value over time and may not provide the highest returns for the business. The soft stuff (talent, leadership, patents, innovation, etc.) creates the most value and return.
A good way to frame this challenge is to think in three’s. Start with the three main types of intellectual capital and the corresponding metrics:
With so much change and uncertainty before us, one way to throw out
the noise and traditional viewpoints is to aggressively manage
complexity. When you start to manage complexity, you immediately gain
some control over the change and uncertainty that you feel you have no
control over. For example, “complexity theory” recognizes that crowds
are a big factor related to complexity. Knowing something about the
psychology of the crowd can be important to how you manage complexity.