Recognizing Intellectual Capital

The traditional accounting model with its financial statements is increasingly inadequate in helping us understand what drives value in our business. These value drivers are highly intangible and the accounting model is not setup to measure and report these critical assets. Part of the problem is simple – it’s hard to measure intangible drivers of value. They can include things like:

• Your ability to retain and have loyal customers
• The fact that your workforce is highly motivated and requires minimal supervision
• Having strong leadership that creates the right culture for performance
• Obtaining brand recognition that makes it harder for others to compete against your company
• Turning ideas into real product improvements for continued market leadership
• Leveraging your know-how against the assets of others in a shared economy

A Better Way to Grow

The consensus amongst most is that bigger is better. With increased pressure on our natural capital (soil, water, oceans, etc.) and an ever increasing gap between rich and poor, it’s time for all businesses to re-think what growth is really about. Take for example inequality - the United States has the fourth-highest income inequality among the world’s developed countries; only Chile, Mexico and Turkey rank higher with trailing countries represented by Russia, Ukraine and Lebanon.

In their book The Big Enough Company, authors Adelaide Lancaster and Amy Abrams make the argument that owners should be true to themselves and grow a company to a size where they can still enjoy running the company. You should not grow just for growth’s sake. A “big enough” company delivers benefits to a broad audience and continues to have a positive impact as the owners originally envisioned.   

Is Knowledge Really Power?

We all recognize (at least I hope most of us) that knowledge is instrumental to value-creation and that knowledge as an asset is far more important than traditional assets such as equipment, real estate or buildings. And to a great extent, every organization must become a knowledge organization and every employee must become a knowledge professional.

Three Frameworks for Higher Productivity

Increasingly we live in a world where we have to get a lot done and since no-one can change time, the key is to get more out of the time we have available. The good news is that several frameworks can rapidly increase your productivity. This article will discuss three: 1) Eisenhower Box, 2) Lewin’s Equation, and 3) the Zeigarnik Effect.   

Certain people seem to get a lot done in an effortless way. One such person was Dwight Eisenhower, 34th President of the United States, serving two terms from 1953 to 1961. Eisenhower followed a simple principle based on what he once said:  “What is important is seldom urgent and what is urgent is seldom important.”

Measuring Human Resource Capital

One of the most under measured parts of a business is the human resource capital and it represents one of the biggest challenges facing business; namely finding the best and brightest people. It is these human resources or people who ultimately create value for the organization. People generate value through their application of skills, talents, and abilities. The key is to invest in people so that human resources are productive, knowledgeable, effective, and efficient. This is what separates the average company from the exceptional. Getting a return on this investment or ROI is extremely important.

How to Capture Useful Feedback

Capturing feedback is important to the success of every business. Feedback represents a conversation with your employees and your customers. These conversations keep you within a zone of reality and best of all, these conversations create relationships. And in the world of business, relationships matter.

Organizing the Competitive Intelligence Effort

The development of strategies to compete is essential for the survival of every organization. Competition is increasing from everywhere, ranging from small startups to global companies leveraging resources in the shared economy. Understanding this external global environment is now part of how you must strategize. Competitive Intelligence (CI) is the process by which you collect and analyze information to understand the external environment. The product of Competitive Intelligence is knowledge that facilitates decision making, both strategic and operational. Therefore, CI is both a process and a product.

How to Use the Minimum Viable Product (MVP)

Over the last few years, successful entrepreneurs have pointed to the Minimum Viable Product or MVP as a roadmap for creating long-term success. MVP is about creating a product or service with just enough value to make it attractive to a small group of customers. In some cases, the product or service is released on a test basis. This allows you to move incrementally without committing huge resources. A strong development team will be needed to capture feedback and turn out new releases. If you are releasing something very unique, you should validate the offering with a private or internal group well in advance of going to a larger test market.

Appreciating 'Appreciative Inquiry' (Part 2 of 2)

Simple things often work best – easy to design and implement. When it comes to strategic planning and getting the organization to move, Appreciative Inquiry can be the preferred approach because of its simplicity. In an effort to get Appreciative Inquiry working, we can follow the 4 D Model: Discover > Dream > Design > Deliver.

Appreciating 'Appreciative Inquiry' (Part 1 of 2)

In order to plan and look forward in a meaningful way, we need to first look back, appreciating the things we do well. It is those things that we excel at that gives us a strategy for a bright future. In a rapidly changing world, traditional approaches to planning often don't work. We assess strengths, weaknesses, opportunities, and threats, developing strategies to address a multitude of issues, only to have wasted resources and time trying to address issues that are difficult to control. Instead of this long exercise in planning, we need a much more rapid and direct approach to getting the organization and its people mobilized for the future. When we focus on the “positive” things that we do well, not only do we galvanize our resources better, but we also energize our people around things that they can accomplish. This simple and powerful approach to planning and change management is called Appreciative Inquiry.