Why should companies measure their intangibles?

OK, lets say a company leader agrees that 80% or more of its value is driven by intangibles. So the leader says "What value do I get from measuing something I already assume to be true?

It would be for everyone's benefit that this community answer the question. Aferall, we're creating new value that must be explained before the market can understand it.

What is your answer ?

Tags: companies, deragon, era, intangible, jay, management, risk, smarter, social

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Permalink Reply by Mike McClintock on January 11, 2013 at 10:21am

How does he assume it to be true? What did he do to measure it at 80% ? If he measured it already, why? He must have envisioned some sort of ROI on the original measurement.

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Permalink Reply by Abhijit Talukdar on January 31, 2013 at 12:32pm

Hi Jay,

This is a fundamental question indeed. I wrote a short paper to answer this question few years ago, titled

What is Intellectual Capital? And why it should be measured?.

Let me know if it answers the question.

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ICountantPermalink Reply by Jay Deragon on January 31, 2013 at 4:04pm

Nice piece of work, Thanks for sharing. Maybe we should start a library for others to access???

Abhijit Talukdar said:

Hi Jay,

This is a fundamental question indeed. I wrote a short paper to answer this question few years ago, titled

What is Intellectual Capital? And why it should be measured?.

Let me know if it answers the question.