Managing Intellectual Capital to Grow Shareholder Value

Managing Intellectual Capital to Grow Shareholder Value

Learn from the experience of other companies how to exploit your intellectual capital.

Based on in-depth research in 51 companies, this 157 page A4 report shows how the top management team can build new value into the business by harnessing intellectual capital and “know-how” more successfully. More than 20 charts contrast the experience of the leader and laggard companies – providing a unique source of guidance to help you focus your company’s resources on the critical issues that make a real difference.

The report which also contains seven full-length case studies should help you to identify overlooked areas of intellectual capital, develop new approaches to measuring, representing and reporting your achievements, consider the roles different management functions should play, address key people and cultural issues, and develop a strategy for harvesting more value from intellectual capital.

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Executive summary

Intellectual Capital: the new value driver

Introduction: why does intellectual capital matter?
How the research was carried out
Understanding intellectual capital: definitions
The part intellectual capital plays in business success
Intellectual capital: the position today
Intellectual capital: a five year forward view
Leaders and laggards: how they stack up today
Five year view: how leaders stretch their advantage
Intellectual capital: where the growth will come
3M case study: maximising intellectual capital through innovation

Exploiting Intellectual Capital

Intellectual capital: what gets measured?
Why Unilever focuses on key brands
Exploitation: when satisfaction is really delusion
How the satisfaction gap pinpoints exploitation potential
How IBM achieved record patent performance
Why Encyclopedia Britannica went digital
Intellectual capital: identifying the key exploitation drivers
Bass case study: using the power of branding to enhance value

Measuring and Valuing Intellectual Capital

Measurement as an indicator of serious management
Valuing intellectual capital: the missing management activity
Monitoring and valuing intellectual capital: the key methods
Balanced Scorecard: information for rounded decisions
Economic Value Added: estimating the economic profit
Skandia Navigator: breathing life into knowledge capital
Intangible Assets Monitor: focusing on three groups of assets
Intellectual Capital Index: harnessing five resources
Value Dynamics: focusing on the creation of value
Apion case study: establishing a framework for measuring value creation

The Shareholder Value Connection

Why creating shareholder value is so important
Intellectual capital as a driver of shareholder value
Measures of shareholder value: creating and dispensing value
How Diageo places a value on brands
Putting value creation at the centre
Boots Company case study: managing for value

The Corporate Team Driving Development

Who manages intellectual capital: the movers and shakers
Sources of external advice: what happens now
External advice: who will be useful in the future
How Debrett’s won more income from a review
Intellectual capital: consultants muster their forces
Orange and Go case study

Managing Intellectual Capital for more Value

The big picture: three kinds of issues that count
Shaping corporate culture to exploit intellectual capital
Focusing on know-how: features of innovative companies
Intellectual capital: managing the people dimension
Knowledge management and the employer/employee relationship
Completing the picture: the role of IT and business processes
Knowledge management: coping with information overload
How BP organises knowledge sharing
Leading from the front: finance functions and the rest
Intellectual capital: what’s important elsewhere in the business
ECsoft case study: using wisdom to translate knowledge into action

Reporting Intellectual Capital Achievements

Intellectual capital: the part communication plays
Communication: sharing information internally
Communication: spreading the word externally
Communication: reporting on shareholder value
The importance of reporting brand performance
Intellectual capital: frameworks for reporting value
Celemi case study: reporting intangible asset performance

Intellectual capital: the opportunity factor

A strategy for the future: capturing the potential
Intellectual capital: the attitude problem
Intellectual capital: new questions for analysts
Intellectual capital: questions for the board

Conclusion: the way forward

Appendix 1: Research study statistical summary

Appendix 2: Further reading

Managing Intellectual Capital to Grow Shareholder Value: The Research Team

Author: Sarah Perrin
Sarah Perrin, a qualified chartered accountant who trained with Arthur Andersen, is now a freelance writer and journalist specialising in business, finance and management. She writes regularly for a variety of magazines such as Financial Director, Accountancy and IT Consultant on topics ranging from trends in corporate finance to the growth of the mobile telecoms industry, from the impact of e-business to the changing nature of professional services. She also assists accountancy firms in writing reports, newsletters and articles and is author of the Guardian Careers Guide to Accountancy. She has worked for Accountancy Age where she was senior reporter specialising in accounting standards and insolvency. She has been occasional editor of the City diary of London’s Evening Standard. She is a graduate of Oxford University, where she read philosophy, politics and economics.

Executive Editor: Colin Coulson-Thomas
Colin Coulson-Thomas FCA has been a chairman of three companies which owed their success to exploiting intellectual capital. He has advised directors and boards in over 40 countries on business performance issues. He has held professorial appointments in Europe, North and South America, Africa, The Middle East, India and China and authored books on information and knowledge entrepreneurship.

Editor: Peter Bartram
Peter Bartram is an editor and writer who writes about business and financial topics for publications that include Accountancy Age, Financial Director and Director. He is also the author of a series of crime novels set in Brighton.

Publisher: Chris Butler
Chris Butler was managing director of a publishing company and a former City editor of the Daily Express. He was also director in charge of mergers and acquisitions for one of the City’s largest PR firms.

Presentations and courses on the findings of the report are also available.

Managing Intellectual Capital to Grow Shareholder Value (157 pages; IBSN [978] 1 872980 02 3) is available price £75 plus p&p

Weight: 570g

For further information and to purchase contact Colin Coulson-Thomas