Monitoring and measuring intangibles using value maps: some examples

In: Journal of Intellectual Capital, Band 10, Heft 2, S. 211-223

Abstract

PurposeThe purpose of this paper is to provide an integrated approach to understand and monitor those intangible assets (IAs) that are the key value drivers of an organization. With the help of three different examples, it attempts to examine the cause‐and‐effect relationship among different intangibles and map them to organizational success.Design/methodology/approachSystem thinking approach using examples from three different industries.FindingsThe paper finds that the success of any organization depends on a network of interrelated IAs that affect each other and the crux is to ensure that each of these is performing as desired. The use of a causal model clearly demonstrates the cause‐and‐effect relationships between key variables and ultimate objectives, and helps companies identify which intangibles need to be constantly monitored using suitable indicators to achieve the desired goals.Research limitations/implicationsThe models have not been verified in practice.Practical implicationsUseful for organizations to monitor and measure intangibles by linking them to their objective of maximizing shareholder value. The indicators illustrated can be used to track the performance of intangibles.Originality/valueThree industry specific original generic models are presented that will be useful to managers and consultants as a basis for identifying and mapping key intangibles (value drivers) to their organization goals.