The Intangible Assets Monitor
©Karl-Erik Sveiby 1996, 1997, 2001. All rights reserved.
The Intangible Assets Monitor is a method for measuring intangible assets and a
presentation format which displays a number of relevant indicators for measuring
intangible Assets in a simple fashion. The choice of indicators depends on the company
strategy. The format is particularly relevant for companies with large
intangible assets, such as Knowledge Organizations.
For a more comprehensive discussion about the theory read the article Measuring
Intangible Assets - an emerging standard.
The Intangible Assets Monitor can be integrated in the management information system. The
Monitor itself should not exceed one page. It should be accompanied by a number of
comments. Only a few of the suggested indicators in this chapter should be selected. The
most important areas to cover are growth/renewal, efficiency and stability. The purpose is
to get a broad picture, so one or two indicators in each category should be designed.
The IAM is a Stock-Flow theory, same as
traditional accounting theory. When using the IAM one perceives the three
Intangible Assets as "real" assets.
We are interested in indicators that indicate change and knowledge flows, i.e. growth, renewal/innovation,
efficiency/utilisation and risk/ stability measures. The idea is to get a "peek" into
how the intangible asset(s) are developing, by designing indicators that
correlate with the growth of the asset in question, its renewal rate, how
efficiently we are at utilising it, and the risk of loosing it.
The IAM's "External Structure"
contains customers, suppliers and other "external" stakeholders
and one selects the ones that are relevant. In most private companies this will be
Customers. Public Sector organisations will use other stakeholders, such as
community members and many companies have so valuable alliances with
their Suppliers that they must be included too. The indicators
below are
suggestions and examples, which must be adjusted to the reality of each company. They do
not fit all companies or all circumstances. The Monitor can be used to design a management
information system or to make an Audit.
Click on the headings in the table below for descriptions in more detail! I also
recommend you to read examples of Monitors from the
practice.
I have excluded the Financial indicators from the examples below, since they
will not differ from traditional ones.