For the recorded history of management, the world has managed value
creation according to what can be seen, touched and proven. In
today's knowledge-based economy, value creation is derived
primarily from how well firms manage intangibles (knowledge,
service, expectations, response time, innovation, change
management, etc). The large capital outlays that signified the
manufacturing economy are no longer required. In fact, such
'tangibles' now explain less than 20% of the value of most publicly
listed firms. For example, Time Warner has only 6.49% of its value
attributable to tangibles. As such, for every $1 of true value,
only $0.065 cents is being measured and managed by conventional
management practices. For Oracle Corporation, tangibles account for
only 4% of its value. For General Electric (worth over US$450
billion), tangibles account for less than 11% of its value.
Intention, context, emotional intelligence, escalation, and
sustainability are words that are generally absent from the
operational management techniques of managers worldwide. They form,
however, the basis of skills required to manage organizations in
today's knowledge-based economy. The authors investigate the ways
that intangible values can be identified, measured, and managed.
Their revolutionary and innovative taxonomy not only reveals
fundamental differences between a manufacturing economy and one
which creates value through knowledge, relationships, and time. By
using case studies, a compelling mixture of theory and
applications, and a set of accounting tools, the authors
demonstrates how a new value framework can protect investors while
giving companies the ability to generate long-term growth.
*Shows how intangible values can be identified, measured, and
managed
*Presents a revolutionary and innovative taxonomy with a new set of
accounting tools
*Demonstrates with case studies how a new value framework can
protect investors while enabling companies to generate long-term
growth
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