These slides are from a meeting of the KM Forum in Boston where Mary Adams told five stories of the power of intangibles visualization: performance, value, innovation, reputation and growth. For more information visit http://i-capitaladvisors.com/

1. Using Intangible Visualization to
Support Corporate Decisions
How to become
an intangible
capitalist
Mary Adams
I-Capital Advisors
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2. Intro to intangible capital
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3. Undefined,
intangible portion
of corporate value
Components of S&P 500® Market Capitalization
14,000
Market Premium
12,000
Intangible Book Value
Tangible Book Value
10,000
8,000
S&P 500 Market Cap ($ billions)
6,000
4,000
2,000
-
1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Research: Ned Davis
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4. Knowledge
Assets
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5. Model of how IC
pieces fit together
From You Can Grow Like Google on YouTube
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6. Three ways to
measure
intangibles Assessment
(qualitative)
Investment Corporate Intangibles
(financial)
Performance
Management
(quantitative)
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7. 1. How to grow?
Scaled business using balanced IC
investment, especially structural capital
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8. Gaps in
structural
capital
Need to add
headcount
National
relationships
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9. 2. How to improve performance?
Optimized structural capital infrastructure
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10. Developing ID four core
Program processes
Relationships
Motivating
Referral
Closing
Developing HCO Sale
Relationships
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11. Map each
process as a
value network
Intangible
exchange
Tangible
exchange
Role
Tangible
Role exchange
Intangible
exchange
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12. ICA-12

13. 3. How to innovate?
Evaluated IC as the innovation ecosystem
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14. Intellectual Capital
A
Bus. Recipe Organisational Human Capital Relational
AA BBB A BBB
Current strength
I.P Process Management Employees Network Brand Customers
BBB BBB AA BB A BBB
Intellectual Capital
BB
Bus. Recipe Organisational Human Capital Relational
BBB BBB CCC BBB
Preparation for future
I.P Process Management Employees Network Brand Customers
Intellectual Capital
BBB BB CC B AA BBB
R
Bus. Recipe Organisational Human Capital Relational
R R R R
I.P
No value
Process
R
Management
RR
Employees
R
Network
RR
Brand
R
Customers
Risk
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15. Experience in core
competencies
83
Renewal of productivity Ability tackle new projects
74
57
39
55
Vulnerability defection Training/education
74
Equal competence level
Employees AA CC R
While the staff is perceived as having the capacity to deliver world
class performance, other capabilities are less certain . . Developing or
expanding capabilities could be hindered by the fact that training and
education efforts are largely informal and non-standardized.
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16. 4. How to acquire knowledge?
In mergers, most people ignore important
structural capital and fail to understand
relationship between IC and valuation
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17. Mergers are 70% intangible
Tangible, 30%
Goodwill, 47%
Intangible, 23%
E&Y: Acquisition Accounting – What’s Next for You?
Global sample of 700+ mergers in 2007
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18. Most deals
ignore SC
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19. Map multiples against IC
Best
8x
Average
4x
Low
2x
Human Structural Relationship Strategic
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20. 5. How to build reputation?
Helped stakeholders see inside
the IC “black box” to attract
new clients at higher rates
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21. Visualization of a six-
inch methodology
notebook
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22. For better decision making…
• Remember that intangibles dominate
value creation, revenue and expenses
• Use IC buckets to be clear about type of
knowledge asset (human, relationship,
structural capital)
• Use all three kinds of measurement
(financial, quantitative, qualitative)
• Visualization cuts through complexity
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23. Resources
Slides at slideshare.com/maryadamsica
Newsletter: Management 2.0 last Tues of month
Book: www.intangiblecapitalbook.com
Community: www.icknowledgecenter.com
Blog: www.smartercompaniesblog.com
Mary Adams, 781-729-9650
adams@i-capitaladvisors.com
Twitter: maryadamsica
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