the nordica project: measuring and reporting intellectual capital sigurður helgason pwciceland
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The Nordica Project:The Nordica Project:
Measuring and Reporting Measuring and Reporting Intellectual CapitalIntellectual Capital
Sigurður HelgasonSigurður HelgasonPwCIcelandIceland
The Nordica The Nordica ProjectProject
Started in 1999 by the Nordic Industrial Fund.
The aim is to facilitate cooperation between Nordic companies in exchanging information about reporting on Intellectual Capital.
Whom is it forWhom is it for
The organization
Customers
Investors
Analysts
The Nordica ProjectThe Nordica Project
5 Icelandic companies participating
Started in November 2000
First IC reports in the spring of 2001
If you canIf you can VISUALIZEVISUALIZE itit
you canyou can MEASUREMEASURE itit
you canyou can MANAGEMANAGE it it for continuous for continuous improvementimprovement
and if you can and if you can measure itmeasure it
“The wonderful thing about knowledge, is that it is relatively inexpensive to replicate if you can capture it. Most activities are not one time events. Our philosophy is fairly simple: Every time we do something again, we should do it better than the last time”
John Browne BP
There are two types of knowledge: tacit and explicit
Knowledge guides actions and informs decisions
Skills,Craftsmanship
Mentalmodels,Patterns
Beliefs,Values
Experiences
Know-how
Proceduresand policies
Books,Databases,
Texts
Perceptions,Formulae,Equations,
Rules
Designs,Blueprints
Insights,
TacitTacitknowledgeknowledge
Bestpractice
Products,Machines
• Personal• Context-specific• Difficult to formalize• Difficult to
communicate• More difficult to
transfer
• Packaged• Easily codified• Communicable• Transferable• Can be
expressed in formal, shared language
Documented information that can
facilitate action
Know-how and learning embedded within the
minds of the people in the organization
ExplicitExplicitknowledgeknowledge
CustomerCapital
HumanCapital
Organizational Capital
CustomerCapital
HumanCapital
Organizational Capital
Human CapitalHuman Capital
• Employee competencies
• How does the company contribute to employee development
• Working procedures
Organizational CapitalOrganizational Capital
• Quality standards
• Operating proceedures
• Information processes
Customer CapitalCustomer Capital
• Image
• The way they do business
• Networks
HumanCapital
Human CapitalHuman Capital
• Employee competencies
• How does the company contribute to employee development
• Working procedures
Employee competencies:
Intellectual Asset What is the value How do we measure it
Level of Education The ability to learn and share knowledge % with a universityThe ability to handle demanding projects degree
How does the company contribute to employee development:
Intellectual Asset What is the value How do we measure it
Training Increased knowledge and skills, % of employees receivingemployee satisfaction, training, average # of recruitment benefits seminars per employee
Image:
Intellectual Asset What is the value How do we measure it
Image of products Makes it easier to market Survey customers/public
Image of company Loyalty Survey customers/public
CustomerCapital
Customer CapitalCustomer Capital
• Image
• The way they do business
• Networks
The way they do business:
Intellectual Asset What is the value How do we measure it
Honesty Loyalty, image Number of customers whofind the company honest.
Belief in the company Loyalty, image, reputation % of customers whobecause of their quality selected the companystandards. because of their quality
standards.
OrganizationalCapital
Quality standards:
Intellectual Asset What is the value How do we measure it
Quality system Professional, uniform and # of quality standardsorganized procedures How often are they updated
Organizational CapitalOrganizational Capital
• Quality standards
• Operating proceedures
• Information processess
Information processess:
Intellectual Asset What is the value How do we measure it
Systematic tracking Knowledge sharing, access to Number of entries, % of re. customers information, marketing advantages employees actually using it
You don’t have
to get it right
the first time.
What stops us from sharing knowledge more than we do?
The challenge of each company is to facilitate knowledge sharing
How did you solve that problem?
How can we put that knowledge into our
organizational structure?
It is important to share knowledge with everyone, to makeit available for all within the organization.
What are the main challenges to corporate success?
92% communications88% sharing knowledge78% team work70% adapting to technology
Source: Corporate Agility Conference October 1997
”An individual without information cannot take responsibility; an individual who is given information cannot help but take responsibility”Jan Carlsson, CEO SASJan Carlsson, CEO SAS
”Communication is human nature;Knowledge sharing is human nurture”Alison Tucker, Buckman Alison Tucker, Buckman LaboratoriesLaboratories
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