4. The intangible info gap
• These
What’s inside?
invisible
assets make
your business
seem like a
“black box”
• Earnings are
visible but not
the drivers of
earnings
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6. Make it real….
• Toyota’s stories about empowered employees,
satisfied customers, quality production built up
reputation “bank” balances
• Google’s stories about engineers spending 1
day/week on new ideas add to its reputation as
an innovator
• An engineering firm doubled their rates by
turning an 18-inch manual into a wall chart—
making their expertise visible
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7. To make it real for your org
1. How do we create value for customers?
2. What are the key intangibles driving this
revenue?
• Processes <5
• Competencies each
• Relationships
3. Measure and communicate….
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8. 3 ways to measure/communicate
1. Narrative and stories
not the whole solution
2. Financials
investment is easiest but ignored
3. Nonfinancial indicators
quantitative – KPI’s popular but dangerous
qualitative – assessments create quantitative
data about hard-to-measure but critical data
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9. Coloplast analyst experiment
PwC provided different reports to two groups of analysts:
1. Financial statements, narrative, a few key metrics and
extensive quantified nonfinancial data [full Coloplast annual
report]
2. Stripped out quantified nonfinancial data [resulting report still
similar to/better than market norm]
Measurement
Very different results: matters
1. 60% of analysts recommended “buy” with the data
earnings estimate lower but more consistent
2. 80% recommended “sell” without the data
earnings estimate higher
Source: http://corporatereporting.com/benefits-reporting.html
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10. To build and maintain a
The good reputation, help
Bottom your stakeholders “see”
Line? the intangible side of
your business
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