Q: Which companies are suitable for an intellectual capital statement?
Intellectual capital statements help organizations with high value-added to present their knowledge and their essential, intangible influencing factors. Basically, it makes sense to draw up an intellectual capital statement for all knowledge-intensive organisations.
Q: Does the intellectual capital statement also work for large companies?
It is possible to implement intellectual capital statements in a large company. The procedure remains basically the same. The particular attractiveness of the intellectual capital statement as an internal management tool gains potential as the size of the company increases. There are already several examples of success. In a large energy group, the intellectual capital statement serves as a management tool to supplement financial accounting. The result is the creation of transparency with regard to the Group’s intellectual capital, identification of central fields of action and the derivation of strategic measures based on the intellectual capital statement. In an energy commodity group, the intellectual capital statement was included in the annual report.
Q: How much does an intellectual capital statement cost?
A: When drawing up an intellectual capital statement, you incur internal costs as well as costs for external moderation. You need eight steps to create an intellectual capital statement. As a general approximation, the work is divided into three workshops and their preparation and follow-up work. Depending on the task, 10-15 person days should be scheduled for external moderation. Depending on the daily rate of the moderators, a intellectual capital statement should therefore not cost about 15,000 €. An internal effort of 30 man-days is expected, depending on how many employees are represented in the intellectual capital statement team.
Q: What are the benefits of the intellectual capital statement?
A: Derived from the two perspectives – the internal and external view of a company – the intellectual capital statement can be used for two purposes:
- Diagnosis: to analyse strengths and weaknesses in intellectual capital
- Intellectual capital statement as an internal management tool
- Decision support to prioritize the areas with the greatest potential for the desired changes
- Optimization & innovation: to derive suitable change measures
- Employee involvement: to improve transparency, decision-making processes and sustainability of measures
- Controlling and action management: for the measurable control of measures, but also for the monitoring of risks and opportunities in intellectual capital.
External Communication and Reporting
External reports increase the transparency about soft values among the organization’s stakeholders.
Benefits from the perspective of external readers
The companies that have already implemented an intellectual capital statement report on a number of additional benefits:
- A holistic perspective on the organization as well as additional transparency about the interrelationships within the company. This makes the importance of intellectual capital clear and makes it possible to prioritize necessary activities and measures.
- The involvement of managers and employees in preparing the intellectual capital statement increases the commitment of both sides in implementing measures.
- The collection and definition of intellectual capital enables a common language finding, which avoids misunderstandings and promotes constructive discussions.
- An open and honest discussion of strengths and weaknesses, as well as an honest evaluation of intellectual capital, creates transparency and trust as well as an innovation-friendly climate between employees, organizational units and functions.
- The intellectual capital statement is compatible with other existing management tools, but is not explicitly based on them. It can therefore be used both as an integrated and independent management tool.
- The intellectual capital statement toolbox simplifies the independent application of the method and makes the process of drawing up an intellectual capital statement much more efficient.