In the information and knowledge-based society of the 21th century knowledge evolved to a crucial resource. In today’s business environment intangible assets like employee expertise as well as relationships to customers, suppliers and partners are becoming increasingly important for a sustainable development of an organisation. Thus, the structured and systematic management of these intangibles is a crucial factor of success. Therefore the main goal of the intellectual capital statement is to enable small and medium-sized entities to utilize and manage these elusive assets.
What is an intellectual capital statement?
The intellectual capital statement is an instrument for the systematic and structured presentation and developement of a company’s intellectual capital. It’ll point out the correlations between organisational goals, business processes, intellectual capital and the business success within a company. For a better understanding and structure the intellectual capital is often subdivided into human capital, structural capital and relational capital.
The purpose of intellectual capital statements
The intellectual capital statement fulfills two functions. On the one side it can be used as an external communication tool, e.g. to illustrate the organisational effectiveness in regard to intangible assets. On the other side it can be used for internal communication, as a strategic management tool to foster the decision-making process an to enable the systematic development of intellectual capital. As an internal communication tool it can promotes transparency on organisational strengths and weaknesses of the intellectual capital and enables a systematic derivation of specific measures for organisational development.