The New Organizational Wealth

Managing and Measuring Knowledge-Based Assets

Karl Erik Sveiby (Author)

Publication date: 03/01/1997

Bestseller over 30,000+ copies sold

The New Organizational Wealth
  • The first book on managing and measuring intangible assets
  • Shows how to tap customer and employee knowledge to build a more successful organization
  • Provides tools for measuring such intangible assets as competent and creative employees, patents, brand names, or company reputation
  • Written by an experienced manager who played a key role in developing the "Scandinavian Movement" of management

Shares in Microsoft, the world's largest computer software firm, changed hands at an average price of $70 during 1995, at a time when their "book value" or "equity" was just $7. In other words, for every $1 of tangible value, the market saw $9 of additional value, for which there was no corresponding record in Microsoft's balance sheet. This extra $9 in the value of Microsoft shares represents a major trend. More and more, companies are deriving value from their intangible assets. These assets include their employee's creative ideas, their customers' loyalty, their ability to attract and keep prestigious accounts, their innovative products and services, their popular brand names, and their reputation.

Knowledge-based organizations with intangible assets, such as accounting and legal firms, management consultants, advertising agencies, medical clinics and hospitals, software and engineering companies, and the art and entertainment industry make up the fastest growing business sector. Yet few of these companies achieve their potential performance and profitability because they do not know how to exploit their intangible assets. They measure performance only in terms of money, ignoring less tangible but vital assets such as the ability to capture high profile customers or the creativity to keep the company on the cutting edge with innovative products or services.

The New Organizational Wealth shows how some of the fastest-growing, most profitable companies are discovering that potentially limitless revenues can flow from their firm's intangible assets-the ability of employees, customers, and even suppliers to create new concepts, models, products, and services. Among the book's many examples is Netscape Communications. This successful company demonstrates the profitable results of fostering long-term customer relationships and the effectiveness of investing in employee competence to maintain a rich pool of talent.

The New Organizational Wealth outlines the conceptual framework for changing business strategies to focus on intangible assets. Using its guidelines, managers can learn how to identify the indicators for their company's intangible assets-their employee's talents and strengths, their customers' support and interest, and their supplier's reliability and ingenuity. Specific chapters detail how to effectively use and measure these "tacit" assets, as well as how to monitor them for financial success. Helpful case studies of Scandanavian companies such as WM-data-s, Skandia AFS, and Celemi, which have developed systems for measuring intangible assets and publicly reporting the results, provide models managers can use in leading their companies to increased profitability and long-term organizational success.

  • The first book on managing and measuring intangible assets
  • Shows how to tap customer and employee knowledge to build a more successful organization
  • Provides tools for measuring such intangible assets as competent and creative employees, patents, brand names, or company reputation
  • Written by an experienced manager who played a key role in developing the "Scandinavian Movement" of management

Read more and meet author below



Hardcover:
9781576750148

$34.95
(member price: $31.46)
Free shipping on all orders from the BK Publishers store.
Or find a local bookseller with Indiebound.
Bulk Discounts
Rights Information


Featured Books



More About This Product

Overview

  • The first book on managing and measuring intangible assets
  • Shows how to tap customer and employee knowledge to build a more successful organization
  • Provides tools for measuring such intangible assets as competent and creative employees, patents, brand names, or company reputation
  • Written by an experienced manager who played a key role in developing the "Scandinavian Movement" of management

Shares in Microsoft, the world's largest computer software firm, changed hands at an average price of $70 during 1995, at a time when their "book value" or "equity" was just $7. In other words, for every $1 of tangible value, the market saw $9 of additional value, for which there was no corresponding record in Microsoft's balance sheet. This extra $9 in the value of Microsoft shares represents a major trend. More and more, companies are deriving value from their intangible assets. These assets include their employee's creative ideas, their customers' loyalty, their ability to attract and keep prestigious accounts, their innovative products and services, their popular brand names, and their reputation.

Knowledge-based organizations with intangible assets, such as accounting and legal firms, management consultants, advertising agencies, medical clinics and hospitals, software and engineering companies, and the art and entertainment industry make up the fastest growing business sector. Yet few of these companies achieve their potential performance and profitability because they do not know how to exploit their intangible assets. They measure performance only in terms of money, ignoring less tangible but vital assets such as the ability to capture high profile customers or the creativity to keep the company on the cutting edge with innovative products or services.

The New Organizational Wealth shows how some of the fastest-growing, most profitable companies are discovering that potentially limitless revenues can flow from their firm's intangible assets-the ability of employees, customers, and even suppliers to create new concepts, models, products, and services. Among the book's many examples is Netscape Communications. This successful company demonstrates the profitable results of fostering long-term customer relationships and the effectiveness of investing in employee competence to maintain a rich pool of talent.

The New Organizational Wealth outlines the conceptual framework for changing business strategies to focus on intangible assets. Using its guidelines, managers can learn how to identify the indicators for their company's intangible assets-their employee's talents and strengths, their customers' support and interest, and their supplier's reliability and ingenuity. Specific chapters detail how to effectively use and measure these "tacit" assets, as well as how to monitor them for financial success. Helpful case studies of Scandanavian companies such as WM-data-s, Skandia AFS, and Celemi, which have developed systems for measuring intangible assets and publicly reporting the results, provide models managers can use in leading their companies to increased profitability and long-term organizational success.

  • The first book on managing and measuring intangible assets
  • Shows how to tap customer and employee knowledge to build a more successful organization
  • Provides tools for measuring such intangible assets as competent and creative employees, patents, brand names, or company reputation
  • Written by an experienced manager who played a key role in developing the "Scandinavian Movement" of management

Back to Top ↑

Meet the Author


Visit Author Page - Karl Erik Sveiby

Dr Karl-Erik Sveiby is professor emeritus at Hanken School of Economics, Helsinki, Finland. He has studied knowledge-intensive firms since the 1980's and is often described as one of the "founding fathers" of KM; his most cited work The New Organizational Wealth-Managing and Measuring Intangible Assets. His current research interests are unanticipated consequences of innovation and collective leadership in knowledge intensive organizations.

Karl-Erik has developed teaching methods and simulations that are used by corporations and universities worldwide. He is on the editorial board of five scientific journals and has published 14 books and some 50 articles; most of them are downloadable from his website www.sveiby.com. His latest co-edited book is Challenging the Innovation Paradigm was published by Routledge 2012.

For more information, please visit: www.sveiby.com.

Back to Top ↑


Table of Contents

Part One: An Introduction to Intangible Assets and Knowledge Organizations

  1. Intangible Assets: A Modern Mystery
  2. Business in a Knowledge Era?
  3. What Is Knowledge? What is Competence?
  4. How Knowledge is Transferred

Part Two: Managing Internal Assets

  1. The Four Power Player
  2. Managing Competence
  3. Managing Internal Structure: The Organizational Aspects
  4. Managing Internal Structure: The Strategic Aspects
  5. Managing External Structures: Two Possible Strategies
  6. Managing External Structure: Comparing Knowledge Focused and

    Information Focused Strategies

    Part Three: Measuring Intangible Assets

    1. Measuring Intangible Assets: A Perspective
    2. Measuring Competence, Internal Structure, and External Structure
    3. Measuring Intangible Assets: Implementation

    Back to Top ↑

Endorsements

"In 1987, Karl Erik Sveiby set the international standard for comprehending the implications of the knowledge economy with simplified and compelling terminology. His Swedish work in the late 1980s spawned a Scandinavian community of practice that is now pointing the direction for other countries. Once again, he has raised the benchmark by providing a solid research foundation and practical methods for implementation bringing the discussion into the boardroom-where it belongs."

Debra Mae Amidon, author of Innovation Strategy and Founder of ENTOVATION International

"Managing and measuring knowledge are not simple, but Karl Erik Sveiby gives us an extremely practical and yet deeply reflective start in this exciting new topic."

Dr. Charles M. Savage, President, Knowledge Era Enterprises, Inc., author of Fifth Generation Management

"If you manage teams of smart, productive and creative people you need this book. Sveiby's concepts and tools for measuring and managing knowledge and knowledge creation are excellent. He opens the door to a new set of concepts central to understanding, valuing, and investing in their capabilities for your company."

Glenn Osaka, Group General Manager, Commercial Systems Business Unit, Hewlett-Packard Company, Cupertino, California

Back to Top ↑