Evaluating assets that exist in physical form is much easier as compared to studying 'intangible' assets like Intellectual capital which calls for the use of holistic methodology like balance score card for its proper holistic analysis. The directions, which need to be looked into relate to Human capital, Structural Capital, Relationship capital and Employee Training and Learning. After one frames the related parameters under these categories, the job of monitoring gets simplified. Human Capital can have metrics like 'Estimated Value of People', 'HR value Return', 'Average experience years of the employees', 'Time Period for which Human Capital Measures were planned' and 'Employee Performance Review Frequency'. Relationship capital can be measured using parameters like 'Brand value', 'Innovativeness ratio', 'Number of Profit sharing schemes', 'Schemes aiming at Flexible Work Timings' and 'Average Collaboration Period with Suppliers'. Structural capital can be analyzed utilizing metrics like 'Number of Database systems deployed in the organization', 'R&D value added', 'Rise in organizational Investment', 'Appreciation Ratio' and 'Number of assisting Measures'. Employee Training and Learning Perspective can be evaluated using KPIs such as 'Training Hours per employee', 'Contribution to Intellectual capital on per employee basis', '% increase in Training Expenditure' and 'Satisfied Employee Index'.
Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
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Intellectual capital development revolves around devising a culture and tradition of enhancing the knowledge base of the people housed in the organization. It is concerned with discussing subjects and topics so as to bring the useful ideas and thoughts together and lead to sharp thought process.
Such acts do the job of fine tuning the employees' thought process. Further, as every problem is unique in itself, its answer too demands a similar solution. Though some help might be taken from previous experiences but the complete addressing will be specific for each difficulty.
There have been attempts at capturing intellectual capital in the form of software and technological solutions so that one can have access to these whenever needed.
However, this act of creating intellectual capital has to be a highly monitored one as huge volumes of resources go into it.
By constructing a balanced scorecard for this purpose, one can ease the task of developing intellectual capital to a considerable extent. It is possible to put values to indicators that in turn have been decided after studying the factors that impact the process of generating Intellectual capital.
This is the actual scorecard with Intellectual Capital Development Indicators and performance indicators. The performance indicators include: human capital perspective, estimated value of people, hr value return, average experience per employee, time period for which human capital measures were planned, employee performance review frequency, relationship capital perspective, brand value, innovativeness ratio, number of profit sharing schemes, schemes aiming at flexible work timings, average collaboration period with suppliers, structural capital perspective, number of database systems deployed in the organization, r&d value added, rise in organizational investment, appreciation ratio, number of assisting measures, employee training and learning perspective, training hours per employee, contribution to intellectual capital on per employee basis, % increase in training expenditure, satisfied employee index.
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