Align Intellectual Capital with Company Strategy Using KPIs

Intellectual Capital measurement KPI - Balanced Scorecard metrics template example Intangible assets have a substantial implication for financing a knowledge organization-s vision. While visible financing is usually simple to calculate consisting of equity, short-term and a few long-term loans, it is more difficult for knowledge organizations due to the lack of tangible collateral.

Intellectual Capital model is particularly impressive in recognizing the role of customer capital in creating value for an organization and how the nature of customer relationships has changed.

It also provides a broad coverage of structural and process factors with its focus on contributions to organizational value.

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How to align these KPIs with a strategy of our organization?

Ideally, you need to have a strategy (in a form of a strategy map) before you start thinking about the ways to measure its execution (KPIs). Don't have a strategy map yet? Use free Strategy Map Wizard to create a strategy map for your current business challenges. The wizard will:

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Collecting Intellectual capital is one of the surest ways to combat the existing and 'completely inescapable' competition that is faced by organizations. This can be turned into a sharp competitive advantage to help make way through the entangled mesh of strengths and weaknesses of both the concerned organization and its competitors.

The fact that intellectual capital is intangible in nature creates whole lot of problems in its assessment.

However, there is no way but to devise a methodology somehow for putting value to this intangible asset.

Using a scorecard to accomplish this is something that will take away the woes of addressing the subject of valuation of Intellectual capital. One can frame suitable indicators to measure the manner in which efforts have been taking place to enhance intellectual capital.

Adoption of this strategy is particularly mandatory for the companies involved in knowledge based industry as brainstorming sessions and discussions are at times the most potent way of resolving issues and coming up with solutions. Also, for deciding the direction in which to take the R&D efforts is a critical subject that demands poling of ideas and thoughts.

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Intellectual Capital Evaluation Balanced Scorecard Screenshots

The Balanced Scorecard (BSC) dashboard indicates performance within each perspective and the total performance of .

This is the actual scorecard with Intellectual Capital Performance Indicators and performance indicators.

Metrics for Management Estimation

This is the actual scorecard with Intellectual Capital Performance Indicators and performance indicators. The performance indicators include: intellectual capital, financial perspective, revenues per employee, revenues from new customers, profits from new operations, customer perspective, customers gained versus lost, sales contacts to sales closed, process perspective, pcs per employee, processing time, it capacity – cpu, renewal and development, satisfied employee index, training to administrative expense, average age of patents, human perspective, managers with advanced degrees, annual turnover of staff, leadership index.

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