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May
12
2012

"What is your organization's most important asset? CEOs often respond that the organization's people are its greatest asset. But if this is true, where are people accounted for in the financial statements? Today, people are generally classified as expenses on the income statement and liabilities on the balance sheet -- not as an investable asset. Thus, when CEOs seek to increase profit, they cut costs -- like people -- rather than investing in assets -- like people -- that can appreciate. "

humancapital accounting finance assets intangibles intangiblecapital financialstatements balancesheet

  • In fact, investment advisory firm Ocean Tomo estimates that in 1975 more than 80% of the value in the S&P 500 firms consisted of tangible assets -- like land, plant and equipment. In 2010, approximately 80% of the S&P500 market value is attributed to intangible assets. But, today's accounting systems and financial reporting are still using 20th century definitions, creating a "gap in GAAP" (the Generally Accepted Accounting Principles) on how value is created in the 21st century.
    • In January 1967, the Harvard Business Review published, "Put People on Your Balance Sheet," which discussed various methodologies for classifying human resources as assets, including:

      • historical cost,
      • replacement cost, and
      • opportunity cost.
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Dec
9
2011

"This is contradicting but shows the challenge as well, because more than 75 percent of the average market value is from intangible assets. The challenge is that these aren’t quantified in financial metrics. Intangible assets consists of human-, organizational- and information capital. "

intangible intangibleassets value marketvalue innovation finance humancapital organizationalcapital informationcapital metrics bigdata cooperativeintelligence intelligence valuecreation

  • Investments in organizational capital means investing time and money in open business models, open innovation and setting the right conditions for creative ‘knowledge workers’. Last but not least, investments in information capital spur the collection, interpretation and thus quality of the available internal information.
  • 85 percent of Fortune 500 organizations will fail to effectively exploit big data for competitive advantage
  • 4 more annotation(s)...
Oct
6
2011

"I looked through this excellent compendium of Jobs quotes and found seven lessons for people and companies looking to succeed as 21st century capitalists."

capitalism finance CEO strategy vision

  • do you really want to spend your days slaving over work that fails to inspire, on stuff that fail to count, for reasons that fail to touch the soul of anyone
  • Design is a funny word. Some people think design means how it looks. But of course, if you dig deeper, it's really how it works."
  • 6 more annotation(s)...
Sep
30
2011

"When companies go through boom times, they quite naturally take their eyes off costs. But to maintain profits when revenue goes downhill, most CEOs call for cost cutting. The scalpel comes out, and while it's necessary, it usually comes at a huge cost to employee morale."

costs costsavings costreduction costcutting sixsigma businessprocess organization finance

  • Big rounds of layoffs demoralize employees, drive out critical expertise, and put the organization on a downward spiral. Going through the traumatic experience of seeing friends leave and fearing for their jobs, few remaining employees believe their hard work and strong performance will save them.
  • More insidiously, right sizing departmental silos usually doesn't affect the cost structure permanently. Because the underlying work hasn't gone away, the fat creeps back. The cost reductions last only until everyone goes back to their old ways in a few years.
  • 3 more annotation(s)...
Jul
22
2009

A study has found that revenue, gross margins and profits correlate nicely with companies that are the most engaged with social media. Should you build a portfolio around these highly engaged social media friendly brands? Probably not.

socialmedia margin finance bottomline revenue incomes

Jul
15
2009

IT projects need define a combine the engineering work to be done and the results that they create. Doing so requires more than giving the project a business based name. Here are a few steps for an alternative way to define an IT project.

Combining these three ideas, when companies pay to execute a project, it’s not the project they want, it’s the result. They want more revenue generating customer relationships, not processes around a CRM system or even the capability to look up customer names. What they want is the result.

IT results project ITproject business businessneed control productivity visibility engagement customervalue finance ROI

Jun
17
2009

En complément de cette vidéo qui est longue mais très intéressante, voici 4 idées qui résument mes positions :

Idée 1 : Le Web 2.0 est relié au comportemental et non au financier

Idée 2 : L’art du management paradoxal

Idée 3 : Le Web 2.0 pour vendre et recruter, pour développer sa notoriété et gérer sa réputation

Idée 4 : Dissoudre un individu dans le collectif nuit gravement… au collectif !

Voici le détail de ces idées :

web2.0 enterprise2.0 behaviors finance ROI adeo management personalbranding

Jun
10
2009

In both entrepreneurial and larger companies, we too often spend time focusing on the desired financial performance target, rather than the inputs that drive those numbers. Because boards, investors and management demand an objective way to measure performance, we often go right to the result without focusing on what caused those results.

finance metrics indicators inputs performance revenue

Mar
1
2009

Contribution Margin in currency generated from externally referred customers
over cost in currency for human interaction and other cost to manage and engage in the ecosystem
= Social Media ROI.

ROI finance marketing socialmedia

Jan
5
2009

OUR financial catastrophe, like Bernard Madoff’s pyramid scheme, required all sorts of important, plugged-in people to sacrifice our collective long-term interests for short-term gain. The pressure to do this in today’s financial markets is immense. Obviously the greater the market pressure to excel in the short term, the greater the need for pressure from outside the market to consider the longer term. But that’s the problem: there is no longer any serious pressure from outside the market. The tyranny of the short term has extended itself with frightening ease into the entities that were meant to, one way or another, discipline Wall Street, and force it to consider its enlightened self-interest.

shortterm longterm finance downturn crisis

Jan
1
2009

As the late mathematician Richard Hamming tartly observed, “The purpose of computing is insight, not numbers.” That’s also the goal of innovative metrics. The measure of the success of innovative metrics is how clearly they convey the value - and risks - of the innovation. Watt’s steam engines, P&G’s soap, and Intel’s microprocessors might well have dominated their markets without novel metrics. But for these businesses and many others, innovative metrics made selling their products to a large number of customers a much less difficult prospect. Indeed, as many innovators are learning, oftentimes the best way to take the mea­sure of a new market is to create a new measure for the market.

innovation metrics intangibleassets finance

Mar
22
2008

Quarterly financial results are totally meaningless as an indication of value created. Throw out your Income Statement and your Balance Sheet and get cracking on creating intangible assets if you want to make it in this knowledge economy.

finance intangibleassets knowledgeeconomy

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