Intangible assets are those things that accountants don’t measure. But some businesses do measure them and improve upon them, and those businesses are richly rewarded.
Christina Boedker, a senior lecturer at the University of New South Wales’ Australian School of Business recently studied five hard-to-measure intangibles across 78 organisations over several years:
- employee engagement
- customer orientation
Boedker and her research team found that organisations performing well on those intangibles also have higher levels of productivity and profitability. In fact, the higher-performing firms achieved an average of $40,051 more in profit per full-time employee.
So managing and measuring your intangibles pays off.
Find out more and listen to the audio from The Australian School of Business, UNSW here.
How well do you manage the intangibles? How do you know? What improvements in the way you manage your intangibles have you made in the last three months?
If you need to better manage the intangibles you’re responsible for, Boedker suggests selecting one intangible and concentrating on measuring and improving that one; then move onto another; then another.