The Intangible Asset Problem

Financial Management is one of the top 10 problems in the 20^th century enterprise!

The 20^th Century enterprise concentrates on financial capital in cash and accruals, which is the easiest capital to understand and manage. But all capital is created by spending and investing money and must have a corresponding monetary worth. Separating financial capital from other capital causes other high-worth capital to be ignored and mismanaged.

R-pM eliminates intangible assets

Result-performance Management (R-pM) categorizes all capital to be professionally managed and classifies capital to be utilized to produce results. All performance costs are known and are charged against to value created in results to manage result value-added. Visit result-performance-management.com to download “Organizing and Managing Performance”.

Intangible assets are ignored by conventional financial management that does not managed capital

We keep hearing about intangible assets like there is something mysterious about the assets we utilize in our enterprise. If we have intangible assets we also have unknown costs; since we incur cost when we utilize our assets. Intangible assets are of high worth in a modern knowledge and technology-driven enterprise. But, by considering the assets as intangible we make them impossible to manage to increase their worth and the value they provide.

The intangible asset problem is simply ignored by 20th century financial management. But, by ignoring the problem, the enterprise also forgoes the enormous benefit to be gained by understanding, managing, and leveraging intangible assets to improve profits.

The Intangible Asset Solution

There is no such thing as intangible assets; there are only unmanaged assets. We call them “Intangible Assets” so that we do not have to figure out how we develop them, how much they cost us, and how utilize them for benefit.

All capital must be classified and utilized to incur costs and create value

With R-pM, there is no such thing as intangible assets. There is only the capital that we utilize in performance to produce value in results. All capital including intellectual capital, information capital, business capital, management capital, and any other capital that may be considered intangible is categorized and classified as specifically identified performance solutions to produce specifically identified results. All capital is defined and managed as a performance solution from the time that it is put in a strategy or planned, through investment analysis, through the acquisition or development process, through implementation as a solution and through utilization to incur costs and create value.

Intellectual capital is utilized through human capability solutions and structured in human knowledge solutions

Intellectual capital may be loose in a human capability solution, or it may be captured for others to use in a knowledge solution. All information capital is utilized through a business data, human knowledge, facility record, or management intelligence solution.

The important advantage of R-pM is not in making intangible assets tangible or making unknown costs known. The important advantage is in replacing administration with capital management to manage all of our capital, including financial facility capital, both to be improved and developed to be the best that it can be and to be properly utilized in performance, to create the highest value for the lowest cost.

R-pM eliminates the financial management intangible assets problem

Review the articles under Learn the Basics of R-pm or click on the R-pM banner to download documents to learn more about R-pM.

21^st Century Management eliminates 20^th century problems

Result-performance Management (R-pM) eliminates the top ten problems and other costly 20^th century problems. Slash costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21^st Century Management.

Download your 21^st Century Management Manual today

Your 21^st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21^st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.

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This entry was posted on Thursday, October 19th, 2006 at 01:48 and is filed under:
Forums: Administration and Capital Management, Capital Development Plans and Projects, Top Ten 20th Century Problems
Topics: Capital Management, Cost Management, Information Capital Management, Knowledge Capital Management, Management Capital
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