How to make intangible assets into tangible assets by proper capital management
Intangible Assets are unmanaged tangible assets
Why do we have “intangible assets”? Intangible assets are an admission that there are assets we are not measuring or managing. Instead of calling them unmanaged or mismanaged assets, we call them intangible assets. Intangible is something that cannot be seen or measured. Calling them intangible enables us to ignore them. If we called them unmanaged assets, we would have to figure out some way to manage them.
It costs money to develop, improve, and operate intangible assets
Intangible assets include human capability and knowledge or “intellectual capital” and our other information capital. Much of our other capital in business organization and processes and management strategy and tactics is also labeled intangible. But this capital is not really “intangible”. The capital is not free. We have to spend money to develop and improve it. We also spend money in operating and supporting the capital. On the other side of the coin, we gain value from utilizing the capital.
The problem is not intangible assets, but unmanaged capital
We can solve the intangible assets problem as well as many other problems by properly organizing and managing our capital. We must organize tangible and intangible assets together by the kind of human capability needed to support the capital and to make the capital easy to use in practice. We can then measure performance costs incurred in developing and improving the capital. We can also measure the performance costs in supporting the capital and ensuring that it is utilized to create value for the benefit of the enterprise. The problem to solve is not the “intangible assets” problem. The problem to solve is the proper management of our capital.
Result-performance Management organizes capital to be managed properly
The answer is Result-performance Management (R-pM) to organize capital by the human capability needed to develop, operate, and manage the capital. To learn more about R-pM visit result-performance-management.com.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates the intangible asset problem and other costly 20th century problems. Slash overheads and costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Download your 21st Century Management Manual today
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. The R-pM Toolkit is offered at a nominal price to encourage wide use of R-pM. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
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October 31st, 2006 at 17:03
[…] In an article on 8 February 2006, Defining and managing tangible assets, and in an article on 6 April 2006, Making intangible assets tangible, we discussed the problems with intangible assets. […]