Measuring your know-how, Winning the Knowledge Game, Module 12
Alastair Rylatt,2003.
The article analyses the performance measurements of knowledge and proposes for a shift from the traditional financial reporting. Measurements of know-how greatly differs and are influenced by the nature of the business operations. There are many examples given in this article but the most prevailing and general for the industry on reporting intangible value are, customer capital, human capital, intellectual capital, relationship capital and systems performance.
Though there are too many varying measures to intangible value, businesses have to develop an appreciation and understanding of how to incoporate the benefits especially if they exist in different business units. There has to be a fusion to have a clear picture of the value of the whole business rather than different departments or units.
The article is a good general source to cap up the course but it presents too many measures to fully absorb and undersatnd all the basics involved. Herein saying it is however beneficial for young management professionals as it gives an idea of the real ‘underground’ implications on measurements. It draws most measures from different fields of study hence invaluable for a general understanding irrespective which field one is predominatly based or absorbed with.
One thing for sure is that the area of measuring know-how is going through a paradigm shift. The question though is, in which direction, since there seems to be marked differences emerging from varying fields of study to come up with accepted generic measurements. I have also learnt and confirmed that irrespective of the type of measurement chosen, one has to appreciate the value of knowledge and it should be highlighted in financial reports to position the organisation at its near/close value.