Collaboration as an Intangible Asset

Harvard Business Review

The point is not to nod in the direction of the "little people," but instead to recognize that the intangible assets an organization has are the product of the hundreds, perhaps the thousands, of "assists" — to extend the basketball metaphor — that usually go unnoticed but without which problems would not get solved, insights would not be generated, and uncertainties would not be vanquished. Interestingly, intangible assets are all the rage these days on Wall Street.

A Four-wheel-drive Diamond in the Rough Leadership Model

Great Leadership By Dan

The following guest post is from James Clawson , one of those external instructors we partner with in a program we’re doing for a global, Fortune 500 client called “Change Leadership”. In fact, I’m thrilled to introduce a series of posts from Professor Clawson on the topics of change, which has been kind of a recent theme on Great Leadership. Theories of leadership abound to the point of confusion. But personal characteristics are not the end of the leadership story.

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Why Leaders Are Still So Hesitant to Invest in New Business Models

Harvard Business

Consider the dramatic shift in the types of assets that create market value. According to Ocean Tomo, a consulting firm focused on intellectual capital, physical assets (plant, property, and equipment) made up more than 80% of the market value of the S&P 500 in 1975. Today, the majority of market value is made up of intangible assets (networks, platforms, intellectual property, customer relationships, big data) more than physical assets.

Managing With a Conscience

Leading Blog

Frank Sonnenberg makes the case in Managing with a Conscience , that the only sustainable way to succeed is the right way—not cutting corners—emphasizing the intangibles like trust, creativity, focus, speed, flexibility, relationships, loyalty, and employee commitment. Sonnenberg believes that leaders who have a jaded view of intangible assets will never make the commitment required to reap their full potential.

Why We Shouldn’t Worry About the Declining Number of Public Companies

Harvard Business

In a parallel development, the number of companies listed on U.S. The number of listed firms can decline because of three developments: 1) bankruptcy, failure, or closure of listed firms, 2) delisting of firms going private or acquired, and 3) decrease in number of initial public offerings (IPOs). All three factors have become more common over time, which we argue stems from firms’ increasing reliance on intangible and knowledge inputs in their business models.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business

Our current financial accounting model cannot capture the principle value creator for digital companies: increasing return to scale on intangible investments. For an industrial company dealing with physical assets and goods, the balance sheet presents a reasonable picture of productive assets and the income statement provides a reasonable approximation of expenses required to create shareholder value. steven moore for hbr.

How to Navigate a Digital Transformation

Harvard Business

Different industries and different business models have always maintained different percentages of these asset types. Manufacturers invest most of their capital into physical assets, while high-tech firms invest in R&D to create new intellectual capital. But all assets are not created equal, especially as the technological landscape changes. Even when these firms rely on physical assets, like cars for Uber, they own the technology, not the physical asset.

What VW Didn’t Understand About Trust

Harvard Business Review

Though the story is still developing, there are a few big, interconnected lessons to be drawn from what we know so far. Decades ago, a company’s market value was nearly equivalent to its tangible assets—buildings, machinery, materials, financial capital, and so on. In 1975 intangible assets were just 17% of the market value of the S&P 500. But today those proportions are flipped: intangible assets now make up 84% of the market value of the S&P 500.

What the Companies That Predict the Future Do Differently

Harvard Business

The most forward-thinking companies are developing new business models to create value from these kinds of information exchanges. (2) 2) Develop open multiple multi-sided relationships: Altruism or openness alone will not give rise to ready access to the diversity of data required to understand the predictive future. Financially, organizations require new models to account for information assets beyond treating them as intangibles.

What the Companies That Predict the Future Do Differently

Harvard Business Review

The most forward-thinking companies are developing new business models to create value from these kinds of information exchanges. (2) 2) Develop open multiple multi-sided relationships: Altruism or openness alone will not give rise to ready access to the diversity of data required to understand the predictive future. Financially, organizations require new models to account for information assets beyond treating them as intangibles. Information & technology Leadership

What It Will Take to Fix HR

Harvard Business Review

Put the most strategic pieces into the hands of up-and-comers passing through the leadership-development revolving door? Lynanne Kunkle, VP-Global Talent Development and HR-Asia for Whirlpool, is a case in point. HR strategy is an expertise that takes years to fully develop.”. In the early 1980’s, sixty percent of corporate value creation emanated from the optimization of tangible assets.

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What Apple, Lending Club, and AirBnB Know About Collaborating with Customers

Harvard Business Review

homes and cars) and intangible (e.g. expertise and relationships) assets, firms can gain these advantages of the Network Orchestration business model. Through our research on network-centric businesses and our experience advising hundreds of companies we have developed a framework for understanding customer affinity. Through co-creation, companies can access a deep well of customer capabilities, knowledge and assets. She is a leadership consultant with OpenMatters.

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The U.S. Needs Tax Reform, Not Tax Cuts

Harvard Business

presidential administration and congressional leadership have spent months talking about tax reform. Getting tax reform done requires strong political leadership, significant input from government staffers with technical expertise, and development of a public consensus of the need for change. The current U.S. The next several months will determine whether such a reform will materialize and what it might include. Unfortunately, the prospects for reform are not promising.