Presentazione di PowerPoint

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Exploring the benefits of Measuring Intellectual
Capital. The Aimag case study
M. Serena Chiucchi m.s.chiucchi_at_univpm.it Univers
ity of the Marche Faculty of Economics G.
Fuà Department of Management and Industrial
Organization
Milano, 14th September 2007
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THE RESEARCH FRAMEWORKTHE THEORETICAL BACKGROUND
Many models for measuring and reporting IC have
been proposed (DMSTI 2003 Edvinsson 1997 Sveiby
1997 Meritum 2002)

• ICMRS are aimed at
• improving IC management in order to positively
  affect company performance
• disclosing information on IC to improve
  transparency

There is a progressive convergence of the ICMRS
towards common features
Recently, several leading IC scholars have
underlined the need to focus research on the
effectiveness of the proposed theories, on the
drivers and on the benefits and drawbacks
associated with them (Marr et al 2003 RICARDIS
2005 Cuganesan 2005 Mouritsen and Larsen 2006)
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THE RESEARCH FRAMEWORK OBJECTIVE AND METHODOLOGY
This research addresses the call for empirical
investigation of the effectiveness of ICMRS and
analyzes the benefits associated with its design
and implementation by proposing a constructive
longitudinal case study
Aimag SpA
- Aimag is a multi utility company which manages
services related to water supply and maintenance,
the use of energy resources, environmental
services management and also the management of
public lighting.
- Aimag is a medium-sized Italian company
(northern part of Italy)
- The reasons for Aimag to undertake such a
project were to identify its most relevant
intangible assets, to understand what the company
could do in order to improve their quality and
quantity and to disclose this hidden value to
company stakeholders and so improve its
transparency.
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THE DESIGNED IC MEASUREMENT SYSTEMSTRUCTURAL
FEATURES
The intellectual capital measurement system is
action oriented
ACTIVITIES that create and develop intangible
resources
INTANGIBLE RESOURCES (a potential to create
value)
VALUE
Overall Performance Indicators
i.e. EVA, market share, estimated ROE growth
trend, income from new business,
The IC Measurement System
Intellectual Performance Indicators
i.e. renewal rate or growth rate of intangible
resources such as competences, structured
knowledge, relationships with stakeholders,
Activity Effectiveness and Efficiency Indicators
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THE IMPLEMENTATION PROCESS (2004-2005)THE
DEVELOPMENT PHASE
Translation of company strategy into a strategy
for creating and developing IC (strategic and
organizational analysis)
Mapping Intagible RESOURCES ? Establishing
INDICATORS ? Mapping ACTIVITIES ? Establishing
INDICATORS
- Document Analysis Semi-structured interviews
- Focus groups
PROCESS
- Analysis of the knowledge creation and transfer
process and structured knowledge rating
- Personnel surveys e.g. knowledge of strategic
software, software scope, user satisfaction,
quality of the workplace relationships,
Internal and external IC reports
Project team (researchers project leader and
his assistants) Heads of the organizational units
ACTORS
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THE DEVELOPMENT PHASE (2004-2005)MAPPING
CRITICAL INTANGIBLE RESOURCES
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THE DEVELOPMENT PHASE (2004-2005)INTELLECTUAL
PERFORMANCE INDICATORS
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THE DEVELOPMENT PHASE (2004-2005)ACTIVITIES AND
EFFICIENCY INDICATORS
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THE DEVELOPMENT PHASE (2004-2005)THE EXTERNAL
INTELLECTUAL CAPITAL REPORT

• In 2005 Aimag published its IC Report which
  contains numbers, descriptions and images
  referred to its IC

• Objectives to be as transparent as possible
  allowing all the stakeholders to gain a deeper
  understanding of the company and of its knowledge
  management strategy, to become familiar with the
  company strategy with regard to relationships and
  with how it intends to improve them, etc.

- In 2005 Aimag won the Oscar di Bilancio for
SMEs with a special mention for the innovation
and increase in transparency brought by its IC
report
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THE IMPLEMENTATION PROCESS (2005-2007)THE
CONSOLIDATION AND RE-FOCUSING PHASE
System consolidation survey repetition, indicator
selection- fine-tuning change, search for a
concise and effective report format
Greater autonomy on the part of the
company researcher non participant observer
Development of a new managerial tool for
measuring the IC of a co-operative partner and of
an ad hoc IC report specifically addressed to
the co-operative partner
The company did not publish any other IC Report

the company understood the benefits were
predominantly related to the use of an ICMRS as a
managerial tool
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ANALYSIS OF THE CASE FROM A LONGITUDINAL
PERSPECTIVE
THE ICMRS AT AIMAG EXISTS AND IS IN CONSTANT
EVOLUTION, MAGMATIC THE PROCESS IS SELF-FEEDING
the ICMRS IS NOT SIMPLY AN ACCOUNTING
PHENOMENON IT IS A MANAGEMENT CHANGE PHENOMENON
- It becomes real and is given existence within a
company through many forms meetings, focus
groups, surveys, interviews, managerial tools -
It causes changes on company routines and culture
THE BENEFITS OF THE ICMRS ARE RELATED TO
- the design and implementation process
- ICMRS use as a managerial control tool
- the disclosure of IC information (IC Report)
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BENEFITS OF THE ADOPTION OF AN ICMRS
THE BENEFITS RELATED TO THE DESIGN AND
IMPLEMENTATION PROCESS

• Diffusion within the company of an INTELLECTUAL
  CAPITAL PHILOSOPHY

• the ICMRS has increased managerial attention to
  and care of IC
• the ICMRS has promoted greater sharing of
  strategy and strategy alignment

THE BENEFITS RELATED TO THE USE AS A MANAGERIAL
CONTROL TOOL

• Re-orientation of the company decision making
  process and different allocation of company
  resources

• More systematic and rational information on the
  efforts and potential results of investing in IC

• More rational management of personnel,
  organization and relationships

• By defining objectives, initiatives and
  indicators for monitoring

• Evolution of the managerial control system

• Besides the ICMRS tools a balanced scorecard has
  been developed

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BENEFITS OF THE ADOPTION OF AN ICMRS
CREATION OF NEW IC

• NEW OR HIGHER COMPETENCES (increase in training
  for employees)
• BETTER WORKING ENVIRONMENT (structuring of
  information that supports jobs initiatives
  stimulated by the analysis of the quality of the
  workplace relationships)
• NEW ORGANIZATIONAL CAPITAL (structuring of
  information, of surveys and the creation of new
  managerial tools)
• DEVELOPMENT OF NEW RELATIONSHIPS (competences
  analysis ? discovery of excellent competences ?
  sale of new product)
• STRENGTHENING OF THE EXISTING RELATIONSHIPS
  (mapping of relational capital ? monitoring of
  new relationships - technical municipal officer,
  co-operative partner)

ACTIONS UNDERTAKEN TO IMPROVE THE MANAGEMENT OF
EMPLOYEES AND OTHER STAKEHOLDERS TO CREATE VALUE
FOR THE COMPANY, CREATED VALUE ALSO FOR THE
STAKEHOLDERS
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BENEFITS OF THE ADOPTION OF AN ICMRS
THE BENEFITS RELATED TO IC DISCLOSURE

• Improvement of corporate transparency

• Improvement of corporate image and name
  recognition in Italy

• Help in managing the relationship with a
  specific stakeholder a co-operative partner

THE DISCLOSURE TRADE-OFF IS STILL AN OPEN ISSUE
FUTURE RESEARCH - Extend the model to other
Italian SMEs - Test its effectiveness and explore
its benefits and drawbacks to have greater
support for the results obtained