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IC Rating™ is a proven methodology for looking
beyond the balance sheet to see the real value and
potential of a business, through the systematic
valuation of intangible assets. IC Rating™
has been delivered in more than 250 companies and
government organisations world-wide since 1997.
IC Rating™ provides an overview of organisational
health in three dimensions:
 Efficiency
The present value of intellectual capital efficiency
in creating future financial value
Risk
Threats against present efficiency, and the probability
of those threats eventuating
Renewal
and Development
Efforts to renew and develop intangible assets.
IC Rating™ uniquely informs with a future orientation,
where traditional financial measures inform of past
outcomes. IC Rating™ combined with traditional
financial measures provides a powerful and complete
illustration of the health and potential of a business.
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History |
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IC
Rating™ originates from the pioneering
work of Leif Edvinsson in creating a system
to measure and monitor the intellectual capital
of Swedish multinational firm Skandia. Edvinsson,
among others, went on to found an independent
company (Intellectual Capital Sweden AB)
to consult on intellectual capital valuation
and management, and to license the methodology
internationally.
To read further about Intellectual Capital
Sweden, visit
www.intellectualcapital.se
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Intellectual
Capital |
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We
consider intellectual capital to be:
The factors not shown in the
traditional balance sheet,
but
which are of critical importance to a company's
future success.
These factors can be regarded as extensions
of the concept of intangible assets. The factors
include:
The
business recipe
Including the business
idea, strategy and the conditions in which
the business operates.
Organisational
structural capital
Such as intellectual
property, business processes
Human
capital
Such as management
and employees
Relational
structural capital
Such as network of
partnerships, brand, customers and relationships.
The aggregate of these factors represents
the intellectual capital of the business.
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IC Rating™
Model |
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Applications
of IC Rating™
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IC
Rating™ is valuable
for:
Governance
IC
Rating is an invaluable
tool for the identification
of corporate assets and
with setting strategies
at board and senior management
levels.
Mergers
and acquisitions, due diligence
IC
Rating™ provides crucial
information for acquisition/divestment
decisions.
Benchmarking
IC
Rating™ can provide
a common language of comparison
across businesses and business
units
Management
change
IC
Rating™ can assist
a new CEO in identifying
intellectual capital challenges.
Underperforming
businesses
IC
Rating™ helps pinpoint
weak areas for urgent improvement.
Organisational
development
IC
Rating™ pinpoints areas
for development, and tools
to plot improvement over
time.
External
reporting
IC
Rating™ provides a
constructive accompaniment
to traditional financial
reporting, to better disclose
the future potential of
a business.
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Benefits
of IC Rating™
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IC
Rating™ contributes
to:
An
understanding of the non-financial
assets of a business and
their role in value creation
Better
management of intellectual
capital
Informed
differentiation strategies
A
mandate to extract, package
and protect intellectual
property
Motivation
to manage or improve financial
return on process and human
capital
Targeted
strategies for improving
customer retention
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How
IC Rating Works |
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IC
Rating™ involves collecting
organisational and external data,
principally through selective
structured interviewing with internal
and
external subject matter experts.
An IC Rating™ programme takes
approximately 6-8 weeks to conduct.
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Illustrative
Outputs |
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An
IC Ratings™ Efficiency
result
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Using the IC
Rating™
methodology,
boards an senior
management are
given meaningful
and tangible
information
on the health
of the intangible
assets in their
business.
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| ©
2005 Intellectual Capital Ratings. All rights reserved. |
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