Purpose – The purpose of this paper is to introduce the IC Rating™ approach as a management consulting approach to measure intellectual capital and to report on the implementation and experience in one case study firm. Design/methodology/approach – The paper describes the IC Rating™ model in the context of the exiting literature in the field of IC measurement and uses a case study to demonstrate its practical application. Findings – Based on the presented case study as well as implementations in other organizations we find the IC Rating™ model a useful tool to facilitate the analysis and discussion about intellectual capital in organizations. Practical implications – The article gives a complementary view to the most commonly used score card methods and guidelines for intangibles on how intangibles can be measured. IC Rating™ focuses on the comparability between companies and industries as well as a simplification of how to interpret intangible measures. Originality/value – The original idea for the paper was to answer the question “Why do companies really need to measure and develop intangibles?”. The answer is “To improve company financial performance”. The IC Rating™ methodology is therefore based on the answers to two other questions: “Which parameters does an executive manager need to have insightful knowledge of, in order to make the right decisions for the future?” and “From where and whom should the executive manager receive this information?”.
Journal of Intellectual Capital – Emerald Publishing
Published: Dec 1, 2005
Keywords: Intellectual capital; Modelling; Management technique