Though intellectual capital is a critical performance enabler for successful businesses, most executives agree that the ability to measure and manage intellectual capital at their organizations is done poorly, if at all. In response, the AICPA, in conjunction with CMA Canada and CIMA (Chartered Institute of Management Accountants), has created a Management Accounting Guideline (MAG) on intellectual capital.

Step 1: How to Identify the Intellectual Capital in Your Organization

Included in this step is an assessment of its value. Not all intellectual capital is automatically valuable to an organization. It is only valuable if it helps to deliver the organizational objectives. Intellectual capital value drivers can be identified by conducting interviews and facilitated workshops, or via mail or online surveys.

Intellectual capital, like physical capital and financial capital, is one of an organization’s three vital resources. Intellectual capital includes all intangible resources that are attributed to an organization and contribute to the delivery of the organizational strategy. These intangible resources can be grouped into human, structural and relational capital.

Impacting Future Value: How to Manage Your Intellectual Capital provides detailed guidelines across the following four more steps of successful intellectual capital management. Read about the remaining steps in the full article in this month’s Journal of Accountancy here.