Intangible Assets Monitor by Sveiby
Intangible Assets Monitor or IAM as the name suggests is a methodical process for calculating intangible assets and is basically a presentation format for exhibiting multiple relevant indicators in order to quantify the intangible Assets in a lot easier and much simpler fashion. Indicators are however, selected depending on the company’s strategy. Sveiby designed the Intangible Assets Monitor model and is a flexible model as can be integrated with management information system. IAM framework was designed to monitor the performance of the company’s employees and also that of the entire firm or organization. It is a kind of language developed to guide and stresses the management to what to focus on.
Sveiby while considering Intangible Assets Monitor examined the goals of the fiscal measurement systems in order to seek the yardsticks. Basically, one uses financial measurement system in order to find the efficiency of an organization. However, the terms stability and risk determines the degree about which an organization can maintain the performance in that specific region. Also, there exists growth/renewal standard that points to an organizations performance in respect to growth areas. Intangible Assets Monitor model is actually based on the Stock-Flow theory that is quite similar in terms to traditional accounting theory.
The IAM comprehends the main three Intangible Assets as kind of real standards or assets. These three standards are then indicated through indicator which examines the change and knowledge flows like growth, or renewal/innovation, or efficiency/utilization and then the risk/ stability measures. These three Intangible Assets are further applied on structure externally and internally, and on competency also. The external structure of IAM includes customers, or suppliers, number of external stakeholders, and all others that are supposed to be relevant.
The focus is led basically on how IAM’s are created, and for this indicators are created that incorporate with growth of the asset, also to renewal rate, to its efficiency and the risks witnessed within it.
Written by: Matt
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Tagged as accounting theory, competency, efficiency, external stakeholders, external structure, fashion, flexible model, flow theory, growth areas, intangible assets, knowledge flows, management information system, measurement system, measurement systems, presentation format, relevant indicators, risk, stock, yardsticks + Categorized as Economy articles, Finance, Ladership & Management