Skandia Navigator by Leif Edvinsson
Skandia navigator is agglomeration of measurements that are critical. It comprises of achievement of goal and all the issues related to performance. There are different areas which are concentrated upon in this navigator: Those are:
- Qualities of each person such as his skills, experience and intellectual capacity comes under area that is related to human.
- Second area in concerned with the loyalty and the strength of the customer. This includes the relationship’s time duration, number of times the order have been repeated and the level of satisfaction to the customer.
- Third area is concerned with the innovative skills of the producer. It means that how fast one integrates new and unique ideas into services and the final product.
- Fourth area measures the extent to the investments which are made in the ability of the work which is under process. It includes automation, standardization and quality programs.
For each of these concerned areas some indicators were identified. The only principle upon which it depended was that those indicators should be quantifiable. Reasons for it were:
- Language of international business is spoken by the numbers
- More questions would be eliminated with qualitative measurements
- Information is made more tangible and dynamic with the help of figures.
Basically Skandia navigator is a visual representation of the manner in which the four different areas are related to each other. It is an alternative way of looking at the sources of value. Navigator is comprised of the four areas, which are described above, intellectual capacity and financial focus areas. Its architecture is like that of a house and it reflects the organization. Financial focus is the roof rests on the intellectual capacity of the organization which forms the foundation and the walls. Human capital can be regarded as the heart of the organization. So, finally a balanced view between past, present and future is offered by it. So, the work of Edvinsson and his team at Skandia has paved the way to apply practically the concepts of intellectual capital.
Written by: Matt
We also suggest this relevant article if you have time: Expectancy Theory by Victor Vroom
Some other similar articles
Tagged as agglomeration, architecture, automation, extent, financial focus, focus areas, heart, intellectual capacity, international business, investments, loyalty, measurements, principle, quality programs, relationship, satisfaction, standardization, time duration, visual representation + Categorized as Business, Ladership & Management