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Knowledge Balance Sheet

Knowledge Balance sheet 2.0
Knowledge Balance sheet 2.0

Knowledge Balance Sheet is a systematic inventory of knowledge and activities to its development, management and exploitation.


It covers

  • Human capital ... Qualities and qualifications of employees. eg skills, abilities, skills, motivation
  • Capital Structure ... Structures to carry out the business. for example, processes, infrastructure, R & D, knowledge, culture
  • Relational capital ... Relations processes, external groups and individuals. eg relationships with customers, suppliers, partners, share / stakeholder, external engagement, image


The knowledge balance sheet is the central tool for all executives



Knowledge balance sheets are

  • Universities in Austria for a statutory requirement
  • not yet standardized,
  • a tool for the future of society,
  • create transparency for the management and


Knowledge of accounting standards are

  • Human Resources Strategy,
  • Business development;
  • M & A,
  • Basel II
  • Employee and Organizational Development





The Knowledge Balance sheet 2.0

Business standards and a smooth interaction with Controlling require that the knowledge stock is a real balance sheet!



Knowledge Balance sheet (Sample)
Knowledge Balance sheet (Sample)



Knowledge Balance sheet differs from ...

  • Financial balance
  • Assets equivalent to the knowledge resources of the company
  • Capital does not correspond to the human capital
  • Investment in line with what the company has made to the knowledge resources to strengthen
  • Profitability is the benefits that by strengthening the knowledge resources has

  • Knowledgemanagement
  • Knowledge can only be managed if you know what you know and what we do not know about this condition is a Knowledge Balance Sheet. The Knowledge Balance Sheet is a management tool


  • In contrast to BSC
  • The knowledge balance sheet focuses on collecting and evaluating the intellectual capital, strategic development and external communications

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Five Hong Kong banks have joined the Intellectual Property Department in promoting intellectual capital management (ICM) under the secondphase of the Intellectual Capital Management Consultancy Programme launchedtoday (March 2). The five Partnering Lending Institutions (PLIs) are the Bankof China (Hong Kong) Limited, Chong Hing BankLimited, Citi Commercial Bank, Hang Seng Bank Limited, and the Bank of EastAsia Limited.

The banks will offer more favourable financial and/or service privileges to successful business loan applicants who have prepared their own intellectualcapital reports. This is a win-win arrangement as companies preparing intellectualcapital reports provide important non-financial data that can help financialinstitutions identify good customers. This in turn helps small businessesbecome more competitive when seeking finance.

Speaking at the launching ceremony, the Under Secretary for Commerce and Economic Development, Mr Gregory So, said, “In recent years, the governmenthas been promoting the importance of intellectual capital among small andmedium enterprises and how they can make the best use of it. Intellectualcapital is a significant asset for an enterprise that can help maximise itsbusiness potential.”

Chairman of the Federation of Hong Kong Industries, Mr Cliff Sun, said, “Intellectual property and intellectual capital management contribute tothe development of a knowledge-based economy. We hope that more SMEs in Hong Kong can benefit from the Government’s ICM programme.”

Chairman of Lan Kwai Fong Holdings Limited, Dr Allan Zeman, said Lan Kwai Fong was a company with valuable human and relational capital. “I am happy to be taking part in the programmeand keen to see how it will empower my business through uncovering andexploiting our hidden intangible assets.” Lan Kwai Fong Holdings Limited is thefirst organisation to join the second phase of the programme.

Under the second phase of the programme which lasts until the end of the year, free consultancy services will be offered to enterprises, especially SMEs,on cultivating and managing their intangible assets with a view to realisingnew business opportunities, reducing business risk and strengthening theirprotection of intellectual property.

More than 320 organisations joined the first phase of the programme in 2009, among which 14 have published company intellectual capital reports. MrSo and Mr Sun presented awards to the representatives of these organisations torecognise their commitment to ICM.

The programme is organised by the Intellectual Property Department and co-organised by the Innovation and Technology Commission and the Trade andIndustry Department. It has also gainedvaluable support from the Federation of Hong Kong Industries, Hong Kong BrandsProtection Alliance, Hong Kong Cyberport Management Company Limited, Hong KongGeneral Chamber of Commerce, Hong Kong Productivity Council, Hong Kong Scienceand Technology Parks Corporation, Hong Kong Small and Medium EnterprisesAssociation, Hong Kong Trade Development Council, Manufacturing EnterpriseIntegration and Innovation Association, the Chinese General Chamber ofCommerce, the Chinese Manufacturers’ Association of Hong Kong, the Hong KongChamber of Small and Medium Business Ltd., the Hong Kong ChineseImporters’& Exporters’ Association and the Hong Kong Council of SocialService.

Participating organisations will be provided with a free set of training materials and a certificate to recognise their participation. Details of the programme can be found on www.ipd.gov.hk/eng/icm.htm

Ends/Tuesday, March 2, 2010

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Ideas Connect Us More Than Relationships

I was struck by this blog post today by Hutch Carpenter entitled Why Ideas are Core to Enterprise 2.0. He talks about all the hype about social media and asserts that it is really ideas that link communities together. He says:

Ideas have a unique quality in team and community forming, consistent with the emergent nature of Enterprise 2.0

One of the sources he quotes was Brian Solis and his post entitled Ideas Connect Us More Than Relationships.

I couldn't help but think of our ICKC community and what we are trying to do. IC is an important idea. I can't wait to see what we make of it here!

Cheers, Mary
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Thanks to Ken Jarboe at the Athena Alliance (who is going to join the ICKC as soon as he breaks free) for letting us know about the publication of the report of the conference hosted in 2008 by the National Academies in Washington DC entitled Intangible Assets: Measuring and Enhancing Their Contribution to Corporate
Value and Economic Growth: Summary of a Workshop
.

Back at the time, I wrote a series of posts about the event at Hybrid Vigor (scroll down to July). But please note that the links in those posts don’t work anymore. The presentations are now here (scroll down to June).

My favorite presentation was by Irving Wladawsky-Berger of IBM and MIT on The Transition from the Industrial to the Knowledge Economy for its perspective on the underlying changes in technologies that drove the transition and will drive future change. He sees moves in technology:

* From tangible to intangible

* From automating the back office to automating market-facing systems

* From machines/products to people and services

Speaking with Steve Merrill of the National Academies last week, he told me that limited hard copies are available from STEP@nas.edu and there is a free pdf at http://www.nap.edu/catalog.php?record_id=12745

This was an important first conference of its kind in the U.S. Hopefully more to follow!
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How many Capitals do we need?

Blog about China 2009 no. 5What is really the difference between the Professor Chen Yu invention: “Consumption Capital”, and what we in the Intellectual Capital world like to refer to as Customer Capital?This is not all that easy to answer. After two conferences on the Consumption Capital topic in Beijing, I am still confused.One of multiple possible answers is that it is a matter of macro vs. micro; that consumption capital comes from the need to make the people of a whole nation become bigger consumers, no matter the supplier.

Peder Hofman-Bang speaking in Beijing on Consumption Capital Dec. 09Whereas Customer Capital is more about creating mutual beneficial relationships between me as a supplier and my customers. Sure, I want them to consume more, but only from my company.Maybe you can argue that it is push vs. pull; transaction vs. interaction and so on.Anyway, I have a more positive view of the Consumption Capital idea after I have gained more knowledge about the Chinese economy – not only by reading papers from the west, but hearing about it first hand from Chinese government officials and economists. Stimulating consumption is key to sustainable growth. But the current stimulation package has to be altered from currently creating vast surpluses to increasing salaries, creating more efficient enterprises etc.As one distinguished army General said in his talk: we all know how to spend money – once we have money.
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More on Consumption Capital

Blog about China 2009 no. 4I just got word from my friend in intangibles, Jonathan Low. Like me, he was in Beijing last month (read Aug. 2009) as a speaker. I think it is safe to say that he also thought that some questions remained unanswered with regards to the Chinese “innovation” Consumption Capital.

china-consumption.png

Today he pointed to this article in FT by influential economics writer Martin Wolf. Perhaps it provides some clues to what the Chinese regime means with the expression. If you prefer the short version, just read the section starting with “This is surely indefensible” at the bottom half.
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So, was Beijing ready?

Blog about China 2009 no. 3A couple of weeks ago (read Aug. 2009) I asked if Beijing was ready for IC. In short, the answer is:I am not sure.Three cons:1) The conference was called “The first global intellectual capital summit”. Actually, I think there has been a few…2) It seemed like one of the conference purposes was to promote Prof. Chen Yu’s new economic theory “Consumption Capitalization”. It advocates the use of three capitals in today’s economy: Monetary, Intellectual and Consumption. I don’t know, but there is something fishy here. Judge for yourself.3) There was an almost deliberate lack of questioning and debate, which made it impossible to grasp whether the audience agreed with the speakers or even understood what was said.Three pros:1) The speakers called in for the event were good representatives of the last 20 years of IC evolutionary thinking. Hopefully we have managed to contribute to the Chinese IC agenda.2) An IC collaboration union (Knowledge Capital International Union) is being established and an its official website is under construction. All speakers have been invited to join. The program points are grand. Let’s see what they make of it.3) Hong Kong IC authorities were among the speakers. Perhaps they can have an impact and help the Beijing officials stay on the right IC track.By the way, the Vice Chairman of the 10th standing committee of the National People’s Congress, Mr. Cheng Siwei, caused photography mania at the beginning of the conference. Obviously a guy you should know about. Well, do you?Check out interview with Siwei at Financial Times.
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Measuring the Immeasurable

The following is an AREOPA white paper titled: Measuring the Immeasurable.


MEASURING THE IMMEASURABLE -JA-20050630 (wp GNO20100203).docx

About AREOPA

We are a leading knowledge and practice provider in the fields of Change Management, Knowledge Management, Risk Assessment and Intellectual Capital Accounting.

With our own models, methodologies and tools we create a turnaround in the valuation of intangible assets of organizations active in the knowledge economy.
Our tools for IC accounting make us world leader in this field.
Worldwide we work together with partners, large organizations, multinationals and governments.

Working with AREOPA means working in the organization of the future, based on the following values:
• We are all entrepreneurs and shareholders;
• We are fully empowered within the Areopa network;
• We are working in a customer driven organization;
• We have no hierarchy, but we believe in leadership;
• We have no fixed costs in our organization;
• We use the Shamrock model for revenue distribution.

We are expanding globally.
Feel free to contact me for more information.
Joris Claeys
VP Global Operations
Joris.Claeys@AREOPA.com

AREOPA - Provoking Innovatieve Intelligence

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AREOPA's white paper on Intellectual Capital and its 4-leaf model as the full solution to measuring intangibles.IC Accounting Leaflet.pdf

About AREOPAWe are a leading knowledge and practice provider in the fields of Change Management, Knowledge Management, Risk Assessment and Intellectual Capital Accounting.With our own models, methodologies and tools we create a turnaround in the valuation of intangible assets of organizations active in the knowledge economy.Our tools for IC accounting make us world leader in this field.Worldwide we work together with partners, large organizations, multinationals and governments.Working with AREOPA means working in the organization of the future, based on the following values:• We are all entrepreneurs and shareholders;• We are fully empowered within the Areopa network;• We are working in a customer driven organization;• We have no hierarchy, but we believe in leadership;• We have no fixed costs in our organization;• We use the Shamrock model for revenue distribution.Feel free to contact me for more informationJoris ClaeysVP Global OperationsJoris.Claeys@AREOPA.comAREOPA - Provoking Innovatieve Intelligence
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A Stock Exchange for NGO's

A practical potential for NGO's to make use of their intangibles in searching for new ways of funding their projects.Concept stock exchange NGO's verbeterde editie.doc

About AREOPAWe are a leading knowledge and practice provider in the fields of Change Management, Knowledge Management, Risk Assessment and Intellectual Capital Accounting.With our own models, methodologies and tools we create a turnaround in the valuation of intangible assets of organizations active in the knowledge economy.Our tools for IC accounting make us world leader in this field.Worldwide we work together with partners, large organizations, multinationals and governments.Working with AREOPA means working in the organization of the future, based on the following values:• We are all entrepreneurs and shareholders;• We are fully empowered within the Areopa network;• We are working in a customer driven organization;• We have no hierarchy, but we believe in leadership;• We have no fixed costs in our organization;• We use the Shamrock model for revenue distribution.Feel free to contact me for more informationJoris ClaeysVP Global OperationsJoris.Claeys@AREOPA.comAREOPA - Provoking Innovatieve Intelligence
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The following is a basic reflection of what IC is.AREOPA sip - ICC&A - What is Intellectual Capital (scGNO20091022).pdf

About AREOPAWe are a leading knowledge and practice provider in the fields of Change Management, Knowledge Management, Risk Assessment and Intellectual Capital Accounting.With our own models, methodologies and tools we create a turnaround in the valuation of intangible assets of organizations active in the knowledge economy.Our tools for IC accounting make us world leader in this field.Worldwide we work together with partners, large organizations, multinationals and governments.Working with AREOPA means working in the organization of the future, based on the following values:• We are all entrepreneurs and shareholders;• We are fully empowered within the Areopa network;• We are working in a customer driven organization;• We have no hierarchy, but we believe in leadership;• We have no fixed costs in our organization;• We use the Shamrock model for revenue distribution.Feel free to contact me for more informationJoris ClaeysVP Global OperationsJoris.Claeys@AREOPA.comAREOPA - Provoking Innovatieve Intelligence
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Is Beijing ready for IC?

Blog about China 2009 no. 2After a few years of IC work with our friends in Hong Kong, it is now time to move into the Mainland as well.The conference this weekend (read August 2010) is expected to attract 200 business people from the Beijing area. And the list of speakers is quite distinguished (including myself…). CFO Think Tank is my session; a perfect opportunity to present the developments within the IC RatingTM community, and especially some of the work by Mary Adams (e.g. the slide show in her previous blog post here. Such business implications should be suitable challenges for CFO’s and other executives in Chinese organizations.Perhaps you have thoughts that you would like to discuss about IC in China?
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Blog about China 2009 no. 1Last month (read Feb. 2009) I was in Hong Kong, training Intellectual Capital consultants for the Hong Kong Government. They believe that the development of IC is the future for Hong Kong SME’s. Thus, the services of the IC consultants will be offered for free.The rumor about this initiative is already spreading into mainland China. Most likely it will be adopted by the Chinese government. Sooner rather than later. They believe IC development will help them grow. And they outgrow most of us already.What does your government do about IC?
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Anyone going to ECIC in March?

I just put up a listing for the European Conference on Intellectual Capital which will be held in Lisbon, Portugal on March 29 and 30. I went to last year's conference and found it really valuable but won't be able to go this year. Are you going to the ECIC in March? It would be great to share the message about the ICKC. I would also love to figure out a way to work with someone to get their agenda on the site, have someone reporting on it. If there are several ICKC members attending, maybe we can figure out a way to split up the work. Post ideas here or feel free to contact me directly.
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I had promised to publish some materials around IC for our open content building.The following is a presentation around the building blocks and principles of IC.We bring you the areas for innovation and sustainable growth.AREOPA's 4-Leaf model, covering:- Human Capital- Customer Capital- Strategic Alliance Capital (Relation Capital)- Structural CapitalBest regardsJoris ClaeysVP Global OperationsAREOPA - Provoking Innovative Intelligence
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