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For Bringing Organizational Capital Readiness, Leadership Plays A Very ...

For bringing organizational capital readiness, leadership plays a very important role, as do communication and knowledge-sharing.
Once these intangible assets are brought in state of strategic readiness, they start contributing in generating cash for the business. For example, if McDonalds sets a service response time of 30 seconds and trains its human capital to achieve this target, the customer turnover at the counter will increase and lead to higher revenues.
Finally, for these assets to come into a state of strategic readiness, they need to be aligned with the organization's strategy. If they are not properly aligned, it can lead to chaos. For example, is McDonalds promises its customers a 30 seconds service but does not care to bring its human, information and organizational assets up to required standards, there will be widespread dissonance amongst its customer base and the risk of erosion in brand value will be very high.
Conclusions and Recommendations
The article concludes by emphasizing the importance of measurement and management of intangible assets that enables a business to take a transformational leap into the successful league.
It clearly articulates that the critical success factor in this drive by an organization to successfully achieve its strategy, the intangible assets need to display strategic readiness and be aligned to the business's strategy.
This framework of appreciating intangible assets and managing their strategic readiness is relevant in today's fast-churning business environment. If adopted by businesses that are followers, it can be a catalyst for growth and a good springboard for achieving leadership position. The flip side is that this strategy map framework, if applied in all its academic purity may lead to theoretical rather than practical output. It is important to use it just as a tool for forward movement in a realistic work environment.
The most powerful idea that this framework gives to any business contemplating strategic transformation is about the various techniques and methods that are now available for measuring and managing intangible assets just as it quantifies and manages its inventory, machinery and profit and loss.
In context of United Kingdom's business environment, the following facts apply:
The importance of the intangible assets first highlighted in a report in 1997 entitled "The UK's Investment Performance: Fact and Fallacy".
The UK Government has decided to launch a specific programme on the value of intangible assets.
The UK Accounting Standard Board (ASB) and Institute of Chartered Accountants in England and Wales (ICAEW) have been asked by Department of Trade and Industry (DTI), in consultation with others, to look at the scope for better guidance on disclosure of intangible assets.

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