ICM FAQ

What make IC Rating™ different?

Organizations already have multiple tools for corporate analysis, including approaches such as SWOT, competitive intelligence, competence development, and brand management, to name only a few. What make IC Rating™ different are its focus and its methodology. IC Rating™ has a deep focus on intellectual capital portfolios. These are the critical resources with which an organization builds competitive advantage. Yet there is no single source of information available today where an organization’s full IC portfolio can be viewed and evaluated. The methodology is also unique. It breaks through the data overload experienced by many organizations and asks their most knowledgeable stakeholders for an honest assessment—how are we doing and what do we need to do better? The clarity and power of the stakeholder view stands in great contrast to the strong reliance on operational indicators used in many other systems.

What is the Business Recipe box on the IC Rating™ Report?

Commonly used definitions of intellectual capital only include human, structural and relationship capital. The creators of IC Rating™ considered it important to evaluate a fourth category that they call Business Recipe. The Business Recipe of a company reflects two important aspects of its intangible value—its competitive position and its business strategy to exploit that position. This category is important on its own and also serves as a touchstone for the other three categories—evaluating their appropriateness with respect to the current strategy.

How does IC Rating™ relate to knowledge management?

Both of these concepts deal with knowledge assets in your company. IC Rating™ focuses on the macro, strategic level—how are you doing overall and what your process for creating new knowledge is. Knowledge management focuses more on the details of systems to capture and disseminate knowledge. IC Rating™ can actually be a great tool for measuring your progress in knowledge management and identifying future priorities.

How does IC Rating™ relate to Balanced Scorecard?

IC Rating™ evaluates the status of your full set of intellectual capital on an objective basis using the opinions of your most important internal and external stakeholders. A Balanced Scorecard uses a matrix of internally-developed financial and non-financial metrics chosen by the company to track how it is performing versus its strategy. In some ways, IC Rating™ is more like a balance sheet and Balanced Scorecard is more like an income or operational statement. The two are complementary, although IC Rating™ covers more ground related to intangible knowledge assets. Many companies actually use IC Rating™ as a starting point for building their own measurement system.

How does IC Rating™ relate to innovation processes?

Innovation is about incremental or breakthrough changes in what you do—how you solve your customers’ problems. Innovation is about new ideas. Intellectual capital management is about creating an organization that fosters innovation, knows how to capture it, share it and use it to create more innovation. IC Rating™ is an important way of understanding the strength of your innovation processes and results.

How long does a rating take?

The average time from kick off to final report is four to six weeks.

Who actually performs a rating?

Ratings are performed by consulting and valuation firms that have been licensed and trained to perform this task. There are licensed rating partners all around the world. We are one of the first companies officially licensed.

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