presentasi

describes measurement for employee competence, internal structure.

To provide management control.Two steps before measurement may be

taken: Establishing the purpose of measurement Classifying the various employee groups under one

of the three categories of intangible assets

Determining the purpose of the measurementExternal presentation

The company describes itself as accurately as possible to stakeholders, customers, creditors, and shareholders so they can asses the quality of its management

Determining the purpose of the measurementInternal measurement

Undertaken for management , which needs to know as much as possible about the company so that it can monitor its progress and take corrective action when needed.

The measurement’s purpose also raised another question, such as:

Focus on level or trends, in other words should the value of intangible assets at particular time be measured or should the attempt be to get a feel for changes and flow?

When we measure intangible assets we must therefore be prepared to keep doing so for at lest three measurement cycles.

Ideally should be repeated yearly.

The measurement indicators for the three intangible asset

Determining whom to measureClassification by category of employee

ProfessionalPeople who plan, produce, process, or present the products or solutions.

These people are all directly involved in client work

Determining whom to measureClassification by category of employee

Support staff

Those who work in accounting administration,reception , and so on.

Determining whom to measureClassification of professional competence by

degree of responsibilityKnowledge companies have a hierarchy

depending on the degree of responsibility for customers

They are :•People who work on only part of the project•Those with overall responsibility for a project ( project managers )•Those with overall responsibility for a given customer ( account managers)

Determining whom to measureClassification of professional competence by

areaProfessional competence can also be divided

among the company’s divisionsAn engineering consultancy i.e might divided

its competence between power sector, physical communications, industrial construction, residential construction, and so on

Measuring competence Employee competence is not the only one of

the three intangible assets but also a source of internal and external structures.

The competence here refers to the competence of professionals.

Measuring competence Growth/renewal

Number of years in the profession Simple and useful measure of competence is the

total number of years they have worked in their profession.

The total number of years in the profession is a measure of the skill and experience of a company’s body, whereas

Professional experience per professional is measure of the average skill and experience of each individual.


Level of education Affects the assessment of their competence and

thus the knowledge company’s ability to achieve future succes.


Training and education cost Knowledge companies depends so heavily on the

knowledge competence of their employees. So competence development ought to be an item in

which the company invest heavily. Most knowledge is acquired not in formal courses

but through regular assignments for customers and R&D projects.


Grading Educational level describes competence

imprecisely. A better way is to award grades. After grades are given, they can be analyzed with

statistical methods.


Turnover If the competence of professionals who have joined

the company is divided by the competence of those who have left it, the quotient shows how personnel turnover affects the company’s competence.

The table below calculates the competence turnover for a company with fifteen hundreds employees


Competence-enhancing customers Customers are the most important source of

competence development. Valuable information can be gained by measuring

the proportion of customer assignment that contribute to such a development.

Measuring competence Efficiency

Proportion of professionals in the company A key indicator of efficiency is the proportion of

professionals in the firm. that is the number of professionals divided by total

number of employees This measure is useful in making comparisons

between companies in the same business.


The leverage effect The previous measurement also enables calculation

of the leverage effect of the professionals. That is, how important are a company’s in-house

professionals to its ability to generate revenue. The formula is shown below


Value added per professional Expresses how much value a company’s

professionals produce. Can be regarded as the purest measure of ability to

produce economic value Can be also calculated backwards, that is, by adding

the profit before depreciation and interest to the sum of salaries , wages and social securities.

Measuring competence Stability

Average age Older people are more stable employees than

younger people because they tend not to leave a company.

An organization with an older group of professionals is likely to be stable than younger organization.

Thus, average age is a good indicator of stability.


Seniority Defined as number of years employed in the same

organization. The seniority of professionals is an indicator of

stability of competence.


Relative pay position Is also of interest because it can indicate if

employees are likely to look for work elsewhere.


Professionals turnover rate Staff turnover is generally regarded as an indicator

of stability and is easy to calculate and compare with other companies.

Below 5 percent suggests a stable but static situation.

Above 20 percent suggests that people are dissatisfied.

Turnover rate calculation: number of “leavers” during a year is divided by the number people employed at the beginning of the year.

Measuring the internal structureThe main activity of those employees who

work in general management, administration, accounting, personnel, reception, clerical departments, and so on is to maintain the internal structure.

These people make up the support staff.

Measuring the internal structureGrowth/renewal

Investment in the internal structure Investment in subsidiaries or new methods and

systems are cash layout often accounted for as costs.

Such investment indicate a buildup of the internal structure.

These investment can be represented as proportion of sales or a percentage of value added.


Investment in information processing systems Investment in subsidiaries or new methods and

systems are cash layout often accounted for as costs.

Such investment indicate a buildup of the internal structure.

These investment can be represented as proportion of sales or a percentage of value added.


Customers contributing to internal structure The proportion of assignments devoted to

customers that improve the internal structure of the company is an important variable because it adds to the growth of the assets.

Measuring the internal structureEfficiency

Proportion of support staff The proportion of support staff to total number of

employed is an indicator of the efficiency of the internal structure.

A change in the proportion indicates if the efficiency is improving.


Sales per support person Indicates how large a sales volume the

organization’s internal structure can handle A change in the proportion indicates if the

efficiency is improving.


Values and attitude measurements The attitude of employees toward workplace,

customers and superiors often referred to as corporate culture or esprit de corps.

The employees’ attitudes to their place of work can be measured just as the market’s opinion of the company can be measured.


Values and attitude measurements If those attitudes are favorable : enhance the

company’s image among its customers. If those attitudes are unfavorable : nullify the

arguments of the most elaborate advertising campaign.

Measuring the internal structureStability

Age of the organization Old organization is generally more stable than a

young one.


Support staff turnover The backbone of the internal structure. It is vital for the survival and efficiency that they

function well, and a low turnover indicated this.


The rookie ratio Determined the number of people with less than

two years’ employment. High personnel turnover. Less efficient Not yet socialized into the tradition of the

organization. High percentage of rookies means the organization

is less stable and less efficient

Measuring the external structure• The external structure includes brand names,

images and relationship with suppliers, but most importantly, it involves customers relationship.

• All the times the employees spend working for customers is potentially time for maintaining, building and develop relationship with customers.

• The professionals spend most of their time on knowledge conversion.

Measuring the externalstructureCategorizing customers

PLS divides its customers as follows Those who contribute to image and willing to act as

references. Those with challenging and widely educational

projects. Those who improve individual competence.

Measuring the externalstructureCategorizing customers

PLS distinguishes four categories of clients Customers who are profitable. Customers who increase the competence of

engineers. Customers who support the buildup of internal

structure. Customers who build up the image and provide

contacts with other customers.

Measuring the external structureOnce customers are categorized, indicators

measuring growth/renewal, efficiency, and stability can once again be applied.

Measuring the external structureGrowth/renewal

Profitability per customer Customers profitability should be monitored

routinely. To calculate the control figure – profitability per

customers – costs and revenues must be categorized.

This is a much more valuable criterion than profitability per product or market segment.

Measuring the external structureGrowth/renewal

Organic growth Organic growth , that is, an increase in billing with

income from acquisitions deducted, is a measure how well a business concept is received by the market.

But if knowledge company grows by buying companies in other lines of business, it may actually be sign that the original business concept is no longer generating enough growth.

Measuring the external structureEfficiency

The satisfied customers index Indication whether results are about to improve or

deteriorate is customers satisfaction. One method for attempting to measure customer

satisfaction is through simple attitude polls. Must be repeated at regular intervals so comparison

can be made and trends estimated. Should be cross analyzed with profitability data or

efficiency indicators.


Win/loss index Comparison between the number of successful bids

with the number of unsuccessful one. Gives good indication of how its customers regard

it. The index can be also used for comparisons when

trying out different pricing strategies.


Sales per customers Because selling more to the same customer is

usually easier and less costly than finding a new one.

This ratio measures the efficiency of a company’s existing network of customers

Measuring the external structureStability

Proportion of big customers If a company’s dependence on a few large

customers is great, its position is weak and so its structure.

The indicators that can measure this are: Percentage of billings Numbers of customers


Age structure The longer customers have been with a firm, the

better its relationship with them are likely to be and the easier it ought to be to retain them.


Devoted customers ratio Indicates how devoted the customers are and

therefore is a sign of stability. Naturally, a startup company will have low ratio


Frequency of repeated orders High frequency means customers are satisfied. Old customers are more profitable

Summary The first step in designing a measurement

system for intangible assets is to understand the system’s purpose and audience.

The second step is to classify employee groups by type.

Three measurements for intangible assets can be grouped into those indicating growth and renewal, efficiency and stability.

Under competence grouping, professionals are measured according to the type of activity, degree of responsibility or area.

Under the internal structure grouping, only support staff is measured.

Under the external structure grouping, the time employees spend maintaining, building, and developing customer relations is measured.

Customers should be classified based on the intangible asset they provide such as image, learning and references as well as on their profitability.

How to account intangible assets debatedOn 1990s focus on the employeesSome case studies:::

Public Reporting in Sweden & Denmark• Sweden take leads in publishing personnel

statement.• Two Swedish firm: WM Data and Skandia

AFS approached the subjects in two ways1.WM Data: External & internal structures and

competence of personnel Growth/renewal, indicators of efficiency & indicators of stability

2. Skandia AFS: Mempekerjakan seorang director of intellectual capital menemukan, memikirkan, merencanakan bagaimana menggambarkan intellectual capital

WM-DATA 1995 ANNUAL REPORTIntangible assets:1.Internal structure: competence development,

esprit de corps, management operation, etc. 2.External structure: employee good

relationship w/ outside world3.Competence : corporate fellowship and

competence development.

SKANDIA PROCESS MEASUREMENTS

Financial Focus-Premium income

- Result of operation

Human FocusEmpowerment

index

Process Focus-Processing time

- Applications without error

Customer Focus-Telephone accessibility

- Policies without surrender

Renewal Focus-R&D expense/administrative expense- IT expense/administrative expense

- Competence development/employee

Number of account per Employee, administrative Cost/employee Internal

-Personnel turnover, proportion of managers, -proportion M/F, training cost/employee Competence category

-Number of accounts-Number of brokers-Number of lost customers External

The Business Navigator

PLS-ConsultDanish management consultancyOn 1993-1994 annual report intangible

assets. Three classes of intangible structures: - Customer capital (external): Turnover

per category of client and importance of major clients- Intellectual capital (competence): key indicators of academic qualifications and seniority among its consultants- Organizational knowledge (internal): verbal description of the organization and its philosophy

A Knowledge Audit of CelemiSwedish company 1995 annual report Develops & sells training

tools to present Intangible assets :Our customer (external) Relation with

customer and suppliers Our organization (internal) internal

structural corporate. Our people (competence) combined

competence of employee (including act in diff. situation)

Visible revenue improve tangible equityInvisible revenue improve efficiency and

intangible assets valueHow to monitor the intangible assets ?- Image-enhancing customer testimony:

Improve external structure- Organization-enhancing customer demand

state of art solution: improve internal structure.

- Competence-enhancing customer challenge Celemi’s employee competence.

Why isn’t intangibles reporting more widespread? Perception: measurements and reporting of

intangible assets is pointlessIt may over expose the real condition of

companyNo clear theoretical model for the report.

MOVING TOWARD A KNOWLEDGE FOCUS STRATEGYUnderstand and act in the best way to face

the confusing of changing in the modern business environment.

To look consciously and understand the subtle differences between knowledge and information and have a feel for the strange markets we are encountering. We will be equipped to exploit the opportunities and circumvent the dangers that lie ahead.

Why is it necessary to look consciously ? Because so much of what we do is governed by attitudes and unconscious rules that obscure our vision.

Why a knowledge perspective ? Because knowledge is the ultimate wellspring of unlimited resources and it is crucial for us to understand what knowledge is and what it is not.

Do not despair if can make no sense of the indicators and are unable to assess the significance of changes in competence turnover, staff stability, customer, profitability and so on.

Valuable knowledge; equip us for action and learned by doing.

MAKE AwardMAKE (Most Admired Knowledge Enterprise)Founded by Teleos:1998: global; Asia, Europe, and North America2002: Japan2005: IndonesiaFocus: knowledge management & intellectual capitalExamine: maturity and commitment in knowledge

management & intellectual capitalBenefit:

- benchmarking best practice of knowledge organization- help Indonesia to compete globally

MAKE Criteria1.Creating an enterprise knowledge driven

culture2.Developing knowledge worker through senior

management knowledge3.Delivering knowledge-based product/ service/

solution4.Maximizing enterprise intellectual capital5.Creating environment for collaborative

knowledge sharing6.Creative learning organization7.Delivering value-based on customer knowledge8.Transferring enterprise knowledge into

shareholder value