Friday, 18 November 2011

Material Values ​​in Business

You may have already heard that in some ways immaterial values ​​are important in business management. But you could have found a way to bring them to your processes or reporting data. However, first of all should be clear, what immaterial values ​​are? Well, this information is included in the financial statements, intangible assets, but just behind.

As we all know, decisions are mostly based on feelings or emotions, as a logical sentence. Feel the energy. Energy is not material, it is irrelevant. Emotions or motivation of public employees, the company has a value insignificant, could be both positive and negative effects on business development. Sounds like a very esoteric you? It may be, but we now know that emotions run much of our lives.

Not only do emotions influence emplyoees business development, including feelings of potenial customers have it. These feelings can be measured by customer satisfaction, as customers see how the company or its products and services, and so on. They have more energy, which is immaterial, in our business as we know.

So far we could experience these energies or have read that companies should be more aware of them. However, to find solutions that are able to measure these energies are not very common and hard to find. Business Management still uses hard figures such as ratios based on financial values ​​and just forgets that there is more than just account numbers and money in your pocket.

If you look at the accounting data in business, you can only look to this company as if you were watching an iceberg. You can see only a fraction of an iceberg, only what is above the surface. All below the surface is out of sight. Although the iceberg is melting away, still has new parts of themselves. But you can only see this new part of the iceberg melts. It 's just that the same accounting information as soon as they see them, are gone. This means that I am old, it's nice to know them, but refer to work already achieved.

Closing is like the iceberg when it comes to the surface when it disappears. Now would not it be great to see the whole iceberg, even if a large proportion is below the surface? Yes, it would be nice. Intangible assets of your business is just below the surface. If you put up you can see the whole picture of your business.

Running a business, focusing on the result could lead to run into a slump. It may take time, but soon customers and employees will know that the only winning counts for a particular company. Well, it is true, no company can survive without profit, but, above all, every company needs to make a profit, intangible items, such as image, motivation of employees and customers to believe.

One day from these immaterial profits the financial profit arises. That's the theory. Propably you have already read about it but have you found a way to measure the intangible assets of your business? It is not difficult but requires some thought. First it is important to make a list of intangible assets that have the greatest impact on business development. When done, methods to measure and value the intangible assets must be found.

And finally, all the selected values ​​of intangible assets will be analyzed on a regular basis. The creation of the intangible values ​​of a report could be a long-term task. It can be groped to make a spreadsheet program or database, but in any case to take his time. Using ready made Standard Software might be another option, but not a lot of options. If you are using the Balanced Scorecard, you would think with all the above information, and you might think that a good solution analysation.

Balance Scorecard has its advantages, but for a short, fast and regular analysis of immaterial values ​​it is far from complex and slow. Just measure, record and analyze data. About 30 points will be enough to get an overview of immaterial values ​​and some material values ​​as well. Most of the necessary data are usually already stored in each company. They only need to be concentrated in one table and must be analyzed.

They are intangible values ​​important for every company? Yes, that includes large companies as well as a one man business, shops, mechanics, freelancer and so on. You can find more information about the management of intangible assets, the search for early warning system, early recognition of non-Sytems and something similar. You will be able to find the one or the other immaterial value included in Management Methods, Ratio Systems and Economic Analysis. But still, most Reports and Measurement System are based on financial information.

Solution that every business, regardless of size, could be used, is abenetis ERS (Early-Recognition-System). It's called Early-Recognition-System, because of the intangible assets of each company to be aware of development trends of the business soon. Currently abenetis ERS is available only online-service, but can be made upon the version of the intranet. Additional information is also available on paper ERS.