Abstract
Let’s go back to Yankee Finance, the US-based financial company we introduced in last chapter. Their IC experience started from a simple management task, namely to monitor and predict shareholder value. This is nothing special or new. Many companies around the world have this same task as the guiding force behind management action. Indeed, the management of shareholder value as the ultimate goal of a company is now a deeply rooted concept, both in the theory and the practice of management. So, what does this purpose have to do with IC?
This chapter draws heavily on G. Roos & J. Roos, ‘Linking intellectual capital to shareholder value’, Working Paper, August 1997, International Institute for Management Development, Lausanne, Switzerland.
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Notes
This line of thinking translated into the typical planning model of scan-create alternatives-choose-implement, see for example D. Lynch: Corporate Strategy, Pitman Publishing, London, 1997.
See H. Mintzberg and J. Waters, “Of strategies, deliberate and emergent”, Strategic Management Journal, July–September 1985.
In short, social systems are complex adapting systems, regulated by chaos theory; see R. Stacey: Strategic Management and Organizational Dynamics (2nd edn), Pitman, London, 1996.
H. Mintzberg, “The fall and rise of strategic planning”, Harvard Business Review, May–June 1994.
R. Stacey: Managing Chaos, London, Kogan-Page, 1992.
J.C. Collins and J.I. Porras, Built to Last, Century/Random House, London, 1996.
G. Hamel: “Strategy as revolution”, Harvard Business Review, July–August 1996, pp. 69–82.
Among others, see G. Hamel & C. K. Prahalad: “Strategic intent”, Harvard Business Review, May–June 1989, pp. 63–76;
K. Weick: The Social Psychology of Organizing (2nd edn), Random House, New York, 1979.
For more information on Skandia Future Centres, see D. Oliver & J. Roos: Skandia Future Centers, IMD case no GM624, 1996.
Skandia: Power of Innovation, Supplement to the 1996 Interim Report, 1996.
For a fuller discussion of the Sencorp management model, see Chapter 10 in G. von Krogh and J. Roos, Organizational Epistemology, Macmillan, London, 1995.
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© 1997 Johan Roos, Göran Roos, Nicola Carlo Dragonetti and Leif Edvinsson
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Roos, J., Roos, G., Dragonetti, N.C., Edvinsson, L. (1997). Connecting IC to Shareholder Value. In: Intellectual Capital. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-14494-5_5
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DOI: https://doi.org/10.1007/978-1-349-14494-5_5
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