Knowledge balance sheet

Two views

• outside as a reporting instrument: stakeholders obtain reliable data on the intangible assets and on the future-fitness of the enterprise.
• inside as a management instrument: the measurement and assessment of the intellectual capital can be systematically controlled, developed and reflected upon.

  Benefits

• uncovering weak spots and potentials for maximizing business success
• transparency
• cost/benefit ratio of knowledge development
• communication with shareholders
• organizational development
• capital acquisition
• cooperation
• customer orientation
• understanding of interrelationships
• synergies with existing mgmt. systems

  Indirect benefits

• gathering and definition of intellectual capital allows clearer communication
• employees understand their company better
• process optimization and innovation
• increased attractiveness for employees and cooperation partners

  Prerequisites

• Management systems should already be utilized
• Management
• openness for employees
• anxiety-free corporate culture
• documented and communicated business strategy

  Criticism

• Lack of generally recognized system
• generally not verified by auditors
• connection between knowledge balance sheet and future revenue opportunities difficult to verify
• may exacerbate the asymmetry of knowledge between management and outside stakeholders
• possible misuse as a marketing instrument