What’s at Stake?

When you think about your organizational assets, what immediately comes to mind?

Your inventory? Your capital equipment? Your office building?

Yes, of course. Those are all things that you can easily quantify, but what about your “intangible assets?”

Your employees? Your customers? Your suppliers?

When you think about the true value of your company, are you putting as much focus on your intangible assets as you do the tangible ones?

Did you know . . .

  • In 2005 Apple’s market value was $58 billion.
  • The total tangible assets on its balance sheet — 19.8 percent of that.
  • 2 percent of Apple’s value was contained in its relationships with its stakeholders
  • 80 percent of the market value of Standards and Poors 500 companies comes from intangible assets*

Imagine the growth to your bottom line if you increased your focus on your intangible assets by just a mere 10%. The mind reels at the thought of what happens if you increase it by 50%.

Bottom line: Your stakeholders are among your highest value assets and should be prioritized as such.

*Robert A. G. Monks and Alexandra Reed Lajoux, authors of Corporate Valuation for Portfolio Investment: Analyzing Assets, Earnings, Cash Flow, Stock Price, Governance, and Special Situations.