Karl Sveiby's 'The New Organizational Wealth'
Comments: Robin Lindbeck (Pepperdine University)
Ever wonder why the market value of a company is so much higher than the "book value" of a company? Sveiby tells us it is the intangible assets of a company that make up the difference. In The New Organizational Wealth Sveiby focuses particularly on knowledge organizations for whom the intangible assets are particularly crucial. He describes the three categories of intangible assets (employee competence, internal structure and external structure) and, with examples from the real world, recommends strategies to maximize these assets through recruiting, management, organizational structure and thoughtful customer selection. The final section of the book provides concrete nonfinancial measurements we can each use to monitor these important intangible assets. The New Organizational Wealth is a terrific book and a superb reference for the measurement of intangible assets!
A long review by Third Wave Study Group regular, Jerry Harris, follows in the comments.