September 1, 2010 by Mary Adams · Comments Off
In the September issue of CFO a comment by Intangible Capital author, Mary Adams:
Prevention Is the Best Approach
It’s important to understand how damaging reputational crises can be (“What’s a Reputation Worth?” May). But the real story is how to prevent them.
Seventy percent of the value of the average company is intangible. This is because processes, knowledge, and networks (all considered intangible by accountants) are the core drivers of competitive success — and reputation.
Managing reputation starts with managing these intangibles. That’s why we say reputation is the new bottom line.
Founder and Principal
There is an interesting report at CFO.com called CFOs to CIOs: Get Real.
My response is that CFO’s need to “get real” too.
One of the biggest barriers between CFO’s and CIO’s is how they view the cost of projects. CFO’s are trapped inside an accounting model that expenses a lot of investments. Recent macro data suggested that US businesses spent $1.7 trillion on intangibles versus $1.2 on tangibles. For the most part, intangibles get expensed, tangibles get capitalized. Many of these intangibles are related to IT-enabled systems and/or processes. Read more
An article just came out on CFO.com entitled “Who Needs a COO?” Reading it, I couldn’t help but think about the many articles I see all the time in Information Week about the changing role of the CIO. And it all makes me think that there is something that is still missing Read more