For the recorded history of management, the world has managed value creation according to what can be seen, touched and proven. In today's knowledge-based economy, value creation is derived primarily from how well firms manage intangibles (knowledge, service, expectations, response time, innovation, change management, etc). The large capital outlays that signified the manufacturing economy are no longer required. In fact, such 'tangibles' now explain less than 20% of the value of most publicly listed firms. For example, Time Warner has only 6.49% of its value attributable to tangibles. As such, for every $1 of true value, only $0.065 cents is being measured and managed by conventional management practices. For Oracle Corporation, tangibles account for only 4% of its value. For General Electric (worth over US$450 billion), tangibles account for less than 11% of its value. Intention, context, emotional intelligence, escalation, and sustainability are words that are generally absent from the operational management techniques of managers worldwide. They form, however, the basis of skills required to manage organizations in today's knowledge-based economy. The authors investigate the ways that intangible values can be identified, measured, and managed. Their revolutionary and innovative taxonomy not only reveals fundamental differences between a manufacturing economy and one which creates value through knowledge, relationships, and time. By using case studies, a compelling mixture of theory and applications, and a set of accounting tools, the authors demonstrates how a new value framework can protect investors while giving companies the ability to generate long-term growth.

Key Features

*Shows how intangible values can be identified, measured, and managed *Presents a revolutionary and innovative taxonomy with a new set of accounting tools *Demonstrates with case studies how a new value framework can protect investors while enabling companies to generate long-term growth


Upper division undergraduate and graduate students in business and information science programs; professionals involved in knowledge management, knowledge development, and information management.

Table of Contents

Introduction The Failings of Conventional Management What Knowledge Managers Need to Know Intangible Operating Structures The Asset vs. Expense Debate Intangible Bookkeeping and Intangible Accounting Intangible Bookkeeping Foundations of Intangible Management Intangible Cost Management Emotion and Time Studies Identifying Non-Productive Time Knowledge Application Costs Intangible Information Management IIS21001 Knowledge Reengineering Standard Examples of IIS21001 Knowledge Reengineering Intangible Cost Structures The Traditional Economic Approach to Measuring Economic Profit


No. of pages:
© 2002
Academic Press
Print ISBN:
Electronic ISBN:

About the author

Ken Standfield

Affiliations and Expertise

The International Intangible Management Standards Institute, Australia


@qu:"Ken Stanfield is among the greatest thinkers in the field of KM. He addresses real issues that enterprises are grappling with. His approach to Intellectual Asset Management helps business leaders to make the transition from the traditional way of valuing business enterprises. This book is long overdue. Congratulations Ken and team." @source:--Nsombi Jaja, Director, Quality Management Consulting, Jamaica