One of the least utilized assets in small- and mid-sized organizations is the expertise of the owners and long-time employees. The wisdom that these star performers have accumulated over the years can become a significant, tangible asset that increases a company’s market value helping them to capitalize an intellectual asset.
Organizations can “capitalize their knowledge assets” by systematically capturing the best practices that make their organizations unique and successful. By formalizing this knowledge, they turn intangible “tribal wisdom” into a visible, documented expertise that can be financially valued. This wisdom becomes a formal asset of the organization.
Assuming that you are the owner of the company (this works if you are running a small department in a large organization too) here are three ideas on how to do capitalize your wisdom assets:
- Ask yourself and your most respected team members why all of you love your work. Try to articulate the greater social good you create
- Now, image that you and your team are guiding a new person to be learn your best attitudes and behaviors. Lay out a path to developing mastery of these attitudes and behaviors
- Carefully define in specific attitudinal and behavioral terms what people will be able to think and do as a result of progressing along the path to mastery to capitalize an intellectual asset.
To further increase the value of this asset, put it to work now. Organizations can use this asset to immediately increase the productivity of the organization by developing and executing a learning program that guides everyone to understand and apply this knowledge. Here are a few tips too:
- Ask yourself and your team what experiences you had that were most impactful in developing your own attitudes and skills
- Identify similar, learning experiences that can be used with others to develop their attitudes and skills
- Give everyone the time and support needed to learn and practice your best wisdom
Organizations following these processes consistently generate more revenues and profits without increasing their costs, which leads to important benefits for the owners of these businesses.
Owners lead a better life style because stress and labor decreases while wealth grows. If the owner wants to exit, the value of the organization is considerably higher. Capitalizing assets can create a great win for you, the owner, and your small and medium size businesses.
Is your company ready to capitalize an intellectual asset or maybe even assets?
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