By Rebecca Ramsay | January 10, 2019 | Statistics From: 2005 NYU Stern School of Business
“We used to make food, then we made things, now we make ideas.” Seth Godin.
In today’s “intellectual economy”, your knowledge of, understanding and ability to engage with people, defines your journey in business and beyond.
The majority of value in companies today is represented by intangible assets. A study of 3500 companies by NYU Stern School of Business showed IN 1978 a 95% correlation between market capitalization and book value AND IN 2005 those same companies showed a 28% .
Given that intangible assets drive the value of organisations today, your ability to understand at a high level how both you and your team think, process and engage with information, systems and people, will define your level of engagement, input, output and success.
In 2003 Cornell did a study that showed companies that did a better job of understanding, quantifying and managing their intangible assets, had on average $40,000 per employee greater profits.
In 2004 KPMG did a study that showed the Fortune 100 Best Companies To Work For (had the best ratings for caring for human capital), outperformed the S&P 500 by 50% shareholder return every year for 10 years in a row.