Intellectual Capital Measurement and Reporting Approach

This section concludes the work in this course. The learners are expected to measure and report the intellectual capital for an organization and also apply these to educational institutions. I decided to finish up what I have started with NOUN and did the IC measurement and reporting for NOUN. I decided to use the balanced scorecard because it has a template for public and not-for profit institutions which will suit NOUN well. This assignment will cover the whole of chapter 4 of the main textbook. However, to use the balanced scorecard, I need to study very well about it and the approach it would take. Thus I had to download a lot of materials on the balanced scorecard and they paved they way for the assignment.

I mus confess that it was a very difficult but a rewarding experience. Though I am not good at graphics and tables using the computer, this assignments and the others have been a tremendous help for me. I had good feelings of satisfaction having done the assignments myself. This was the last assignment in this course and I also have a very good grade. The assignment can be viewed here:

Measuring NOUN IC through the Balanced Scorecard

The main problem I had here is deciding which out of the 43 valuation approaches I had listed would be suitable for the valuation of human capital in NOUN. The first thing I did was to negate all the approaches that were specifically suitable for for-profit organizations because they would not be suitable for NOUN being a public and not-for-profit organization. After reading about all these approaches, either from their website or literature written on them about others, and taking a look at their templates, I began to strike out those that I felt would not work. At the end of this process, I was left with only 4 approaches: the Danish Guidelines, the Skandia Navigator, the Value Chain scorecard and the Balanced Scorecard.

Though the main textbook used the Value Chain scorecard, I rejected it because it made use of many graphics that I know I cannot cope with. The choice was then left between the Balanced Scorecard and the Danish Guidelines. On comparing the templates of the two approaches, I settled for the Balanced Scorecard.

Another problem is that I needed to get some information that the university authority would regard as  classified and since I did not secure an official permission for this assignment, I had to get the information through personal relationship with the human resources department.

Specifically here, I have learnt about the valuation approaches and actually how to do human valuation.