Richard McLaughlin Consulting

A case study on Intellectual Capital appraisal

We were asked to evaluate the intellectual capital and intangible assets of a specialist engineering consultancy. We appraised the technical expertise, client relationships, market leadership, technology, proprietary software and processes, research and innovation. The data and information inputs were based on individual interviews with directors and staff, and examination of company documentation. Analysis was done by the Consultant, supported by brainstorm sessions with the directors. 

Outputs from this commission included:-

Clarification of the firm's strategic objectives and critical success factors

Key Performance Indicators for each strategic objective

Definition of the firm's core skills and values

A map of the firm's distinctive technologies, systems, clientele and staff expertise

Identification of the determinants of product renewal, innovation and future cash flow

The classification and evaluation of the firm's Intellectual Capital into four categories: human, client relationship, innovation and  process

The derivation of a unified Intellectual Capital Index, providing a basis for the future systematic management of knowledge and Intellectual Capital in the business

A means of financial evaluation of the components of Intellectual Capital

Advice on protecting the firm against loss of Intellectual Capital.

At six monthly intervals, over the next two and a half years, we reviewed and revalued the Intellectual Capital Index for this company. We identified the trends in the principal intellectual assets, and interpreted the management implications.

We are now helping the firm to monitor and manage its intellectual capital for itself. 

Client references for this case are available.