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The Company Intelligence Quotient (IQ)

h8 250x134 The Company Intelligence Quotient (IQ)Intellectual capital may have been a term invented by Wall Street to put a dollar value on the worth of a company that doesn’t show up on the balance sheet. We know that reputation is valuable and can bring more to the sale price. How smart your company is in terms of solving problems and generating revenue is equally as valuable. That organizational intelligence quotient (IQ) shows up when looking at an organization’s accumulated knowledge. Think about how we approach intellectual capital. Most organizations think of intellectual capital as the information that’s recorded in a computer database of lessons learned and other documentation of activities.

Intellectual capital is not documentation. It is the new knowledge that comes from people putting their heads together to solve a problem. It is also how people learn—from each other. When an employee asks another employee how to work a piece of software, that’s intellectual capital. If you give away people you lose your ability to generate those interactions, which puts you at a disadvantage with your competition.

From that case, actually we cannot create the intellectual capital in our company. We can start it by creating Employee Excitement through Learning. This fits very well with the schema of employees who see employment with any one company as a transitory step in their career progression. To be competitive in the move from company to company, they must do skills stacking, which can only be accomplished through learning and experiencing as much as possible along the way.

Technology: How To Keep Your Competitive Edge

h7 250x173 Technology: How To Keep Your Competitive EdgePresent and future technology must be considered in the resources plan. What technologies are you using today, and are they about to change? Consider the cost of changing to new technology. Think about how your competitive edge is lost if you don’t embrace the new technology. How much will you have lost by the time you get around to changing?

Wireless communications is an example of technology that will someday replace the majority of hardwired communications. Consider the limits to landlines. Think how freeing the wireless concept could be to a mobile society and a fast-moving business community. We already see the impact in daily use of the telephone. Everywhere you look people have a cell phone stuck in their ear while on the move. Computers can talk to handheld devices with infrared technology, eliminating computers. Even the mouse has gone cordless. These may seem small or trivial examples, but they have serious implications. What is the long-term downside for companies that put in cable and hardwire office equipment?

The message from this example is that technology can kill you overnight with or without your direct involvement. With the introduction of a new way to do something or a new piece of equipment coming online, you can be at a serious disadvantage. Watch carefully where this technology originates. Consider disruptive technology. Someone outside your field may invent or discover something that has a spin-off application to your industry. The danger of disruptive technology is that you don’t know where it will come from. While you are watching your conventional competition, someone in another industry kills you. The influence of technology must be considered in the assumptions of your business plan and written into your resources plan. During the planning conference, the management team has examined the status of technology and calculated that into the overall planning framework. If this issue has not been discussed there is a serious flaw in your thinking process, so revisit the assumptions about technology.