Speaker: Prof. Dr Ante Pulic, University of Zagreb, Croatia, EU
At first sight, it might seem that the current financial crisis has no connection to intellectual capital, but in fact there is a strong relationship between the two. Troops of people take care of financial capital and the result of their activities is monitoring the flows of this resource and its effectiveness. At the same time, intellectual capital has no such treatment.
Monitoring of value creation efficiency of that resource does not really exist. What is done resembles to what was done with manual work before Taylor. In business reality, this is featured by the fact that many firms achieve revenue and profit but, at the same time, a fall of value creation efficiency is happening. It is similar to a landing plane: while still flying, height is gradually decreasing. Although this situation is normal for planes, it is fatal for companies. Bankruptcy is the last stage of that downwards flight and it happens easily when intellectual capital performance is ignored. One of the ways to fight the crisis, that has not
reached its peak yet, is raising the efficiency of intellectual capital. Increasing value creation efficiency of intellectual capital by better utilisation of existing intellectual resources is the cheapest way of fighting financial crisis.
- Intellectual Capital Efficiency has no Limits
- Rules to prevent or overcome financial crisis
- Value Creators are the Presupposition of Success
- Continuous Increase of Value Added
- Efficiency in Value Creation
- Control of Value Added and Efficiency
- Continuous Elimination of Value Destruction
- Efficiency Remuneration