The International Intangible Management Standards Institute

Enhancing Performance Improvements

Intangible standards show the value of performance improvement initiatives from the basis of time, cost, revenue, earnings, market value, share price, and key metrics such as return on equity, return on assets, etc.   Intangible Analysts use a 5 phased approach to maximize the likelihood of organizational success from performance improvement programs.

Phase 1:   Time, Cost, Revenue, Engagement, Disengagement, & Culture

1. Understand the specific performance improvement initiative through interactive workshops so that key intangible impacts related to structural activities, leverage activities, knowledge activities, and collaboration activities can be fully articulated.
2. Gather annual reporting information that details revenue, earnings, expenses, wages, and related wage costs, and full-time equivalent employee (FTE) data across the area to be assessed and analyzed.   Typically annual report data is enough to form initial estimates.  Later stages can be used to refine these financial valuations.
3. Assess the industry and sector of the organization undertaking the performance improvement initiative and develop estimates of reasonable time allocations to structural activities, leverage activities, knowledge activities, and collaboration activities.
4. Estimate engagement (productive time), disengagement (non-productive time), cultural investment (sustainability) and effectiveness (effective time) across each of the identified structural activities, leverage activities, knowledge activities, and collaboration activities.
5. Build an interactive model with scenario analysis to show the value time value, wage cost value, and revenue values for structural activities, leverage activities, knowledge activities, and collaboration activities by showing how “time is money”.
6. Present this information to stakeholders for comment, review, and feedback.

Phase 2:   Earnings & Key Metrics

1. Engage stakeholders in improving initial estimates identified in stages 1 through 5 through face-to-face meetings, and web-based surveys that do not exceed 15 minutes fill out time on a per employee basis.   Collate and analyze data to feedback into improving the estimates obtained at stage 4.
2. Increase the scope of the model to cover earnings effectiveness analysis, net profit analysis, and fundamental financial analyst metrics (sales margins, gross margins, etc) used by the organization.   Where ever possible tie back analysis to key stakeholder key performance indicators (KPIs) to show how the performance improvement benefits them individually
3. Present this information to stakeholders for comment, review, and feedback.

Phase 3:   Market Value, Share Price, & Financial Analyst Metrics

1. Increase the scope of the model to cover market value, share price, and further financial analyst metrics (earnings per share, return on assets, return on equity, cost-to-income ratio, etc).   Where ever possible tie back analysis to key stakeholder key performance indicators (KPIs) to show how the performance improvement benefits them individually
2. Present this information to stakeholders for comment, review, and feedback.

Phase 4:   Recommendations & Approaches

1. Intangible Intelligence Analysts share their knowledge and insight of methods and techniques to track, capture and monitor intangible benefit capture related to structural activities, leverage activities, knowledge activities, and collaboration activities.   These suggestions should always seek to support and enhance existing methods and practices used by the business.

Phase 5:   Periodic Review & Sustainment

1. Intangible Intelligence Analysts assist the client on a quarterly (or other pre-agreed) basis to ensure that benefits are captured and converted into value by the initiative.
2. Part of this process allows a Performance Improvement Matrix to be created which shows how selected initiatives are impacting structural activities, leverage activities, knowledge activities, and collaboration activities and to what degree and extent.   This process allows duplication to be readily seen, and also allows project costs to be reduced by merging projects that focus on similar core activities.

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