The phrase value creation gets thrown around a lot lately. At a fundamental level, the purpose of every company is to create sustainable value for shareholders and stakeholders.
Value creation is at the heart of the integrated reporting framework from the IIRC. And the latest intellectual capital model from WICI. These models and the dozens that have come before them are all helpful introductions to the concept of value creation.
The problem is that these models are all generic. They tell you that there are categories of capitals that every company has. It’s much more powerful to take the concept a step further and identify the actual capitals that a specific company has. Continue reading “How to Develop a Corporate Value Creation Model”
If you have the challenging job of explaining how to explain the intersection of business and sustainability efforts, you’ll want to learn what we’ve been doing in the field of knowledge intangibles. The intangible capital world sees knowledge as the new oil, in all the best ways.
Why is knowledge the new oil and what does that have to do with sustainability measures? Continue reading “How to Measure Sustainability Efforts”
I’m a huge advocate of the multi-capital model and have been using it going on 15 years to drive better thinking and communication. So it’s pretty common for people to ask me questions like, “I get that the capitals are important but which one is the most important?” Or, “Isn’t [this one capital] more important than the others?” They might fill in the blank with people or intellectual property or money or information technology, which is invariably their specialty. It’s a pretty natural thing. There are (as there should be) experts in each form of capital. Every organization hires experts in different domains to operate at its best. But these experts can get stuck in silos. It can be hard for them to accept that their favorite form of capital isn’t somehow more important than others. Continue reading “Which Capital is Most Important? An integrated thinking perspective”