Intellectual Capital Statement

Transcription

1 Intellectual apital Statement June 2007 IMPRINT: Business & Development Learning Institute BDL Institute - 51, rue Saint harles Versailles - France Valérie GUIMARD Jean Fabien MERO orad LEMAIRE June 2007

2 ontent: Preface... 2 Summary Business Model System Boundaries Value reation Model External Business Environment Strategic Objectives Status Quo of Intellectual apital Definitions Human apital Structural apital Relational apital Assessment Human apital Structural apital Relational apital Development of Intellectual apital Strengths and Weaknesses Weighting Fields of intervention Annex: Indicators

3 Preface Intellectual apital Statement Made in Europe To obtain competitive advantage in Europe, it is crucial for small and medium sized enterprises (SMEs) to utilise knowledge efficiently and to enhance their innovation potential. Furthermore, reporting those intangible assets systematically to customers, partners and investors, as well as creditors has become a critical success factor. Thus, managing their specific intellectual capital (I) becomes increasingly important for future-oriented organisations. onventional balance sheets and controlling instruments are not sufficient any more, because intellectual capital like specific Know-How and good business relations are not considered so far. The Intellectual apital Statement (IS) is an instrument to assess, to report and to develop the intellectual capital of an organisation. Due to the emerging need to cover intellectual capital the project InaS Intellectual apital Statement Made in Europe had been initiated by the European ommission in course of the Sixth Framework Programme. The InaS project is lead by the European SME association EA-PME, Brussels, and Fraunhofer IPK Division orporate Management, Berlin. The collective research project aims to make the existing international experiences applicable for European SMEs. In France the IS implementation in 5 pilot-smes, one of which is BDL Institute, is coordinated by AFDEE. The participating SMEs are to be qualified to take stock of their specific intellectual capital quickly and in a cost-effective way. Furthermore they should be enabled to edit and communicate the results towards important decision-makers. Thereby the acquisition of customers, partners and new employees is supported and furthermore the access to debt and equity capital is facilitated. Below the IS-model is illustrated and the main terms are explained in order to enhance the understandability of the following report

4 IS structural Model The IS structural model serves as the frame for the following analysis of intellectual capital and can be described as follows: The strategy including an analysis of the possibilities and risks in the external business environment provides the basis for the IS. Based on these considerations the SME derives measures regarding the different dimensions of its intellectual capital. Human capital includes competences, skills and motivation of the employees. The structural capital comprises all organisational and infrastructural instruments, which support the management and the employees in carrying out efficient business processes. The relational capital comprises the relationships to customers, suppliers and other partners as well as to the public. The IS reveals the actual value of the intellectual capital regarding its potential to support accomplishing the SME s strategic objectives, production of goods and services and finally achieving business success. Thereby the significance of single I factors is reflected, revealing the strengths and weaknesses and the highest potential for intervention

5 Summary Le BDL Institute est un centre Ressources et de Formation qui accompagne les individuels et les organisations à la conduite de leur projet via la formation. entre Ressources : espace d accueil, de rencontres et d échanges ouvert à tout porteur de projet (information, orientation et mise en relation pour l entreprenariat) Equipe Ressources : onsultants et formateurs pour accompagner l entrepreneur - porteur de son projet Pôle Formation tertiaire : «L accompagnement au changement avec la conduite d un projet» est une prestation de service global, intégrant notamment le onseil, l évaluation et des actions de formation. Opérateur reconnu dans les réseaux «Emploi»,«Formation professionnelle» et réseaux d Affaires depuis 2000, installé dans des locaux adéquates à Versailles. Les objectifs sont d offrir des prestations de qualité, via un modèle économique rentable, sur un territoire «de proximité» Ile de France Ouest. e Service doit être développé avec des ressources internes et externes via le réseau. Soutenir l entreprenariat faciliter l accès ou le retour à l emploi aider à la création ou reprise d entreprise et accompagner les candidats à l évolution de leur métier sont des thèmes porteurs, qu un prestataire de services tel que BDL institute peut traiter dans les prochaines années. Le monde change, et il faut «bouger de là»

6 Summary (English version) BDL Institute is a Resource and training enter which supports individuals and organisations in their project management through training. Resource center : welcome, meeting and exchange space, open to anyone dealing with a project (information, orientation and getting contact for entrepreneurship) oaching team: onsultants and trainers to support the entrepreneur in handling his project Service training center : oaching in carrying out change and new project is a provision of a global service, mainly integrating consulting, training action evaluation. Acknowledged operator in networks such as Employment, professional training as well as in business networks, BDL has moved into adapted premises in Versailles since The objectives are to offer Quality provisions of a service, through a profitable economic model, over the Ile de France West neighbouring territory. This service has to be developed involving internal and external resources through the network. Supporting entrepreneurship facilitating getting a first job or getting back to work helping company creation or taking over and following candidates to succeed in evolving in their job are promising themes that a provider of services such as BDL Institute can deal with in the years to come. The world changes, we have to move too! - 5 -

7 Business Model 1.1 System Boundaries Specification of the organization (System boundaries) BDL Institute (except for educational and vocational training related to Education Nationale degrees, considered as past activities) 1.2 Value reation Model reated Value How do you create value? Full offer for ompanies reception through following product families targeting equipment or personel : HR onsulting - Individual and organization advising support in putting into practice the 2004 reform related to professional training * Information and consulting about the plan of action * Plan of action support * Support in carrying out training provision of a service - oaching and assistance to integration and back-toemployment process Training - Need detection - Training Engineering - Realization Skill assessment - Languages - Word processing - Assessment statement Specific provisions of a service for disabled - 6 -

8 ID Title of BP Definition BP1 Sales Economic intelligence (necessary watch to carry out consulting, training offers and tests) Anticipation of HR market needs Influence networks and participation in pilot experiences All current rule knowledge and incidence of their evolution to anticipate their taking into account. Strategy tool subscription BP2 Prod 1 : HR onsulting BP3 Prod 2 : Training Setting of adapted action plans in relationship with financers. Individual support from a professional to a life project. DOJO method. Professional integration or reintegration help. Training realization. - Specification book conception - Trainer selection and purchase - Training - Evaluation and feedback BP4 Prod 3 : Skill assessment Skill assessment session organisation using aknowledged official tests: - Adapted logistics setting for each type of test - Agreements and respect of the norms, expected by the label owner. - Result feedback BP5 Support Finance, sales administration, Quality, Hiring, Management, Internal communication, Purchase. 1.3 External Business Environment External business environment Which chances and risks will have an effect on your company? Opportunities: Regulation evolution. New permanent needs Difficult employment market Growing demand for English mastering and related certifications. Risks: Regulation evolution Market response inertia compared to new regulations. Strong dependence towards ETS (TOEI, TOEFL Ibt owner) and short term contract (6 months to 1 year)

9 1.4 Strategic Objectives Main strategic objectives Where do you want to position your organization in the long-run? What is the primary objective, what are secondary objectives? HR support development. Becoming an acknowledged assessment and training center. Developing specialized departments to increase efficiency Succeeding in transforming the company (new process setting)and allowing the emergence of new leaders in each department in order, for the manager, to focus on new offer creation. Succeeding in attracting and fidelizing customers sent by test organizations. Increasing turnover and profitability. Developing European partnerships (trainee, teacher exchanges ) - 8 -

10 2 Status Quo of Intellectual apital 2.1 Definitions Human apital Human apital is the generic term for the competences, skills and motivation of the employees. The Human apital of the organisation comprises all qualities and professional skills the employee brings into the organisation. It is owned by the employee and leaves along with him the organisation. List of BDL human capital factors with corresponding definitions Human apital H- 1 H- 2 H- 3 H- 4 Professional ompetence Social ompetence Employee Motivation ompétences professionnelles ompétences sociales Motivation des employés Leadership Ability Leadership The expertise gained within the organisation or in the employee's career, professional training, higher education, training courses and seminars, as well as practical work experiences gained on-the-job. The ability to get on well with people, communicate and discuss in a constructive manner, nurturing trust-enhancing behaviour in order to enable a comfortable cooperation. Furthermore the learning ability, the self-conscious handling of critique and risks as well as the creativity and flexibility of individual employees are embraced in the term "social competence" The motivation to play a part within the organisation, to take on responsabilty, committed to the fulfilment of tasks and the willingness for an open knowledge exchange. Typical sub area are for example satisfaction with the labor situation, identification with the organisation, sense and participation of achievement. Ability to manage and motivate the staff - 9 -

11 2.1.2 Structural apital Structural apital is the generic term for all structures deployed by the employees to carry out the business processes. The structural capital is owned by the SME and remains with the organisaiton to the largest extent when the employee leaves the company. List of BDL structural capital factors with corresponding definitions Structural apital S-1 S-2 S-3 S-4 S-5 S-6 ompany culture Internal cooperation and skill transfert Management instruments Information system and explicit knowlege Product innovation Process innovation ulture d'entreprise oopération interne et transfert de compétences Instruments de management Système d'information et connaissances explicites Innovation des produits Innovation des processus harter, company values and company project The way the different departments communicate and work together. Organized transfers of knowledge between the trainers and the departments executives. ollaborative and participative work Ability to delegate credibility self assurance. Ability to create an environment allowing oneself personal development. Software environment networks service center, extranet and data base, quality procedures reation of new training offers and new access to this services as a resource center ISO 9001 Label and OPQF (consumer satisfaction range concerning the process and procedures to improve services)

12 2.1.3 Relational apital Relational apital is the generic term for all relationships to external groups and persons established by the organisation, e.g. customer relationships, supplier relationships, and the relationships to other partners and the public. List of BDL relational capital factors with corresponding definitions Relational apital R-1 R-2 R-3 customer relationship Partner relationship Institutional relationship Relations avec les clients Relations avec les partenaires Relations avec les institutions type of clients : final consumer (companies, employees, individuals) financers (OPA) test organisms Type of partners : financers, decision makers (OPA, onseil Général, Assédics, Maison de l'emploi, de l'handicap ) other consulting and training professionals (Outplacement centers, Business schools ) Type of institutions : politics, profession actors, certification organisms

13 2.2 Assessment Human apital QQS-Bar-hart: Human apital of BDL QQS-Bar-hart: Human apital (H) H - H - H - H H-4 H-3 H-2 H-1 Leadership Motivation des employés ompétences sociales ompétences professionnelles Quantity (%) Quality (%) Systematic (%) H-1 H-2 Professional ompetence Social ompetence H-3 H-4 Employee Motivation Leadership Ability Interpretation: Quantity in Leadership and in Professional skills is not sufficient to reach the objectives, because of redeployment of BDL activities. The team s professional skills are not sufficient regarding the new activity. Recrutment is necessary. Systematic leadership actions do exist but not yet efficient.oncerning Professional skills, actions are to be set up, nethertheless 2 «supervisors»(to promote Department Managers) will be hired within 2 years

14 Structural apital QQS-Bar-hart: Structural apital of BDL QQS-Bar-hart: Structural apital (S) S S S S S S S-6 S-5 S-4 S-3 S-2 S-1 Innovation des processus Innovation des produits Système d'information et connaissances explicites Instruments de management oopération interne et transfert de competences ulture d'entreprise Quantity (%) Quality (%) Systematic (%) S-1 S-2 S-3 S-4 S-5 S-6 ompany culture Internal cooperation and skill transfert management instruments information system and explicit knowlege product innovation process innovation Interpretation: Management instruments represent the weakest part of the S. Systematic actions must be analised to know if they haven t given results or are really adapted. It is probably explained by an organisation remaining light and by the type of company. The Product innovation is satisfying, it is due to the constant seek of the manager to adapt the offers to the market demand

15 Relational apital QQS-Bar-hart: Relational apital of BDL QQS-Bar-hart: Relational apital (R) R R R R-3 R-2 R-1 Relations avec les institutions Relations avec les partenaires Relations avec les clients Quantity (%) Quality (%) Systematic (%) customer relationship R-1 customer relationship R-2 Institutional relationship R-3 Interpretation: The whole of systematic actions can be improved in order to increase quantity and quality of the whole relationship factors

16 3 Development of Intellectual apital 3.1 Strengths and Weaknesses Summary QQS-Assessment of BDL Summary Quantity (%) Quality (%) Systematic (%) Mean Value (%) Improvement potential (%) Human apital Structural apital Relational apital Total Interpretation: The highest potential for improvement concerns the relationship capital and meets the strategic focus of BDL, new activity launching is forecast

17 Example: Summary QQS-Assessment I type ID I Factor Human apital Business Success Business Processes QQS-Overview Quantity (%) Quality (%) Systematic (%) Mean Value (%) Improvement potential (%) BP-1 Ventes BP-2 onseil en RH BP-3 Prestations en formation BP-4 Evaluation de compétences BP-5 Support BS-1 Augmentation des revenus et des profits BS-2 Réputation BS-3 Organisation BS-4 Recrutement H-1 ompétences professionnelles H-2 ompétences sociales H-3 Motivation des employés H-4 Leadership Relational apital Structural apital S-1 ulture d'entreprise S-2 oopération interne et transfert de competences S-3 Instruments de management S-4 Système d'information et connaissances explicites S-5 Innovation des produits S-6 Innovation des processus R-1 Relations avec les clients R-2 Relations avec les partenaires R-3 Relations avec les institutions Interpretation: The strongest point is the employees social skills, the weakest one is the management instruments. Social skills being very strong, the need to structure the systematic actions involving the management becomes in this case is lighter, and leads to this result

18 Weighting Weighting of the three types of capital of BDL Weighting of Intellectual apital Relational apital 21% Structural apital 39% Human apital 40% Interpretation: The relational capital is very strong, even if this result is affected by the superiority (in %) of Structural factors

19 Weighting of the I factors of BDL Weighting Score R R R I I S I L M 0,0% 0,0% 0,0% 0,0% 0,0% 2,2% 6,6% 5,8% 6,9% 6,3% 5,2% 8,0% 8,2% 8,5% 9,6% 9,6% 10,4% 12,6% 0% 4% 8% 12% 16% Ranking No. Itype ID I Factor Ranking 1 H-1 ompétences professionnelles 12,64% 2 H-2 ompétences sociales 7,97% 3 H-3 Motivation des employés 9,62% 4 H-4 Leadership 9,62% Humanapital 5 S-1 ulture d'entreprise 10,44% 6 S-2 oopération interne et transfert de competences 5,22% 7 S-3 Instruments de management 6,32% Structural 8 S-4 Système d'information et connaissances explicites 6,87% 9 S-5 Innovation des produits 8,52% 10 S-6 Innovation des processus 2,20% 11 R-1 Relations avec les clients 8,24% 12 R-2 Relations avec les partenaires 5,77% 13 R-3 Relations avec les institutions 6,59% Relational apital apital Total ,00% Interpretation: Professional skills represent the most important factor for employees. Process innovation is the less important (provision of a service)

20 3.2 Fields of intervention I Management Portfolio of BDL 14% I Management Portfolio Human apital Structural apital Relational apital develop H-1 H-4 S-1 H-3 stabilise H -1H- 2H- 3 H- 4 ompétences professionnelles ompétences sociales Motivation des employés Leadership Weighting Score 7% S-3 R-1 R-3 R-2 S-2 S-4 S-5 S-6 H-2 S- 1S- 2 S- 3 S- 4S- S- 5 6R -1 R- 2 R- 3 ulture d'entreprise oopération interne et transfert de competences Instruments de management Système d'information et connaissances explicites Innovation des produits Innovation des processus Relations avec les clients Relations avec les partenaires Relations avec les institutions 0% analyse no need for action 30% 60% 90% Average Assessment You should adjust both axes according to the minimum and maximum value! Y-axis (Weighting Score) X-axis (Average Assessment) Minimum 1% 30% Maximum 14% 90% H-1 Professional ompetence Relational apital Structural apital Humanapital H-2 H-3 H-4 S-1 S-2 S-3 S-4 S-5 S-6 R-1 R-2 R-3 Social ompetence Employee Motivation Leadership Ability ompany culture Internal cooperation and skill transfert management instruments information system and explicit knowlege product innovation process innovation customer relationship customer relationship Institutional relationship Interpretation: ustomer relationship, Professional skills and Leadership are the three factors we have to work on. Information and knowledge system, Management instrument and Internal cooperation are also key factors, to improve the results of prior factors. ompany culture, Social skills and Employees motivation are essential for the company

21 ATION PLAN : Professional ompetence (H1) : onsidering the Business to plan, launching the different activities as answering to the Market needs and opportunities ( short term and further ) hiring of experienced executives to handle the new services. (technicians up to managers within 2 years?) Leadership Ability (H-4) : Recrutment and integration of the new team : team building through new topic centred work groups, collaborative projects and groupware ustomer Relationship (R-1) Partner relationship (R-2) Institutional relationship (R-3) Through a new communication plan, the provision of service will be clarified, and promoted to the different networks (memberships). Getting in contact with co-operation partners (external collaborative projects) ommunication through the Website to put on line Setting new softwares (MS exchange 2003), launching newsletters Setting the Groupware opened to co-operation partner.(access intranet / Knowledge databases) Getting a new certification of our Quality Management System Environment survey

22 Annex: Indicators Indicators Human apital Structural apital Relational apital I Factor Indicator Definition Unit Actual Value Targeted Value Professional ompetence Total number of employees(including apprentices) Number 8 10 Apprentices Number 0 1 Days used for further qualification Number Age distribution : Employees years Number 5 6 Social ompetence Frequency of occurrence of severe conflicts Number 1 0 Quality of soft skills Number of missed opportunities due to lack of concertation Number Employee Motivation Frequency of employee surveys Number 1 2 Employee satisfaction % Labour turover : inflow Number Labour turnover : Outflow Number Leadership Ability Executives Number 2 4 Satisfaction with manager'managerial skills % ompany culture Number of collaborative projects Number 2 6 Topic centred work groups Number 1 3 Succession plan for EO 0/1 0 1 management instruments Applied leadership instruments Number 1 3 Organisational units Number 2 4 Executives meetings Number 2 12 Staff appraisal interviews Number 4 14 Employees receiving incentive pay Number 1 3 information system and explicit knowlege IT expenditure Expenditure for explicit knowledge product innovation New products Number 5 10 Share of sales of new products % customer relationship ustomer satisfaction % ustomer complaints Number 10 0 customer relationship Supplier evaluation % Institutional relationship Media response Number Publicity events Number 3 10 Lecture/talks and seminars Number 5 15 Marketing expenditure /% Memberships Number 4 6 External coordination meetings Number 3 6 External collaborative projects Number