Demonstrating knowledge value: a broader perspective on metrics

This paper focuses on current efforts to demonstrate the value of knowledge in organisations with reference to activities and systems for the measurement of intangibles. These efforts stem largely from widespread dissatisfaction with the manner in which traditional accounting methods treat intangibles. The wider context is that of national and international governments and organisations striving to master the drivers of knowledge‐based change by involvement in research projects, in conferences, in attempts to find new means of representing intangibles in standard industrial classifications and national accounts and in standards setting for knowledge management. Organisationally this is manifest in proprietary systems for measuring intangibles, many of which suffer the handicap of being overly‐focused on single organisations, with the metrics process continuing to lack critical mass. Although such efforts are necessary and will continue, they are most likely to succeed where they relate to mainstream business activities and operate not so much as metrics as indicators.