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7.11.05

Balanced Scorecard vs Intellectual Capital Reporting

J. Mouritsen (from the Copenhagen Business School) co-published a paper elaborating on the differences between the balanced scorecard and intellectual capital. Referring to my recent post about my impressions from the policy conference in Ferrara, I find this paper a valuable input for the discussion on intellectual capital issues.

This is, because the paper adds real value for the management if they have to decide or justify investments in either tool/model. The paper summarises the differences as:

There are interesting differences, however, because they differ in terms of strategy (competitive strategy versus competency strategy), of organisation (vertical versus lateral relations), of management (detailing versus visualising objectives), and of indicators (related causally versus bundled complementarily). Available balanced scorecards present a story about the firm’s budget, while available intellectual capital statements narrate the firm’s resources.

There might be disagreement with the specific findings of this comparison (for instance, I don’t see such a different approach to strategy as the authors: balanced scorecard -> based on Porter, intellectual capital -> based on the resource/knowledge-based view), however, this paper makes a contribution to the still ’spongy’ intellectual capital tools/models.

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