It's Proven. Talent Drives DJIA Market Value.
Intellectual Capital is the dollar-figure contributions talent makes to the market value of companies. It measures the market value of a company above and beyond tangible assets, including internally developed brands, patents, technologies and other intangible assets not recorded on the company’s books as well a those on the books acquired through purchase. Every year we analyze the results of the companies in the Dow Jones Industrial Average (DJIA) to measure this Intellectual Capital Index (ICI). In 2015, more than 80% of the average company’s value included in the study was due to intellectual capital.
The top five ranking “intellectual capital” companies in 2015 – those driving the most financial value from their talent – in the DJIA were Boeing, Pfizer, Apple, United Technologies and United Health. See all results below.
88% of the average company’s value is a direct result of the only active source of intellectual capital – its people.
It’s time to stop treating “human capital” as a buzzword and start managing it with the same level of rigor and diligence as tangible capital. This can be done. It must be done. Talent Valuation will show you how.