Project Selection Directed By Intellectual Capital Scorecards

Abstract

Management of intellectual capital is an important issue in knowledgeintensive organizations. Part of this is the composition of theoptimal project portfolio the organization will carry out in thefuture. Standard methods that guide this process mostly focus onproject selection on the basis of expected returns. However, in manycases other strategic factors should be considered in theirinterdependence such as customer satisfaction, reputation, anddevelopment of core competences.In this paper we present a tool for the selection of a projectportfolio, explicitly taking into account the balancing of thesestrategic factors. The point of departure is the intellectual capitalscorecard in which the indicators are periodically measured against atarget; the scores constitute the input of a programming model. Fromthe optimal portfolio computed, objectives for management can bederived. The method is illustrated in the case of R&D departments.knowledge management;intellectual assets;knowledge capitalization;optimal portfolio