Intangibles are non-physical resources with economic value that can provide a competitive advantage for a company. Unlike tangible assets, like machinery or buildings, intangibles lack physical presence but can be extremely valuable. Examples of intangible assets include company-owned resources, like brand, or assets like reputation, human capital, and trust, which are not owned by the company but can be managed.

The key intangibles at Corporate Excellence form our primary areas of focus: reputation and reputational risk, purpose and culture, brand, communication, sustainability, public affairs, talent, and cross-functional metrics.

Since the 1990s, with globalization, the emphasis on R&D, and the rise of the internet, experts began to recognize the growing importance of intangibles within organizations. It became clear that valuing these assets should be incorporated into management models due to their impact on generating economic value in companies and the broader economy. This business shift marks the start of a new economic cycle, often referred to as the "intangible economy" or "knowledge economy," where advanced economies transition from traditional industrial production to knowledge- and information-centered sectors, driving growth and competitiveness.

Fifty percent of the value of publicly traded companies resides in their intangibles, reaching up to 85% in some sectors (according to Brand Finance's Global Intangible Financial Tracker). As such, excellent management of these assets is now essential to business value.

Moreover, well-managed intangibles guide companies into a virtuous circle toward corporate excellence:

• They break down silos fostering interdepartmental collaboration to achieve holistic intangible asset management.
• Continuous measurement and evaluation enable smarter, data-driven strategic decisions directly tied to the business.
• They create a strong, consistent, transparent, and authentic identity, aligning the company and diferencie it from competitors.
• They incorporate a multistakeholder vision, promoting active listening and prioritizing the well-being of all audiences, thereby maximizing engagement and improving talent retention.
• They drive a continuous improvement mindset, fostering innovación critical to dynamic and competitive markets.
• They embed a long-term vision at the core of the business, aiding companies in adapting to market changes and crises due to their flexible and scalable nature.

Ultimately, time has proven that building operations around intangible assets helps companies earn the trust of their audiences, thereby legitimizing their operations. This approach also creates a long-term, non-replicable differentiation that enhances resilience and sustainable growth while generating a positive impact on the communities they affect.

First, companies must excel in managing each key intangible. The PR & Comm Model identifies six building blocks that help create and protect business value: beginning with Corporate Purpose and Culture, managing Brand, Sustainability, and Reputation and Reputational Risks, then showcasing them through Communication, and finally, evaluating and connecting intelligence by measuring each of these elements.

When integrating intangibles into corporate processes, Corporate Excellence’s roadmap serves as a guide for managing these assets in various phases: 1) Identifying and prioritizing stakeholders, and defining and activating the company's identity and purpose with them. 2) Establishing metrics and models that help assess intangibles and integrate them into the business dashboard. 3) Building a management model that breaks down silos and ensures holistic intangible asset management. 4) Linking intangible indicators with business metrics and compensation programs. 5) Developing a sustainable and integrated differentiation strategy within the business to achieve non-replicable differentiation and stakeholder trust and legitimacy.

The cases of best and worst practices analyzed in the Practice in Action content series provide clear examples of how real companies or entities have managed intangibles in practice.