INDEX.

1. The Knowledge Organisation.
2. The Market Value.
3. The Personnel.
4. Corporate Knowhow.
5. Corporate Image.
6. Investing in Intangible Assets.
7. Attract the Customer.
8. Attract the Personnel.
9. Develop the Competence of the Personnel.
10. Utilising Capacity.
11. Matching Capacity and Demand.
    11.1. The Vicious Circle.
12. Managing the Strategic Dilemma.
13. Customer Strategies.
14. Personnel Strategies.
15. Pricing.
16. Some Critical Incidents.
17. Management Information.

17. Management Information.

The problems of management information are great in a Knowledge Organisation because present accounting practise is developed for manufacturing industry. Therefore management might easily get wrong advice from accountants, auditors and banks.

A Knowledge Organisation is more sensitive to short term cash flow than to short term profit. Investments and poor capacity utilisation may from time to time draw a lot of cash if the management does not keep a keen eye on it.

• The management information system should include measurement of customer satisfaction as an index which is followed up every year.
• It should measure the development of both visible investment and invisible investment like R&D.
• It should measure productivity in terms of capacity utilisation. I.e. man-hours utilised compared to man-hours available.
• Value added per person is a much better indicator of effectiveness than profitability on visible equity.
• The profit margin or value added margin on sales is also useful as a measure of effectiveness.

In the example:

Value added Year 1 = 103-30=73. (Can also be calculated "backwards" as Operational Result + Salaries 18+55). The value added is allocated to:

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