Managing Intellectual Capital
Forensic Science Communications, October 2005, Volume 7, Number 4
Written by W. Mark Dale and Wendy S. Becker
Intellectual capital is a strategic resource in organizations. This article discusses strategies for increasing the intellectual capacity of the forensic science laboratory. It begins with a definition of intellectual capital using a resource-based model of organizations. Next, it discusses laboratory structure and the measurement of laboratory efficiency. Human resource metrics and the importance of communicating with funding agencies are considered. The article concludes with a discussion of an overall strategy for increasing intellectual capital in forensic laboratories and offers a case example using a forensic advisory group.
Human Resources as Intellectual Capital
Demonstrating that investments in human resources lead to improved laboratory performance is critical to laboratory directors (Koussiafes 2004). Resource-based models propose matching the overall strategy of the organization with its human resource practices (Barney 2001). Originating from economics, the resource-based view considers human resources as assets as opposed to variable costs. The resource-based view is the philosophy behind initiatives to consider human resources as intellectual capital. In this model, human resource practices support the intellectual capital of the forensic laboratory by making the most of the job-related behaviors of the talent pool. Certain conditions must be present to maximize organizational performance. Intellectual capital must be valuable, rare, inimitable, and nonsubstitutable (Wright et al. 1994). These criteria are discussed next as they apply to forensic laboratories.
Intellectual Capital Adds Value to the Forensic Laboratory
The knowledge, skills, and abilities that forensic employees possess vary greatly within a laboratory and across laboratories. In the labor market, individuals differ with respect to the necessary job attributes they possess. Employees who work at a higher level of proficiency are more valuable to the laboratory. Laboratories that are able to select, develop, motivate, and retain skilled employees will outperform laboratories that are not. By using a measurement system, laboratories can demonstrate that skilled employees add value. Utility analysis is one method to estimate the financial value that employees add (Cascio 2000). Other methods include costing employee turnover and determining the value of forensic services to customers and the community (Becker et al. 2005; Dale and Becker 2004). These techniques can be used to show that investing in intellectual capital results in a more effective laboratory organization.
Becker-Dale Consulting
“Applied Management Strategies”
Q1: Have you measured and monitored the application and utility of your staff’s knowledge that is directly related to performance?
Q2: How can your organization develop and nurture a learning environment that will establish a learning culture that will attract and retain the best people?
Q3: How can intangible assets, such as knowledge, relationships, team skills and experience be linked to performance and quality service and products?
A1: Becker-Dale Consulting can develop metrics to measure and manage the application of staff’s knowledge aligned to performance.
A2: Becker-Dale Consulting can design, develop and monitor a learning environment that will recruit, select and retain the best staff.
A3: Becker-Dale Consulting will design a high performance organization culture that will measure and monitor intangible assets, such as knowledge and application to core competencies.