Upcoming Events

Home / Impact Economy / ESG Investing / How to Measure and Manage Your Organization’s Real Value

How to Measure and Manage Your Organization’s Real Value

Why intangible assets matter more than you think

You may think you know what your organization’s value is, but chances are you don’t. How can this be? In short, most value — up to 90% depending on the type of organization — is directly connected to non-financial assets. Some of these are tangible, like real estate, supplies, or intellectual property. But much of your organization’s intangible value is harder to track: brand reputation, employee skills, stakeholder relationships, adaptability across the value chain, and operational resilience amidst change.

If your organization is highly strategic, it may be far more valuable than you realize. On the other hand, if you lack awareness of your broader operating context, you may have hidden — and very expensive — problems. Relying only on financials gives you about 10% to 30% of the information you need to understand your true position.

Quantifying the intangible

Tracking intangible assets is one challenge; quantifying them with enough accuracy for third-party scrutiny is another. Elisa Turner, CEO and Founder of Impakt IQ, has developed a comprehensive method for doing just that. At first glance, Impakt IQ may look like another impact measurement platform, but its approach is uniquely designed to assess what many consider “unmeasurable.”

Three professionals in conference room with virtual globe

Turner uses a house-inspection analogy to describe the problem with single-issue metrics. Evaluating a company based only on financial metrics, she explains, is like buying a house based solely on its square footage. What if there’s mold under the floorboards? Or a difficult neighbor next door? Or the whole street will be underwater in 10 years? Without examining the entire context through a thorough inspection and due diligence, you may think your organization is worth one thing when it’s actually worth another. As Turner puts it, “We don’t know what we don’t know.”

Linking measurement to strategy

Impakt IQ’s value extends beyond its measurement methods. Turner and her team humanize the process by educating executives about how intangible assets affect the bottom line. Climate change or war may disrupt supply chains. A news article or film could damage brand value. Neglected working conditions might lead to lawsuits. Whatever the case, Impakt IQ doesn’t simply deliver a deluge of numbers. As Turner puts it, for organizations committed to impact, the process helps transform aspirations from a peripheral concern into a core business discipline. For companies focused only on profit, impact insights are no less essential: even the most financially driven firms need comprehensive measurement to understand their full value and risk exposure.

Woman professional making presentation to group in conference room

One of the most compelling aspects of Turner’s methodology is her rejection of isolated metrics. Zeroing in on just one goal—for example, cutting carbon emissions—can backfire, sometimes worsening other types of pollution. Impakt IQ avoids this pitfall by adopting a systems perspective, weaving together diverse data sets to reveal a far more complete picture. As Turner explains, connecting operational decisions to sustainability outcomes in a comprehensive way delivers more accurate and more actionable insights than tracking a single issue in isolation.

Disclosures as strategic imperative

Some people dismiss impact measurement as political, but it’s actually about understanding organizational performance, mitigating risk, and identifying strategic opportunities. Investor demand for disclosure has surged and Turner estimates that roughly 60% of the global investment community already expects comprehensive disclosures. Regulatory frameworks such as the International Sustainability Standards Board (ISSB) and the EU’s Corporate Sustainability Reporting Directive (CSRD) are accelerating this shift. Although these institutional frameworks are commonly known within the business community, they exist due to decades of academic research, cultural change stemming from seminal works like Silent Spring, and long legacies of Traditional Ecological Knowledge (TEK). As Turner sees it, this is a sea change, not a trend. 

Many organizations still don’t realize that quantifying non-financial value is possible.

Rather than trying to persuade businesses to think differently, Turner has spent her career developing rigorous, actionable methods to bridge the gap between impact ideals and business practice. Many organizations still don’t realize that quantifying non-financial value is possible. Yet Turner sees “ah-hah” moments every day when boards and executives confront hidden liabilities — and hidden value — they hadn’t recognized.

Toward a common language

Turner’s work represents a kind of translation project. By quantifying both financial and non-financial assets, Impakt IQ makes it easier for organizations to speak a shared language, whether their primary motivation is impact outcomes, financial performance, or a blend of the two. For companies serious about understanding their value, this systems-based approach offers a sharp and in-depth set of tools.

Dr. Sara Murdock, an Impact Entrepreneur Correspondent, is an award-winning Organizational Development expert and Futurist. She currently serves as the Executive Director of Futures Index, a Research & Education initiative, as well as Fractional Chief Transformation Officer at a bold new social enterprise that's addressing the medical repercussions of air ... Read more
Monthly Premium H

Related Content

Comments

0 Comments

Submit a Comment

Impact Entrepreneur on YouTube - IETV

Deep Dives

No posts found.

RECENT

Editor's Picks

No posts found.

Webinars

News & Events


More News & Events

Subscribe to our newsletter.

Subscribe to our newsletter to receive updates about new Magazine content and upcoming webinars, deep dives, and events.

Access all of Impact Entrepreneur.

Become a Premium Member to access the full library of webinars and deep dives, exclusive membership portal, member directory, message board, and curated live chats.

ie frog
Impact Entrepreneur
Secret Link