In addition to adhering to the 24 characteristics of objective intangible measurement, the 18 intangible valuation laws, Intangible Management Consulting also understands the application of the Intangible Operating Structures Standard (intMgtOS®2002.L1) which details the impact of intangible laws on financial performance.   By understanding intangible laws, organizations can more effectively manage their operations.

First Law of Intangibles (intMgtOS®2002.L1):

Intangible performance causes financial performance

Second Law of Intangibles (intMgtOS®2002.L2):

Conventional management records do not reflect negative intangible transactions or negative intangible performance

Third Law of Intangibles (intMgtOS®2002.L3)

Immediate and future financial transactions occur in accordance with the aggregated quality of perceptions and expectations from all intangible transactions relevant to those transactions

Fourth Law of Intangibles (intMgtOS®2002.L4)

Immediate financial transactions only occur if the perceived return on intangible investment is greater than the perceived cost of intangible investment

Fifth Law of Intangibles (intMgtOS®2002.L5)

As individual intangible transactions are not directly evidenced by financial transactions, financial transactions are not tied to the decisions that create them

Sixth Law of Intangibles (intMgtOS®2002.L6)

The financial value of level 3 intangibles cannot be measured directly.  Level 3 intangibles can only be financially valued by assessing changes in the quality of Time Capital

Seventh Law of Intangibles (intMgtOS®2002.L7)

Any usage of intangibles in a non-productive manner leads to a loss of organizational efficiency and effectiveness.   When such losses create the potential for lost business an intangible liability is incurred.  When such losses create actual lost business, an intangible expense is incurred.

Eighth Law of Intangibles (intMgtOS®2002.L8)

The accumulation of Expenses, Liabilities, Revenue and Assets are the result of leveraging L3 and L2 intangibles during productive time

Ninth Law of Intangibles (intMgtOS®2002.L9)

A sustainable increase in profit can only come from the correct management of knowledge assets, relationship assets, emotional assets and time assets.  It cannot come from a simple reduction in expenses. This is because expenses and revenue are interdependent.  As a result, a reduction in expenses cannot equal an increase in revenue.  Depending on the quality of the expense being altered, a decrease in expenses could cause a decrease in revenue, an increase in revenue, or no change in revenue

Tenth Law of Intangibles (intMgtOS®2002.L10)

Expenses are the necessary requirement to generate revenue. When expenses are reduced, the ability of a firm to generate revenue decreases in accordance with the values calculated by intMgtOS®5001 (the Intangible Valuation Standard).

Eleventh Law of Intangibles (intMgtOS®2002.L11)

Brand effectiveness is determined from the quality of competitive intangibles on a day-to-day basis.

Twelfth Law of Intangibles (intMgtOS®2002.L12)

Retention rates, satisfaction rates, repurchasing rates, and referral rates; and therefore productivity, revenue, earnings, and free cash flow; are all directly affected by the operational effectiveness and operational quality of competitive intangibles. The management of competitive intangibles therefore creates competitive advantage or destroys it.