Triple AccountingTriple Accounting

Grasp Intangibles

Grasp Intangibles

Who dares in 2010 to extrapolate historical Who dares in 2010 to extrapolate historical cash flow on a few decennia... ?cash flow on a few decennia... ?

““A multiples valuation is just somebody else’s A multiples valuation is just somebody else’s income approach”income approach”

Intangible assets 80/20 – 15/85Intangible assets 80/20 – 15/85

Are people a cost or an asset ?Are people a cost or an asset ?

IFRS rules buggingSystemic questioningVery high goodwill Stock volatilityUnethical behaviourUnsustainable processes…The new Bermuda Triangle

New Bermuda Triangle : Human challenges

Copyright: Carl Leeman - Katoennatie

What Triple Accounting offers

Take time for creating true value

Empower people and organisations and connect them to values that count

A simple tool

Our proposals :

PricePrice is what you pay. is what you pay.

ValueValue is what you get. is what you get.

- Warren Buffett- Warren Buffett

Grasp Intangibles

Grasp Intangibles

„„Sometimes what counts can’t be counted Sometimes what counts can’t be counted and what can be counted doesn’t countand what can be counted doesn’t count””

Albert EinsteinAlbert Einstein

Let’s make him lie !Let’s make him lie !

Where is the True Value we Where is the True Value we can work with ?can work with ?

“I lost a €100 banknote somewhere outside. “I lost a €100 banknote somewhere outside. But I’m looking for it inside the house because it’s But I’m looking for it inside the house because it’s

easier”easier”

Grasp Intangibles

Grasp Intangibles

Let’s dive into hidden valueLet’s dive into hidden value

Living systems evolve likewiseLiving systems evolve likewise

head collective consciousness knowledge capital

heart human motivation emotion capital

body material world material capital

IndividualsIndividuals HumanityHumanity OrganisationsOrganisations

I don’t know

I owe

I own

I hateI love

I know

Value: tangible & intangible – 3 balance sheetsMinus valuePlus value Head

Heart

Body

Equity

Knowledge capital

Emotion capital

Lost business, long Lost business, long term vision, future term vision, future business models,…business models,…

Loans, Loans, suppliers,…suppliers,…Buildings, machines, Buildings, machines,

vehicles,…vehicles,…

Scandals, traumas, Scandals, traumas, strikes, demotivation, strikes, demotivation, rotation, … rotation, …

Brand, affection, Brand, affection, communities, communities, motivation,…motivation,…

Experience, R&D, Experience, R&D, expertise, vision, expertise, vision, technology, knowledge,technology, knowledge,… …

3 balance sheets3 balance sheetsLiabilitiesAssets

What we don’t know

Debts Tangible value

Emotion liabilityEmotion Capital

Knowledge

LiabilitiesAssetsTransform liabilities into value

Calculating value :Calculating value :

Triangulations Triangulations Replacement cost, market value, extrapolate & Replacement cost, market value, extrapolate & actualize income or loss, alternatives, investment, actualize income or loss, alternatives, investment, pharmaco-economy,... bankers & CFO’spharmaco-economy,... bankers & CFO’s

Perception Perception Ponderation, feeling, thresholds, strategic valuesPonderation, feeling, thresholds, strategic values

Triple Accounting: the AlgorythmTriple Accounting: the Algorythm

Thresholds %

Corp data €

Values %

Needs %

5 drivers %

120 onlineQ&A

clients

management

workers

employees

stakeholders

shareholders

Algorythm MS Excel

Output & graphics

Board

Board

Public

Public

1. Corporate DNA drive

« What drives and carries the company’s business ? »

The product-service itself standing outThe market evolution pullingThe culture, specific governanceThe human beings in and around thereThe processes, production, logistics, operations

2. Needs

12 vectors of « Human Needs » carrying the business

Security, recognition, power, nutrition, passion, creation, …

3. Values

The 12 values hidden behind those human needs

Trust, meaning, openness, sustainability, resonance, resilience,…

4. Thresholds

Minimum threshold for each vector, tolerated by the management, before it becomes a liability ?

5. Corporate Data

Intangible Value € =

Total value € (Market Cap / Approximation / Evaluation)– Material Value € (Equity + hidden tangibles – activated intangibles)

120 questions Invited by email Online software

EN-NL-FRInput access code

Only info : age, sex, function

Public input

Corporate Acupuncture can start now…

Align = entrer a coherenceAlign = entrer a coherence

““Triple accounting enables you to work withTriple accounting enables you to work withthe intangible value of your organisation”the intangible value of your organisation”

Grasp Intangibles

Grasp Intangibles

Pour qui ?CFO: évaluer & monitorer la valeur intangible

CEO: stratégie & bras de leviers, modèle d’affaires

Actionnaires: valeur du titre

Vente: satisfaction client

Marketing: identité & ADN

RH: satisfaction du personnel, priorités soft skill

RSE: assessment culturel, alignement valeurs sociétales

Production: assessment & impact des équipes - segmentation

R&D: creativité & innovation, engagement

Public: information, gouvernance

Stakeholders: relation management

PR and communication

Risk manager: risque humain

For whom is TripleAcc ?• CFO: evaluate & monitor intangible value• CEO: valorisation strategy & leverage• Shareholders: share value• Sales: client satisfaction• Marketing: brand identity & DNA• HR: employee satisfaction, soft skill priorities• CSR: cultural assessment• Production: team assessment & impact• R&D: innovation engagement + knowledge capital• Stakeholders: relation management• Risk Manager: detect human risks and resilience• PR and communication• Public: information

• Evaluation & monitoring share value and intangiblesEvaluation & monitoring share value and intangibles• Strategic priority setting based on intangibles: detecting forces and potential in €Strategic priority setting based on intangibles: detecting forces and potential in €• Detect glass ceiling for developmentDetect glass ceiling for development• Transmission of ownership and of entrepreneurshipTransmission of ownership and of entrepreneurship• Human potential & resources activationHuman potential & resources activation• Innovation assessmentInnovation assessment• IRM Scan for unifying values: cultural assessmentIRM Scan for unifying values: cultural assessment• Corporate identity DNA profilingCorporate identity DNA profiling• Facilitating int/ext communicationFacilitating int/ext communication• Activating new performanceActivating new performance• Human risk assessment against « Black Swans »Human risk assessment against « Black Swans »• Business model assessmentBusiness model assessment• Align with emerging valuesAlign with emerging values• Shareholder and stakeholder satisfactionShareholder and stakeholder satisfaction• Client and employee satisfactionClient and employee satisfaction• Segmentation per department, country or plantSegmentation per department, country or plant• CSR and GRI governance assessmentCSR and GRI governance assessment

Whatfor is TripleAcc ?

• Transmission of ownership and of entrepreneurshipTransmission of ownership and of entrepreneurship• Post Merger Integration (synergy clarification)Post Merger Integration (synergy clarification)• Annual employee and client satisfactionAnnual employee and client satisfaction• Annual reportAnnual report• Before or after strategic moveBefore or after strategic move• A difficult question…A difficult question…

When ?

Quantified intangible value

120 point « surgical » referentialPositive or negative values in €

Totalizing goodwill value

In Emotional and Knowledge balance sheets

Yamaha

BMW

Ducati

ApriliaHonda

(Kawasaki)

(Suzuki)

Motorbike = Source of pleasure, liberation

Motorbike = Functional

Ego Integration

evaluate competitive positioning

Corporate identity

OptionsOptions

Triangulation with traditional evaluation methods for a full picture Triangulation with traditional evaluation methods for a full picture Segmentation per plant, region, continent or departmentSegmentation per plant, region, continent or departmentRoll-out of proposals to activate intangible liabilitiesRoll-out of proposals to activate intangible liabilitiesRoll-out of proposals to transform intangibles into businessSectorial benchmark: positioning of the company, compared to other companies of its business areaAnalyses of statistical variations in 120 answers…

What’s new ?What’s new ?

• Simple• Pragmatic common sense• Strategic discussion behind• Human values in center of algoritm• Universal semantic• Good house-father : first things first• Intangible liabilities• Dynamic model allying financials, corporate and human

values

Roll-out after Triple Acc works if…Roll-out after Triple Acc works if…

• Desire for coherence Desire for coherence • Vision for human developmentVision for human development• Courageous questioningCourageous questioning• Passion, pragmatism & humilityPassion, pragmatism & humility• OpennessOpenness

It’s NOT for everybody !It’s NOT for everybody !

Triple Accounting 2.1

- Micro-meso-macro- Individual Triple Accounting- Country Triple Accounting

- Global Systemics- Earth BS- Common Good BS

- Ergonomy of questions/answers

- A complementary currency

Triple Acc 2.0 person corp regionCommon good T T TKnowledge T T TEmotional T T TMaterial T T TEarth T T T

It’s when you start measuring something that it It’s when you start measuring something that it can become importantcan become important

Grasp Intangibles

Grasp Intangibles

Exemples de questions:Exemples de questions:

-« L'entreprise a une excellente « L'entreprise a une excellente connaissanceconnaissance de son de son produit-serviceproduit-service (10) - L'entreprise a une grande lacune (10) - L'entreprise a une grande lacune dans sa connaissance du produit-service (0)dans sa connaissance du produit-service (0)

-L'humainL'humain est très bien entendu, et est très bien entendu, et l'empathiel'empathie est une est une qualité maison (10) - Non, l'humain n'est pas qualité maison (10) - Non, l'humain n'est pas entendu/compris et la discordance règne (0)entendu/compris et la discordance règne (0)

- « « Métier, processus et production Métier, processus et production sont très sont très sécuriséssécurisés (10) - Non, faire son métier est dangereux (0)(10) - Non, faire son métier est dangereux (0)

- Gouvernance, valeurs et culture Gouvernance, valeurs et culture d'entreprise inspirent d'entreprise inspirent une totale une totale confianceconfiance (10) - Non, elle inspire la (10) - Non, elle inspire la méfiance (0) méfiance (0)

- La La communicationcommunication avec le avec le client/marchéclient/marché est est excellente (10) - Non, elle est inexistante (0)excellente (10) - Non, elle est inexistante (0)

Questionnaire created and reviewed by:Questionnaire created and reviewed by:

- Specialized consultants (HR, strategy)Specialized consultants (HR, strategy)- Certified coporate coachesCertified coporate coaches- Developers of « Motivation Wheel » and Triple Developers of « Motivation Wheel » and Triple AccountingAccounting- Native speakersNative speakers- Clients and other leaders and entrepreneursClients and other leaders and entrepreneurs