Business Process Management As A Tool For Intellectual Capital Management

Many different frameworks and methods have been developed for managing intellectual capital (IC). At the same time, many other management approaches, which companies are already applying in practice, also cover some issues related to IC. Business process management is one such approach. This paper aims to determine whether business process management is applicable for managing IC. The rationale for not implementing an additional management system for IC in some cases is that it may consume too many resources, having two or more overlapping management systems may cause problems for management control and the concepts related to IC may be confusing for the personnel even though the issues being managed, e.g. competencies and company image, are familiar as such. The role of business process management in IC management is examined empirically in a single case study. To explore the research issue in practice and to obtain an in-depth understanding of the phenomenon, the authors carried out an action research project in a case company. The findings show that IC management can indeed be carried out through business process management. It was discovered, however, that managing IC through business process management is to a great extent about developing IC at an operational level, instead of controlling IC at a strategic level. The study contributes to prior research by illustrating how IC management can be applied in practice without utilising any specific IC management framework (i.e. by using the company's existing managerial approach). Copyright (C) 2008 John Wiley & Sons, Ltd.