Methods and concepts for Value Based Management (VBM)
Skandia Navigator / Intangibles valuation
The Skandia Navigator (intangibles valuation) is a collection of critical measurements that all comprise a holistic view of
performance and goal achievement. The architecture of the Skandia Navigator is simple yet very sophisticated. Five focus areas or
perspectives capture different areas of interest. Each area visualizes the value creation process. The Skandia Navigator facilitates a
holistic understanding of the organization and its value creation along 5 focus areas:
Financial focus of the Skandia Navigator captures the financial outcome of our activities. Some like to see it as a receipt. It is here
where we establish the long-term goals and also a large part of the overall conditions for the other perspectives. This could be profitability
and growth that our shareholder demands from us.
Customer focus of the Skandia Navigator (intangibles valuation) gives an indication on how well the organization fills the needs of
its customers via services and products. For example, how much of our sales derive from new customers when compared to old ones or
how loyal are our customers? It represents a view that goes from the outside looking in. It is of importance that we define our
customers' needs.
Process focus of the Skandia Navigator (intangibles valuation) captures the actual processes of creating services and products our
customers desire. It covers questions like how do we handle our customer support? This focus area is also connected to the internal
processes. Are we working in an efficient way? Are we working in a correct manner? Connected to this could be the importance of
structural capital.
Renewal and development of the Skandia Navigator (intangibles valuation) aims at reassuring the organizations long-term
renewal and in part its sustainability. What steps and actions are we taking now to ensure long-term growth and profitability? What is
required to attain and develop the knowledge needed to perceive and satisfy our customers needs?
Human focus of the Skandia Navigator (intangibles valuation) is the heart of the organization and is essential in a value creating organization. The process of knowledge creation is visualized in this focus
area. It is also essential that the employees are pleased with their work situation; pleased employees lead to pleased customers, improving the company's sales and result.