MindTree Consulting, an international IT and R&D services company, became the first company in India to be assessed for IC Rating, through a process pioneered by Intellectual capital Sweden AB (ICS). Intellectual Capital represents all the value-creating elements in an organization that are not captured in traditional financial statements, but are of critical importance to a company's long-term profitability and future success. MindTree's overall rating, both in effectiveness ad renewal, was an 'A', and it received the highest possible rating of 'AAA' for its management competence. Overall, MindTree's rating puts it in the top 12% of all companies worldwide that have undergone this assessment.

The rating is based on in-depth interviews conducted by BizWorth, the Indian partner of ICS. For the rating, 1/3rd weight is given to inputs collected through internal interviews and 2/3rd to those collected through interviews with external entities such as customers, partners, suppliers and investors, among others. Intellectual Capital Sweden's Board Member and co-founder Leif Edvinsson commented, "The IC Rating™ score of MindTree indicates that it is not only rich in human capital, but also has the ability to combine it with structure and a strong business model, thus creating an internationally competitive organization."

The various forms of intangibles assessed in the IC Rating are aggregated into four broad areas: human capital, internal structural capital, relational structural capital and business recipe. For each intellectual capital component, the measures are done in three different areas: effectiveness, renewal and risk. Knowledge Management processes and systems accelerate the generation and transformation of various components of intellectual capital.

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Prashanth Rai