MIT Sloan Management Review Article on The Long Journey to Understanding Intangible Assets

Imagine that you are 30 years old and looking forward to a working life that could last well into your late 70s. You’ll be working at a time of extraordinary technological change. You’ll engage in jobs that might not yet exist.

Of course, earning money, saving money, and spending that money wisely will be important to you. Money gives you options and creates choices. It makes sense that much of the relationship you have with your employer is mediated by what you are paid to work. Bonus schemes, performance management practices, and performance rankings are all created to define basic salary and differentiate between high and low performers.

Money is a tangible asset. It comes in categories like salary and bonus that we understand, it’s easy to build, count and transfer, and its worth is readily acknowledged. We know when we are building, simply maintaining, or actually depleting our tangible assets.

But what if money wasn’t going to be the most important asset to you? What if the axiom “I work — to earn money — to buy stuff — that makes me happy” is a gross oversimplification of the life you want to lead?