Environmental Disturbance as a Catalyst for Implementation of IC Practice

Purpose of this paper: The aim of this paper is to discuss using a case study approach, how an environmental change for an organisation can be a catalyst for the implementation of intellectual capital (IC) practice. In particular, it uses Laughlin's (1991) 'colonizing' model of organisational change to frame the discussion of transforming the accounting of IC.Design/methodology/approach: This paper presents a case study of change in an Australian public sector organisation, being the New South Wales Department of Lands (Lands), which has implemented IC practice both internally and externally.Findings: In the case of Lands, the impending retirements of the 'baby boomer' generation is an environmental disturbance and was a catalyst that allowed for the implementation of IC practice. Furthermore, Lands' IC practices have led to an accounting of IC, especially its human capital.Research limitations/implications: This case study is limited to the presentation of findings of a phenomenon within a particular organisation within the Australian public sector context. In addition other forces may also have had an effect if not for the presence of the 'ageing workforce' disturbance.Originality/value of paper: The paper discusses a gap in the IC literature which investigates how organisations implement IC practices and the impact of these practices on the organisation. In addition it discusses IC from the public sector perspective