Sensemaking, sensegiving and sensebreaking
Authors: Giuliani Marco 
Published: April 2016

Purpose

– The purpose of this paper is to investigate how organizations make sense of and give sense to intellectual capital (IC) measurements, i.e. to analyse the sensemaking, sensegiving, and sensebreaking processes with reference to IC measurements. In order to achieve this aim, a case study, developed adopting an action research approach, will be presented.

Design/methodology/approach

– This study is based on a case study for which an interventionist research method was adopted.

Findings

– The main findings are the following. First, the development of an IC project requires the development of an intense sensemaking and sensegiving activity as the managers of an organization need, first, to make sense of this new object (i.e. assign it a meaning) and of the consequent new managerial practices and, second, to diffuse the sense of IC and of its measurements within the organization. Second, the development of an IC project can be seen as a series of different types of sensemaking micro-processes (guided, fragmented, restricted, etc.) and each of them can lead to a different outcome of the practice of measuring IC; thus, it seems possible to argue that the outcome of the project depends on the specific type of sensemaking/sensegiving adopted in each phase (e.g. lock-in, mobilization, etc.). Third, it emerges that IC can be a sensebreaking device, i.e. existing measurements introduced in an “IC box” can acquire different meanings. Finally this study underlines the relevance of the “leaders” within the development of IC sensemaking processes and the related outcomes.

Research limitations/implications

– The main limitations of this study are twofold. The first is related to the methodology adopted and to its specific pros and cons. The second is related to the specificities (size, managerial approach, etc.) of the case examined. This paper contributes to the extant literature regarding the production and use of IC measurements “in practice” as it highlights what happens when an IC measurement system is implemented. Moreover it contributes to the development of a “theory of indicators” as it suggests aspects regarding how IC indicators are interpreted. Finally, the paper adds to the growing stream of analysis dedicated to the micro-processes of sensegiving and other sensemaking patterns, i.e. to the studies focused on how measurements are “shaped” “through the creative oral intertwining of accounting and other organizational knowledge”.

Originality/value

– Differently from the extant literature, this study does not adopt a theoretical perspective on how measurements are designed and used but is aimed at investigating how these measurements are designed and used “in practice”. Moreover, this study analyses the use of IC measurements focusing specifically on the micro-processes of sensemaking, sensegiving, and sensebreaking that tend to be overlooked. In other words, this study examines sensemaking processes related to IC measurements, i.e. the sensemaking of IC measurements and by means of IC measurements. Finally, this investigation considers the different types of sensemaking processes in order to interpret the different outcomes of measuring IC.