Implications for us?
Dr. Allison Rossett
Modified/updated Dr. J. Marshall 2005
San Diego State University
San Diego, CA 92182-0311
Who cares about all this?
Intellectual capital is the use
of systematic strategies and
tactics to increase the
effective utilization of
knowledge to meet
Why do orgs care?
Increase productivity of
existing people and knowledge
Create a flexible organization
Respond to competitive
Move into new markets
KM or IC projects
Capturing and reusing structured
Capturing and sharing lessons
Identifying sources and
networks of expertise
Building stronger communities
Creating a new culture
Capturing the best and holding
on to it
“Intellectual capital is
packaged useful knowledge.”
What else is it?
What is intellectual capital and why
should we care?
“The inevitable metaphor is the
Above the surface, the financial and
physical resources.... Beneath,
unseen, something vastly larger....
but whose contours noone knows.”
What does Stewart mean?
“Knowledge and information take on their
own reality, which can be separated from the
physical movement of goods and services.”
“To use more of what people know, cos. need
to create opportunities for private knowledge
to be made public and tacit knowledge to be
made explicit.” [p88]
When he trashes universities
Knowledge Creation Cycle(s)
Objectivist: Process of capturing, storing,
retrieving and using knowledge.
Focus on deriving knowledge
from individuals and making it
Constructivist: Based on Polanyi’s 1966
distinction between tacit and
explicit knowledge,” we can know
more than we can tell.” New
knowledge is created through
Tacit Knowledge To Explicit Knowledge
Tacit Socialization: Externalization:
Knowledge Apprentice Dialogue, analogies.
watches master Expert compares
Explicit Informal story Typical of most
Knowledge telling; lunch chats training programs, job
aids, documents, tests
[Nonaka & Takeuchi, 1995]
Currently A KM world
teaching is the business
people and their skills
and knowledge are
technology to deliver
Charles Paulk of Andersen Consulting
“When one of our consultants shows
up, the client should get the best of
the firm, not just the best of the
3 Kinds of skills [p89,90,91]
Commodity: readily telephone, internet
obtained, not in dustry search
Leveraged: know ledge attorneys at a law
that is critical to an firm; NA for a PC
org., part of its identity vendor
Proprietary: co specific KM and ID skills at
skills that define the Leading Way
org and set it apart
“When work is about knowledge,
the professional model of
organizational design inevitably
begins to supercede the
Maybe KM isn’t so great???
From the Wall Street Journal, January 7, 2003:
Where have all the CLOs and CKOs gone?
A corporate phenomenon in the late 1990s, chief knowledge
officers, also called chief learning officers, popped up at
companies like Pfizer Inc., Coca-Cola Co., Monsanto Co. and
BT Group PLC. Some of them installed new computer systems
to help them pursue what was dubbed "knowledge
management." Then came the collapsing stock market, corporate
belt-tightening and a backlash against technology, all of which
prompted many companies to scrap knowledge-management
posts. For example, Monsanto, which appointed a chief
knowledge officer in 1997, opted not to fill the post when the
officer was promoted to another position.
Steve Andriole, a consultant at Cutter Consortium,
Arlington, Mass., looks at the turnabout this way: "CKOs
are like a vitamin pill. They make you feel good, but in a
bear market the only thing that really sells is painkillers."
More than 25% of Fortune 500 companies had CKOs during
the height of the knowledge-management craze, according
to some studies. Mr. Andriole estimates that fewer than
20% of top companies have a CKO or CLO today.
But some CKOs have survived, even thrived, by judiciously
distancing themselves from the original craze, while still
exploiting the concept. Their staying power demonstrates
how even managers closely associated with the most
ephemeral trends can reposition themselves to remain
What is GREAT about it?
Pfizer's Victor Newman is a prime example. In August 2000, the New
York-based pharmaceuticals company named Mr. Newman chief
learning officer and charged him with figuring out how to spread
expertise and insight throughout the company's European arm, rather
than leaving it isolated in pockets of brilliance.
Mr. Newman, who is based in Britain, says the key to his survival has
been concentrating on practical projects to encourage staff members
to talk to one another, rather than trying to use "artificial knowledge-
management concepts to colonize the world." For example, he set up
a program of meetings between managers who have just made a
major decision, such as whether to take a drug into full clinical trials,
with other managers about to make similar decisions. "We don't talk
about knowledge management," he adds.