31 August 2007

European organizations are failing to effectively create and manage their intellectual capital

I want to attract your attention to the MAKE reports found on this link:

Do start by reading the one on the "global" MAKE winners. It is fascinating and here are the extracts I want to highlight:

The 2006 Global MAKE Winners have been recognized as leaders in:

• creating a corporate knowledge-driven culture
• developing knowledge workers through senior management leadership
• delivering knowledge-based products/solutions
• maximizing enterprise intellectual capital
• creating an environment for collaborative knowledge sharing
• creating a learning organization
• delivering value based on customer knowledge
• transforming enterprise knowledge into shareholder value

Successfully managing enterprise knowledge yields big dividends. The 2006 Global MAKE
Winners trading on the NYSE/NASDAQ showed a Total Return to Shareholders (TRS) for the tenyear
period 1995-2005 of 24.2 % – over twice the average Fortune 500 company median.

The most visible trends over the past nine annual Global MAKE studies are:

• a growing number of organizations are taking on ‘Global’ characteristics – especially
consulting and professional services firms, financial services, energy and media companies.
These ‘Global’ organizations tend to operate as ‘independent’ companies within a Federal
structure and without the traditional corporate head office.
• the capability to innovate and create new products is seen as the competitive edge across a
wide range of business sectors.
• Asian knowledge-driven organizations are competing on an equal knowledge ‘footing’ with
their European and North American counterparts.
• European organizations are failing to effectively create and manage their intellectual capital.
Although US companies maintain a lead in this area, Asian businesses are rapidly narrowing
the gap and may surpass American firms as regional wealth generators within the next five

I let you draw your own conclusions. If you're a leader of a European Company, I hope you got the message loud and clear.

Peter-Anthony Glick


At 9:02 AM, Blogger mahesh said...

good news

thank you


At 2:51 PM, Blogger Peter-Anthony Glick said...

Yes, Mahesh, it is good news for Indian companies. This means also that in most European countries, the KM consulting market is virtually all there for the taking!
But before rushing with technological solutions, consulting firms must promote cultural change at board level.


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