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