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

[Post written in 2007 about an article on the 2006 gobal MAKE winners (link no longer available) ]

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 years. 

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.