Time for the CKO

… and why it matters

… and why nowMatthew H. LoxtonJune 2012

80’s and 90’s False Start

• The Gurus– Drucker, Nonaka, Bontis, Dalkirk, Takeuchi, …

• The Message– It’s the “Knowledge Age”– Knowledge Workers are everywhere– Knowledge is the only remaining and sustainable differentiator

• The RealityAll True, but …

– Immature Technology, unprepared management, no integration– Lack of Academic Maturity, Research, Publications– Lack of Practitioners and Purpose– Confusion between technology and praxis

Revisit some Basics

• Wealth• The change in Intangibles

Wealth – Where does it come from?

Knowledge Is the New Oil

• Intangible Assets account for >80% of the market value of the S&P 500 companies

• Knowledge is indeed a key business differentiator

(Adams & Oleksak)

Knowledge Management TodayKM is now a mature & robust discipline

• Academic Maturity– Master’s and PhD programs– Peer-reviewed Journals– Interlocking Disciplines

• Business Maturity– Adoption by many industry leaders– Director and Manager positions– Increasing Integration across firms

• Maturity of Purpose– Operational Enablement (JiTK)– Communities of Practice– Intellectual Capital & Innovation

The CKO RoleLike a CFO, but for Knowledge and ICCKO responsibilities include such things as:

• Providing oversight for inventorying knowledge and identifying knowledge requirements for business objectives

• Developing a framework guiding knowledge management including Organizational Learning, KM Audit, & Onboarding

• Actively promoting the knowledge agenda within and beyond the company to partners, suppliers, and shareholders

• Overseeing the development of the knowledge infrastructure and commoditization and valuation of packaged knowledge

• Facilitating connections, coordination and communications(adapted from Wikipedia, May 30,2012)

KM Activities

Conservation• Interlock with QM on Best

Practices & Continuous Improvement

• Interlock with L&D on Operational Learning & Mentorship

• Interlock with HR on Human Capital and Internal CoP

• Interlock with Finance on Structural Capital & Valuation of Know-How

• Interlock with Sales & Marketing on Relationship Capital & External CoP

Innovation

• Importing alien ideas• Bringing CoPs into contact• Scenario Planning

Not for Everyone

• Business Model– Knowledge is integral to achieving business objectives– Product set is moderately Complex, Critical, or has to

comply with standards or regulations

• Culture & Environment– Learning & Sharing– Established Communities of Practice– Commitment to Transparency & Accountability

• Volatility & Variability

Volatility & Variability

• Market– Laws– Technology– Players

• Products– Broad Range– Frequency of Model Changes & ECO

• Staffing– Turnover– Aging– Skills, Experience, Performance

Why Should You Care?

Adoption Speeds Have Changed

Mary Meeker -2012

Mary Meeker -2012

Mary Meeker -2012

Increasing Trade in IC

“Intellectual property has become one of the most important resources in the 21st century. It’s now an accepted fact that, just like financial capital or commodities or labor, IP is more than an economic asset – it also forms the basis of a global market” Manny Schecter, chief patent counsel at IBM. (Forbes 2012)

• Patent Farming & Collectives• Defensive Patents • Auctions & Sales

The Time is Ripe

• All the immaturity failures of the 80’s and 90’s have been rectified– Focus– Maturity– Integration

• The Role of IC and rate of climb have increased significantly

• Investors and Board Members want more specificity of the “Goodwill Bucket”

• Trade in IC is trending sharply upwards

What’s Next?

• Try the Fit-test Survey• Run your department/organization/client

through the KMOL-C climate survey• Help me understand how knowledge features

in your organization/environment• Tell three people about the CKO role!