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Time for the CKO

Time for the CKO. … and why it matters … and why now. Matthew H. Loxton June 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

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Time for the CKO

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  1. Time for the CKO … and why it matters … and why now Matthew H. Loxton June 2012

  2. 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 Reality All True, but … • Immature Technology, unprepared management, no integration • Lack of Academic Maturity, Research, Publications • Lack of Practitioners and Purpose • Confusion between technology and praxis

  3. Revisit some Basics • Wealth • The change in Intangibles

  4. Wealth – Where does it come from?

  5. 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)

  6. Knowledge Management Today KM 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

  7. The CKO Role Like a CFO, but for Knowledge and IC CKO 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)

  8. KM Activities Conservation Innovation Importing alien ideas Bringing CoPs into contact Scenario Planning • 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

  9. 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

  10. Volatility & Variability • Market • Laws • Technology • Players • Products • Broad Range • Frequency of Model Changes & ECO • Staffing • Turnover • Aging • Skills, Experience, Performance

  11. Why Should You Care?

  12. Adoption Speeds Have Changed Mary Meeker -2012

  13. Mary Meeker -2012

  14. Mary Meeker -2012

  15. 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

  16. 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

  17. 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!

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