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Leadership and Leadership and Management in the Management in the Knowledge EraKnowledge Era
Dr. Charles M. SavageKnowledge Era Enterprises, Inc.
Co-Creating the Organizations of the21st Century
BMW BildungszentrumGut Schwaerzenbach
February 6, 1998
2Copyright (c) 1998 KEE, Inc.
These slides are being make available to the participants of the “Inventing the Organizations
of the 21st Century” conference held February 6 and 7, 1998 in Gmund am Tegernsee. Please
feel free to use any or all of these slide in your internal presentations. All I ask is that you keep
the KEE, Inc. logo and the copyright sign on the slides. I would like to hear from you as to
your efforts and your vision to move us more rapidly into the Knowledge Era. And if I can be
of help in any other way, please do not hesitate to contact me.
Dr. Charles M. Savage, President & Mentor
Knowledge Era Enterprises, Inc.1500 Worcester Road, Suite 428
Framingham, MA 01702
Phone: 508-620-5051, Fax: 508-620-0557
E-Mail: charles_savage@compuserve.com
Web: KEE-Inc.com
Copyright (c) 1998 KEE, Inc. 4
New Vortex of Understanding about New Vortex of Understanding about Knowledge EraKnowledge Era
Organizational Learning& Self-Organizing
The Web
Intellectual CapitalCore Competencies
Innovation
Knowledge Management
Emotional Intelligence
Copyright (c) 1998 KEE, Inc. 5
Knowledge DynamicsKnowledge Dynamics
KnowledgeManagement
Explicit
Tacit
Intellectual Capital• Human• Structural• Customer/Supplier
Learning Communities
Innovating with customers
Context
Process: VerbObject: Noun
Vision/Values/Fractals
Competencies
Teaming & Networking
Control
Intellectual Assets
Copyright (c) 1998 KEE, Inc. 6
Knowledge DynamicsKnowledge Dynamics
Explicit
Tacit
Context
Process: VerbObject: Noun
Knowledging
Knowers
Known
Unknown
Copyright (c) 1998 KEE, Inc. 7
Historical ErasHistorical Eras
Agricultural Industrial Knowledge
Copyright (c) 1998 KEE, Inc. 8
Capabilities and AspirationsCapabilities and Aspirations
StoryStory StoryStory
Capabilities Capabilities
Aspirations Aspirations
• • • • • •
• • • • • •
Copyright (c) 1998 KEE, Inc. 9
Sources of Wealth:Sources of Wealth:
Agricultural EraAgricultural Era
LaborHands
KnowledgeHeads
Capital: Money & Machines
Land & Resources
Copyright (c) 1998 KEE, Inc. 10
Sources of Wealth:Sources of Wealth:
Industrial EraIndustrial Era
LaborHands
KnowledgeHeads
Capital: Money & Machines
Land & Resources
Copyright (c) 1998 KEE, Inc. 11
Sources of Wealth:Sources of Wealth:
Knowledge EraKnowledge Era
LaborHands
KnowledgeHeads
Capital: Money & Machines
Land & Resources
Copyright (c) 1998 KEE, Inc. 12
Sources of Wealth:Sources of Wealth:
LaborHands
KnowledgeHeads
Capital: Money & Machines
Land & Resources
Copyright (c) 1998 KEE, Inc. 13
Inventory Turns = Cost of Goods Sold for YearAverage Inventory for Year
Knowledge Turns =Ability to Build Upon other’s Capabilities*
Level of Distrust
*Other’s Capabilities = Individuals, Functions, Lines of Business (LOBs), Suppliers, Customers and Customers’ Customers
Knowledge TurnsKnowledge Turns
Copyright (c) 1998 KEE, Inc. 14
0.1 0.5 1 5 10
Finding Faults Finding Strengths
Trust Distrust
==
==
=
=
=
Individuals:
Functions/Departments:
Lines ofBusiness:
=
=
Suppliers/Partners:
Customers:
Customers’Customers:
5
0.510
Knowledge Turns Knowledge Turns (2)(2)
Copyright (c) 1998 KEE, Inc. 15
Knowledge Turns: ResultsKnowledge Turns: Results
012345678
Indiv
idual
Funct
ion
LO
B
Supplier
Cust
om
er
C o
f C
Copyright (c) 1998 KEE, Inc. 16
Knowledge Turns: ResultsKnowledge Turns: Results
0102030405060708090
100
Indiv
idual
Funct
ion
LO
B
Supplier
Cust
om
er
C o
f C
Poss
ible
Copyright (c) 1998 KEE, Inc. 17
Knowledge Era - The Knowledge Era - The Dilemma!Dilemma!
LaborHands
KnowledgeHeads
Land & Resources
Knowledge Assets: 10 x +Trust: Very LowCompetencyLeveraging: Very Low
Copyright (c) 1998 KEE, Inc. 18
Sources of Wealth:Sources of Wealth:
LaborHands
KnowledgeHeads
Capital: Money & Machines
Land & Resources
Economy ofScarcity
Economy ofAbundance
Copyright (c) 1998 KEE, Inc. 19
Competitive Power of ICCompetitive Power of IC Intelligence and knowledge with unique
insights your competitor can’t envision Innovative products with superlative value
your competitor can’t create Innovative processes with extraordinary speed
and efficiency your competitor can’t match High integrity relationships with superior
collaboration and loyalty your competitor can’t achieve
Global Creativity
Copyright (c) 1998 KEE, Inc. 20
Financial Focus
ProcessFocus
CustomerFocus Human Focus
Renewal & Development Focus
IC Framework at SkandiaIC Framework at Skandia
Copyright (c) 1998 KEE, Inc.
Value in waiting
Value creation resultant
Value creation interactionHuman
Customer Structural
Dynamics of Knowledge Dynamics of Knowledge CapitalCapital
Charles Armstrong, Toronto
Copyright (c) 1998 KEE, Inc. 22
Wealth and OrganizationsWealth and Organizations
Land Labor Capital KnowledgeLand Labor Capital Knowledge
Feudal Proprietor- Steep KnowledgeFeudal Proprietor- Steep Knowledge ships Hierarchies Network-ships Hierarchies Network- inging
Source ofWealth
Types ofOrganizations
LateAgricultural
EarlyIndustrial
LateIndustrial
EarlyKnowledge
Copyright (c) 1998 KEE, Inc. 23
Wealth and OrganizationsWealth and Organizations
Land Labor Capital KnowledgeLand Labor Capital Knowledge
Feudal Proprietor- Steep KnowledgeFeudal Proprietor- Steep Knowledge ships Hierarchies Network-ships Hierarchies Network- inging
Source ofWealth
Types ofOrganizations
LateAgricultural
EarlyIndustrial
LateIndustrial
EarlyKnowledge
Copyright (c) 1998 KEE, Inc. 24
Wealth and OrganizationsWealth and Organizations
Land Labor Capital KnowledgeLand Labor Capital Knowledge
Feudal Proprietor- Steep KnowledgeFeudal Proprietor- Steep Knowledge ships Hierarchies Network-ships Hierarchies Network- inging
Source ofWealth
Types ofOrganizations
LateAgricultural
EarlyIndustrial
LateIndustrial
EarlyKnowledge
Industrial EraIndustrial Era
Knowledge EraKnowledge Era
Human Human Studies Studies
Theory Theory X & Y X & Y
B P R B P R
Industrial EraIndustrial Era
Knowledge EraKnowledge Era
Complexity: Break Apart (Abteilung)Complexity: Break Apart (Abteilung)
Industrial Era: ManagementIndustrial Era: Management
Knowledge EraKnowledge Era
Pay: What you do, not what you Pay: What you do, not what you knowknowOrganization: One person, one bossOrganization: One person, one boss
Values: DistrustValues: Distrust
Resources: ScarcityResources: Scarcity
Industrial EraIndustrial Era
Knowledge EraKnowledge Era
Industrial EraIndustrial Era
Knowledge Era: LeadershipKnowledge Era: Leadership
Complexity: Discover patterns (Synergy)Complexity: Discover patterns (Synergy)
Pay: What you do AND knowPay: What you do AND know
Organization: Community of leadersOrganization: Community of leaders
Values: Trust and valuing Values: Trust and valuing competenciescompetenciesResources: Scarcity AND abundanceResources: Scarcity AND abundance
Theater: Role Theater: Role PlayingPlaying
Industrial EraIndustrial Era
Knowledge EraKnowledge Era
Drama: Authentic Drama: Authentic InteractionInteraction
Theater: Role Theater: Role PlayingPlaying
Industrial EraIndustrial Era
Knowledge EraKnowledge Era
Drama: Authentic Drama: Authentic InteractionInteraction
Uncertainties of Uncertainties of ““where do I fit”where do I fit”
Copyright (c) 1998 KEE, Inc. 32
Supply ChainSupply Chain
Supplier Company Customer
Copyright (c) 1998 KEE, Inc. 33
Supply Chain - extendedSupply Chain - extended
Customers’Customers
Supplier Company Customers
Copyright (c) 1998 KEE, Inc. 34
Customers’ Needs and Customers’ Needs and AspirationsAspirations
Problems & Needs
Aspirations & Opportunities
Copyright (c) 1998 KEE, Inc. 35
Supply Chain: Needs & Supply Chain: Needs & AspirationsAspirations
Supplier Company CustomersCustomers’Customers
Needs Aspirations
Transactions Opportunities
Copyright (c) 1998 KEE, Inc. 36
Valuing Cluster: Interactive Valuing Cluster: Interactive ViewView
Supplier Company CustomersCustomers’Customers
Company Customers
Suppliers/Partners
Customers’ Customers
Copyright (c) 1998 KEE, Inc. 37
Opportunities Grow Opportunities Grow RevenuesRevenues
Company
Customers’ Customers
Suppliers/Partners
Customers
Opportunities
Capabilities
Aspirations
Copyright (c) 1998 KEE, Inc. 38
Skandia AFS Skandia AFS
Working the Whole SystemWorking the Whole System
Skandia
End Users
Funds Managers
BrokersWholesaleAnnuities
ManageFunds
SellAnnuities
Invest inFuture
Select Events
UncertainFuture
Study
Copyright (c) 1998 KEE, Inc. 39
84
Skandia AFS Skandia AFS
Working the Whole SystemWorking the Whole System
Skandia
End Users
Funds Managers
Brokers2200 75,000
1.5 Million
Copyright (c) 1998 KEE, Inc. 40
Transactions
Product Solutions
Business SolutionsMass Customization
PartneringDynamic Teaming,
Virtual Enterprising &Knowledge Networking
StructuralCapital
Human Capital
Customer/SupplierCapital
Evolving Business ModelEvolving Business Model
Copyright (c) 1998 KEE, Inc. 42
The Values ShiftThe Values Shift
Survival TraditionalHierarchy
Partnering Global
FunctionalSkills
InterpersonalSkills
ImaginativeSkills
CommunitySkills
Industrial Era Knowledge Era
Brian Hall, Values Shift
Copyright (c) 1998 KEE, Inc. 43
Enduring CompaniesEnduring Companies
It’s not what youmake, it’s what you
stand forJim Collins
Copyright (c) 1998 KEE, Inc. 44
Summary: Leading & Summary: Leading & Managing in Knowledge EraManaging in Knowledge Era
Seize opportunities through strategic dialogue with suppliers & customers
Build upon strengths and energy in culture of trust
Entrepreneurially, team capabilities and aspirations to grow revenue
Support community of authentic leadersLeverage power of the web
Copyright (c) 1998 KEE, Inc. 45
Enable Knowledge Era Enable Knowledge Era EnterprisingEnterprising
Knowledging
The Key:The Culture of Valuing
makes Knowledging Possible
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