People-focused knowledge management

Performance Is a Function of Many Factors 
Acting Simultaneously
Achieving durable enterprise success is never a question of exe-
cuting a single function excellently or of having a single factor
perform well. Instead, as indicated in Figure 2-6, long-term success
is a result of many factors performing well in a balanced manner. The
figure indicates 11 factors, some of which are interdependent. In
reality, additional factors and mechanisms influence long-term
Ability to 
deliver desired
service
paradigms by 
individuals,
departments
and business
units, and by
the overall
enterprise
Ability of
individuals,
teams, units,
and the
enterprise itself
to deal with
unexpected
events,
opportunities,
and threats
Degree to 
which
undesirable
personal or
systems
behaviors are
controlled and
corrected
Effectiveness
of enterprise
systems,
procedures,
and policies
Ability to
create, produce,
and deliver
superior
products and
services that
match present
and future
market
demands
Effectiveness
of outcome
feedback on
how well
workproducts
perform – in
the
marketplace as
well as within
the enterprise
Degree to which
innovations
occur, are
captured,
communicated,
and applied
Capability of
employees to
deliver the
workproducts
for which they
are responsible
Ability to act in
timely fashion
and adjust
actions to
circumstances
Degree to which
work at all levels
supports
implementation
of enterprise
strategy and
desired direction
Effectiveness
of how inter-
personal work
is performed
through
coordination,
cooperation,
and
collaboration
Enterprise
Long-Term
Success
Figure 2-6
Long-term success is a function of many factors that work simultaneously to
influence performance. Copyright © 2001 Knowledge Research Institute, Inc.
Reproduced with permission.
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The Effective Enterprise
59
success in very complex ways. The important factors tend to be dif-
ferent for different enterprises and external conditions.
The Intellectual Asset Management Mentality
“What’s required is new accounting, a new measurement system
which should be instituted internally within organizations. And we
need a change in mentality” (Lev 2001).
A new, open, and positive culture tends to emerge when an enter-
prise builds and orchestrates an internal practice to deal systemati-
cally and deliberately with knowledge. In this environment,
enterprises build and exploit IC assets, and people share insights and
seek assistance from one another, ascertaining that they under-
stand how best to implement enterprise strategy under a variety of
conditions. Furthermore, people find it easy to open up and discuss
difficult issues, emerging ideas, and tentative opportunities with one
another. They are willing to take “mental” risks that would be
unthinkable in more conventional environments. They seek collabo-
ration to achieve better results quicker and are not afraid to build
upon the ideas of others, nor to let others build on their own ideas.
By opening up to new approaches and perspectives, and by building
on the capabilities of others instead of only relying on their own, they
in effect, expand their “action space.”
9
As people expand their action spaces and become more effective
through collaboration, the whole enterprise improves. Complex tasks
are addressed better and faster. More importantly in the longer run,
innovations abound and make the enterprise more capable and able
to engage in activities that previously were infeasible. People with
intellectual asset management mentality:
Believe that applied knowledge is a dominant factor of personal
and enterprise effectiveness and growth.
Ascertain that best available knowledge is applied.
Assess knowledge needs, availabilities, and potentials to build
or source knowledge.
Build knowledge-related assets by investing wisely with longer
term horizons in line with present and expected business 
directions.
Organize work, knowledge location, and organizational struc-
ture to build and exploit personal and structural IC assets.
Explore to improve work products and services.
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People-Focused Knowledge Management
Apply knowledge as the main factor of personal and enterprise
effectiveness and growth.
Think in terms of threats, opportunities, weaknesses, strengths
(TOWS) assessments of knowledge needs, availabilities, and
potentials to build, source, or exploit IC assets.