The 7 C’s of Knowledge Leadership:Innovating our FutureArtur GonçalvesSepideh Haeri
2New economic world order• Mainly based on the flow of intellectual not financial, capital.• Profound changes everywhere in the way human talents are managed.• The effective leadership is not having the most knowledge, it is to know how to use it.
3Innovation: the key to survival• Real value is created when connections are made among seemingly isolated elements (Innovation).• Innovation need several sub components, all of which rely greatly on proper knowledge leadership.
4Seven domains to (re) consider for theimplication of knowledge management• (C1) – Context• (C2) – Competency• (C3) – Culture• (C4) – Communities• (C5) – Common Language• (C6) – Communications• (C7) - Coaching
5Knowledge Leadership is a matter of CONTEXT(Financial capital and Human capital orientations)• Both orientations are necessary to ensure optimal flexibility, adaptability and agility• However, new world economic order pushes towards going Human Capital orientation more and more.• Why? Tremendous speed of change in multiple interdependent variables that brings high levels of uncertainty.
6Knowledge Leadership is a matter of CONTEXT Characteristics ofFinancial Capital Orientation (Traditional/Industrial)• Performance measures are static and financial, $$$ are the main asset.• Structure/culture is Competitive, based on market share and there is a distrust of boarders• Leadership concerns: Costs/expenses, profitability• Processes: Independent (isolated islands), Cause/effect• Technology : Information processing, data/information, things/warehouse
7Knowledge Leadership is a matter of CONTEXT Characteristics ofHuman Capital Orientation(Knowledge, Innovation)• Performance measures are dynamic and comprehensive (measuring intangibles). Relationships are main assets.• Structure/culture is collaborating, value-adding and based on sets of alliances.• Leadership concerns: Revenue/Investment , Sustained Growth. (more insight into future)• Processes: Inter-dependent , value system• Technology : Knowledge processing, tacit/explicit knowledge, Flow/Process
8Knowledge Leadership is a matter of CONTEXTWhat today’s leaders must do?• Lead by example• Inspire passion for the work• Walk and talk• Ensure that teams are well prepared for decision making under fast changing, information flooding conditions of today’s world.• Help others stay focused and balanced as they establish priorities.• Convey context and meaning in ways that enable others to leverage their own talents.
9Knowledge Leadership is a matter ofCOMPETENCY• Innovation is believed to be the one competency needed to manage into the future.• It is the key to survival of any being that is going to be sustainable.• BUT ….• There are many Sub-Components• In fact innovation is a compound of several different competences. The individual competencies are %70 generic and %30 field or industry or case dependent.
10Knowledge Leadership is a matter ofCOMPETENCY (2)• Competency Map: is an assessment tool that outlines the skills and behavior required to successfully undertake a position or role.• Banff Centre for management has conducted a research on the subject.
11Knowledge Leadership is a matter ofCOMPETENCY (3)• The research identified 35 competences organized in the following categories: ▫ Direction setting ▫ Change Leadership ▫ Critical Thinking ▫ Organizational development and diversity ▫ Personal/Organizational Balance ▫ Quality ▫ Knowledge and Innovation• Each indicates four levels of apptitude.
12Knowledge Leadership is a matter of COMPETENCY (4)Leadership Training• It is almost impossible to be taught LEADERSHIP.• In fact it can be done in a 5 step LEARNING process: ▫ Step 1: Competency Profiling of the learner. ▫ Step 2: The Learning Contract (customized plan for individual). ▫ Step 3: The Learning Process (hands-on, interactive, feedback, re-focus, real environment and applications, knowledge circle). ▫ Step 4: Re-entry Planning (it is not as simple as teaching - takes a lot of listening exercise, identifying language, motivation and talents in others ready to be nurtured) . ▫ Step 5: Measurement of Impact : Successful DEMONSTRATION of the desired skills and learning competencies is ESSENTIAL.
13Knowledge Leadership is a matter ofCULTURE• Corporate culture is very important.• Over the long term, culture does more to influence the impact of corporate leadership than any other factor.• Innovation is defined as the number-one advantage of the knowledge program, the main obstacle however is the development of knowledge sharing culture!
14Knowledge Leadership is a matter ofCULTURE(2)• Two greatest obstacles to successful knowledge Leadership : 1. Lack of trust 2. Inadequate communications Specifically regarding values, mission and critical success factors. These 2 elements combined with lack of vision seem to be the root of management duress.
15Knowledge Leadership is a matter of CULTURE(3)• Creating and sustaining a culture where knowledge is valued is one of the most difficult challenges in practice.• Appropriate culture are those that:1. Engender change, innovation, openness and trust2. People are recognized and rewarded for their knowledge contribution3. Flexible, networked organizational structures, multiple teams and a climate of intensive and purposeful networking.4. ….
16Communities• Various disciplines started converging in responsibility and practice. ▫ Integrating core principles from the domains of others. ▫ Convergence of functional perspectives and common agendas are emerging. ▫ Growth of circles and networked organizations ( harness creativity and promote cross-fertilization).• (…)The need to know what each other knows ( Brown and Gray, 1995). ▫ Provides insights into how the entire operation may effectively led. ▫ Leaders, will not operate only based on competition. ▫ Collaborate and contribute to the success of one another.
17Conversation and Common Language • Innovation Language ▫ Language that does not focus on a particular function. ▫ Encompass industries, sectors , regions….universal scope • Knowledge language with a glossary of terms ( Skandia and Ericsson in Sweden ) ▫ On-line capability to add terms( more that 400) Appling heritage, purpose, mission and strategy of the enterprise ▫ Spheres of influence ( Once connections are made among internal and external constituents) ▫ Structured conversation and dialog ▫ Flow of meaning Quality and level of conversations Network of conversations ( Ray Stata, Chairman of Analog Devices of Nortwood Massachusetts) ▫ Common Language and shared vision ▫ Encourage Employers to become a community of inquirer’s not advocates, Managers to understand the knowledge, skills experiences of one another
18Communication• Dramatic increase in computer and communication technology. ▫ Explosion of www, e-commerce ▫ strategy of how best leverage the technology ▫ Taking advantage of internal and external mechanisms( group-ware, multimedia, cyberspace ) to optimize results▫ Communication not always technical ▫ Apprise organization and stakeholder of priorities, changes in direction, success stories ▫ Simple but not simplistic communications ▫ Integrate plans with human capital ( knowledge of all stakeholders in the innovation process.) ▫ External messages must be consistent with internal culture, values and vision ▫ How companies are perceived in the marketplace, Platform Knowledge type advertising campaigns ▫ Knowledge economy, not only designed for market products and services ▫ External stakeholders and a motivation tool for employees ▫ Importance of the right words in the right context ▫ Communication strategy as a learning process and also as a dissemination tool
19Coaching• Tow parties – Both responsible. ▫ Forward looking, change oriented, and developmental ▫ Enable client success, productivity, growth, stakeholder value ▫ More about ‘Being’ than ‘doing’ Involves trust, support and shared values.• The coaching relationship enables people to work out issues and find answers through their own effective discovery process.• Successful leaders values others and have a need to ‘know what the other know’.• Ability to coach and be coached. ▫ Value of Mutual talent• Important to have others – motivate their own innovation process. ▫ Personal coaching success fact!
20Measure Leadership• Principles have been around for decades Few organizations have implemented them Fewer have discovered a systematic way to measure the results In recent times, with the significant research being done, institutes began to comprehend, “the power of the intangible value of the enterprise.”• Measure what we can measure ▫ “ I’d rather be roughly right than precisely wrong!” (Leif Edvisson, Chief Knowledge Officer ) ▫ Major research project The intangibles agenda, as a priority! ▫ Best practice guidelines( Skyrme and Amidon, 1999):
21Measure Leadership• Large gap between management expectation and actual achievement of results Most important but the least understood• Traditional accounting mechanisms did not provide reliable ways in measuring the intangibles.• Investing executives ▫ Effective in understanding the past and present ▫ Not very effective in predicting the future directions that companies should take
22A Knowledge Leadership Litmus Test• Knowledge Innovation Assessment ▫ Innovation Strategy is leadership• How innovative is your organization?
23Global Knowledge Leadership map• ENTOVATION network invited to participate in the Global Knowledge Leadership Map.• Variety of disciplines, a wide range of functional responsibilities and representing 50 nations.• They are all playing a role in shaping our new economy.
24 • Admire those who are considered innovation genius • Value of collective • Common language• Value communication process• Coach and be coached• Shared vision• Embrace innovative mechanisms tools and methodologies