S c a n d i n a v i a n b r a n c h of S K A g l o b a l - w o r l d w i d e l e a d e r s i n k n o...

S c a n d i n a v i a n b r a n c h of S K A g l o b a l - w o r l d w i d e l e a d e r s i n k n o w l e d g e m a n a g e m e n t a n d i n t e l l e c t u a l c a p i t a l

SKA Gathering 2003

BusinessIQLeadership and Bottom Line in the Emotional Economy

Egil Sandvik & Bastian Lie-NielsenPartners

Knowledge Management Group DA


SKA Gathering 2003


SKA Gathering 2003

Companies Beta-testing the BusinessIQ


SKA Gathering 2003

BusinessIQ - basic model

.

.

Strategic

behaviour

Leadership

Branding

Identity

Bottom

line


SKA Gathering 2003

BusinessIQ builds on the following:

passionate workers knowledge activists believers passionate customers intellectual capital

Based on research by Gallup,Watson Wayatt Sveiby, Gioia, LevBased on research by Gallup,Watson Wayatt Sveiby, Gioia, Lev

Companies delivering bottom line resultsin the emotional economy have a larger porportion of:


SKA Gathering 2003

Value Creation Bottom line

Talents&Role Leadership

Engaged Employees

EngagedCustomers

Identity and strategic behaviour

”People first”

The People First Perspective for Value Creation

No logo

Branding


SKA Gathering 2003

Human Capital Index

Sveiby Knowledge Associates

March 2003

20 %

60 %

60 %

100 %

60 %

40 %

40 %

20 %

40 %

60 %

100 %

0 % 20 % 40 % 60 % 80 % 100 % 120 %

Utvikling

Bryr seg

Ros

Talent

Hjelpemidler

Forventinger

Bremseklosser Passasjerer Ildsjeler

33 %

67 %

33 %

67 %

67 %

33 %

33 %

33 %

100 %

33 %

100 %

0 % 20 % 40 % 60 % 80 % 100 % 120 %

Utvikling

Bryr seg

Ros

Talent

Hjelpemidler

Forventinger


13 %

19 %

50 %

56 %

88 %

50 %

25 %

13 %

50 %

25 %

13 %

50 %

75 %

75 %

0 % 20 % 40 % 60 % 80 % 100 % 120 %

Utvikling

Bryr seg

Ros

Talent

Hjelpemidler

Forventinger



SKA Gathering 2003

Results: SKA NetworkN=11 (33%)

1. Do I know what is expected of me at work? 4

2. Do I have the materials and equipment I need to do my work right?

3,6

3. At work, do I have the opportunity to do what I do best every day?

3,5

4. In the last seven days, have I received recognition or praise for doing good work?

4,2

5. Does my supervisor, or someone at work, seems to care about me as a person?

4

6. Is there someone at work who encourages my development? 4

Index score 23,3


SKA Gathering 2003

SKA 35 % ”Passionates”

54,5 %

54,5 %

45,5 %

81,8 %

81,8 %

72,7 %

45,5 %

45,5 %

18,2 %

18,2 %

27,3 %

54,5 %

Development

Care

Recognition

Talents

Equipment

Expectations

Critics Followers Passionates


SKA Gathering 2003

Bottom line

Measures employee engagement that correlates with productivity, profits and customer loyalty

Based on research by the Gallup Organization

Human Capital IndexDo I know what

is expected of meat work?

Do I have thetools I need to do

my work right?

At work, do I have the opportunity to do what

I do best every day?

In the last seven days, have I received recognition or praise for doing good work?

Do my supervisor or some-one at work seems to care about

me as a person?

Is there someone at work who encourages

my developement?

.

.

Strategic

behaviour

Leadership

Branding

IdentityIdentity

Bottom

line


SKA Gathering 2003

Bottom line

Measures knowledge sharing

Based on research by Karl Erik Sveiby and Watson Wyatt

Strategy Capital IndexDo I share knowledge

for maximum value creation?

Do I convert individually heldcompetence to systems,

tools and templates?

Do I improve individuals’ competence by using systems,

tools and templates?

Do I allow our customers learn by accessing our

systems, tools & procsses?

Do I learn from customers, suppliers and

other stakeholders?

Do I support our customers’ conversation

with their customers?

.

.

Strategic

behaviour

Leadership

Branding

IdentityIdentityBottom

line


SKA Gathering 2003

Bottom line

Measures customer engagement that correlates with profits

Based on research by the Gallup organization

Customer Capital IndexIs BRAND always a name

I can trust?

Does BRAND always treats me fairly?

If a problem arises, can I always count on BRAND to reach

a fair resolution?

Do I feel proud to be a customer at BRAND?

Does BRAND always treats me with respect??

Is BRAND the perfect company for people like me?

.

.

Strategic

behaviour

Leadership

Branding

IdentityIdentity

Bottom

line


SKA Gathering 2003

Strategyimplementation

Measures identity strenght that correlates with strategy implementation

Based on research by Gioia, Dennis and James

Identity Capital IndexDo I have a strong sense of my company’s mission?

Do I have a sense of pride in my company’s vision?

Do I feel that my company has carved out a significant place

in the market place?

Am I knowledgeable about my company’s history and traditions?

Are my company’s values and culture are perfect for me?

Do I like telling that I am employed by my company?

.

.

Strategic

behaviour

Leadership

Branding

IdentityIdentity

Bottom

line


SKA Gathering 2003

Bottom line

Measures porportion of intellctual capital to financial capital that correlates with bottom line

Based on research by Sveiby and Lev

Financial Capital IndexWhat is the equity of

your company?

What percentage of total capital (both financial and intellectual) is your equity?

What is the market value of your company?

What is the average market to book value in your industry?

What is the comprehensive value of your company?

How much is your company worth?

.

.

Strategic

behaviour

Leadership

Branding

IdentityIdentity

Bottom

line


SKA Gathering 2003

160

140

120

100

80

60

40

20

0

BusinessIQ

HCI

FCI

SCI

CCI

ICI

Average

”smartness”

HCI

FCI

SCI

CCI

ICI

PeriodePeriode11 22

HCI

FCI

SCI

CCI

ICI

33


SKA Gathering 2003

How to increase your score?

Capacity to act

Measuring

Sensemaking

Interpretation of

issuses (Workshop)

Developing

actions.

.

Strategic

behaviour

Leadership

Branding

IdentityIdentity

Bottom

line


SKA Gathering 2003

BusinessIQ compared with BSC

.

Vision andVision andstrategystrategy

FinancialFinancial

CustomerCustomerProcessProcess

Learning andLearning anddevelopementdevelopement

.

Strategic

behaviour

Leadership

Branding

Identity

Bottom

line


SKA Gathering 2003

BusinessIQ compared

Score Card Kaplan& Norton

Balanced Score Card

Sveiby Intangible Assets Monitor

Sandvik & Lie-Nielsen BusinessIQ

emphazises a SBU strategy making the invisible visible

making business of knowledge

measures performance linked to strategy

growth, innovation,

effectiveness and stability

leadership, identity, sharing,

branding and bottom line


SKA Gathering 2003

SKA tools linked to BusinessIQ

.

.

KMAP

Leader-

ship

Branding

+

++

+++

CCS

Invisible

Balance

Sheet

SKA SKA

Intromap/

Tango/

Interplay

Intangible

Asset

Monitor


SKA Gathering 2003

BusinessIQ Simplexity

Implementation

Dynamic

Interactive

Emerging

Focus on capacities to act


SKA Gathering 2003

Enclosure


SKA Gathering 2003

Brand

Internal view of Internal view of

organizationorganization

External view External view

of of


StrongStrong

Trade mark

WeakWeak

StrongStrong

WeakWeak

The branding process

(Desired) image


SKA Gathering 2003

Brand

Internal view of Internal view of


External view External view

of of


StrongStrong

Trade mark

WeakWeak

StrongStrong

WeakWeak

The branding process

(Desired) image

CCICCI

ICIICI


SKA Gathering 2003

IndividualIndividualCompetenceCompetence

ExternalExternalStructureStructure

InternalInternalStructureStructure

$$

10. I share knowledge for10. I share knowledge formaximummaximum value creation value creation

3. I learn from customers,3. I learn from customers,suppliers and othersuppliers and otherstakeholders.stakeholders.

6. I support our customers6. I support our customers’’conversation with theirconversation with theircustomers.customers.

4. I c4. I convert onvert individually heldindividually heldcompetence to systems,competence to systems,tools and templates.tools and templates.

9.I integrate systems, tools &9.I integrate systems, tools &processes and productsprocesses and productseffectively internally.effectively internally.

1.I am Improving the1.I am Improving thetransfer of competencetransfer of competencebetween people in ourbetween people in ourorganisationorganisation..

5. I improve individuals5. I improve individualscompetence by usingcompetence by usingsystems, tools andsystems, tools andtemplates.templates.

8. I allow our customers and8. I allow our customers andsuppliers learn by accessing oursuppliers learn by accessing oursystems, tools & processes.systems, tools & processes.

7.I use 7.I use competence fromcompetence fromcustomers and suppliers to addcustomers and suppliers to addvalue to our systems,value to our systems,processes and products.processes and products.

2. I transfer competence2. I transfer competenceto customers, suppliersto customers, suppliersand other stakeholders.and other stakeholders.

The Strategy Capital IndexSveiby’s 10 knowledge strategies - 5 of the questions are optional


SKA Gathering 2003

Measuring intangibles in two ”similar” units in the same company- Who, A or B, has the better results?

A B

-Actively engaged 17% 55%

-Not-engaged 60% 37%

-Actively unengaged

23% 8%


SKA Gathering 2003

BusinessIQ tools

IntroMap and IntroIQ (learning the concepts) Idépro (brainstorming&concensus tool) Questback (webbased surveys) Learning styles and strenght finder (identifying your

learning style and talent pattern) KMAP (balancing knowledge strategies) Strategic tools (SWOT, VRIO, Visioning, core values) Branding tools (brand wheel) Invisible Balance Sheet (for organizations not on the

stock exchange) Process tools (Idépro, café etc.)


SKA Gathering 2003

Branding - long term strengthening of identity and customer engagement

BehaviourBehaviour

MeasuringMeasuring

SensemakingSensemakingInterpretation ofInterpretation of

issusesissuses(Workshop)(Workshop)

DevelopementDevelopement

CCICCIICIICI


SKA Gathering 2003

Capital indexes as measurement tools Simple indexes that capture emotions and

relations of customers and employees Simplyfies the ideas of Balanced Score Cards The next-generation’s climate-, satisfaction-,

culture- and customersurveys.


SKA Gathering 2003

Knowledge Management Group DA - Scandinavian branch of SKAglobal

About Knowledge Management Group DA

KMG DA develops tools and processes for the knowledge-based organization. KMG DA runs The Norwegian Forum for Intellectual Capital and Consortium for

Intellectual Capital. Counting in excess of 170 members, the Forum is the arena for developing knowledge management and intellectual capital in practice for Scandinavian businesses. In 2001, the Forum and Consortium was awarded “Best Work 2001” by Sveiby Knowledge Associates, its work was published in Fortune Magazine and Thomas Stewart’s book, “The Wealth of Knowledge”.

Knowledge Management Group’s visionKMG DA translates new knowledge of value creation to practical leadership for the

knowledge-based company. Knowledge Management Group DAKMG DA assists and facilitates the development of strong brands and action-based

organizational cultures by using tools and processes developed for the knowledge-based company.

KMG DA emphasizes helping organizations understand, share and apply their existing knowledge of customers and organization. We aim at making organizations better for people.


SKA Gathering 2003

Knowledge Management Group - The people

Egil Sandvik (56)Managing Partner, Chartered Member SKA [email protected]

Bastian Lie-Nielsen (41)Partner, Chartered Member SKA [email protected]

Christian Rafn (55)Partner, Member SKA [email protected]

Christian Rangen (28) Junior Partner, Member SKA [email protected]

www.kmgroup.no

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