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Knowledge-Based Knowledge-Based Enterprise Business Enterprise Business Development Guidelines Development Guidelines XIX ADIAT Congress 2008 XIX ADIAT Congress 2008 From Knowledge Management From Knowledge Management to Innovation to Innovation Acapulco, March 6, 2008 Acapulco, March 6, 2008

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Page 1: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

Knowledge-Based Knowledge-Based Enterprise Business Enterprise Business

Development GuidelinesDevelopment Guidelines

XIX ADIAT Congress 2008XIX ADIAT Congress 2008

From Knowledge Management From Knowledge Management to Innovationto Innovation

Acapulco, March 6, 2008Acapulco, March 6, 2008

Jay Chatzkel, PrincipalJay Chatzkel, Principal

Progressive PracticesProgressive Practices

Page 2: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

March 6, 2008March 6, 2008 Progressive PracticesProgressive Practices 22

ObjectivesObjectives

• What is a Knowledge-Based Enterprise?What is a Knowledge-Based Enterprise?

• What are the critical factors to create a What are the critical factors to create a Knowledge-Based Enterprise?Knowledge-Based Enterprise?

• How can the your organization become a How can the your organization become a Knowledge-Based Enterprise?Knowledge-Based Enterprise?

• What are the strategies and next steps for What are the strategies and next steps for making the change?making the change?

Page 3: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

March 6, 2008March 6, 2008 Progressive PracticesProgressive Practices 33

Intellectual Assets/Knowledge:Intellectual Assets/Knowledge:The Fourth Factor of The Fourth Factor of

ProductionProduction

• Land, Labor and Financial Capital - and Land, Labor and Financial Capital - and now Knowledge Capitalnow Knowledge Capital

• Knowledge: An increasing percentage of Knowledge: An increasing percentage of value in organizations, goods and services value in organizations, goods and services

• Are we cultivating and effectively using Are we cultivating and effectively using knowledge in our extended enterprises knowledge in our extended enterprises (i.e., know-how and know-what, learning, (i.e., know-how and know-what, learning, innovation, intellectual property)?innovation, intellectual property)?

Page 4: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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What is a Knowledge-Based What is a Knowledge-Based Enterprise?Enterprise?

• An organization that bases its ability to An organization that bases its ability to create wealth on its capacity to create wealth on its capacity to generate and generate and leverage its knowledge capabilitiesleverage its knowledge capabilities

• Where enterprises and people link to form a Where enterprises and people link to form a knowledge-based network to achieve knowledge-based network to achieve strategic goals, cultivate innovation and strategic goals, cultivate innovation and successfully respond to rapidly changing successfully respond to rapidly changing conditionsconditions

• Has ability to grow, capture, leverage and Has ability to grow, capture, leverage and share its knowledge as the basis for its share its knowledge as the basis for its competitive advantage in the world competitive advantage in the world

Page 5: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Knowledge for What?Knowledge for What?

• What role(s) does knowledge play in What role(s) does knowledge play in your organization?your organization?

• What is your key knowledge issue?What is your key knowledge issue?

• What difference would it make if you What difference would it make if you successfully captured, shared and successfully captured, shared and leveraged the knowledge of your leveraged the knowledge of your extended enterprise?extended enterprise?

Page 6: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Catalysts for Change intoCatalysts for Change intothe Knowledge Erathe Knowledge Era

• Computerization Computerization and the Internet and the Internet

• Globalization/Globalization/Global competitionGlobal competition

• Hyper-exponential Hyper-exponential ChangeChange

Page 7: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Building a Building a Knowledge-Based Knowledge-Based

OrganizationOrganization• Create the VisionCreate the Vision

• Engage in Strategy Making/Stretch GoalsEngage in Strategy Making/Stretch Goals

• Align ValuesAlign Values

• Assess and Nurture Capabilities Assess and Nurture Capabilities

• Enact Operating ModelEnact Operating Model

• Identify AccountabilitiesIdentify Accountabilities

• Establish High Performance TeamsEstablish High Performance Teams

Page 8: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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The Role of a Vision The Role of a Vision

Creating a Vision galvanizes an Creating a Vision galvanizes an organization by:organization by:

• Inspiring people to greater goals Inspiring people to greater goals and linking them to a compelling and linking them to a compelling strategic direction strategic direction

• Putting out the view that the Putting out the view that the organization is moving in an organization is moving in an uncompromising way to a uncompromising way to a significant and promising future significant and promising future

• Being as striking and motivating Being as striking and motivating for everyone in the organizationfor everyone in the organization

Page 9: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Creating the VisionCreating the Vision

• What is our reason for being?What is our reason for being?

• How will we achieve that?How will we achieve that?

• What are our non-negotiable values that What are our non-negotiable values that support us day to day and year to year in support us day to day and year to year in pursuit of becoming more of what we are pursuit of becoming more of what we are and in our strategies for getting there?and in our strategies for getting there?

Page 10: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

March 6, 2008March 6, 2008 Progressive PracticesProgressive Practices 1010

Cemex: Construyendo el futoroCemex: Construyendo el futoroVoluntad Para Emprender RetosVoluntad Para Emprender Retos• Creativa, estratégica, emprendedora... estos son algunos de Creativa, estratégica, emprendedora... estos son algunos de

los rasgos que simbolizan la cultura de nuestra compañía. los rasgos que simbolizan la cultura de nuestra compañía. CEMEX es un lugar de trabajo retador y un gran sitio para CEMEX es un lugar de trabajo retador y un gran sitio para desarrollar las habilidades necesarias para crear valor y desarrollar las habilidades necesarias para crear valor y cementar relaciones duraderas con los clientes, colegas, cementar relaciones duraderas con los clientes, colegas, inversionistas, comunidades y otras audiencias clave.inversionistas, comunidades y otras audiencias clave.

• Una de nuestras prioridades clave es facultar a nuestra gente Una de nuestras prioridades clave es facultar a nuestra gente para que concentre su energía y creatividad en lo nuevo y no para que concentre su energía y creatividad en lo nuevo y no en lo usual. Mediante programas como nuestro Banco de en lo usual. Mediante programas como nuestro Banco de Ideas, impulsamos activamente a nuestra gente a pensar sin Ideas, impulsamos activamente a nuestra gente a pensar sin ninguna concesión y proponer ideas y soluciones bien ninguna concesión y proponer ideas y soluciones bien fundamentadas.fundamentadas.

• Nuestro vertiginoso crecimiento y rápida expansión Nuestro vertiginoso crecimiento y rápida expansión geográfica también subraya las ventajas de contar con una geográfica también subraya las ventajas de contar con una fuerza laboral diversa, compuesta por personas de diferentes fuerza laboral diversa, compuesta por personas de diferentes estilos, capacidades y antecedentes educativos. Por estilos, capacidades y antecedentes educativos. Por consiguiente, estamos comprometidos con el desarrollo y consiguiente, estamos comprometidos con el desarrollo y mantenimiento de un entorno laboral productivo, sano y mantenimiento de un entorno laboral productivo, sano y estimulante, en el cual se trata a todos con imparcialidad y estimulante, en el cual se trata a todos con imparcialidad y respeto.respeto.

Page 11: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Fujitsu-Siemens Vision Fujitsu-Siemens Vision StatementStatement

• ““Understanding you better – serving you best”Understanding you better – serving you best”

• ““The objectives we have set as a company, and the way we want to set The objectives we have set as a company, and the way we want to set ourselves apart from other vendors, are best expressed by our corporate ourselves apart from other vendors, are best expressed by our corporate vision ‘Understanding you better – serving you best.’ We are going to vision ‘Understanding you better – serving you best.’ We are going to concentrate on closeness to our customers – with the commitment to concentrate on closeness to our customers – with the commitment to listen, to analyze their needs, and to supply them with the best solution. listen, to analyze their needs, and to supply them with the best solution. Our vision goes hand in hand with our “we make sure” brand promise and Our vision goes hand in hand with our “we make sure” brand promise and the special "sense of responsibility" that is central to everything we do at the special "sense of responsibility" that is central to everything we do at Fujitsu Siemens Computers. We see our readiness for responsibility as a Fujitsu Siemens Computers. We see our readiness for responsibility as a core strength – one we are constantly nurturing and developing. It shapes core strength – one we are constantly nurturing and developing. It shapes our entire company and determines how we serve our customers and our entire company and determines how we serve our customers and partners. We take this responsibility very seriously, attaching great partners. We take this responsibility very seriously, attaching great importance to delivering real value to our customers and optimizing the importance to delivering real value to our customers and optimizing the quality of our products, solutions and services”. quality of our products, solutions and services”.

Page 12: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Strategy MakingStrategy Making

• The capacity to constantly renew strategies to align and keep The capacity to constantly renew strategies to align and keep pace with evolving customer needs and the marketplacepace with evolving customer needs and the marketplace

• Stretch Goals: Audacious goals that push the whole Stretch Goals: Audacious goals that push the whole organization beyond the normorganization beyond the norm– Sample Goals: Tripling sales in 3 years, raising customer Sample Goals: Tripling sales in 3 years, raising customer

satisfaction by 80%, cutting your cycle time for bringing satisfaction by 80%, cutting your cycle time for bringing products to market by 30%, closing your books in 1/2 the products to market by 30%, closing your books in 1/2 the timetime

– These goals force the organization to rethink its outlook, These goals force the organization to rethink its outlook, structures and processes, and ask people to rethink how structures and processes, and ask people to rethink how they relate to and go about their work they relate to and go about their work

– People need new knowledge, excellent knowledge flows, People need new knowledge, excellent knowledge flows, continuous learning and collaboration to succeed in continuous learning and collaboration to succeed in meeting these stretch goalsmeeting these stretch goals

Page 13: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Values Alignment and Values Alignment and OutcomesOutcomes

• Shared Values – The “glue” holding Shared Values – The “glue” holding organizations togetherorganizations together

• Values + Skills = Capabilities Values + Skills = Capabilities – Values provide the meaning and motivation Values provide the meaning and motivation

(willingness) to learn new skills (new (willingness) to learn new skills (new abilities) abilities)

““Values provide the meaning and the motivation (the Values provide the meaning and the motivation (the willingness) to learn new skills (new abilities). Without willingness) to learn new skills (new abilities). Without both of those in play - values and skills – people rarely both of those in play - values and skills – people rarely sustain the new skills in stressful situations because sustain the new skills in stressful situations because the inner motivation to do so is (the values the inner motivation to do so is (the values component) is missing or weak.” Don Tylercomponent) is missing or weak.” Don Tyler

Page 14: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Cemex ValoresCemex Valores

Nos esforzamos por alcanzar la excelencia en nuestro Nos esforzamos por alcanzar la excelencia en nuestro desempeño, desarrollando relaciones de largo plazo desempeño, desarrollando relaciones de largo plazo construidas sobre la confianza y nuestros valores esenciales construidas sobre la confianza y nuestros valores esenciales de colaboración, integridad y liderazgo.de colaboración, integridad y liderazgo.

• Colaboración:Colaboración: Trabajamos en conjunto y Trabajamos en conjunto y compartimos conocimiento en una búsqueda compartimos conocimiento en una búsqueda constante de la excelencia. constante de la excelencia.

• Integridad:Integridad: Nos comportamos honesta, Nos comportamos honesta, responsable y respetuosamente en todas nuestras responsable y respetuosamente en todas nuestras interacciones. interacciones.

• Liderazgo:Liderazgo: Vemos a futuro y enfocamos nuestros Vemos a futuro y enfocamos nuestros esfuerzos en el servicio al cliente, la excelencia y esfuerzos en el servicio al cliente, la excelencia y una mayor competitividad. una mayor competitividad.

Page 15: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Engaging StakeholdersEngaging Stakeholders

• The vision, values and strategies need to The vision, values and strategies need to cascade throughout the organization, be cascade throughout the organization, be shared with customers and partners for shared with customers and partners for comment and response and adjusted comment and response and adjusted accordingly accordingly

• If people see these changes are in their If people see these changes are in their interests, they will invest their “human interests, they will invest their “human capital” to get a return on that capital and capital” to get a return on that capital and make the stretch goals workmake the stretch goals work

Page 16: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Cemex: Perspectivas de Oportunidades en Cemex: Perspectivas de Oportunidades en PuertaPuertaRetadora y dinámicaRetadora y dinámica• Me gustan los trabajos que presentan retos y ofrecen oportunidades Me gustan los trabajos que presentan retos y ofrecen oportunidades

profesionales; y en mi opinión, escogí la mejor empresa para lograr mis profesionales; y en mi opinión, escogí la mejor empresa para lograr mis objetivos. CEMEX es una compañía en crecimiento muy dinámica.objetivos. CEMEX es una compañía en crecimiento muy dinámica.Ildikó PappIldikó PappCEMEX, HungríaCEMEX, Hungría

InnovadoraInnovadora• CEMEX fomenta la innovación y permite a toda su gente crecer en un CEMEX fomenta la innovación y permite a toda su gente crecer en un

entorno de trabajo retador y creativo. La gente aporta su mayor esfuerzo, entorno de trabajo retador y creativo. La gente aporta su mayor esfuerzo, sabiendo que la compañía apoyará sus iniciativas.sabiendo que la compañía apoyará sus iniciativas.Javier MerleJavier MerleCEMEX, EspañaCEMEX, España

VisionariaVisionaria• Lo que separa a CEMEX de los demás es su visión y las acciones que la Lo que separa a CEMEX de los demás es su visión y las acciones que la

compañía emprende para lograrla.compañía emprende para lograrla.Héctor Kelvin Castillo Then Héctor Kelvin Castillo Then CEMEX, República DominicanaCEMEX, República Dominicana

ProfesionalProfesional• CEMEX ofrece una atmósfera muy profesional y dinámica, donde los CEMEX ofrece una atmósfera muy profesional y dinámica, donde los

valores y la ética son sumamente importantes. Trabajar en CEMEX es un valores y la ética son sumamente importantes. Trabajar en CEMEX es un proceso de aprendizaje que nunca termina.proceso de aprendizaje que nunca termina.Kamla Sherif NassarKamla Sherif NassarCEMEX, EgiptoCEMEX, Egipto

Page 17: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Types of CapabilitiesTypes of Capabilities

• OrganizationalOrganizational– Strategic, Structural, Cultural, Systems and Strategic, Structural, Cultural, Systems and

LeadershipLeadership

• IndividualIndividual– Attributes, Skills, Mindsets, ValuesAttributes, Skills, Mindsets, Values

• GenerativeGenerative– Enable Generation of Other Capabilities: Enable Generation of Other Capabilities:

Learning, Collaboration, Strategy MakingLearning, Collaboration, Strategy Making

Page 18: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Compentencias CemexCompentencias Cemex

• Trabajo de equipo Trabajo de equipo • Creatividad Creatividad • Enfoque en las audiencias clave Enfoque en las audiencias clave • Espíritu emprendedor Espíritu emprendedor • Pensamiento estratégico Pensamiento estratégico • Enfoque al servicio al cliente Enfoque al servicio al cliente • Desarrollo de los demás Desarrollo de los demás • Administración de la información Administración de la información • Desarrollo de alianzas Desarrollo de alianzas

Page 19: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Operating ModelOperating Model

• The operating model consists of the core The operating model consists of the core elements that the organization uses to elements that the organization uses to carry out its strategies:carry out its strategies:– Guiding principlesGuiding principles– Policies for decision-makingPolicies for decision-making– AccountabilitiesAccountabilities– Reworking organizational processes in Reworking organizational processes in

relationship to stretch goalsrelationship to stretch goals– Renegotiating relationships with suppliers and Renegotiating relationships with suppliers and

partners to obtain higher performance and partners to obtain higher performance and productivity. productivity.

Page 20: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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AccountabilitiesAccountabilities

• Every person chooses to Every person chooses to be accountable for making be accountable for making the organization work. the organization work.

• Each individual has their Each individual has their particular set of particular set of accountabilities and those accountabilities and those accountabilities thread accountabilities thread together to insure that all together to insure that all areas of the organization areas of the organization move forward in concert. move forward in concert.

• As demands and stretch As demands and stretch goals change, these goals change, these accountabilities adjust accountabilities adjust accordingly. accordingly.

Strategy

AchievingQuantum

Goals

Vision

Accountabilities

Page 21: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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High Performance TeamsHigh Performance Teams

• Groups become teams through disciplined action. Groups become teams through disciplined action. They shape a common purpose, agree on performance They shape a common purpose, agree on performance goals, define a common working approach, develop goals, define a common working approach, develop high levels of complementary skills, and hold high levels of complementary skills, and hold themselves mutually accountable for results themselves mutually accountable for results

• In any situation requiring the real-time combination of In any situation requiring the real-time combination of multiple skills, experiences, and judgments, a team multiple skills, experiences, and judgments, a team inevitably gets better results than a collection of inevitably gets better results than a collection of individuals operating within confined job roles and individuals operating within confined job roles and responsibilitiesresponsibilities

John R. Katzenbach and Douglas K. Smith, John R. Katzenbach and Douglas K. Smith, The Wisdom of TeamsThe Wisdom of Teams

Page 22: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Experimental Practice FieldsExperimental Practice Fields

• Operating in a changing knowledge organization, Operating in a changing knowledge organization, with its distinct values, practices and norms is with its distinct values, practices and norms is different from how business was done in the old different from how business was done in the old waysways

• People need chances for trial and error to gauge People need chances for trial and error to gauge what they are now able to do, trying out the new what they are now able to do, trying out the new approach in many ways and varied conditions approach in many ways and varied conditions

• Engaging people from all levels and areas on Engaging people from all levels and areas on values, vision, and strategy-making starts new values, vision, and strategy-making starts new thinking and stimulates new actions thinking and stimulates new actions

• Action teams can be organized to experiment with Action teams can be organized to experiment with these new possibilities in service, technology, or these new possibilities in service, technology, or logistics and eventually learnings incorporated logistics and eventually learnings incorporated across the organization across the organization

Page 23: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

Examples Examples

Page 24: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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TelespectraTelespectra

• Telecommunications company facing Telecommunications company facing bankruptcybankruptcy

• Experienced, innovative leader as CEOExperienced, innovative leader as CEO• Strong business strategy – unique nicheStrong business strategy – unique niche• Customer focusedCustomer focused• Shared understanding of operationsShared understanding of operations• Continuous LearningContinuous Learning• 2002 - Customer satisfaction rating was 3.8 2002 - Customer satisfaction rating was 3.8

out of 10.0 …out of 10.0 …November 2005 -Customer satisfaction rating November 2005 -Customer satisfaction rating was 9.3 out of 10was 9.3 out of 10

Page 25: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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WiproWipro

• Originally a salad oil producerOriginally a salad oil producer• Hired GE VP as CEO to start a Hired GE VP as CEO to start a

software/outsourcing organization in 1990software/outsourcing organization in 1990• In 1998, when Wipro went from 5,000 to In 1998, when Wipro went from 5,000 to

10,000 people the CEO called for a 10,000 people the CEO called for a knowledge management program knowledge management program

• Full KM program developed in 2 years Full KM program developed in 2 years • The company is now a knowledge-based The company is now a knowledge-based

global enterprise of 20,000+ peopleglobal enterprise of 20,000+ people

Page 26: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Brembo: The essential is Brembo: The essential is invisible to the eyesinvisible to the eyes

• Smallest of the four global share leaders in the mature brakes Smallest of the four global share leaders in the mature brakes marketmarket

• 5300 employees, 10% working in R&D, operating in 10 countries, 5300 employees, 10% working in R&D, operating in 10 countries, with sales in 70 countrieswith sales in 70 countries

• What makes Brembo different?What makes Brembo different?• Brembo developed the characteristics ”to be fit to its role”Brembo developed the characteristics ”to be fit to its role”

– FocusFocus– FlexibilityFlexibility– SpeedSpeed

• Not automotive parts but Not automotive parts but Auto-E-MotiveAuto-E-Motive: “The Pleasure of Driving, : “The Pleasure of Driving, the Pleasure of Braking” the Pleasure of Braking”

““A simple business idea: To produce the highest performing A simple business idea: To produce the highest performing brakes in the world”brakes in the world”

Page 27: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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The Results Tell TheThe Results Tell The Brembo Brembo Story Story

• From 1996 to 2007, sales increased from €181 million to €912 millionFrom 1996 to 2007, sales increased from €181 million to €912 million

• Keys to success:Keys to success:– Sustainable growthSustainable growth– Appreciation from the financial worldAppreciation from the financial world– Corporate governanceCorporate governance

• 2008 Formula One season Brembo will supply:2008 Formula One season Brembo will supply: BMW Sauber F1 Team, Force India Team, Honda Racing F1 Team, Panasonic Toyota Racing, BMW Sauber F1 Team, Force India Team, Honda Racing F1 Team, Panasonic Toyota Racing,

Red Bull Racing, Scuderia Ferrari Marlboro, Scuderia Toro Rosso\Red Bull Racing, Scuderia Ferrari Marlboro, Scuderia Toro Rosso\

• AwardsAwards– 2007 - 2007 - Italian Prize of Mechatronics, science that combines electronics, Italian Prize of Mechatronics, science that combines electronics,

 informatics and mechanics.  informatics and mechanics. – 20062006 – Italian Creativity Award – Italian Creativity Award– 20052005 - National Corporate Social Responsibility Award - National Corporate Social Responsibility Award – 2003 and 20052003 and 2005 - Best Ferrari Partner in Innovation - Best Ferrari Partner in Innovation – 20012001 - Oscar Award for Financial Statements and - Oscar Award for Financial Statements and

Communications for listed companiesCommunications for listed companies

Page 28: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Code of Ethics and Code of Ethics and GovernanceGovernance

• Code of Ethics Code of Ethics – Distributed to all employees Distributed to all employees – Guideline for making business decisions and determining the Guideline for making business decisions and determining the

conduct of all collaboratorsconduct of all collaborators

• Code of Corporate Governance: An Attitude – Not a Code of Corporate Governance: An Attitude – Not a DutyDuty– Corporate Governance is the relationship of esteem and trust Corporate Governance is the relationship of esteem and trust

among people that must permeate every single aspect of among people that must permeate every single aspect of company life company life

– An affirmation of values inspired by recognised and shared An affirmation of values inspired by recognised and shared ethical principlesethical principles

– Maximum transparency, rules, ethics, and reputation as the Maximum transparency, rules, ethics, and reputation as the basis of its intangible assets, its brand name and its valuebasis of its intangible assets, its brand name and its value

– Annual Corporate Governance ReportAnnual Corporate Governance Report

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Intangibles for Brembo - Phase 1Intangibles for Brembo - Phase 1 Selection and measurement of most Selection and measurement of most

significant indicatorssignificant indicatorsBalance SheetBalance Sheet ComponentsComponents

Customer Customer CapitalCapital

•Network of relationships created with the marketNetwork of relationships created with the market

•Customer satisfactionCustomer satisfaction

•Perceived product qualityPerceived product quality

•Brand awarenessBrand awareness

Human CapitalHuman Capital •CompetenciesCompetencies

•Know howKnow how

•TalentsTalents

•AttitudesAttitudes

Structural Structural CapitalCapital

•Innovation capabilityInnovation capability

•Manufacturing efficiency Manufacturing efficiency

•Organisational structureOrganisational structure

•Sustainable corporate culture compared to business Sustainable corporate culture compared to business goalsgoals

•Alignment and cohesion of managementAlignment and cohesion of management

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Phases 2, 3, and 4Phases 2, 3, and 4 • Phase 2 - Implementation of selected Phase 2 - Implementation of selected

indicators into the corporate management indicators into the corporate management modelmodel

• Phase 3 - Integration of intangible assets in a Phase 3 - Integration of intangible assets in a coherent model of corporate governancecoherent model of corporate governance

• Phase 4: From Potential to TangiblePhase 4: From Potential to Tangible– Correlation of intangible indicators with the Correlation of intangible indicators with the

“traditional accounting system”“traditional accounting system”– A new way to look at financialsA new way to look at financials– An instrument for “Predictive Management”An instrument for “Predictive Management”

Brembo’s Intellectual Capital Report at: Brembo’s Intellectual Capital Report at: http://www.brembo.com/ENG/AboutBrembo/InvestorRelations http://www.brembo.com/ENG/AboutBrembo/InvestorRelations

FinancialInfo/CompanyStructure/FinancialInfo/CompanyStructure/ Brembo Presentation at: Brembo Presentation at:

http://www.ferraraonintangibles.net/OECD-http://www.ferraraonintangibles.net/OECD- FerraraIntangiblesConference/index.php?FerraraIntangiblesConference/index.php?

cat=16&proceedings=2cat=16&proceedings=2

Page 31: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

How can your How can your organization become a organization become a

Knowledge-Based Knowledge-Based Enterprise?Enterprise?

Page 32: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

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Take Control of the Future: Take Control of the Future:

Next Steps Next Steps • Explore your organizational goals and how it can Explore your organizational goals and how it can

develop a knowledge strategy for it to become a develop a knowledge strategy for it to become a Knowledge-Based EnterpriseKnowledge-Based Enterprise

• Map out the opportunities and blocks to becoming Map out the opportunities and blocks to becoming a knowledge-based organization a knowledge-based organization

• Involve people and organizations in your Involve people and organizations in your organization and network to discuss the organization and network to discuss the opportunities to become a Knowledge-Based opportunities to become a Knowledge-Based Enterprise Enterprise

• Initiate a set of pilot projectsInitiate a set of pilot projects• Build your capabilities as a Knowledge-Based Build your capabilities as a Knowledge-Based

Enterprise by facilitating the realization of those Enterprise by facilitating the realization of those strategies and projectsstrategies and projects

Page 33: Knowledge-Based Enterprise Business Development Guidelines XIX ADIAT Congress 2008 From Knowledge Management to Innovation Acapulco, March 6, 2008 Jay

March 6, 2008March 6, 2008 Progressive PracticesProgressive Practices 3333

For More InformationFor More Information

Contact:Contact: Jay ChatzkelJay Chatzkel

Progressive PracticesProgressive Practices

1-623-551-52301-623-551-5230

[email protected]

Websites:Websites:www.progressivepractices.com and andwww.knowledgecapitalbooks.com