Page 350 -

Knowledge Management Strategy 333

to be clearly identifi ed together with where this critical knowledge exists and where
it goes (knowledge fl ow analysis). The knowledge fl ow can then be further analyzed
to assess how fl uid or how institutionalized the knowledge has become and whether
any gaps in key competencies exist.
In summary, there is a need to continually monitor and rebalance, to reconfi gure
or expand an organization ’ s knowledge assets as triggered by mistakes, changes in
environment, changes in competencies, and/or changes in performance. It is impor-
tant to remember that an organization is a complex adaptive system operating in a
complex dynamic environment, and the ultimate goal is that of a dynamic equilib-
rium between fl uidity and institutionalization pressures. Just-in-time discipline can be
applied, together with a focus on culture. The speed and accuracy with which knowl-
edge is transmitted must be optimal. The best example of nonoptimal conditions is a
reenactment of the telephone game — when the message that is transmitted to the fi rst
individual becomes progressively more garbled with each repetition. Other useful
questions to ask are:
• How changeable is the knowledge?
• What is the useful half-life of knowledge?
• What type of information technology is being used for knowledge sharing?
• What about innovation support systems?

Types of Knowledge Assets Produced

Intellectual assets (IA) are the intangible and often highly valuable assets that can
include brands, employee know-how, trade secrets, and technical information. IA also
covers intellectual property (IP), those assets such as patents and trademarks that are
formally protected by statute law. Generally, intellectual capital refers to the difference
between a company ’ s market value and its book value. It consists of organizational
knowledge and the ability of the organization ’ s members to act on it. Intellectual
capital is often used synonymously with the terms intangible assets, intellectual assets,
or knowledge assets.
Intellectual capital includes not only traditional intangible assets such as brand
names, trademarks, and goodwill, but new intangibles such as technology, skills, and
customer relationships. It is the resources that an organization could — and should —
make the most of to obtain competitive advantages.
Many present-day business managers are intrigued by the potential hidden value
that the intellectual capital perspective suggests lies untapped within their businesses.
However, managers do not know what kinds of value they could obtain from their