Publisher: Bookhouse, 2002, 230 pages
ISBN: 91-89388-09-7
Keywords: Knowledge Management
The rise of knowledge economics has highlighted a mismatch between current financial reporting systems and intellectual assets. Modern corporations habitually calibrate along a single measure: a financial one. This is corporate latitude. The trouble is that it gives only part of the picture. The other key co-ordinate — the corporate longitude — is missing. A practicable method for measuring longitude — or to put it another way, intellectual capital — is urgently needed.
Where do we register the resignation of a key person? If a top software developer leaves even a company as big as Microsoft it is significant. Where do we register the loss of a key customer or the failure of a key project? The measures by which we all manage only give us half an understanding of where we are or where we re going.
Intellectual capital is a combination of human capital — the brains, skills, insights and potential of those in an organization — and structural capital — wrapped up in customers, processes, databases, brands and systems.
Corporate Longitude provides a way to navigate through the turbulent waters of business and satisfy the need, for new mechanisms, models, measures, and metaphors which will allow us to capitalize on the new reality.
Tries again to define how to measure knowledge and its impact.
A very interesting read, but he fails to come to any real conclusion. He just opens more questions.
Read it anyway, it is thought-provoking, which always is a treat.
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