From the Industrial Park to the Global Village

The Middle Class worker is sinking in a sea of change ... Is KAM the lifeline?

Knowledge Asset Management (KAM) is an emerging business process that curates the knowledge base within an organization. In the era of the Industrial Park, the value of a business rested primarily in material assets. Although intangible assets, such as brand recognition and market share, played a role in determining the worth of the business, there was no objective way to measure that worth accurately. It was lumped under "goodwill" and priced at whatever number might satisfy a typical buyer in the marketplace.

This obsolete pricing method, although it is still a Generally Acceptable Accounting Practice, simply will not work in the Global Village. Now the potential buyer may be miles apart from the seller in both distance and culture. Because there is currently no easy way to measure the value of the contributions of knowledge workers who now populate the Industrial Park, their value is often dismissed in a sale which pleases owners and shareholders but leaves these workers holding an empty bag once filled with Pension Funds, Income Streams, and Achievable Dreams.

A primary objective of electro-zeta, LLC is to introduce and promote the principles of KAM as a lifeline to save the displaced Middle Class worker from drowning in this sea of change. KAM extends the notion of "good will" into an accounting structure that uses Generally Acceptable Accounting Practices (GAAP) to attribute real value to abstract assets such as the tacit knowledge of a company's workforce.

KAM valuation and reporting is of particular relevance to knowledge-intensive businesses whose financial success rests on the potential value of intellectual property, social media presence and the tacit knowledge of the workforce.

An example of knowledge being appraised as an asset using GAAP?

At UPS it was a common practice for truck loaders and drivers to record loading techniques or route tips they'd developed over the years. Since those artifacts were not identified, cataloged, or valuated, they usually disappeared when employees left the company or went on leave. Once that tacit knowledge was captured and became accessible in a central system, every UPS driver had instant access to it whenever it was needed.

This UPS anecdote underscores the concept of Knowledge Asset Management using knowledge capital valuation techniques. UPS was not trying to manage general “driver/loader knowledge” just their tacit knowledge about specific techniques and routes. To assemble this knowledge artifact required a $600 million route optimization system investment. That’s the top book value of this artifact. The ability to share this knowledge shaved off a documented 1-million miles per month of wasted driver/loader time. At x-dollars per mile, the market value of this artifact can be calculated using Net Present or Future Value formulas. Of course, there is no guarantee that this 1-million per month metric will remain constant. The cost savings can fluctuate much the same as dividends from stock. But the point is that UPS could, if desired, calculate both the market value and future opportunity value of this “driver/loader knowledge” artifact. With that ability UPS has transformed the tacit knowledge of their drivers/loaders into implicit knowledge that can be valuated using Generally Accepted Accounting Practices.

Testimonials

At electro-zeta, we do not provide template solutions. Instead we hunt for the hidden value residing in the processes, products, and services that company leadership has successfully used to build enduring relationships with their customers and with other businesses. For this reason, we place no value on testimonials. Solutions that may have worked splendidly for one client could prove disasterous for another if the knowledge assets of each company do not match. Our hunt for hidden value begins with an Entrepreneurial Strategic Action Plan.

The ESA Plan has three main elements:

  • An oral presentation consisting of 15-20 PowerPoints that details the new venture's business model - i.e the opportunity and the plans to exploite it. (skeleton)
  • An entrepreneurial prospectus that provides the key knowledge artifacts relating to the venture - including sections on preliminaries, the opportunity, the concept outline, the business model, an executive summary, launch action plans with an accompanying deal sheet if required. (flesh)
  • 20+ start-point worksheeets that analyise, clarify and inform the two presentations detailed above. These worksheets should follow the entrepreneurial development thinking model: Need - Idea - Opportunity - Business Concept - Business Model - Entrepreneurial Strategic Action Plan. These worksheets are only for internal use but will prove handy as external stakeholders probe for analysis and answers. (interrogate)

The result is a detailed Knowledge capital Valuation (KcV) assessment of the project.

Visionary Action Template

Introducing Our 2020 Visionary Action Plan.

The 2020 Visionary Plan has three main elements

  • An oral presentation consisting of 15-20 PowerPoints that details the new venture's business model - i.e the opportunity and the plans to exploite it. (skeleton)
  • An visionary prospectus that provides the key details relating to economic principles of the Global Village, the opportunity, the concept outline, the business model, an executive summary, launching action plans with an accompanying deal sheet if required. (flesh)
  • 20+ start-point worksheeets that analyise, clarify and inform the two presentations detailed above. These worksheets follow the entrepreneurial development thinking being - Need - Idea - Opportunity - Business Concept - Business Model - Visionary Action Plan. These worksheets are only for internal use but will prove handy as external stakeholders probe for analysis and answers. (interrogate)

Guiding Principles

Principle 1.
Your working capital gets stuff done.
You use your assets — time, attention, ideas, knowledge, passion, energy, and networks — to make electro-zeta, LLC prosper. This KAM agreement is all about how to leverage your working capital —
and how not to.

Principle 2.
Your contribution is an investment in our mutual success.
Your time and attention are finite, becoming more valuable and sought-after with each new effort you complete. For our sake we must invest your knowledge capital quickly and manage it wisely— ez does it!

Principle 3.
You get better returns on your investment.
If an hour invested in electro-zeta, LLC could be invested in a competitor for greater return, you would leave. That is why ez does it your way. Whatever makes you successful makes us successful as well.

Principle 4.
Hello value, or goodbye.
The electro-zeta company is only a middleman between you, your teammates, our customers, and the marketplace. Your knowledge creates value for electro-zeta. This value must be shared to grow.

Principle 5.
Productivity is not valuable without knowledge.
For every minute spent with electro-zeta, LLC you will be given the opportunity to apply your own special knowledge to the success of the enterprise.

Principle 6.
Form follows passion.
At electro-zeta, we each listen to what rocks our heart, what inspires and excites us, then we set our targets, goals and plans.

Principle 7.
We all use our personal knowledge assets to get things done.
We believe that infrastructure — not just dialogue — is part of the ez does it philosophy. Technology, processes, information flows, and everything that connects us and organizes our work must also meet our personal need for knowledge, as much as they currently meet customer and company needs.

Principle 8.
We win, you win, they win.
Company and customer success are tied to the decisions that each of us makes, and how we make them. So if you focus on creating value for us, (the mavens of your knowledge capital), everybody wins!

Principle 9.
You manage your own portfolio of knowledge assets—ez manages the flow of knowledge.We are business units of one. Together we will set new standards in collaboration, creativity, and innovation.

Principle 10.
ez does it with peer-to-peer connections that deliver personal freedom, growth and success.
We do not compare your best effort, your culture or talents to peers at other companies or even within this company. You are unique and so is each one of us. It is our ability to channel your efforts, culture, and talent into the flow of knowledge that keeps our business well watered. It starts with a trickle and grows to a roaring river that cannot be subdued by mindless bureaucracy.

Principle 11.
electro-zeta transforms how your work is evaluated.
Truly talented people are not driven to please authority figures. So the evaluations, reviews, recognition ez-doers most value come from peers, customers and competitors who are closest to our work.

Principle 12.
The ez does it value starts with me.
An ez-doer accepts personal accountability. Regardless of what the organization does, or does not do, we can add value to other people’s knowledge capital.

As a committed ez-doer, I am accountable for:

Retooling myself even faster and more often than the company expects of me

Helping to create the structure and connections that ensure our customers and the company thrive

Helping to ensure every person around me can swim with the flow of knowledge I have helped create

Asking myself: What knowledge asset can I help grow today?

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