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Star Series

Preparing for Conversations with Chris Macrae
GAPS: KM As It Is, Could Have Been, Will Be

Chris Macrae
European KnowledgeBoard Editor
Independent Consultant

Warning: Chris Macrae's mind literally bristles with complex, concurrent and connected thoughts on all things knowledgeable which may leave the observer awash and the participant gasping for the breath to keep up with his pace. We have titled this STAR Series Dialogue "Gaps" and Chris begins with a few of them currently bounding around in his very fertile head.

Follow him if you can, if you dare!

  Opening Thoughts by Chris Macrae

The main homework I would like people to do (prior to our Dialogue) is to question what is the (system) gap between where we are (and are heading) and where we could have been (and been heading) with the whole revolution of networks, globalisation, knowledge work etc.

It would be good if we could make the search for big change agendas whose barriers we haven't systemically passed through a communal activity; it might even heal some territorial disChris Macraeputes in KM that don't seem to be getting better.

A few starting points:

This manifesto launched recently to celebrate the 5th year since the advent of cluetrain.com (itself a cry that we are not making the most of community) is a hot start for me because its manifesto is on joining Emotional Literacy & KM.

It also is supported by a group set of bookmarks I have made.

Note: Cluetrain Manifesto co-author David Weinberger was an early STAR moderator:

I would like something on how far the gap is between what I think you call Personal KM and its potential. For me the hub of all this is Drucker's original view of the knowledge worker (and self-organising as a tense system whose conflict with hierarchy needs whole system design changes) and the continuing work of his Claremont school mainly led by Mihaly Csikszentmihalyi with his focus on flow and joy of accomplishment as system energies of good business. I don't know the best starting bookmark to show the gap though a related source is Gallup's 1.5 million interviews showing most people don't feel they get a chance to make use of their greatest talents at work.

Then there are issues about: the social/sustainable/reconciliation impacts of globalisation, and large scale change -- probably the best starting point on this are www.simpol.org.uk. and the search of open space cases alongside this the data collected by the world economic forum on plummeting trust in big organsiations of every type and everywhere.

We might explore whether we understand the adaptivity and critical boundary transparencies needed for partner networks to compound growth instead of falling apart through lack of resiliency and opaqueness to critical knowledge flows or risks -- even things like whether we teach our kids how to use email, social networks and advance the net generation in the way that e.g. Tapscott first started advocating nearly 10 years ago. See my module on how to do email.

And ultimately back to we don't have measures to grow intangibles as the core multiplier of wealth and the strategic innovation that service and knowledge economies should be about if we are to go beyond the industrial age, its zero sum science of planning, and its discrimination against investing in people and in favour of machines.

A company's most vital measurements ­ those connected to whether it is compounding growth or destruction -are not being audited.

Worse the numbers that are most frequently measured are by themselves providing signals that conflict with systemic growth as mapped by value exchange theory of a firm.

It does not particularly matter what we call these measurements which make the future (the organisation is compounding) measurable, though there is a set of mathematical reasons for calling this dynamic valuation of intangibles.

Depending how much time I have, I may be able to build a few more cluster references like the second of the first pair of bookmarks above which follows up emotional literacy. But also if you know where the KM community most likes to start on the sorts of gaps I am talking about, I expect you may be closer as I know where the controversies are but some are not worded in KM's favourite languages, and some go very directly to what's wrong with corporate systems such as www.thecorporation.com. But this seems to be too scary a starting point for the broad KM community to want to start a coherent conversation around in virtuals rather linear modes of conversation.

Of course there's my general web at www.valuetrue.com which includes my survey on the 10 networks most likely to collaborate and change the world in the matrix's row 2, column 1:

And my blog as an update on intangibles crisis.

And the game, Designer Group, on what are the common visual components of human relations systems.


Wherever the Conversation with Chris Macrae starts, it will find plenty of gaps in the continuing quest to find a way to deal with the knowledge phenomenon. Get your thinking caps on.

Jerry Ash

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  Biography

I worked for most of the 1990s in large management consultancies and communications agencies. These days I work as independent but with fairly regular partners from similar backgrounds.

As a writer, my trilogy of practitioner books will be completed later in the year with a co-authored work explaining why intangibles cannot be reported in conventional accounting terms. We map intangibles as the system of relationships connecting knowledge productivities and stakeholders' value demands. Subsystems of knowledge productivity include hierarchy, the selection of self-organising modes the organisations uses (e.g., selection from teams, social networks, practice communities, portal interfaces, etc.) and flows through boundaries of a network of organisations. Typical stakeholder demands to be integrated are those of employees, customers, owners, business partners and societal partners.

Mathematically, we can argue that intangibles comprise relationships across the organisation, which cannot be counted by separation into parts because its value is in connections and dynamic as a system whole. This can literally change knowledge in fundamental ways. At the limit valuation across stakeholder is multiplicative not additive; so you can lose all if one stakeholder sees you as worthless as happened when society completely lost trust in Andersen.

The implication of this is that an organisation must openly detect conflicts between stakeholders and resolve them before they compound period after period; similarly it must ensure that there are no disconnects between its internal action and learning flows; otherwise one employee could zeroise an organisation as with Baring's Leeson, or one partner could cause another's destruction as happened to Swissair

Moreover, an organisation's deepest human purpose needs context specific measures of the opposite kind to generic short-term ones. The latter where they rule alone are perfect maths for eroding purpose and knowledge sharing as happened tragically in NASA's loss of safety its big human goal that wasn't measured with the same compounding intensity as costs and schedules that were governed by quarterly numbers.

We can also model how emotional flows matter at last as much to corporate health as cashflow. It is time that economics interacted with the networking age and it will only do this by discovering how to include emotional literacy factors in its compass. Economics and societal development must be win-wins in my view of futures worthy of all people's lifetimes. It is surely the best time to go beyond zero-sum business modeling.

It has taken seven years of work including interviews with leading report writers on intangibles to iron out the pattern rules of this second maths for governing organisations. Many of these stimulate interesting alternative conversations. They repeatedly show how whole waves of frameworks have been undervalued by management because being systemic they should not be expected to be justified separately or by short-term ROI numbers.

During the 1990s I worked for several years for one of the Big 5 management consultants and was privy to research of vision interviews of the top 30 leaders of another Big 5 firm. I had always known that the valuation of corporate brands (my original research area) was non-systemic. It came as an increasing, if at first tacit shock, to see how all people relationship systems were being measured in ways that were counter to the strategy and identity books that emerged in the 1990s and showed that service, knowledge and network markets were driven by different value dynamics than the industrial age where most people served much smaller roles in what differentiated value.

It is my contention that if KM is an important subject, then it must bridge many disciplines and help intervene to change organisations to make them as humanly valuable as possible. Interestingly, by modeling intangibles as systems of relationships, the future becomes measurable. By this I mean that we can see whether a particular organisation is currently spinning growth or destruction, and KM should be used to help leaders intervene whenever the latter is compounding.

At the European Union's knowledgeboard.com, I have been one of the conversation editors specialising in Emotional Intelligence that was the first interest group concerned with Human KM as opposed to primarily ICT. I also edited most conversations on intellectual capital and networking, and was highly interested in application areas relating to knowledge society as well as business. Whilst attending the EU's main conference debriefing on Knowledge Society in 2002 it became clear to me that all the policy capital areas : Human Capital, Social Capital and Intellectual Capital should be mapped so they interconnect each other. This may as yet be a controversial view but I urge people to discuss it energetically.

I believe that few people have experimented with social networks for as long as I have. This started as a hobby for me with networking scenarios featuring in a book in 1984 co-authored with my father Norman Macrae of The Economist. Its subject was a future history of the first 40 years of globalisation and networks. And as the globalisation system became more and more powerful, this could only spin in one of two ways: that which benefited all of humanity or that which like Orwell's big brother was controlled by a powerful few. As it happened 2005, according to our books timeline, was a crossroads year when man had to decide whether to confront the greatest risk of differences in incomes and expectations between rich and poor nations. The scenario seems to be unnervingly on track. And here anyone who understands network models is devoting quite a large amount of their pro bono time to identifying the most open humanitarian ones and making sure they multiply each other's goodwill and reconciliation reach. I would like to spend the last couple of days of my session comparing what we know so far on this with your members many of whom will have diverse observations to connect to this extraordinary networking exercise.

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