Knowledge Capital:
How Knowledge-Based Enterprises Really Get Built

Human Capital: The Rules of Engagement are Changing
Jay Chatzkel

Drawing from his new book, Knowledge Capital: How Knowledge Based Enterprises are Really Built, Jay Chatzkel will examine how organizations are realizing that it is their human capital that is the source of renewal and innovation. Yet, the rules of engagement for human capital are changing. Human capital was thought to be something that an enterprise could control, acquire, directly manage, and come very close to owning. However, successful knowledge enterprises know that human capital can only be brought into full play in a negotiation, where the enterprise and the individual jointly determine mutually satisfying conditions and outcomes. At the same time the organization must redesign itself as a knowledge-based, extended learning enterprise.

These are not simple changes, but they are doable changes. The webcast will delve into four key rules of engagement of the new, knowledge-based human capital framework where the value of human capital can be nurtured, captured, and leveraged for competitive advantage:
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People are the only Active Asset. People are the differentiating factor for an enterprise, and human effort and knowledge efforts are the real levers for achieving markedly higher performance and desired outcomes. In the Internet era, people are often moving faster than management, which needs to stay up with them or else it will be dragged along behind them.
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People are the Owners and Investors of Human Capital. People have taken charge of their human capital and how they want to invest it. Enterprises and managers need to have a strategy and a “deal” (the new social contract) to optimize the return on their investment for human capital both to their employees and to the enterprise.
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Shared Values are the Prerequisite for Knowledge Sharing and Creation. Values plus skills equal capabilities for people and their enterprises. Values provide the meaning and motivation to learn new skills. The challenge resides in evolving sets of connected, strategic values that form the glue for the newly networked organizations.
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Fourthly: Wars of Capabilities. Knowledge management is part of a broader and more integrated effort to manage and develop human capability for business performance, where managers assess the gaps in their workforce and direct interventions and where individual workers take control of their own learning.

During this session attendees will grasp these four major dimensions and form starting points for understanding, intervening, and transitioning their human capital framework as part of building powerful, knowledge-based enterprises.