At the beginning of my second year at Tepper, I completed a course entitled Managing Intellectual Capital and Knowledge-Intensive Businesses taught by a wonderful professor, Robert Kelley. In this course, he challenged us to define how we manage and leverage our own intellectual capital so it appreciates over our lifetime. We make so many sacrifices to be full-time MBA students, including large expenses; therefore, a plan to utilize this accumulated asset is beneficial. I've decided to share some excerpts from my own assessment of managing my personal intellectual capital now and into the future using a lot of the concepts and ideas I've gleaned over time in addition to course principles Kelley provided.
MY MISSION
The discovery, application, and dissemination of new knowledge are central to my mission. A focus on education, innovation, community outreach and engagement, and mentorship (both professional and familial) will expand my personal growth and opportunity. Leveraging my intellectual capital to advance social and community development, to improve quality of life, and to foster competition internally and economically will ensure my appreciation of knowledge over time.
PERFORMANCE OBJECTIVES
Establishment of goals for one’s personal life presents different challenges than setting objectives for a corporation. The creation, organization, and application of information in business must convey something meaningful to various individuals who oftentimes utilize different systems and operate worldwide. In contrast, a single individual has the luxury of dealing with a single mind; however, vast amounts of information paired with an ambiguous future still challenge a person to seek direction. Moreover, individuals are forced to balance personal, career, and family tradeoffs to optimize their happiness and self-defined success.
Leveraging Intellectual Capital to appreciate in value over time is commonplace among businesses and essential for personal enrichment, but the former has a rough time executing to preserve firm knowledge, while the latter rarely even broaches the subject. In order to jumpstart my career and path to success, I intend to pursue the following objectives:
1. Strengthen communication skills in my personal relationships and career (both as a leader and to educate those surrounding me)
2. Emphasize continuous learning in both formal and unstructured manners
3. Experiment with life – take risks with business opportunities, geographic location, cultural experience and human interaction
4. Strive to create leading United States early education (K-12) programs that cultivate discovery, innovation and curiosity.
5. Maintain a sound mind and body through consistent exercise and spiritual outlets
6. Develop direct measures of my intellectual capital – Incorporate physical, spiritual, emotional, family, career, and financial health goals to achieve positive NPV and to increase expected future returns
These objectives are outlined in further detail in the Strategy and Implementation section that follows; however, a high-level assessment surely ties these objectives to the creation of a sustainable and value-driven personal Intellectual Capital asset that is constantly evolving as time progresses.
VALUES
The manner in which a person makes conscious decisions and conducts themselves is indicative of the value system they possess. The attributes that define my core value system include: integrity, trust, optimism, ethics, self-confidence, and reasonability. The preservation of any knowledge system is reliant on ethical practices and choices because without them, the system eventually breaks down. I intend to be largely involved in the community and corporate social responsibility is of the utmost importance. In order to create a sustainable business and career, it is necessary to consider the impact one’s actions and choices have on surroundings. Future business will be reliant on these concepts to move forward because society is moving that direction – European companies are nearly a decade ahead of the US in CSR implementation and resourcefulness.[1] Developing a sense of place, unity and community enhances corporate and personal lives. Integration of systems and storage of knowledge assists in this effort.
STRATEGY & IMPLEMENTATION
Long-term success is driven by innovation, strong networks and partnerships, efficient and effective use of technological improvements, renewable business models, and calculated implementation tactics. The act of personal assessment of goals, learning, and achievements is an endless process and this represents what I see for now and into the future as an MBA student. Undoubtedly, as my perspective changes and experiences multiply, the breadth of knowledge I retain will help to drive me to the most stimulating environment. My performance objectives to achieve my value proposition are explicitly detailed with accompanying strategies below:
1. Strengthen communication skills in personal relationships and career (both as a leader and to educate those surrounding me)
The most powerful attribute of a leader is the ability to communicate a vision and then relate to others so ideas may progress to reality. As the world becomes entrenched with technological innovation, modes of communication move away from human contact to electronic and remote interaction. Human interface trumps technological contact in numerous ways, especially in Service Industries and in building personal relationships, so incorporating face time into every aspect of life is crucial. In my career, my intellectual capital could dramatically increase through networking and communicating with individuals on a daily basis about what I have learned and what I seek out of the future. In school, it is rare we step outside to share with family members and with the community our every day stories, concepts, and tools that are gleaned in school; a lot of the information that filters through us disappears when we leave Posner Hall because we did not disseminate the information or store it in a “data and knowledge warehouse”. This trend will likely continue into the future as we graduate on to the workforce because our time will always seem strained, and without a proper system in place to communicate knowledge to others, intellectual capital is lost. It is important for any individual to create a shared context to manage knowledge and implementing a system in my personal life for achieving this objective is crucial. Story-telling and providing real-life examples are effective ways of communicating complex ideas, especially knowledge management.
Implementation/Measurement: Journal entries, blogs, publications, team meetings, presentations, family dinners, speeches, conferences, black tie events, and educational sessions represent tangible solutions to battle communication inadequacy.
2. Emphasize continuous learning in both formal and unstructured manners
The human mind is limitless in potential for acquiring new skills and dreaming up new ideas; however, without exercising and adding to this knowledge bank, one’s contribution is narrow. To truly understand how information and knowledge work to contribute to intellectual capital, the definition of terms is helpful. Machlup refers to information as, “disconnected events or facts and by ‘knowledge,’ [he alludes] to an interrelated system (though others want to confer upon systematic or ordered knowledge the nobler title ‘science.’)”[2] Utilizing data and information to make human calculated decisions creates one’s knowledge base and through the accrual of experience over time, intellectual capital may be enhanced if appropriate steps are taken to constantly advance one’s depth of understanding. Peter Drucker agrees, “[present day jobs] require a good deal of formal education and the ability to acquire and to apply theoretical and analytical knowledge…Above all, they require a habit of continuous learning.”[3] Note the use of language – “habit”. Many people look at success as something they can influence less and less as time progresses because they have already defined themselves in a career. Making a point to be the change agent for advancement and developing the expert method to teach oneself is one of the best tools to achieve success quickly and frequently.
As life guides me in new directions, I must be dynamic in my decision making and ensure that I am keeping up to speed with the industry and market I work in. I intend on working for a start-up company or consulting firm following school. With my interests mainly in health care or education, I foresee a medical degree or masters in education foreseeable formal programs that may add to my knowledge in the future. As I consider these options, I must surround myself with the smartest individuals on these subjects in the world because if I build a business, then I want the expert on my management team because they will be the greatest resource. People have intangible knowledge that cannot be read or replicated, so oftentimes, we must go to the source to reap the best results.
Implementation/Measurement: Attend formal education courses like the MBA program, medical school (if health care oriented career) or teaching courses (if education oriented business), speak with professionals and experts in fields of interest, constantly ask questions to all levels of individuals within an organization, read historical and current journals and newspapers on a daily basis, and teach what I’ve learned to enhance my understanding of a topic and to receive feedback
3. Experiment with life – take risks with business opportunities, geographic location, cultural experience and human interaction
Without experimentation, the world would not evolve; every failure is accompanied by a lesson to be learned which leads to an eventual successful outcome (with enough sweat equity, intelligence, and a bit of luck.) My mind operates with a vision of what the future may look like , but it evolves all the time and that direction may be altered as I see opportunity. My entrepreneurial mindset is often stimulated by ideas for new business ventures on an international scope that are scalable, profitable and create value for people. Coupling these ideas with plans and action will offer the greatest contribution to society, and it is important for me to take chances with management teams, innovations, and lifestyle desires. My commitment to family and need for an active outdoor lifestyle seems to conflict at times with career aspirations as I am trying to discover ideas that will best suit my life. Enhancing my core knowledge with an MBA degree and networking with Entrepreneurs, Venture Capital firms, and business ideas through the Swartz Fellows Programs at Tepper is one way to enhance my pool of resources.
Opening up the door to push back my personal desire to ski the slopes of Colorado while in the company of family is intimidating; yet, I must consider the tradeoffs in moving to Silicon Valley or working with a firm on an international front to achieve what I want on a long-term scale. Moving around, traveling to different nations to understand how international business works, assessing the idiosyncrasies and desires of people, and perhaps consulting with a variety of companies throughout different Industries will support me best for building a business of my own in the near future. Throwing myself into a start-up company without pay and a promise of equity if the company takes off is a huge financial risk, especially with accumulating student loans (bootstrapping can’t be THAT bad); however, the payoff and learning experience may be worth the struggle.
In the midst of risk-taking, making intelligent business choices and entering markets where much promise for increasing returns exists is best. “Knowing what games to play and when to use certain skill sets is crucial. Taking advantage of opportunities often requires cognitive and managerial skill and then using superior technology to execute appropriately. This allows for dynamic capabilities,” explains S.B. Arthur, addressing the opportunities of increasing returns in current businesses.[4]
Implementation/Measurement: Attend class trip to Asia, consider overseas consulting positions, look into startup company opportunities, travel to places classmates live for cultural experience, don’t take first job out of school based on location, sacrifice pay for experience, start a business…probably fail…and start another one, always assess an opportunity before passing up
4. Strive to create leading United States early education (K-12) programs that cultivate discovery, innovation and curiosity.
My long-term career and life objective is to make my imprint in the early development educational system. Fostering a positive environment for children from the moment they enter this world through high school is crucial for dictating the future of our world. Currently, the United States has the leading higher-education system; yet, the public school system for lower education is decreasing in effectiveness and parents are beginning to pull children out of private institutions and charter schools because they seem to have little additional impact for the extra expense. This trend is alarming and stimulation of learning and acquisition of knowledge at a young age dictates how a student will be able to teach themself in the future and what they will aspire to be as an adult. It is important to stimulate interest in science, promote research, improve instruction and methodologies for teaching, encourage interaction and collaboration, and to recognize high achievement in these tasks to provide incentive to achieve greater feats. I set these goals not only for my personal enrichment, but I hope to create a school that has a scalable model (ideally transferable to the public sector) that truly educates our children.
One of the most interesting distinguishable factors between successful and average/poor teaching methodologies is how the program addresses both explicit and tacit knowledge. Explicit knowledge is a formal and systematic system that can more easily be transferred across individuals. Tacit knowledge describes perspectives and beliefs that are embedded in our minds that are often difficult to articulate. Teaching children how to utilize techniques such as figurative language and imagination may connect the two types of knowledge and, therefore, make them more successful in the analysis of ambiguous situations. Nonaka describes in an HBR article an ideal method in connecting explicit and tacit knowledge, “first, by linking contradictory things and ideas through metaphor; then, by resolving these contradictions through analogy; and, finally, by crystallizing the created concepts and embodying them in a model.”[5]
In order to make this business and Intellectual Capital both on a personal and institutional level sustainable, the introduction of Intellectual Property is vital. The model for the school I build will be a form of IP and this is what drives American profits. Wysocki confirms, “The trade surplus – the exports minus imports of this intangible intellectual property – is running at about $25 billion annually, and growing.”[6] Incorporation of proprietary material in a business model will promise greater success than relying on profitability without it.
Implementation/Measurement: Foster relationships with educational experts around the world, government policy officials for educational reform, Gates Foundation education incubators, funders, and potential business partners; immerse myself in all areas of education globally to build model, write down thoughts and names on frequent basis, create ongoing business and strategic plan and communicate to colleagues and friends to promote idea and enhance chance of success, participate in several community or job-related activities involving education planning, development and teaching practices
5. Maintain a sound mind and body through consistent exercise and spiritual outlets
Although it seems Intellectual Capital is largely based on knowledge and information that is circulating among electronic systems, software, and literature, the largest contributor is the human brain. Part of our health entails physical exercise and spirituality. I have a very active lifestyle and try to walk for transportation and run frequently. The introduction of intensive career and education programs tests time and prioritization. My spiritual health has taken a backseat in terms of attending church; however, the personal time I spend in nature and freeing my mind to be able to think clearly accomplishes this objective for the short term. As I build a family of my own it will be important to incorporate these principles into a daily regimen to teach my children the importance of a well-rounded lifestyle.
Implementation/Measurement: Exercise daily (cardio 5-6 times a week, weights 3 times a week), attend church when possible, write in journal and read books to enhance spirituality, practice yoga and meditation to relieve stress
6. Develop direct measures of my intellectual capital – Incorporate physical, spiritual, emotional, family, career, and financial health goals to achieve positive NPV and to increase expected future returns
After spending over $100k on graduate school and foregoing all other career and advancement opportunities in prior career engagements, I am motivated to create the best future for myself both financially and personally to justify this contribution to my Intellectual Capital bank. Several different components exist when assessing the true value of my present Intellectual Capital and this is outlined more explicitly in the Financial Plan that follows. The direct measures to achieve an ever-growing Intellectual Capital base have been defined briefly in the previous objectives and they are important to keep in mind as time progresses. Facilitation of continued professional development and training is helpful, yet a process to monitor, report and award oneself based on achievement of goals ensures continued development.
To achieve self-satisfaction, prioritization of career, family and personal life is key. Learning the value and trade-offs of activities helps to buy time through outsourcing. Jane Spencer offers a good methodology for this tradeoff in her Wall Street Journal article, “How Much is Your Time Worth,” spelling out the following regimen[7]:
1. Calculate what an hour of your time is worth, based on salary after taxes
2. Compare the cost of doing the job yourself with #1 vs. outsourcing
3. Add price of materials if you do it yourself
4. Add labor rates plus time to hire and manage if your outsource
5. Determine best solution
Although many fear outsourcing is driving the Intellectual Capital away from the U.S. as jobs become automated, research shows the contrary, “…total savings from lower wages [due to outsourcing]…are estimated to grow to $20.9 billion from $6.7 billion. The savings are expected to translate into the creation of 317,000 U.S. jobs by 2008, including in construction, education, health care and financial services. Since the beginning of 2003, 104,000 jobs were displaced because of outsourcing.”[8] The net effect is creating new jobs in booming industries with “knowledge jobs” rather than industrial-age jobs. This creates a competitive environment for access and invention of knowledge and ideas, emphasizing the need to stimulate the mind and constantly add to one’s own library of information.
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[1] Essreg, Andrew. Phone Interview. Five Winds International consultant. 9/17/06.
[2] Knowledge: It’s Creation, Distribution, and Economic Significance. Vol. 1, Machlup, F., Princeton, NJ; Princeton University Press, 1986. p.8.
[3] “The Age of Social Transformation,” Drucker, Peter, Atlantic Monthly, November, 1994. p. 62.
[4] “Increasing Returns and the New World of Business,” Arthur, S.B., Harvard Business Review, July-August, 1996. p. 102.
[5] “The Knowledge Creating Company,” Harvard Business Review. I. Nonaka, Nov-Dec 1991. p. 6.
[6] “In U.S. Trade Arsenal, Brains Outgun Brawn,” Wysocki, B., Wall Street Journal, 4/1/00. p. B-1.
[7] “How Much is Your Time Worth,” Spencer, J., Wall Street Journal, 2/26/03. p. D-1
[8] “Outsourcing May Create U.S. Jobs,” Schroeder, M., Wall Street Journal, 3/30/04. p. A-2.
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