Thursday, 14 May 2009
It's a fairly well known quantification, but it's an interesting high level comparison. The Global MAKE awards summary contains the following text.
"Business leaders, analysts and investors constantly ask: “What are the economic and competitive advantages of pursuing a business strategy based on knowledge leadership?” Based on the findings of the 2008 Global MAKE study, the benefits of this approach are tangible and significant.
Successfully managing enterprise knowledge yields big dividends. The 2008 Global MAKE Winners trading on the NYSE/NASDAQ showed a Total Return to Shareholders (TRS) for the ten-year period 1997-2007 of 16.3% – over twice the average Fortune 500 company median".
Whether or not you can directly link that "twice the total return" to knowledge management, or whether you conclude that the successful companies are also the ones that invest in KM, the statistic is still a powerful one.