Preparing
for Conversations with Verna Allee
Knowledge, Networks
and Value Creation
Verna Allee
Author,
International Speaker
President, Verna Allee Associates
 Biography
The Association
of Knowledgework is pleased to have Verna Allee, M.A., an internationally recognized
thought leader and author in value networks, knowledge management,
intangibles, and new business models as guest moderator for the
April, 2003 STAR Series Dialogues. 
Using principles
derived from living systems theory, Verna demonstrates how management
thinking and practices are evolving to support increasing levels
of complexity and network dynamics. As president and founder
of Verna Allee Associates, she consults with a wide variety of
organizations from global corporations and entrepreneurial startups
to government agencies. In addition her work is expanding to
support local and international cross-organizational networks.
Verna is a frequent
keynote presenter at conferences nationally and abroad and is
a Fellow of the World Business Academy. She acts as advisor for
special projects in intellectual capital and the knowledge economy
with Stanford University, the Brookings Institution, European
multi-organizational task forces, and Digital4Sight. In July
2001, she was featured in the cover article of KM Magazine as
one of the top six movers and shakers in the knowledge management
field. She is an adjunct faculty member of Alliant International
University and holds degrees from U.C. Berkeley and JFK University.
Her latest book,
The Future of Knowledge:
Increasing Prosperity through Value Networks, was released
in September 2002. Her first book, The
Knowledge Evolution (1997), is a continuing best seller
in the knowledge management field. She is the originator of a
unique knowledge complexity framework, Knowledge Links , and
is the developer of the HoloMapping and ValueNet Works tools
and methods for understanding complex systems and value creation.
KonvergeandKnow
of Canada publishes the Verna Allee Toolkit(tm), featuring web-enabled
learning modules and applications for her innovative methods.
She is also a contributor to a variety of business journals,
books, and prestigious reports. Her forthcoming publications
include What Is True Wealth and How Can We Create It?
co-edited with Dinesh Chandra (Sharma Publishers, India). She
resides in Northern California, surrounded by sisters, friends,
pets, and wildlife.
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Introduction
The first job
of a manager is not to make decisions but to make sense.
Alan
Weber, Fast Company
There is really
only one management question: What do we need to pay attention
to in order to be successful? Business people knew what to
pay attention to thirty years ago: profits, expenses, production,
and labor. While those are still good business fundamentals,
in the last few years we have begun to appreciate that we need
to expand our focus and pay attention to very different things
than we have in the past.
- We now know we
need to pay attention to knowledge, understanding how to better
leverage organizational knowledge and intelligence to create
value.
- We now know that
intangibles and intellectual capital need to be treated as true
strategic assets.
- We now know that
we must learn how to be better global citizens and create working
relationships with people of every culture and nationality.
- We know that every
enterprise must pay attention to how the digital evolution is
unfolding and build technology capability for both today and
the future.
The larger story
behind these new perspectives is the way organizations themselves
are evolving. The natural network patterns of business are beginning
to dominate working life. Like a universe expanding, the reach
of every company is expanding with the help of the Internet,
which itself expresses the principles of a living network. Boundaries
are fuzzy and permeable. Successful networks are built on complex,
mutually rewarding, and trusting relationships. Central control
is not only impractical; it is becoming impossible. Instead of
mandates passing through chains of command, we find streams of
data and information flowing in every direction, empowering people
to make their own decisions and adjust their actions according
to a shared common purpose.
To develop the skills
and knowledge we need for the emerging economic order, we are
engaged in a massive business-learning journey. The meta-level
learning that we are all engaged in is-learning to work with
network principles.
In the course of
this conversation, we will look at how these different themes
are weaving together into a more coherent understanding of enterprise
from a living systems perspective. Now, don't worry that this
all sounds very theoretical. Kurt Lewin o reminds us that there
is nothing as practical as good theory. After all, when all
is said and done, it is not knowledge alone that is important-but
how knowledge and intangibles can be leveraged to generate real
value and business success. I will demonstrate through stories
and examples just how simple and practical a value network
perspective really is.
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How to Prepare
for This Conversation
The emphasis in
this conversation will be on the processes of knowledge and value
creation, particularly through network perspectives and methods.
I assume that most of you are generally familiar with practices
in knowledge management, communities of practice and intellectual
capital. If you are not, then I suggest you review the archives
of the previous Star Series conversations with Hubert
Saint-Onge and Karl-Erik Sveiby,
whose work is especially relevant to what we will be discussing.
In addition, you might want to check out the following articles:
- The Value Evolution
- A Value Network
Approach
- Knowledge Networks
and Communities of Practice
They are at
http://www.vernaallee.com.
Click on Library, then on Library Articles
Those of you who
are interested in living systems might want to pick up a copy
of Fritjof Capra's book The
Web of Life. I also strongly encourage you to get a copy
of my new book, The Future
of Knowledge: Increasing Prosperity through Value Networks,
which fleshes out many of the themes we will be exploring.
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