Apples & Oranges
Knowledge Organizations

Key learning points for Knowledge Version

How to optimize value creation through effective use of both tangible and intangible resources:

•	Value in knowledge organizations is created in the meeting between people (competence), customers and structures (tools and processes).
•	How to measure the value of employees, clients, tools and processes.
•	Understand the real market value of a knowledge organization.
•	The importance of using all assets efficiently to improve results.

Program Content - (4 to 6 hour simulation using WorkMat™ and StudyCircle™ discovery learning technology.)

First, there is a discussion of how business is created in a knowledge company. The business is generated in the interaction between the customers, employees and organizational structure. Participants discuss the value of satisfying demanding customers, having skilled people and having excellent tools and processes.

Next there is an introduction to the circulation of capital model and how to describe a company's economy in fairly simple mathematical terms.

Part I: The case - Participants are invited to simulate a case story where a knowledge company goes from mediocrity to excellence with their help. Participants move the value markers around the circulation of capital model mimicking the business operation as seen from the accountant's point of view.

A. People cards - Tell about new people that can be hired and changes among current employees	B. Tools and processes cards - Present opportunities to start development of new tools and processes	C. Customer cards - Introduce potential new customers and inform about events related to the current customers.
D. Management cards - Give brief comments on the current situation and describe what to do next	E. Administration - This is where participants are asked to do everything from invoicing to paying salaries.	In the simulation, value markers that are placed in value carriers illustrate values (money, goods, labor, etc.).

Annual report - Year 1. The focus is on the P&L and Balance Sheet plus Profit per employee and Capacity utilization ratios

A new management tool is introduced - Company market value. To run a knowledge company in an effective way, you must focus on the issues that are of specific importance to this type of company. Therefore, you need additional information about customers, people, and tools and processes.

COMPANY MARKET VALUE* (tangible + intangible assets)
NET TANGIBLE ASSETS (EQUITY)	INTANGIBLE ASSETS (customer value + knowhow value)
	CUSTOMER VALUE	KNOWHOW VALUE (t&p + people competence)
		Tools & Processes Value	People Competence Value

Part II - Crossroads - Now our model knowledge company is more focused on issues important to their company, they need to make an important strategic decision.

The route to success in Year 2 is dependent upon which customers participants decide to go far and how they structured their company to meet customer's needs. The choices are Volume oriented customers or Niche oriented customers.

Annual report year 2 - P&L and Balance Sheet plus focus on Market Value and Return on market value, return on equity, profit per customer, knowhow stability, average competence ratios.

Part III - Time to harvest - The participants are challenged to get as much as possible out of all the assets they have invested in both tangible and intangible to create long term value.

Creating long term value - The most important benefit of monitoring the development of the intangible assets is that you have a platform and a common language for discussing and planning the future.