This presentation is dedicated to the possibility that a organization can be run more effectively when it concentrates on developing into knowledge firm rather than a product or service firm. Creating such an organization is hard work and not for everyone as it requires leadership in the organization to think differently than they have in the past about what it is that they do.
6. Four Assertions
• Growth without profit is perilous.
• Non rival assets are more leverageable
than rival assets.
• Effectiveness is always and everywhere
more important than efficiency.
• Value-led pricing is superior to cost-plus
pricing for capturing value.
8. Two models
Revenue = Capacity + Efficiency + Cost-plus
pricing
Current Business Model
Knowledge Organization Model
Profit = Capital x Effectiveness x Value-led
pricing
↑ ↑ ↑ ↑
14. Four Forms of Capital
• Financial
• Structural
• Intellectual
• Social
15. Facts about Knowledge Workers
• They own the means of production.
• Their organizations need them more than they
need the organization.
• The office is their servant, not their master.
• Effectiveness is far more important than efficiency.
• Judgments are more important than
measurements.
• Ultimately, they are volunteers.
18. Anti-efficiency
• Continuing education
• Knowledge management/CKO
• Total Quality Service (Ritz-Carlton)
• Mentoring and coaching
• Networking
• Business development
• Social media
• Value-led pricing
19. What you can measure you can manage!
- Peter F. Drucker
21. “The single most important
decision in evaluating a
business is pricing power. If
you’ve got the power to raise
prices without losing business
to a competitor, you’ve got a
very good business. And if you
have to have a prayer session
before raising the price by 10
percent, then you’ve got a
terrible business.”
-Warren Buffet
29. Sage Firm of the Future Symposia
• San Francisco, CA: November 18-19
• Chicago, IL: May 13-14
• New York, NY: August 12-13
http://na.sage.com/fotf
Ed.Kless@sage.com