Proceedings of the 3rd European Conference on Intellectual Capital

John Girard
don’t know.” (Bennet & Bennet, 2004) This is exactly what Rumsfeld was suggesting. If we know that
we do not know something <strong>the</strong>n we can develop a plan to find out more. Likewise, if we do not know
that we know something <strong>the</strong>n again we can develop a plan to find <strong>the</strong> missing link. Both <strong>of</strong> <strong>the</strong>se
issues are dealt with during external and internal scanning, competitive intelligence, and <strong>the</strong> like.
Unknown
Knowns
Known
Knowns
Unknown
Unknowns
Known
Unknowns
Figure 1: Rumsfeld’s unknown unknowns
The 2 X 2 matrix is a useful way to categorize <strong>the</strong> challenges confronting many originations.
Unfortunately, most leaders focus on <strong>the</strong> easy bits: things <strong>the</strong>y know and things that <strong>the</strong>y know that
<strong>the</strong>y do not know. Many organizations ignore <strong>the</strong> upper right-hand quadrant – <strong>the</strong> unknown unknowns
– because it is just too difficult. Perhaps some ignore this quadrant because <strong>the</strong>y do not know what to
do. A very good example <strong>of</strong> a time-tested tool to conquer this quadrant is data mining as discussed
earlier in this paper. That said, to some degree <strong>the</strong> avoidance <strong>of</strong> <strong>the</strong> upper right-hand quadrant is a
symptom <strong>of</strong> <strong>the</strong> not on my watch syndrome. Many leaders do not wish to dig too deep into <strong>the</strong>
unknown unknowns because it is uncharted territory. Equally concerning is <strong>the</strong> fear that discovering
unknown unknowns will expose a corporate Achilles heel . . . Then what would we do?
The o<strong>the</strong>r quadrant that <strong>of</strong>ten creates anxiety is <strong>the</strong> upper left or unknowns knowns quadrant. One <strong>of</strong>
my favorite stories about this quadrant features a large technology company. The story is loosely
based on a real company, but given I embellished a few parts to make my point, I must declare it is a
fictional company – let’s call <strong>the</strong>m IQ. IQ is a well-known brand that for many years operated with a
divisional organization structure. Once a year, each <strong>of</strong> <strong>the</strong> divisional vice presidents were afforded <strong>the</strong>
opportunity to brief <strong>the</strong> Board <strong>of</strong> Directors on <strong>the</strong>ir plans for <strong>the</strong> future. This rare occasion was seen to
be a time when senior executives could describe <strong>the</strong> next big thing that would provide IQ with a
competitive advantage.
One year, <strong>the</strong> printer division’s vice president was extremely excited about his time with <strong>the</strong> Board. He
was sure <strong>the</strong> directors would agree that his new idea, a printer that could also scan, would be a
history-making innovative product, a must have for many small businesses. The R&D arm <strong>of</strong> <strong>the</strong>
printer division had been working secretly on <strong>the</strong> project for some time. After investing considerable
resources, <strong>the</strong>ir prototype was ready to be showcased to <strong>the</strong> Board. They were very proud <strong>of</strong> <strong>the</strong>ir
clandestine operation; it was quite a coup that none <strong>of</strong> <strong>the</strong> technology press had picked up on <strong>the</strong>ir
work.
Finally, <strong>the</strong> big day arrived. The vice president was waiting patiently in <strong>the</strong> anteroom reviewing his
presentation. Suddenly, an unprecedented level <strong>of</strong> applause from inside <strong>the</strong> Board Room interrupted
his thoughts. Shortly afterwards <strong>the</strong> vice president <strong>of</strong> <strong>the</strong> scanner division emerged, smiling, and
clearly happy with her performance in <strong>the</strong> room. The printer executive politely asked his colleague
why <strong>the</strong> Board erupted into applause. After a short pause, she replied, “I just showed <strong>the</strong> Board our
prototype for <strong>the</strong> next big thing . . . a scanner that can also print.” Needless to say, <strong>the</strong> printer
executive was no longer excited about briefing <strong>the</strong> Board.
The moral <strong>of</strong> <strong>the</strong> story is that a need to know culture, which is commonplace in many technology
companies, does not facilitate knowledge sharing. Here is a case where senior executives did not
share, let alone, collaborate on <strong>the</strong> project. Imagine if <strong>the</strong> two divisions shared resources and
knowledge to design <strong>the</strong> printer scanner. Regrettably, many organizations fall victim to <strong>the</strong> unknown
knowns because <strong>the</strong>y do not foster a collaborative environment with a need to share philosophy.
3. We have a problem!
The nightmare scenario for many executives is a call in <strong>the</strong> night that begins with <strong>the</strong> words “We have
a problem!” Almost certainly one <strong>of</strong> <strong>the</strong> most famous problems was in April 1970 when astronaut Jack
Swigert, aboard Apollo 13, radioed Houston and said <strong>the</strong> famous, but <strong>of</strong>t misquoted, phrase “Houston,
5