Proceedings of the 3rd European Conference on Intellectual Capital

Katja Pook and Campbell Warden
translations can be achieved from outputs to outcomes 8 . Some multinational enterprises , e.g.
General Electric, use a process that entails key people moving backwards and forwards between R+D
and Marketing. They have identified <strong>the</strong> advantages <strong>of</strong> “knowledge transition” inside <strong>the</strong> people who
move between key departments as <strong>the</strong>y bring with <strong>the</strong>m <strong>the</strong> “contextual understanding” that cannot
be readily codified. As a result, in many R+D intensive companies, “Research targets are established
centrally first, and groups with different expertise are formed around <strong>the</strong>m. These multidisciplinary and
cross-business function programs are aimed at technology leaps in strategic areas.” These
developments have been <strong>the</strong> logical result <strong>of</strong> what M. Gibbons et al. (1994) referred to in <strong>the</strong>ir
discussion <strong>of</strong> how, “Best practice has moved from a customer-contractor model toward ‘joint
production <strong>of</strong> knowledge’”. But it is not only <strong>the</strong> production <strong>of</strong> knowledge that makes participatory
approaches valuable, but <strong>the</strong> entire way from vision to action: The value <strong>of</strong> <strong>the</strong> results <strong>of</strong> engaging in
Foresight depend, not only on <strong>the</strong> strength <strong>of</strong> <strong>the</strong> achieved expert opinion and consensus building, but
also on <strong>the</strong> capacity <strong>of</strong> <strong>the</strong> stakeholders to influence future trends and events. IC Reporting can be
used to “influence future trends and events”. This is vital in view <strong>of</strong> <strong>the</strong> fact that investing in <strong>the</strong>
innovation-creativity process is inherently risky (Lev, 2001) so <strong>the</strong>re is a clear need to be able to
communicate <strong>the</strong> value creation potential to possible Venture Capitalists and/or o<strong>the</strong>r sources <strong>of</strong>
financial/intellectual support. The degree <strong>of</strong> success in this greatly influences <strong>the</strong> future <strong>of</strong> “an idea” or
a start-up company. Engaging <strong>the</strong> potential Venture Capitalists and/or o<strong>the</strong>r sources <strong>of</strong>
financial/intellectual support via <strong>the</strong>ir participation in focussed foresight related to <strong>the</strong> proposed
development/exploitation <strong>of</strong> <strong>the</strong> company’s IC, can be a very effective way <strong>of</strong> realizing <strong>the</strong> joint “vision
<strong>of</strong> <strong>the</strong> future”.
The future here is being shaped ra<strong>the</strong>r than predicted. As mentioned in <strong>the</strong> introductory section, <strong>the</strong>
underlying mental models <strong>of</strong> TF and ICR are probabilistic ra<strong>the</strong>r than deterministic ones. As
participants have to accept different opinions and viewpoints <strong>the</strong>y also need to consider that <strong>the</strong>re is
not <strong>the</strong> one and only truth. Facilitators <strong>of</strong> <strong>the</strong> process have to make this clear and keep it present
during <strong>the</strong> entire process. Management receives an information base from TF and ICR processes, but
<strong>the</strong>y still carry <strong>the</strong> unlimited responsibility for decisions. No information will automatize decisionmaking.
Decisions are an integral part <strong>of</strong> <strong>the</strong> "governance culture". The style or manner in which an
organisation (or a country) is run (or governed) has a particular set <strong>of</strong> attributes. These are sometimes
referred to as “<strong>the</strong> way we do things” or as “<strong>the</strong> way we are”. This includes <strong>the</strong> unwritten code <strong>of</strong>
acceptable versus unacceptable behaviour, e.g. towards bribe taking, or bribe <strong>of</strong>fering, to illegally
alter <strong>the</strong> actions ano<strong>the</strong>r person or organisation. The way in which authority is exercised, and <strong>the</strong> level
<strong>of</strong> tolerance by subordinates <strong>of</strong> unreasonable or authoritarian behaviour by superiors as well as <strong>the</strong>
opposite in regard to what is expected is <strong>the</strong> way <strong>of</strong> respect or honour.
7. Why use TF and ICM? Benefits and limitations
Structured knowledge-oriented processes like ICR and TF imply an investment, mostly <strong>of</strong> time <strong>of</strong>
(high level) experts; who will <strong>of</strong>ten feel that <strong>the</strong>y have more urgent things to do. Why should
management, i.e. decision makers, invest in <strong>the</strong>se kinds <strong>of</strong> methods that work with intangibles and
where <strong>the</strong> outcomes are hard to express in clear cause-effect-relationships and financial terms? As a
condensation <strong>of</strong> <strong>the</strong> former passages, we state some core arguments in <strong>the</strong> following:
7.1 What can ICM and foresight <strong>of</strong>fer?
Some <strong>of</strong> <strong>the</strong> key approaches that TF and ICM can <strong>of</strong>fer include <strong>the</strong> development <strong>of</strong> a context where
stakeholders can participate in <strong>the</strong> building <strong>of</strong> action networks or advocacy coalitions (Georghiou,
2007) and <strong>the</strong> delivery <strong>of</strong> "products". These can take <strong>the</strong> form <strong>of</strong> reports, recommendations, strategies
etc. However, what is perhaps more important are <strong>the</strong> process “outcomes”, whereby expectations are
aligned to create self-fulfilling prophecies, shared visions, etc. In turn <strong>the</strong>se can be developed into a
roadmap to a desired future.
A wide variety <strong>of</strong> key stakeholders can be linked-in so that a connection is made between decision
makers and subject experts. By working toge<strong>the</strong>r <strong>the</strong>y can create an expert opinion information base
for decision makers, whereby <strong>the</strong>se are “educated” in a process that could be described as
knowledge creation in decision makers. On <strong>the</strong> o<strong>the</strong>r hand <strong>the</strong> subject experts can be sensitised to
8 In this context, “outcomes” refers to <strong>the</strong> use that is made <strong>of</strong> <strong>the</strong> exercise’s results and recommendations.
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