CKO Summit 2007 Highlights

Ann Lee, Dow Jones & Company, Inc.

For the complete report…

http://tfpl.com

Gen

X/Y

Globalization

Human

Capital

Inno

vation

ClimateChange

Mega Trends

Business

Generation Y Characteristics

– Empowered

– Coddled

– Over-praised

– Sense of entitlement

– Not self-sufficient

– Superficial confidence

• “Internet Generation” and digital natives: Defined by technology (cell

phones, iPods, laptops . . . “extra limbs”)

• Multi-taskers (media consumption, work, friends)

• Value group think mentality: Adopt collaborative working behaviors

• Expect high level of empowerment and personalized tools

• Require immediate feedback

• Open-minded ― “TV breeds homogeneity, Internet breeds diversity”

• More multicultural, ethnically and racially diverse than other generations

(40% non-Caucasian)

• Raised by “helicopter parents” – “Failure to Launch” syndrome

Total Media Consumption: 15+ hours

Time Spent with Friends & Family: <5 hours

Media Consumption

Average Hours per Day

Gen Y consumes 15+ hours of media per day

Of those reading print, they are predominantly reading:

• Lighter Fare (Celebrity)

• On Campus (College Newspapers)

• Free Papers (AM New York)

Globalization

• Free Trade Agreements (e.g. EC, NAFTA)

• Rise of capitalist economies

• Education investments paying off

• Changing workforce :

– Geographically dispersed teams

– High turnover

– Frequent rotation by employees within companies

– Large retiring population

– Digital natives

Individualism vs. Communitarianism

• Individualism is about the rights of

the individual. It seeks to let each

person grow or fail on their own,

and sees group-focus as denuding

the individual of their inalienable

rights.

• Communitarianism is about the

rights of the group or society. It

seeks to put the family, group,

company and country before the

individual. It sees individualism as

selfish and short-sighted.

0

10

20

30

40

50

60

70

Individual

A

B

C

D

Climate Change

• The number of Category 4 and 5

hurricanes has almost doubled in

the last 30 years

• Malaria has spread to higher

altitudes in places like the

Colombian Andes, 7,000 feet

above sea level

• The flow of ice from glaciers in

Greenland has more than doubled

over the past decade.

• At least 279 species of plants and

animals are already responding to

global warming, moving closer to

the poles

Climate Change

• What will businesses do to help solve the problem?

– Please consider the environment before printing this message.

• Can a company be “carbon neutral” or are we kidding

ourselves?

• Corporations are taking action

– Reduction in travel

– Increase in virtual meetings

– Investment in energy efficient technologies

– Fuel efficient vehicle program (Google)

Innovation

• The process of making improvements by introducing something new (Wikipedia)

• The successful exploitation of new ideas (Dept. of Trade and Industry, UK)

• Change that creates a new dimension of performance (Peter Drucker, Hesselbein, 2002)

• A creative idea that is realized (Frans Johansson, Harvard Business School Press, 2004)

• The capability of continuously realizing a desired future state (John Kao, The Innovation Manifesto, 2005)

The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow. Rupert MURDOCH

Innovation

• Creates wealth

• Focuses on the customer; solving their need to get the job

done

• Empowers companies to compete

• Creates diversity in thought and action

• How can management respond?

– Inspire workers and engage them

– Identify the most promising business ideas

– Marshal the resources to execute them

– Build systems that employees will use

Human Capital Management

• 85% of HR executives say that their

single greatest challenge in workforce

management is creating and maintaining

their companies’ ability to compete for

talent (SHRM)

• Five primary areas:

– Attracting

– Selecting

– Engaging

– Developing

– Retaining

Human Capital Management

Human Capital Management

• Employee retention

• Knowledge gap

• Small talent pool

• Access to technologies

– Social media

– Intranet

Number of Younger Users of Top Social Networking Sites

7.5

3.9

7.7

4.8

16.9

4.8

18.6

6.9

0

5

10

15

20

MySpace Facebook

# o

f M

on

thly

Un

iqu

e U

sers

(in

mil

lio

ns)

MySpace Facebook18-24 18-34 18-24 18-34

Jan 2007

July 2007

+3%

+11%

+24%

+44%

Facebook Users of CKO Summit Companies

Dow Jones BCG PWC Ernst & Young Deloitte KPMG

Marsh CitiGroup Daimler Chrysler AON ABN Amro Nokia

Swiss RE Accenture

How Will KM Play a Role in These Issues?

– Provides the process to create, capture, analyze and

act on information

– Faster cycle of knowledge creation and sharing

– Collaboration environments