Strategies for managing Knowledge assets: a tale of two companies

Knowledge assets and their management currently constitute both a major source of competitive advantage for firms and a major problem. In the global environment it is increasingly recognised that the way in which firms mobilise and utilise their knowledge assets may constitute the significant difference between them. Yet, at the same time, the ways in which firms can access and manage their knowledge assets is also acknowledged to be a major difficulty, so firms find themselves in the position where their most critical resource is, at the same time, their most difficult challenge to manage. Drawing on the Prahalad and Hamel definition of core competence, we suggest that one of the reasons why firms have experienced difficulties in identifying knowledge based competences is the tacit nature of these competences. The paper describes a model developed by one of the authors (Boisot) which we believe might help firms to identify and manage their competences. It then explores the application of the model in the two companies: BP Exploration and Courtaulds. The conclusion is, first that the model provided a helpful framework for both companies to explore their knowledge assets, and second, that it generated new insights in both organisations.