2015 americas make report

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2015 Americas Most Admired Knowledge Enterprises MAKE Report

© 1998-2016 Teleos – The KNOW NetworkTel: +44 1584 878576

E-mail: [email protected]: http://www.knowledgebusiness.com

2015 Americas Most Admired Knowledge

Enterprises MAKE Report

Rory L. Chase

Teleos

2015 Americas MAKE Study 2

Selecting Americas MAKE Winners 2

2015 Americas MAKE Results 3

2015 Americas MAKE Nominations, Finalists and Winners 3

2015 Americas MAKE Rankings 19

Changes in 2015 Americas MAKE Rankings 20

2015 Americas MAKE Hall of Fame 24

Organizations to Watch 26

Global Knowledge Maturity 27

References 28

Appendix 1: MAKE Framework 29

Appendix 2: MAKE Methodology 35

Appendix 3: 2015 Americas MAKE Nominees 38

Appendix 4: 2015 Americas MAKE Finalists 40


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2015 Americas Most Admired Knowledge Enterprises MAKE Report© 1998-2016 Teleos – The KNOW Network

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2015 Americas MAKE Study

Selecting MAKE Winners

Teleos, in association with The KNOW Network, created the Most Admired KnowledgeEnterprises (MAKE) framework and methodology (see Appendix 1 and Appendix 2) in 1998 toidentify and recognize those organizations which are creating shareholder/stakeholder wealth bytransforming new as well as existing enterprise knowledge into superior product / service /solutions. The Americas MAKE study, established in 2002, is part of Teleos’ MAKE researchprogram.

The Americas MAKE research is based on the Delphi methodology. This research tool employsan expert panel's perceptual knowledge to identify critical issues – in the case of the AmericasMAKE study to identify those organizations which are leaders in creating organizationalintellectual capital and value through the transformation of individual/enterprise knowledge intoworld-class products/services/solutions. After several rounds of deliberation, a consensus isdeveloped among the panel's experts. It is this consensus of expert opinion which provides thevalidity to the Delphi and Americas MAKE study results.

A North, Central and South American-based panel of Fortune Global 500 senior executives andleading knowledge management and intellectual capital experts selects the Americas MAKEWinners. In the Americas MAKE study there are three rounds of consensus building. In the firstround, members of the expert panel nominate enterprises founded and headquartered in theAmericas.

From the list of nominees, each member of the expert panel then evaluates and selects a maximumof three organizations as best practice. Those organizations selected by at least 5% of the expertpanel are recognized as Americas MAKE Finalists. In the third and final round, the AmericasMAKE Finalists are ranked against each of the eight knowledge performance dimensions whichform the MAKE framework and are the visible drivers of wealth creation:

• creating a knowledge-driven enterprise culture

• developing knowledge leaders and workers

• innovation (R&D, creativity and new product/solution/service design and delivery)

• maximizing enterprise intellectual capital

• enterprise-wide collaboration and knowledge sharing

• creating a learning organization

• managing customer/stakeholder knowledge

• transforming corporate knowledge into shareholder/stakeholder value

The top Americas MAKE Finalists by total composite score are recognized as Americas MAKEWinners.


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2015 Americas MAKE Results

The Americas Most Admired Knowledge Enterprises (MAKE) study was established in 2002 to

recognize organizations founded and headquartered in the North America. In 2012, this MAKEstudy was expanded to include organizations founded and headquartered in North, Central andSouth America.

The 14th annual Americas MAKE study was conducted during May-June 2015. Generalobservations include:

• The 2015 Americas MAKE Winners trading on the NYSE/NASDAQ showed an average TotalReturn to Shareholders (TRS) for the ten-year period 2005-2014 of 17.3% – 1.7 times theFortune 500 company median.

• The 2015 Americas MAKE Winners’ average Return on Revenues (ROR) was 10.7% – over2.7 times that of the Fortune 500 ROR company median. The average Return on Assets (ROA)for the 2015 Americas MAKE Winners was 7.3% – over 2.8 times that of the Fortune 500ROA company median.

• Phillips 66, Tesla and Thomson Reuters are recognized for the first time as Americas MAKEWinners.

• This year’s Americas MAKE Winners reflect the advanced economies of the region withrepresentation from the energy, IT solutions, media, research, social media and retailing

sectors.

• Americas-headquartered organizations continue to struggle in hiring, training and developingknowledge workers. A combination of factors – the retirement of increasing numbers of ‘babyboomers’ and difficulties in recruiting talented new knowledge workers from the small pool of‘Generation Y’ and ‘Generation Z’ individuals – is forcing organizations to devote significantresources to human intellectual capital management.

• This year’s Americas MAKE Winners excel at developing knowledge-basedproducts/services/solutions, and enterprise-wide collaboration and knowledge sharing.

• Americas-headquartered organizations face a challenge in developing knowledge leaders andworkers, and in transforming enterprise knowledge into shareholder/stakeholder value.

A total of 57 organizations received 2015 Americas MAKE nominations (see Appendix 3). Fromthis list of nominees, 22 organizations were selected as 2015Americas MAKE Finalists (seeAppendix 4).

From the group of 2015 Americas MAKE Finalists, 14 organizations (by highest composite score)have been recognized as 2015 Americas MAKE Winners (see Table 1). The maximum composite


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score for an enterprise against the eight knowledge performance dimensions is 80. (The samplingerror for the 2015 Americas MAKE study is ± 0.72.)

2015 Americas MAKE Winners

2015 2014 Enterprise Score

Rank Rank

1. 1. Google 70.702. 2. Apple 66.883. 7. IBM 64.50

4. 11. APQC 64.295. 5. Microsoft 64.006. 13. MITRE 63.907. 12. Phillips 66 63.898. – Thomson Reuters 63.759. – Tesla Motors 63.1810. 8. ConocoPhillips 63.1211. 4. Amazon.com 63.0012. – Ecopetrol 62.8613. 16. Mars 62.4914. 14. FMC Technologies 62.46

Table 1: 2015 Americas MAKE Award Winners ranked by composite score (80 is the

maximum score).


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The 2015 Americas MAKE Winners are (in ranking order):

Google (United States) – Overall 2015 Americas MAKE Winner

Google (as of October 2015) is a wholly owned subsidiary of a new holding company, Alphabet.

However, at the time of the 2015 Americas MAKE study it was an independent company.Google, founded in 1998, operates a number of Internet-based services, including its search engineand cloud computing, online advertising, productivity tools, social networking products, andAndroid operating system. The company generates income primarily through advertisingtechnologies. Google had 2014 revenues of US $71.5 billion and employs over 60,000 people.

Google is recognized in the 2015 Americas MAKE study for creating a knowledge-drivenenterprise culture (first place), developing knowledge leaders and workers (first place),maximizing its enterprise intellectual capital (first place), enterprise-wide collaboration andknowledge sharing (first place), creating value through customer/stakeholder knowledge (firstplace), and transforming enterprise knowledge into stakeholder value (first place). This is the 11th

consecutive year that Google has been recognized as an Americas MAKE Winner, including four-time Overall Americas MAKE Winner (2007, 2013-2015).

The radar chart shown in Figure 1 provides a visual representation of Google’s performanceagainst the MAKE Framework’s eight knowledge dimensions – rated on a scale of 0 (poor) to 10(excellent) for each knowledge dimension. (Note: In the ‘perfect’ knowledge-driven organizationthe blue MAKE line would be exactly superimposed on the outer ‘10’ line of the radar chart. Thegap between the organization’s current performance (blue line) and the outer black line istherefore improvement opportunities.)

Figure 1: Google’s performance against the MAKE Framework’s eight knowledge dimensions –

rated on a scale of 0 (poor) to 10 (excellent) for each knowledge dimension.

0

5

10Culture

Leadership

Innovation

ICCollaboration

Learning

Stakeholder

Value

Google


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Apple (United States)

For most consumers it is Apple’s entertainment and communications products that have made it ahousehold name and respected innovation leader. The company has scored runaway hits withvarious versions and models of its award-winning iPhone, iPad tablet computer, Apple Watch and

Apple TV. The company operates over 460 retail stores in 16 countries, as well as its onlineApple Store available in 39 countries. The company’s iTunes Store is the world’s largest musicretailer. Some 60% of its annual sales of US $233.7 billon (fiscal year ending September 30,2015) come from outside the United States. Apple employs over 115,000 people.

Apple is cited in this year’s Americas MAKE study for creating value from customer/stakeholderknowledge. Apple is a nine-time Americas MAKE Winner, including four-time Overall AmericasMAKE Winner (2009-2012).

Figure 2: Apple’s performance against the MAKE Framework’s eight knowledge dimensions –


0

5

10Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

Apple


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IBM (United States)

IBM is a leading information technology company, manufacturing and marketing computerhardware and software, and offering infrastructure, hosting and consulting services in areasranging from mainframe computers to nanotechnology. IBM employs over 375,000 people and

operates over 170 countries. In 2014, IBM had global sales of US $92.8 billion.

The 2015 Americas MAKE panel has recognized IBM for developing knowledge leaders andworkers. IBM is a 13-time Americas MAKE Winner, including 2004 Overall Americas MAKEWinner.

Figure 3: IBM’s performance against the MAKE Framework’s eight knowledge dimensions –


0

5

10

Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

IBM


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APQC (United States)

Since 1977, APQC (formerly known as the American Productivity & Quality Center) has workedwith organizations around the world to research, identify and implement cost-effective approachesto improve productivity and quality. This non-profit organization is a recognized authority on

benchmarking and the transfer of best practices through research, innovative models, tools andframeworks, metrics and measurement. APQC has a membership network of more than 425organizations operating in 48 countries, its estimated annual revenues exceeds US $15 million,and the non-profit employs a staff of 50 people. APQC often engages external specialists for itsbenchmarking and research studies.

The 2015 Americas MAKE panel has recognized APQC for creating value fromcustomer/stakeholder knowledge. APQC is a 10-time Americas MAKE Winner.

Figure 4: APQC’s performance against the MAKE Framework’s eight knowledge dimensions –


0

5

10Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

APQC


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Microsoft (United States)

Microsoft, founded in 1982, is a leader in software and Internet technologies for personal andbusiness computing. The company’s core products are its Windows PC operating system andOffice business productivity application suite, Xbox (video game console), Windows phones, and

Microsoft Surface tablet computers. Other business interests include online advertising, mobilesoftware and cloud computing.

Microsoft has annual sales of US $93.6 billion (fiscal year ending June 30, 2015), subsidiaryoffices in more than 100 countries, and employs over 115,000 people worldwide. In the 2015fiscal year, Microsoft spent US $12 billion on R&D – 13% of annual sales.

Microsoft is recognized in this year’s Americas MAKE study for maximizing its enterpriseintellectual capital. Microsoft is a 13-time Americas MAKE Winner.

Figure 5: Microsoft’s performance against the MAKE Framework’s eight knowledge dimensions

– rated on a scale of 0 (poor) to 10 (excellent) for each knowledge dimension.

0

5

10Culture

Leadership

Innovation

ICCollaboration

Learning

Stakeholder

Value

Microsoft


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MITRE (United States)

Founded in 1958, The MITRE Corporation is an independent, not-for-profit corporation engagedin scientific and technical research activities. MITRE assists the United States government with:scientific research and analysis, development and acquisition, and systems engineering and

integration. The organization also has an independent research program which explores newtechnologies and new uses of technologies to solve its sponsors’ problems near-term and in thefuture. MITRE has US corporate offices in Bedford, Massachusetts, and McLean, Virginia, aswell as sites around the world. MITRE’s 2014 revenues were US $1.4 billion and the organizationemploys 7,300 scientists, engineers and support specialists – a majority of whom have Masters orPhD degrees.

MITRE is cited in this year’s Americas MAKE study for enterprise-wide collaboration andknowledge sharing. This is the third time that MITRE has been recognized as an AmericasMAKE Winner.

Figure 6: MITRE’s performance against the MAKE Framework’s eight knowledge dimensions –


0

5

10Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

MITRE


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Phillips 66 (United States)

Phillips 66, established in 2012, is a diversified energy, manufacturing and logistics company.The company processes, transports, stores and markets fuels and products globally. Phillips 66has 14,000 employees worldwide and is active in more than 65 countries. In 2014, Phillips 66 had

annual fiscal year revenues of US $149.4 billion.

In this year’s Americas MAKE study, Phillips 66 has been recognized for maximizing itsenterprise intellectual capital. This is the first time that Phillips 66 has been recognized as anAmericas MAKE Winner.

Figure 7: Phillips 66’s performance against the MAKE Framework’s eight knowledge dimensions


0

5

10

Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

Phillips 66


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Thomson Reuters (Canada/United States)

Thomson Reuters, created in 2008 by the purchase of British-based Reuters Group, is aninternational information and media company. Founded in Canada as the Thomson Corporation,the group based in Toronto and New York City. The company is a news, financial and media

provider across a range of print and digital channels. Thomson Reuters operates in over 100countries, and employs more than 53,000 people. The firm’s 2014 revenues were US $12.6billion.

In this year’s Americas MAKE study, Thomson Reuters has been recognized for creating alearning organization. This is the first time that Thomson Reuters has been recognized as anAmericas MAKE Winner.

Figure 8: Thomson Reuters’ performance against the MAKE Framework’s eight knowledgedimensions – rated on a scale of 0 (poor) to 10 (excellent) for each knowledge dimension.

0

5

10Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

ThomsonReuters


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Tesla Motors (United States)

Tesla Motors, founded in 2003, designs and manufactures electric cars, electric vehiclecomponents, and rechargeable energy storage systems. In 2014, the company had revenues of US$3.2 billion and currently employs over 12,000 people.

Tesla Motors is cited in this year’s Americas MAKE study for creating value through managingcustomer/stakeholder knowledge. This is the first time that Tesla has been recognized as anAmericas MAKE Winner.

Figure 9: Tesla Motors’ performance against the MAKE Framework’s eight knowledge

dimensions – rated on a scale of 0 (poor) to 10 (excellent) for each knowledge dimension.

0

5

10Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

Tesla Motors


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ConocoPhillips (United States)

ConocoPhillips is the world’s largest independent exploration and production company (based onproven reserves and production of liquids and natural gas). In 2012, ConocoPhillips spun off itsdownstream assets as a new, separate company – Phillips 66. ConocoPhillips’ 2014 revenues

were US $55.5 billion, it currently operates in 27 countries and more than 18,000 employees.

In this year’s Americas MAKE study, ConocoPhillips has been recognized for its enterprise-widecollaborative knowledge sharing. This is the seventh consecutive year that ConocoPhillips hasbeen recognized as an Americas MAKE Winner.

Figure 10: ConocoPhillips’ performance against the MAKE Framework’s eight knowledge


0

5

10

Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

ConocoPhillips


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Amazon.com (United States)

Amazon.com, founded in 1994, is the largest online retailer in the United States. In addition, thecompany also produces consumer electronic products, including the Amazon Kindle e-bookreader, Fire tablet computer, Fire TV and Fire Phone, and is a major supplier of cloud computing

services. The company’s 2014 annual sales were US $89 billion and it employs over 220,000people.

The 2015 Americas MAKE panel has recognized Amazon.com for innovation, and transformingcorporate knowledge into shareholder/stakeholder value. Amazon.com is a four-time AmericasMAKE Winner.

Figure 11: Amazon.com’s performance against the MAKE Framework’s eight knowledge


0

5

10CultureLeadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

Amazon.com


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Ecopetrol (Colombia)

State-owned Ecopetrol was founded in 1921, and is the largest energy company in Colombia(where it accounts for 60% of national production). Ecopetrol is involved in crude oil and naturalgas exploration, production, refining and transportation. The firm explores for oil and gas across

Colombia, and is expanding internationally through exploration partnerships in Brazil, Peru andthe US Gulf of Mexico. The company had 2014 revenues of US $27 billion and employs over9,000 people.

Ecopetrol is cited in this year’s Americas MAKE study for developing knowledge leaders andworkers. This is the second time that Ecopetrol has been recognized as an Americas MAKEWinner.

Figure 12: Ecopetrol’s performance against the MAKE Framework’s eight knowledge dimensions


0

5

10Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

Ecopetrol


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Mars (United States)

Mars is a leading manufacturer of confectionary products, pet food and snack foods. In 2008,Mars purchased the Wm. Wrigley Jr. Company, the world’s largest chewing gum producer, for US$23 billion. Mars operates in six business segments: Petcare, chocolate, food, drinks,

symbioscience (life sciences) and Wrigley. The firm now is the sixth largest US privately-heldcompany with 2014 annual sales of US $33 billion and more than 75,000 employees.

Mars is cited in this year’s Americas MAKE study for creating a learning organization. This is thesecond time that Mars has been recognized as an Americas MAKE Winner.

Figure 13: Mars’ performance against the MAKE Framework’s eight knowledge dimensions –


0

5

10

Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

Mars


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FMC Technologies (United States)

FMC Technologies designs, manufactures and services systems and products for the global energyindustry, including subsea production and processing systems, surface wellhead systems, highpressure pumps and fluid control equipment, measurement solutions and marine loading systems.

The company has 19,000 employees and operates 24 production facilities in 14 countries. In2014, FMC Technologies had annual sales of US $7.1 billion.

The 2015 Americas MAKE panel has recognized FMC Technologies for creating a learningorganization. FMC Technologies is a two time Americas MAKE Winner

Figure 14: FMC Technologies’ performance against the MAKE Framework’s eight knowledge


0

5

10

Culture

Leadership

Innovation

IC

Collaboration

Learning

Stakeholder

Value

FMCTechnologies


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Table 2 identifies the enterprises which received the largest number of 2015 Americas MAKEnominations from the panel of Americas-based Fortune Global 500 senior executives and chiefknowledge officers and knowledge management / intellectual capital / innovation / organizationallearning practitioners. Apple and Google appear at the top of both group’s lists of Most AdmiredKnowledge Enterprises.

Enterprises Receiving the Most

2015 Americas MAKE Nominations

Fortune Global 500 CKOs and Leading

Executives KM/IC Experts

Amazon.com Apple Apple Google Facebook IBMGoogle Phillips 66Microsoft Tesla Motors

Table 2: Enterprises receiving the largest number of 2015 Americas MAKE nominations (in

alphabetical order).

Americas MAKE Rankings

Over the past 14 years, only 41 organizations have been recognized as Americas MAKE Winners.Table 3 shows the Americas MAKE Finalists and Winners for the study years 2011-2015.

2011-2015 Americas MAKE Rankings

Enterprise 2015 2014 2013 2012 2011

Amazon.com 11 4 16 6Apple 2 2 2 1 1

APQC 4 11 6 9 8Baker Hughes 18Basil Kirin 7 10 CCEEAM 12Chevron 8


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Cognizant Technology Solutions 17 12ConocoPhillips 10 8 4 7 6

CPqDF 16Del Monte Foods 14Ecopetrol 12 17 8

ExxonMobil 17Facebook 19 3 11 14Fluor 18 6 5 3 3FMC Corporation 12FMC Technologies 14 14 10 Google 1 1 1 4 4Hewlett-Packard 13IBM 3 7 3 2 2

IDEO 15Marathon Oil 18Mars 13 16 11Microsoft 5 5 11 5 5MITRE 6 13 13 15 10Nalco 15Nalco Champion 16NextEra 21Petrobras 13Phillips 66 7 12 19Procter & Gamble 20 9 Rockwell Collins 14Tesla Motors 9

Thomson Reuters 8 3M 15US Army 7 US Federal Reserve System 9 Vale SA 22 10 9 17

Table 3: 2011-2015 Americas MAKE rankings (bold indicates Winners). The 2015 Americas MAKE Hall of Fame members’ names shown in bold.

Changes in Americas MAKE Rankings

Google has been recognized as the Overall Americas MAKE Winner for the fourth time (2007,2013-2015). Past Overall Americas MAKE Winners include Apple (2009-2012), BuckmanLaboratories (2002, 2003), IBM (2004), IDEO (2008), and Raytheon (2005, 2006).

Phillips 66, Tesla Motors and Thomson Reuters are new to this year’s Americas MAKE Winners’circle.

A total of six organizations repeated as Americas MAKE Winners: Amazon.com, Apple,


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ConocoPhillips, Google, IBM and Microsoft. APQC, Ecopetrol, FMC Technologies, Mars andMITRE, former Americas MAKE Winners, returned to this year’s list of top companies.

Enterprises failing to repeat as Americas MAKE Winners were: Facebook, Fluor, Proctor &Gamble, and Vale S.A. They were displaced from this year’s Americas MAKE Winners’ list as

follows:

• Facebook (19th in 2015 Americas MAKE study – 3rd in the 2014 study).

• Fluor (18th in 2015 Americas MAKE study – 6th in the 2014 study).

• Proctor & Gamble (20th in 2015 Americas MAKE study – 9th in the 2014 study).

• Vale S.A. (22nd in 2015 Americas MAKE study – 10th in the 2014 study).

It should be noted that very few of the 2015 Americas MAKE Finalists exhibited an absolutedecline in their knowledge-driven organizational capabilities. Rather, the Americas MAKE

researchers report that a number of organizations are rapidly expanding their knowledgecapabilities. When comparing the 2015 Americas MAKE rankings with those of previous years, itis very important to focus on trends in the rate of change, rather than absolute change. This factwill be highlighted throughout the 2015 Americas MAKE Report.

The Americas MAKE expert panel notes that there has been some improvement in creatingknowledge-driven organizational cultures and organizational learning. However, organizationsappear to be struggling to create enterprise intellectual capital, and to transform enterpriseknowledge into stakeholder value.

Table 4 shows the changes in rankings for a selected group of Americas MAKE Winners andFinalists. The Americas MAKE research is based on experts’ perceptions and there is a factor ofuncertainty which must be included. Based on the results of the most recent annual surveys, theAmericas MAKE researchers have assigned the following perceptional values to interpretingchanges in the Americas MAKE rankings:

• a change of 1-5 ranking positions = no change in perceptions.

• a change of 6-10 ranking positions = a slight change in perceptions.

• a change of 11-15 ranking positions = a moderate change in perceptions.

• a change of 16 or more ranking positions = a significant change in perceptions.

Organizations such as the Apple, Google and IBM have shown very little change in theirAmericas MAKE rankings over the past several years, reflecting the ability of these firms to useenterprise knowledge to out-perform their peers in intellectual capital creation and increasedstakeholder value.


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Changes in Americas MAKE Rankings

Enterprise 2015 2014 2013 2012 2011

Amazon.com (7) 12 (10) – –Apple 0 0 (1) 0 0APQC 7 (5) 3 (1) (1)ConocoPhillips (2) (4) 3 (1) (1)Fluor (12) (1) (2) 0 3Google 0 0 3 0 0IBM 4 (4) (1) 0 1Microsoft 0 6 (6) 0 (3)

MITRE 7 0 2 (5) 3Vale (12) (1) 8 _ _

Table 4: Changes in rankings for selected Americas MAKE Finalists and Winners (numbersin parentheses indicate a decline).

Former Americas MAKE Winners, including Fluor and Vale, have shown a downward trend intheir rankings. These organizations have allowed their enterprise knowledge strategies to becomeunfocused, making it more difficult to effectively transform corporate knowledge into increased

stakeholder value.

Steady upward improvements in Americas MAKE rankings indicate those organizations which aresuccessfully implementing (or re-starting) far-reaching knowledge-driven business strategies.MITRE forms part of this group.

Position Rankings

Table 5 shows the 2015 Americas MAKE Finalists and Winners position rankings (1-22) in eachof the MAKE Framework’s eight knowledge performance dimensions. The Americas MAKEstudy is based on the panel of experts’ perceptions and there is a factor of uncertainty which mustbe included. Based on the results of this annual survey, the Americas MAKE researchers reportthat there is an uncertainty of ± 3 places in these position rankings. For example, Amazon.com isranked in 11th place in maximizing enterprise intellectual capital (MAKE knowledge performancedimension No. 4). However, when uncertainty is factored in, Amazon.com’s ranking rangesbetween 8th to 14th place.


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2015 Americas MAKE Finalists Position Rankings

Enterprise 1 2 3 4 5 6 7 8

1. Google 1 1 4 1 1 2 1 12. Apple 6 4 3 9 9 4 2 33. IBM 3 2 11 16 11 14 5 44. APQC 16 13 8 7 4 10 3 65. Microsoft 4 7 12 2 17 6 13 106. MITRE 11 11 5 5 3 19 8 87. Phillips 66 10 18 7 4 8 11 9 78. Thomson Reuters 5 3 17 12 13 3 20 49. Tesla Motors 13 6 10 6 15 21 4 9

10. ConocoPhillips 9 10 20 18 2 5 11 1211. Amazon.com 14 22 2 11 20 17 6 212. Ecopetrol 16 5 14 8 7 9 15 1913. Mars 15 8 13 17 18 7 14 1114. FMC Technologies 8 9 16 10 12 8 16 1415. Nalco Champion 18 19 15 21 5 15 7 1316. ExxonMobil 12 14 9 13 14 20 10 1517. Fluor 19 12 19 20 6 13 12 2218. Facebook 2 15 18 14 10 12 21 1719. Procter & Gamble 7 16 6 3 21 18 19 2120. NextEra 20 20 21 19 16 16 18 2021. IDEO 22 16 1 14 22 1 22 18

22. Vale 21 21 22 22 19 22 17 16

Note: Knowledge performance dimensions numbers across the top of chart refer to:

1. creating an enterprise knowledge-driven culture.

2. developing knowledge workers through senior management leadership.

3. developing and delivering knowledge-based products/services/solutions.

4. maximizing enterprise intellectual capital.

5. creating an environment for collaborative enterprise knowledge sharing.

6. creating a learning organization.

7. delivering value based on stakeholder knowledge.8. transforming enterprise knowledge into shareholder/stakeholder value.

Table 5: 2015 Americas MAKE Finalists and Winners position rankings in the eight

MAKE knowledge performance dimensions.


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Position rankings provide valuable insights into an organization’s knowledge capabilities asfollows:

• position rankings can be used to benchmark organizations which are leaders in a specificknowledge performance dimension, for example, IDEO for innovation, or Google for

maximizing enterprise intellectual capital.

• position rankings also can be used to determine an organization’s strengths and weaknesses. Ifan organization’s ranking in an individual knowledge performance dimension is significantlyhigher than its overall Americas MAKE ranking (taking into account the range of uncertainty),then it is an organizational strength. For example, IDEO (21st position overall) ranks in 1stplace for creating knowledge-based products/services/solutions – a strength. However, if anorganization’s ranking in an individual knowledge performance dimension is lower than itsoverall Americas MAKE ranking, then it can be viewed as an organizational weakness. Forexample, APQC (overall position in 4th place) ranks in 16th position in creating a knowledge-driven organizational culture.

Americas MAKE Hall of Fame

Americas MAKE Finalists

This year’s 14 Americas MAKE Finals are concentrated in 14 categories:

• Oil & Gas Exploration and Services – 5 (22.6%)

• Computer Hardware, Software & IT Solutions – 4 (18.1%)

• Consumer Products – 2 (9.0%)

• Automotive Manufacturing – 1 (4.6%)

• Chemicals – 1 (4.6%)

• Construction and Engineering – 1 (4.6%)

• Design – 1 (4.6%)

• Information Services – 1 (4.6%)

• Internet Searching Services, Social Networks & Portals – 1 (4.6%)

• Mining & Mineral Extraction – 1 (4.6%)

• Non-Profit – 1 (4.6%)

• Research – 1 (4.6%)

• Retail – 1 (4.6%)

• Utilities – 1 (4.6%)


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Nearly one-quarter of the 2015 Americas MAKE Finalists (22.6%) come from the highlycompetitive oil and gas exploration and services sector. An analysis of the Global and regionalMAKE studies indicates that there are different ‘sector drivers’ for each region.

Americas MAKE Hall of Fame

Over the past 14 years, only 41 organizations have been recognized as Americas MAKE Winners.IBM and Microsoft are the only organizations which have been recognized as Americas MAKEFinalists every year since the Americas MAKE research study began in 2002.

The 2015 Americas MAKE Hall of Fame consists of eight organizations which have beenAmericas MAKE Finalists in each of the past five annual studies:

• Apple

• APQC• ConocoPhillips

• Fluor

• Google

• IBM

• Microsoft

• MITRE

It is a tribute to these Americas MAKE Hall of Fame organizations that they have ‘stayed theknowledge course’ over the past five years. Many previous Americas MAKE Finalists andWinners have not been able to maintain a long-term, holistic knowledge-driven strategy and focus,loosing both momentum and competitive advantage.

When faced with global economic uncertainties and/or competition from within their ownbusiness sectors, the Americas MAKE Hall of Fame organizations have successfully used their‘knowledge advantage’ to maintain leading positions in value creation.


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Organizations to Watch

Every year a number of organizations appear on the Americas MAKE expert panel’s ‘radar screen.’Although they have not yet entered the ranks of Americas MAKE Winners, these knowledge-

driven organizations demonstrate outstanding innovative capabilities, collaboration, organizationallearning and intellectual capital management. They are organizations to ‘Watch.’

• Adobe Systems (United States) Computer software

• Caterpillar (United States) Industrial & agricultural equipment

• CEMEX (Mexico) Building Materials

• Deere & Co. (United States) Industrial & agricultural equipment

• ExxonMobil (United States) Energy

• Gilead Sciences (United States) Biotechnology

• Halliburton (United States) Oil & gas equipment/services/solutions

• IDEO (United States) Design

• Kickstarter (United States) Internet – Crowdfunding

• LinkedIn (United States) Social networking

• Mars (United States) Food and beverages

• Merck & Co. (United States) Pharmaceuticals

• MITRE (United States) Research• Monsanto (United States) Agrochemicals

• Nalco Champion (United States) Chemicals

• Netflix (United States) Entertainment

• NextEra Energy (United States) Utilities

• Rockwell Collins (United States) Aerospace & electronics

• Salesforce.com (United States) IT computers/hardware/software

• Southwest Airlines (United States) Transportation

• The Hershey Company (United States) Food

• Unisys (United States) IT solutions

• United Technologies (United States) Diversified

• Walt Disney (United States) Media and entertainment


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Global Knowledge Maturity

During the past decade, regional MAKE Winners have invested considerable resources toimproving their collaborative and innovation capabilities. Now they are turning their attentions to

managing enterprise intellectual capital – especially human capital. They also are focusing onsocial networking tools and techniques to expand and improve inter- and intra-collaborativeenterprise knowledge sharing and to gain greater insights into customers’ experiences andexpectations.

Many rapidly developing countries, including Brazil, China, India and Indonesia, are continuing toswitch their focus from traditional quality control and low-cost manufacturing to more intensiveknowledge-driven business strategies. The number of MAKE Finalists from emerging markets isforecast to increase substantially over the next few years.

The uncertain global economic and political environment continues to force consolidation in keybusiness sectors, including airlines, computers, construction, consulting, defense, energy,entertainment, information technology, Internet, logistics, mineral resources, pharmaceuticals andsocial media. In many of these sectors, large-scale consolidation has resulted in a handful ofglobal and regional companies dominating each business sector. Those companies with strongknowledge-driven approaches are most likely to survive and prosper.

Social networking firms represent a new type of global organization. These user-drivenorganizations are a reflection of the emerging 21st century knowledge economy where individualsare actively participating in global communities to create, deliver and use knowledge products andservices. MAKE researchers expect more social network-type organizations to appear in future

MAKE Winners’ lists.

In the global knowledge ‘race’ organizations cannot afford to rest on their laurels. The key driveris the rate at which organizations can transform knowledge into intellectual capital andknowledge-based products/services/solutions. In the global economy, just keeping up withcompetitors is no longer an option.


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References

[1] “The World’s Biggest Public Companies (Global 2000 Leading Companies),” Forbes, May6, 2015.

http://www.forbes.com/global2000/list/

[2] “The Fortune Global 500,” Fortune, July 23, 2015http://fortune.com/global500/

[3] “The Fortune 500,” Fortune, July 3, 2015.http://fortune.com/fortune500/


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Appendix 1: MAKE Framework

After reviewing various knowledge management approaches and models, Teleos developed aframework of eight knowledge performance dimensions which are the visible drivers of the

knowledge-driven enterprise:

• creating an enterprise knowledge-driven culture.

• developing knowledge workers through senior management leadership.

• developing and delivering knowledge-based products/services/solutions.

• maximizing enterprise intellectual capital.

• creating an environment for collaborative knowledge sharing.

• creating a learning organization.

• delivering value based on stakeholder knowledge.

• transforming enterprise knowledge into shareholder/stakeholder value.

Each of these eight knowledge performance dimensions is made up of dozens of knowledgeprocesses and sub-processes. Taken together, they serve as the ‘engine’ of the knowledge-drivenenterprise (see figure below).

The eight knowledge performance dimensions which form the MAKE framework are found in allworld-class enterprises. They are seen as key drivers in creating value in knowledge-intensive

organizations. Listed below are the major processes which form the foundation of the eightknowledge performance dimensions.

Creating an enterprise knowledge-driven culture

The key drivers of this knowledge performance dimension include:

• Developing and deploying a knowledge-driven enterprise vision and strategy.

• Determining enterprise core competencies (knowledge assets).

• Designing a knowledge-driven enterprise structure and relationships between enterprise units.

• Developing and managing enterprise knowledge values.

• Developing and managing enterprise knowledge behaviors.

• Developing and managing enterprise knowledge systems/processes.

• Creating and managing a knowledge-based human resources strategy.


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Developing knowledge workers through senior management leadership


• Developing and deploying an enterprise management style that encourages the acquisition,sharing and application of knowledge for enterprise value creation.

• Providing financial and non-financial enterprise support for managing knowledge.


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• Encouraging and supporting an enterprise knowledge strategy and approach.

• Developing and training knowledge leaders.

• Establishing good corporate governance through an enterprise knowledge strategy.

• Recognizing/rewarding knowledge leaders.

Perhaps the key knowledge performance attribute in this knowledge performance dimension is thechief executive officer’s support. This support involves articulating a clear vision for theorganization, including how it is going to become and then grow as a knowledge-drivenenterprise.

Developing and delivering knowledge-based products/services/solutions


• Developing and deploying an enterprise knowledge creation and innovation strategy.

• Developing and training the workforce in idea generation and innovation.

• Involving customers/stakeholders and suppliers in the development of knowledge-based goodsand services.

• Increasing/expanding enterprise knowledge.

• Managing the transfer of knowledge and ideas to ‘points of action.’

• Recognizing/rewarding innovators.

• Managing the production and/or service of knowledge-based goods and services.

• Measuring value created from knowledge creation and innovation.

Visionary companies create an environment of ‘discomfort’ to stimulate change and improvement – before their customers/clients demand it of them. Best practice innovative organizations display

the following characteristics:

• Employees are allowed free time to be creative.

• Functional barriers are removed and ‘silo’ mentalities discouraged.

• Employees are allowed to take risks and make mistakes.

• Organizations create reward systems which encourage innovation.


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• Networks and communities of practice are encouraged.

• Customers are integrated into the creative process – problems are looked at from the customers’perspective.

• The innovation process is under continuous review and improvement.

Maximizing enterprise intellectual capital


• Developing and deploying an enterprise intellectual capital strategy.

• Developing and training the enterprise workforce in intellectual capital concepts and tools.

• Developing tools and techniques to manage and measure intellectual capital.

• Managing and expanding human, customer/stakeholder and structural intellectual capital.

• Protecting knowledge assets.

• Recognizing/rewarding employees for increasing enterprise intellectual capital.

Creating an environment for collaborative knowledge sharing


• Developing and managing the capture, categorization and use of knowledge.

• Mapping knowledge resources throughout the organization.

• Converting individual tacit into enterprise explicit knowledge.

• Creating systematic mechanisms for sharing existing internal and external knowledge and bestpractices.

• Using collaborative tools for knowledge sharing (including wikis and social networking).

• Developing communities of practice.

• Transferring best practices gained from collaborative knowledge sharing.

• Effectiveness in identifying and accessing internal and external expertise.

• Establishing knowledge-based reward and recognition systems.


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Creating a learning organization


• Developing a knowledge-driven enterprise learning strategy.

• Developing collaboration/partnerships for accelerated learning.

• Developing and/or acquiring learning methodologies, tools and techniques.

• Converting individual tacit into enterprise explicit knowledge.

• Developing communities of practice.

• Learning by doing.

• Coaching and mentoring.

• Developing an organizational learning infrastructure, e.g., corporate intranet for the internaland external exchange of learning experiences.

• Moving from individual learning to organizational learning.

Most knowledge enterprises understand that to grow and prosper in the 21st century, they willhave to innovate, develop new knowledge and create maximum value for their customers andshareholders. To establish this environment of creativity and innovation, a growing number offirms are transforming themselves into learning organizations.

Delivering value based on stakeholder knowledge


• Developing and deploying an enterprise knowledge-driven stakeholder value strategy.

• Creating and managing stakeholder value profiles and maps.

• Creating stakeholder value chains.

• Developing and/or acquiring tools and techniques to collect and gain value from stakeholderknowledge.

• Developing and managing stakeholder databases.

• Developing tools and techniques to extract value from stakeholder knowledge.


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• Measuring changes in the stakeholder value chain.

The knowledge economy has changed the goal posts in terms of winning customers and retainingtheir loyalty. It is now possible to market to customers on a global scale and to know more abouttheir needs, wants and desires than ever before. On the other hand, customers and otherstakeholders are becoming more discerning – they are knowledgeable about what they want, howmuch they will pay for it, and from whom they will purchase it.

Transforming enterprise knowledge into shareholder/stakeholder value


• Developing and deploying an enterprise knowledge-driven strategy for increasing

stakeholder/shareholder value.

• Mapping and developing knowledge value chains.

• Managing and measuring knowledge value chains.

• Measuring changes in enterprise stakeholder/shareholder value.

• Communicating/reporting on knowledge-based value creation.

Organizations have discovered that this knowledge performance dimension, along with‘Maximizing Enterprise Intellectual Capital,’ is the most difficult to manage at a strategic level.The concept of knowledge-driven stakeholder/shareholder value continues to be hard to grasp, andtools and techniques are lacking to make it visible within the enterprise as well as to externalstakeholders.

Part of the difficulty is that most companies are still operating with industrial age financial andaccounting systems. Attempting to measure and manage knowledge processes that create wealth –especially those activities that focus on long-term paybacks – are still beyond the grasp of mostorganizations.


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Appendix 2: MAKE Methodology

The Most Admired Knowledge Enterprises (MAKE) research program is based upon the Delphiresearch methodology which was developed in the 1950s by the Rand Corporation as a long-range

forecasting tool. When using the Delphi research methodology, a panel of experts is asked aseries of specific questions over several rounds. After each round of responses, individualopinions are shared, allowing each panel member to understand what the other experts think.Discovering other experts’ opinions helps to reinforce those in agreement, and to influence thosewho did not initially agree to possibly consider other factors. In the next round, the experts revisetheir estimates. The process is then repeated, usually for no more than three or four rounds, until abroad consensus is reached.

The Delphi method promotes unbiased exchanges of ideas and discussion and usually results in aconvergence of opinion. It is one of the best approaches to forecasting long-range trends and

opinion.

The goal of the MAKE research is obtain a consensus of expert opinion regarding whichorganizations are leaders in long-term wealth creation based on transforming enterprise knowledgeinto superior processes/products/services/solutions.

A total of 1,500 experts were invited to join the 2015 Americas MAKE panel:

• 456 senior executives, including the chief executive officer, chief financial officer and chieftechnology officer/chief information officer, of each Fortune Americas-headquartered 500company by sales (198 companies).

• 1,044 chief knowledge officers and leading knowledge management, intellectual capital,innovation, and organizational learning practitioners drawn from business, consulting,academia and research.

Asia now hosts the largest number of Fortune Global 500 headquartered companies. Europe, onthe other hand, continues to decline in share of the Fortune Global 500 companies. The Fortune Global 500 companies (by location of the firm’s headquarters) are distributed as follows:

• Americas 152 companies (30.4%)

• Asia 198 companies (39.6%)• Europe 150 companies (30.0%)

Every attempt is made to ‘balance’ the Americas MAKE expert panel by ‘weighing’ the KMexperts so that each region has the appropriate geographic representation. Therefore, thereshouldn’t be a bias towards organizations headquartered in any particular region. The 2015Americas MAKE study was conducted during May-June 2015.


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The 2015 Americas MAKE panel of experts (except the energy and natural resources sectors) hada slightly more positive view about the global economy when compared to the 2014 AmericasMAKE panel of experts. They were optimistic about growth prospects in the United States, butconcerned about growth prospects in China, Europe and emerging markets.

Trends observed in the Americas MAKE study include:

• There was an increase in 2015 Americas MAKE Finalists (22) compared to last year’sAmericas MAKE study (17). The 2015 Americas MAKE Finalists were located as follows:Brazil (1), Colombia (1), Canada/USA (1) and United States (19). Clearly large parts of theAmericas are struggling to produce knowledge-drive organizations.

• Although the 21st century is forecast to be Asia’s century, American (and European)organizations continue to dominate many of the third-party, independent ‘most admired’studies rankings.

• Central and South America have a young population when compared to North America, yeteven organizations in these countries are finding it increasingly difficult to recruit, train andretain key knowledge workers.

• This year’s Americas MAKE Winners excel at developing knowledge-basedproducts/services/solutions, and enterprise-wide collaboration and knowledge sharing.

• On the other hand, the 2015 Americas MAKE Winners are struggling to create learningorganizations, and to transform enterprise knowledge into stakeholder value.

In common with other Delphi-based ‘Most Admired’ studies, such as Fortune’s ‘World’s MostAdmired Companies,’ senior executives participating in the MAKE research are knowledgeableregarding the strengths and weaknesses of Americas peer companies across the eight MAKEknowledge dimensions, based mainly on perceptions of organizational strategic performance. Onthe other hand, the panel of KM experts tends to have a greater understanding of enterprise bestpractices at the knowledge process level. Therefore, the two components of the MAKE expertpanel compliment each other.

The 2015 Americas MAKE study consisted of three rounds of consensus-building. In the firstround the expert panel was asked to nominate leading knowledge-driven organizations – locatedanywhere in the Americas – from all sectors (including non-profit and public sector).

In the second round, the 2015 Americas MAKE expert panel members selected a maximum ofthree organizations from the list of nominations. Those organizations selected by at least 5% ofthe expert panel were recognized as 2015 Americas MAKE Finalists.

In the third and final round, the expert panel rated the 2015 Americas MAKE Finalists against theeight MAKE knowledge performance dimensions. The nominated enterprises’ performance wasrated on a scale of 1 (poor) to 10 (excellent) for each knowledge dimension. The maximumoverall score for an enterprise against the eight dimensions was 80.


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The top Americas MAKE Finalists by total composite score are recognized as Americas MAKEWinners.


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Appendix 3: 2015 Americas MAKE Nominees

A total of 57 organizations were nominated in the 2015 Americas MAKE study (in alphabeticalorder):

• AECOM (USA)

• Air Products & Chemicals (USA)

• Amazon.com (USA)

• Apple (USA)

• APQC (USA)

• Baker Hughes (USA)

• Bechtel (USA)• CEMEX (Mexico)

• CGI (Canada)

• Cognizant Technology Solutions (USA)

• ConocoPhillips (USA)

• CreaLibre (Mexico)

• Dell (USA)

• Ecopetrol (Colombia)

• Embraer (Brazil)

• EMC (USA)

• ExxonMobil (USA)

• Facebook (USA)

• Florida Power & Light (NextEra Energy) (USA)

• Fluor (USA)

• FMC Corporation (USA)

• FMC Technologies (USA)

• General Electric (USA)

• GMI SA (Peru)

• Goodyear Tire & Rubber (USA)

• Google (USA)

• Hewlett-Packard (USA)


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• Honeywell International (USA)

• IBM (USA)

• IDEO (USA)

• Intel (USA)

• Jet Propulsion Laboratory (United States Government) (USA)

• Kickstarter (USA)

• LinkedIn (USA)

• Lockheed Martin (USA)

• Marriott International (USA)

• Mars (USA)

• Microsoft (USA)

• MITRE (USA)

• Nalco Champion (Ecolab) (USA)

• Nalco WPS (Ecolab) (USA)

• NextEra Energy (USA)

• Oracle (USA)

• Pemex (Mexico)

• Phillips 66 (USA)

• Praxair (USA)

• Procter & Gamble (USA)

• Salesforce.com (USA)

• Southwest Airlines (USA)

• Tesla Motors (USA)

• The Goodyear Tire & Rubber Company (USA)

• Thomson Reuters (Canada/USA)

• Turner Construction (Hochtief) (USA)

• US Army (United States Government) (USA)

• US Federal Trade Commission (United States Government) (USA)

• US National Aeronautics & Space Administration (United States Government) (USA)

• Vale S.A. (Brazil)


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Appendix 4: 2015 Americas MAKE Finalists

A total of 22 organizations were recognized as 2015 Americas MAKE Finalists (based onnominations from at least 5% of the Americas MAKE expert panel). They are listed

alphabetically:

• Amazon.com (USA)

• Apple (USA)

• APQC (USA)

• ConocoPhillips (USA)

• Ecopetrol (Colombia)

• ExxonMobil (USA)

• Facebook (USA)

• Fluor (USA)

• FMC Technologies (USA)

• Google (USA)

• IBM (USA)

• IDEO (USA)

• Mars (USA)

• Microsoft (USA)

• MITRE (USA)

• Nalco Champion (Ecolab) (USA)

• NextEra Energy (USA)

• Phillips 66 (USA)

• Procter & Gamble (USA)

• Tesla Motors (USA)

• Thomson Reuters (Canada/USA)

• Vale S.A. (Brazil)

2015 americas make report

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