2011 Global Most Admired Knowledge Enterprises (MAKE) Report

Executive Summary

Teleos, in association with The KNOW Network, established the Global Most Admired Knowledge Enterprises (MAKE) research program in 1998 to identify and recognize those organizations which are creating shareholder/stakeholder wealth by transforming new as well as existing enterprise knowledge into superior products/services/solutions. The Global MAKE research is based on the Delphi methodology. This technique uses an expert panels perceptual knowledge to identify and examine critical issues in the case of the Global MAKE study to identify those organizations which are leaders in the 21st century knowledge economy. Through several iterations a consensus is developed among the panels experts. It is this consensus of expert opinion which provides the validity to the Delphi and Global MAKE study results. A panel of Global Fortune Global 500 senior executives and leading knowledge management/intellectual capital/innovation/organizational learning experts selects the Global MAKE Winners. In the Global MAKE study there are three rounds of consensus building. In the first round, members of the expert panel nominate organizations (profit, non-profit and public sector) located anywhere in the world. In the second round, each member of the expert panel selects a maximum of three knowledgedriven organizations from the list of nominations. Those organizations selected by at least 10% of the expert panel members are recognized as Global MAKE Finalists. In the third and final round, the Global MAKE Finalists are ranked against each of the eight knowledge performance dimensions which form the MAKE framework and are the visible drivers of value creation: 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 enterprise knowledge sharing. creating a learning organization.
2011 Global Most Admired Knowledge Enterprises Executive Summary 1998-2011 Teleos Tel: +44 1584 878576 E-mail: teleos@mac.com Website: http://www.knowledgebusiness.com

 delivering value based on stakeholder knowledge. transforming enterprise knowledge into shareholder/stakeholder value. A total of 119 organizations were nominated as 2011 Global Most Admired Knowledge Enterprises. Out of this group, 46 organizations were recognized as 2011 Global MAKE Finalists (see Appendix 1). A total of 21 Global MAKE Finalists were recognized as 2011 Global MAKE Winners (based on the total composite scores). The Winners of the 2011 Global MAKE study, conducted by Teleos in association with The KNOW Network, are (in alphabetical order): Accenture (Ireland) Apple (USA) APQC (USA) ConocoPhillips (USA) Fluor (USA) Google (USA) Hewlett-Packard (USA) IBM (USA) Infosys Limited (India) McKinsey & Company (Global) Microsoft (USA) POSCO (S. Korea) PwC (Global) Royal Dutch Shell (the Netherlands) Samsung (S. Korea) Schlumberger (France/the Netherlands/USA) Siemens (Germany) Tata (India) Toyota (Japan) Unilever (the Netherlands/United Kingdom) Wikipedia (Global)
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The Global MAKE study is a measure of the rate at which an organization is transforming its tacit and explicit corporate knowledge into new enterprise intellectual capital and increased shareholder value (or in the case of non-profit and public organizations, stakeholder capital). Global MAKE Winners are creating enterprise intellectual capital and shareholder value over four times as fast as their competitors supported by trends in innovation capability, market capitalization, return on assets and revenues, brand value, etc. According to Rory Chase, managing director of Teleos, The 2011 Global MAKE Winners have been recognized as leaders in effectively transforming enterprise knowledge into wealth-creating ideas, products and solutions. During uncertain economic times, their expanding portfolios of intellectual capital are enabling them to out-perform their competitors during this global economic downturn. For the second time, Apple has been named the overall Global MAKE Winner. Past overall Global MAKE Winners include Buckman Laboratories, General Electric, Google, IBM, McKinsey & Company, Microsoft and Toyota.

Key Findings
Business leaders, analysts and investors constantly ask: What are the economic and competitive advantages of pursuing a business strategy based on knowledge leadership? Based on the findings of the 2011 Global MAKE study, the benefits of this approach are tangible and significant. Successfully managing enterprise knowledge yields big dividends. The 2011 Global MAKE Winners trading on the NYSE/NASDAQ showed a Total Return to Shareholders (TRS) for the ten-year period 2001-2010 of 21% over three times the average Fortune 500 company median. The Return on Revenues (ROR) for the 2011 Global MAKE Winners was 11.9% 2.1 times that of the Fortune 500 ROR median. The Return on Assets (ROA) for the 2011 Global MAKE Winners was 9.9% 2.3 times that of the Fortune 500 ROA median. Other findings include: US-headquartered organizations are struggling to remain leaders in the Knowledge Economy. They represent only 26% of the 2011 Global MAKE Winners and Finalists the smallest percentage since the Global MAKE studies were launched in 1998. Former Global MAKE Winners, General Electric (a Finalist beginning in 1998; Nokia (a Finalist beginning in 2002); and Honda Motor (a Finalist beginning in 2003), failed to reach the this years Global MAKE Finalist stage.

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 This years Global MAKE Winners excel at creating knowledge-driven organizational cultures, innovation and collaborative knowledge sharing. Organizations around the world are facing leadership challenges in developing knowledge workers. A combination of factors the retirement of growing numbers of baby boomers and difficulties in recruiting talented new knowledge workers from the small pool of Generation Y individuals is forcing organizations to devote significant resources to human intellectual capital management. Organizations also continue to struggle to create value through managing customer/stakeholder knowledge. Many organizations are not expanding their capabilities, especially in the area of social media and networks, in order to create a competitive edge. 2011 GLOBAL MAKE HALL OF FAME A total of 157 organizations have been named Global MAKE Finalists since the MAKE research program began in 1998. And, of this group, only 56 organizations have been recognized as Global MAKE Winners. They are concentrated in 21 business sectors. An even more select group of organizations form the 2011 Global MAKE Hall of Fame. These 23 organizations have been Global MAKE Finalists in each of the past five annual studies: Accenture, Apple, APQC, ConocoPhillips, Deloitte, Ernst & Young, Fluor, Google, HewlettPackard, IBM, Infosys Limited, McKinsey & Company, Microsoft, Petrobras, POSCO, PwC, Royal Dutch Shell, Samsung, Schlumberger, Siemens, Tata Group, Toyota and Wipro Technologies.

2010 Global MAKE Winners

The 2011 Global MAKE Winners (in alphabetical order) are: Accenture (Ireland) The firm is recognized in the 2011 Global MAKE study for transforming enterprise knowledge into shareholder/stakeholder value. Accenture is a 14-time Global MAKE Winner. Apple (United States) The 2011 Global MAKE panel has recognized Apple for developing knowledge-based products/services/solutions (1st place), maximizing its enterprise intellectual capital (1st place), and transforming enterprise knowledge into shareholder value (1st place). This is the sixth year in
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a row that Apple has been recognized as a Global MAKE Winner, including overall 2009 and 2011 Global MAKE Winner. APQC (United States) APQC is recognized in the 2011 Global MAKE study for delivering value based on customer/stakeholder knowledge. APQC is a two-time Global MAKE Winner. ConocoPhillips (United States) ConocoPhillips is recognized in the 2011 Global MAKE study for creating a knowledge-driven organizational culture, and enterprise-wide collaborative knowledge sharing. This is the first time that ConocoPhillips has been recognized as a Global MAKE Winner. Fluor (United States) In this years Global MAKE study, Fluor has been recognized for creating a knowledge-driven organizational culture (1st place), and developing knowledge workers through senior management leadership (1st place). This is the sixth consecutive year that the company has been recognized as a Global MAKE Winner. Google (United States) Google is recognized in the 2011 Global MAKE study for creating value from customer/stakeholder knowledge (1st place). This is the seventh consecutive year that the company has been recognized as a Global MAKE Winner, including overall 2010 Global MAKE Winner. Hewlett-Packard (United States) Hewlett-Packard is recognized in the 2011 Global MAKE study for its enterprise knowledgedriven organizational culture. Hewlett-Packard is an 11-time Global MAKE Winner. IBM (United States) IBM is recognized in the 2011 Global MAKE study for developing knowledge-based products/services/solutions, and transforming enterprise knowledge into shareholder/stakeholder value. IBM is a 13-time Global MAKE Winner, including overall 2004 Global MAKE Winner. Infosys Limited (India) The 2011 Global MAKE panel has recognized Infosys Limited for creating a learning organization. Infosys Limited is an eight-time Global MAKE Winner.
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McKinsey & Company (Global) In the 2011 Global MAKE study, the firm is recognized for maximizing its enterprise intellectual capital. McKinsey & Company is an 11-time Global MAKE Winner, including overall 2007 and 2008 Global MAKE Winner. Microsoft (United States) Microsoft is cited in this years Global MAKE study for creating a learning organization (1st place). Microsoft is a 14-time Global MAKE Winner, including overall 1999 Global MAKE Winner. POSCO (South Korea) POSCO is recognized in the 2011 Global MAKE study for organizational learning. This is the first time that POSCO has been recognized as a Global MAKE Winner. PwC (Global) PwC is cited in this years Global MAKE study for creating value from customer/stakeholder knowledge. PwC is a 10-time Global MAKE Winner. Royal Dutch Shell (the Netherlands) The 2011 Global MAKE panel has recognized Royal Dutch Shell for creating a learning organization (1st place). Royal Dutch Shell is a 10-time Global MAKE Winner. Samsung (South Korea) The 2011 Global MAKE panel has recognized Samsung for developing knowledge workers through senior management leadership. This is the eight consecutive year that Samsung has been recognized as a Global MAKE Winner. Schlumberger (France/the Netherlands/United States) Schlumberger is recognized in the 2011 Global MAKE study for creating an enterprise-wide collaborative knowledge-sharing environment (1st place). Schlumberger is a six-time Global MAKE Winner.

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Siemens (Germany) The 2011 Global MAKE panel has recognized Siemens for creating value from customer/stakeholder knowledge. Siemens is a 10-time Global MAKE Winner. Tata Group (India) The Tata Group is recognized in the 2011 Global MAKE study for creating a learning organization. The Tata Group is a five-time Global MAKE Winner. Toyota (Japan) The 2011 Global MAKE panel has recognized Toyota for organizational learning. Toyota is a nine-time Global MAKE Winner, including overall 2005 and 2006 Global MAKE Winner. Unilever (the Netherlands/United Kingdom) Unilever is cited in this year's Global MAKE study for developing knowledge workers through senior management leadership, and creating value from customer/stakeholder knowledge. Unilever is a four-time Global MAKE Winner. Wikipedia (Global) Wikipedia is recognized in the 2011 Global MAKE study for developing knowledge-based products/services, and creating an enterprise-wide collaborative knowledge-sharing environment. This is the third time that Wikipedia has been recognized as a Global MAKE Winner.

MAKE Research Program

Teleos, an independent knowledge management and intellectual capital research company, administers the Most Admired Knowledge Enterprises (MAKE) program. The KNOW Network http://www.knowledgebusiness.com is a Web-based global community of organizations dedicated to networking, benchmarking and sharing best knowledge practices leading to superior business performance. The MAKE research program consists of the annual Global MAKE study the international benchmark for best practice knowledge organizations. In addition, MAKE studies are conducted to identify leading knowledge-driven organizations at the regional/national level, including Asia, Europe and North America; and China, Hong Kong, India, Indonesia and Iran.

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The 2011 MAKE Reports Global, Asia, Europe, India and North America are available from Teleos either individually or as a set. Each report contains MAKE rankings, key findings, best knowledge practices, leaders by business sectors, trends, and profiles of winners. To order a copy of the 2011 Global MAKE Report, or for more information on the MAKE research program, contact Teleos, Tel/Fax: +44 1584 878576, E-mail: teleos@mac.com

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Appendix 1: 2011 Global MAKE Finalists

A total of 46 organizations were recognized as 2011 Global MAKE Finalists (based on nominations from at least 5% of the Global MAKE expert panel). They are listed alphabetically: Accenture (Ireland) Apple (USA) APQC (USA) Arup (United Kingdom) Asian Development Bank (Asia) Banco Santander (Spain) BMW (Germany) British Broadcasting Corporation (United Kingdom) Cognizant Technology Solutions (USA) ConocoPhillips (USA) Deloitte (Global) Ecopetrol (Colombia) Ernst & Young (Global) Facebook (USA) Fluor (USA) Fujitsu (Japan) Google (USA) Hewlett-Packard (USA) IBM (USA) IKEA (the Netherlands) Infosys Limited (India) KPMG (Global) Larsen & Toubro (India) Mars (USA)
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 McKinsey & Company (Global) Microsoft (USA) MindTree (India) MITRE (USA) Nestl (Switzerland) Petrobras (Brazil) POSCO (S. Korea) PwC (Global) Royal Dutch Shell (the Netherlands) Samsung (S. Korea) Schlumberger (France/the Netherlands/USA) Siemens (Germany) Syngenta (Switzerland) Tata (India) Telefnica (Spain) Toyota (Japan) Unilever (the Netherlands/United Kingdom) Wikipedia (Global) Wipro Technologies (India) Woods Bagot (Australia) World Bank (Global) WorleyParsons (Australia)

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