Published in Corporate IT, August 1998

The position of chief knowledge officer is becoming increasingly common, but the jury is still out on just what the role entails.

Just what does being a chief knowledge officer (CKO) involve? As with many concepts in the area of knowledge management, definitions vary widely. Consultancy Ernst & Young defines a CKO as "a position in the organisation with the charter to harness the company's knowledge and use it strategically. Together with senior management, the chief knowledge officer is responsible for creating the vision of what is possible and designing the framework for realising the results." Reflecting a broader view, the London School of Business, which is conducting ongoing research into the function of CKOs, defines the CKO as "a senior executive leading a knowledge management program or initiative who has the word 'knowledge' in his or her title".

One aspect that both definitions fail to emphasise is the high degree of technological expertise usually associated with the position. Ellen Knapp, CKO for Coopers & Lybrand and a frequently cited expert on the concept of knowledge management, sees her role as encompassing "responsibility for all aspects of technology as it relates to that enterprise; the interface of the enterprise, its suppliers and clients; learning and education; and market research and analysis".

Nonetheless, experts warn that the technology angle shouldn't be overplayed. "A CKO strategy focused primarily on IT management is likely to fail because a company's knowledge capital does not reside entirely in its information systems," consultant Jerry Ash of Associated Professional Services wrote in a recent paper.

A second key point is that the position of CKO tends to be a relatively senior one within the organisation. While many companies have appointed CKOs who report directly to chief information officers (CIOs) analysts suggest that making the CKO an autonomous position is a more effective approach. Some major US corporations have even made the CKO part of the core management team for the entire company.

The lack of sharply defined boundaries reflects the newness of the concept. While it's hard to pinpoint an exact date, the first chief knowledge officer positions are generally acknowledged to have emerged around 1994, many of them in specialist consultancy firms. By 1997, the role of CKO had become common enough for articles extolling its emergence as the next corporate trend to become a regular feature in business magazines. Nonetheless, the position remains rare.

Because knowledge is a highly business-specific concept, CK0s have emerged from a wide variety of professional backgrounds and utilise a wide range of skill sets. In highly specialised industries, detailed and specific knowledge appropriate to that area may be the most appropriate qualification. In areas where competition is tight and specialisation is less pronounced -- retailing, for example -- the ability to capture and exploit knowledge using new and innovative methods may be paramount.

Among major companies, though, the concept of a CKO is yet to be widely embraced. The most generous estimates in the US suggest that about one-fifth of Fortune 500 companies currently employ a CKO. A survey by Ernst & Young last year found a strong degree of ambivalence about the usefulness of employing a CKO (see graph). In its analysis of the survey, the consultancy commented: "For some, the danger was too great that a staff position focused on knowledge would simply translate to more bureaucracy." The same attitude was reflected in the title of a recent Fortune magazine article on CKOs: 'Is This job Really Necessary?'

Despite these doubts, companies that have embraced the notion of a CKO are quick to cite the benefits. When Ernst & Young announced its plans to merge with KPMG last year, one of the main points emphasised by CEO Phil Laskawy was that it saw knowledge management as an essential skill, both internally and as a service for other companies.

"We were one of the first firms to have a chief knowledge officer," he said. "So we perceive the combination of technology and knowledge will really make a big impact for our clients in us providing value-added services."