Leadership in Knowledge-Intensive Companies by Mads Øvlisen

Chairman Novo Nordisk Speaks at Copenhagen Business School

What does it take to lead a knowledge intensive organization? Mads Øvlisen, Chairman of the Board at Novo Nordisk A/S, the world's leader in diabetes care and adjunct professor of corporate social responsibility at Copenhagen Business School, spoke to members of the School's community on the knowledge strategy at Novo Nordisk.

Knowledge Intensive Organization

Øvlisen explained that as a research-driven company, Novo Nordisk is a knowledge intensive organization. Synergies are created by aligning the corporate planning process with the knowledge strategy in achieving customer and stakeholder satisfaction.

Øvlisen emphasized that to fully utilize the potential of human capital in every organization is the key to create sustainable advantage. That means we need to reflect on the type of leadership style that is needed to push this initiative. The vision of the company needs to be made known to the employees. The core values of the organization should guide the behavior of the employees. Furthermore, the employees need to be given the resources of time, money and – equally important - knowledge to stretch their imagination.

Human Capital

While measuring the value of human capital is low on most companies' agenda; Novo Nordisk has started to adopt "People Metrics/Indicators". Currently, data on the employees including their employment details and satisfaction are collected. In the future, they hope to capture information on issues relating to leadership and innovation, diversity and internationalization to help in identifying trends and targets. Moreover, organizational audits are conducted to evaluate if they have the necessary skills and are organized in a proper manner to implement their strategies and plans.

Stakeholder Innovation

Novo Nordisk is a value-based company and it's growth strategy is based on leveraging the core competence of the organization from Research & Development to Production and Commercialization.

Øvlisen emphasized that knowledge is a key business asset for Novo Nordisk and that it is nurtured and used in all their business and decision-making processes to maintain and strengthen their leadership; differentiate from their peers and establish a sustainable collaborative advantage. Thus creating the success for their stakeholders.

Øvlisen concluded by explaining the new Novo Nordisk stakeholder perspective. He predicts that in the near future, the needs of the consumers will drive pharmaceutical companies to provide preventive solution - to promote health. To do so, companies need to gather knowledge, create knowledge in a collaborative approach. Innovation is born through the sharing of knowledge.

Photo: Adjunct professor Claus Valentiner, CBS and Chairman of the Board of Novo Nordisk A/S, Mads Øvlisen