The field of knowledge management was born from a handful of forward thinkers. These people and organizations began to view business and, most importantly, the assets of a business, differently. That is, the focus shifted from considering only tangible items (like computers, desks, and chairs) as assets. These thinkers believed that the assets of an organization reached much further and deeper than only the physical objects you could touch or see.

This shift in perspective called for a new way of thinking and a new line of questioning. These forward thinkers urged people to consider the intangible assets of their organization, like the collective knowledge an organization has or the networks business create and draw support from.

Karl-Erik Svelby of Sweden was one such forward thinker. In 1979, Svelby moved from a job with a huge conglomerate to a small business. The inevitable reduction in staff saw Svelby taking on more roles, one of which was company accountant. What troubled Svelby when he examined the company’s books was that the assets he felt were most important, the intangible assets, were not accounted for. He was perturbed that the assets that would most assuredly bring future prosperity were nowhere to be found. He found that he could manage the tangible assets but had no way to maximize or quantify the intangible assets.

Svelby began talking to other business leaders and found they that they agreed with his way of thinking. They also believed that intangible assets were very real, extremely valuable, and needed to be managed with even greater care than tangible assets. Essentially, they believed that proper management of the intangible assets was the most important thing to manage for business success.

What resulted from Svelby’s conversations with other business owners was a new network that focused on spreading the word about the importance of intangible asset management. This group adopted the name Konrad and released their work in the book The Invisible Balance Sheet.

This mindset was not limited to Sweden. In the United States, management guru Peter Drucker and Fortune magazine staff writer Tom Stewart were beginning to ask the same questions. This way of thinking was becoming a global movement.

With the heightened interest in the topic, conferences began to take place. These events allowed a space for forward thinkers to come together and share ideas. As these conferences grew in size, business communities formed and the discipline we know as knowledge management was born.