The concept of Value of Knowledge Transfer (VKT) or Knowledge Transfer Value (KTV)
The concept of Value of Knowledge Transfer (VKT) or Knowledge Transfer Value (KTV)

The concept of Value of Knowledge Transfer (VKT) or Knowledge Transfer Value (KTV) is a method to quantify and evaluate the impact and efficiency of knowledge transfer within Global Accountancy Institute, Inc. and Global Financial Engineering, Inc., specifically related to training courses . The purpose of VKT is to prioritize resources and make informed decisions on employee development by assessing the value gained from the investment in these courses.

To apply the Value of Knowledge Transfer (VKT) concept to Global Accountancy Institute, Inc. and Global Financial Engineering, Inc., both proprietary trading firms, We have  tailored the factors in the VKT calculation to the context of these firms and their specific goals. Here’s a step-by-step approach that was use  to apply the VKT concept to these proprietary trading firms:

  1. Identify relevant courses: Determine which courses  are relevant for the employees at these firms. These courses could include technical analysis, risk management, algorithmic trading, portfolio management, or other subjects that directly impact trading performance.
  2. Direct costs of the course: Calculate the direct costs associated with each course, including fees paid to external providers, internal course development costs, and any related expenses (e.g., software or tools required for the course).
  3. Employee time investment: Estimate the time required for employees to complete each course, and calculate the cost of their time investment based on their compensation. We have included time spent on the course itself and any related activities, such as homework or practice sessions.
  4. Knowledge retention rate: Assess the effectiveness of each course in terms of knowledge retention among the employees. We make  use of  quizzes, tests, and  follow-up assessments to measure this and then assign a retention rate percentage to each course based on the results.
  5. Impact on trading performance: Estimate the impact of each course on the employees’ performance, focusing on key performance indicators (KPIs) relevant to proprietary trading, such as return on capital, Sharpe ratio, or drawdowns then assign an impact percentage to each course based on the estimated improvements in these KPIs.
  6. Knowledge transfer efficiency: Evaluate how efficiently the knowledge from each course can be transferred among the employees and integrated into their daily activities. This could be measured by the rate at which employees adopt new strategies or techniques from the courses or by assessing the improvements in collaboration and communication among the employees. We then assign a transfer efficiency percentage based on these factors.

After the above we calculate the VKT for each course using the following formula:

VKT = (Direct costs + Employee time investment) × Knowledge retention rate × Impact on trading performance × Knowledge transfer efficiency

By calculating the VKT for each course, we can prioritize which courses to offer and allocate resources for employee development more effectively. Additionally, we can track the overall impact of these courses on the firms’ profitability, making it easier to justify the investment in training and development. The concept of Value of Knowledge Transfer (VKT) or Knowledge Transfer Value (KTV) at Global Accountancy Institute, Inc. and Global Financial Engineering, Inc. was designed by Dr. Glen Brown.

Dr. Glen Brown is a highly accomplished finance and accounting professional with over 25 years of experience in the industry. As the President & CEO of both Global Accountancy Institute, Inc. and Global Financial Engineering, Inc., Dr. Brown leads organizations dedicated to bridging the fields of accountancy, finance, investments, trading, and technology, positioning them as a global multi-asset class professional proprietary trading firm.

With a Doctor of Philosophy (Ph.D.) in Investments and Finance, Dr. Brown’s expertise spans a wide range of disciplines, including financial accounting, management accounting, finance, investments, strategic management, and risk management. In addition to his executive roles, Dr. Brown serves as the Chief Financial Engineer, Head of Trading & Investments, Chief Data Scientist, and Senior Lecturer in various financial disciplines, showcasing his commitment to both practical application and academic advancement in his field.

At the heart of Dr. Glen Brown’s leadership and accomplishments is his guiding philosophy: “We must consume ourselves in order to transform ourselves for our rebirth. We are blessed with subtlety, creative imaginations, and outstanding potential to attain spiritual enlightenment, transformation, and regeneration.” This belief drives Dr. Brown’s dedication to innovation, personal growth, and the pursuit of excellence in the world of finance and investments.

Through his extensive experience and unique philosophical approach, Dr. Glen Brown continues to foster a culture of innovation and success at Global Accountancy Institute, Inc. and Global Financial Engineering, Inc., offering cutting-edge solutions to complex financial challenges.