Knowledge is seen as a driver for the definition and development of an organizational strategy and a key determinant of sustainable organizational competitiveness. The shift to knowledge as the primary source of value means that knowledge plays a key role in the organizational effectiveness. This paper highlights the importance of developing and managing the intangible assets and intellectual capital of organizations to create distinctive and sustainable value. It sets forth the concept of Knowledge Circles to enhance activities along the Knowledge Value Chain. Some of the factors that will impact knowledge management initiatives in Pakistani organizations have also been identified.