Implementing knowledge management
- 1. Applying Knowledge Management PRINCIPLES AND PRACTICES 14TH OCTOBER 2016
- 2. Outline Introduction and objectives History of KM Sticky Knowledge Development and Evolution of KM Explicit and Tacit Knowledge Protection of knowledge Dimensions of Knowledge The KM Cycle Conclusion
- 3. Introduction Main Forms of Production: Land (Materials), Labour and Capital New form of Production: Knowledge Knowledge is a fluid mix of framed experience, values, contextual information, expert insight and grounded intuition The concept of managing knowledge or knowledge management has attracted much attention in recent years. Knowledge is not new, but over the last decade or so the concept has grown from a convergence of ideas and existing practice.
- 5. Data Data consist of images, sounds, digital transmissions and the like, which are generally context-free and difficult to understand. They have little value until they are interpreted by structuring, filtering or summarizing and then they achieve meaning. In other words they become information.
- 6. Information Information is constructed from data. Where once there was often insufficient information with which to make a decision, the World Wide Web has moved us to an environment with a vast repository of information available. The problem now is that people have too much information, which creates anxiety and information overload and thus impedes the abilities to think. Burton-Jones argued that ‘Information is not the problem – understanding is. Society is drowning in information but still left thirsty for knowledge.’
- 7. Knowledge Knowledge differs from information in that it exists within people and is personal to them. Marchand stated that ‘Information involves the actions of sensing, collecting, organizing, processing, communicating and using expressions and representations of our or others’ knowledge, whereas knowledge emphasizes personal interpreting and understanding.’
- 8. Wisdom Wisdom is located at the apex of the pyramid. It is insufficient to know something: the important thing is to understand when to apply that knowledge to best advantage. When knowledge is combined with experience and intuition it is often called wisdom.
- 9. Definition of KM The term ‘Knowledge management’ was first used by Wiig in a keynote address for the United Nations’ International Labour Organization. He stated that; The focus of knowledge management is to harness and control the organization’s expertise to preserve it and to put it to use in the best possible ways. Drawing from many other sources, the following definition is suggested for KM; Knowledge management is the systematic process that supports the continuous development of individual, group and organizational learning, and involves the creation, acquisition, gathering, transforming, transfer and application of knowledge to achieve organizational objectives.
- 10. Objectives of KM Improved Performance Competitive advantage Innovation Sharing of lessons learned Integration Continuous Improvement
- 11. History of KM People have been managing knowledge since the days of Abraham. Consider a craftsman and his apprentice Here knowledge is shared informally between two people not by writing it down but by shadowing, mentoring, story-telling and job rotation. It was not called Knowledge Management then and it did not involved codifying knowledge writing things down, capturing knowledge. KM actually took off in the 1990s.
- 12. Sticky Knowledge Scholars have defined knowledge as sticky because ◦ we are not motivated to share it. ◦ People we want to share it with don’t trust us ◦ Or because they do not understand it It is especially sticky in professional groups. It is easier to share knowledge where everyone is an accountant than it is in a multi-disciplinary group.
- 13. Sticky Knowledge in Projects Consider projects – people from different industries dipping in and out to meet objectives often under time pressure. How do you manage knowledge in this type of environment? How do you motivate people to share knowledge when they have different stakes? People in project teams might be competitive because it gives them a competitive edge in other projects.
- 14. Development of KM In the 1990s when KM became mainstream, people started to think of knowledge as an asset, a thing that could be managed. Early KM was about capturing knowledge, writing things down for people to read. Lessons Learnt data bases and document management systems were developed The assumption was that knowledge can be captured people can go find it, they will understand it, they will use it and it will work in the situation where they applied it.
- 15. Evolution of KM In the mid 90s it was discovered that this was not always true We were sharing explicit knowledge – this was really information management. But not tapping into tacit knowledge, which are things that are more difficult to express, know-hows, insights usually involves conversation, trust and time. Thus a new flavor a KM based on connecting people became mainstream It included communities of practice, social network analysis, people finders
- 16. Evolution of KM cont’d Fast forward to the early 2000s it was realized that we have swung from one extreme to another. Hierarchies to Networks Then with the explosion of social networks in our faces all the rules of owning knowledge went out the window. Some people embraced social networks as part of KM, others proclaimed KM dead.
- 17. KM Today But if KM isn’t dead, today it could mean anything from information management to crowd sourcing, ideas market, collective sense making etc.
- 18. KM in projects In projects the purpose of a lessons learnt database is to use it but we know they don’t work We try to capture knowledge so that when an individual leaves an organization, there is something left of their knowledge, but can we really capture the knowledge of a human being? Projects are an opportunity for integrating knowledge, creating new knowledge and learning.
- 19. Explicit and Tacit Knowledge The explicit and tacit dimensions were explored in detail by Nonaka and Takeuchi (1995) Tacit knowledge consists partly of technical skills the kind of informal, hard-to- pin-down skills captured in the term ‘know-how’. A master craftsman after years of experience develops a wealth of expertise at his fingertips. But he is often unable to articulate the scientific or technical principles behind what he knows. Explicit knowledge is formal and systematic. For this reason it can easily communicated and shared in product specifications, scientific formula or a computer programme.
- 20. Key Elements of tacit and explicit Knowledge TACIT Personal Private Exists in people’s minds Unique Hard to formalize Difficult to communicate Generated through experience Acquired on the job EXPLICIT Codified Shared Available to everyone Systematic Formal Articulated and communicable Captured
- 21. The Knowledge Creating Company • Explicit to explicit • Explicit to tacit • Tacit to explicit • Tacit to tacit Socialization Externalization CombinationInternalization
- 22. Protection of Knowledge (Internal) Employees signing non-disclosure agreements Incentives to discourage employees from changing company Job design in which employees only contribute to part of a process Products and processes can be designed to prevent core knowledge from being accessed Secret recipes Complex knowledge Tacit Knowledge
- 23. Protection of Knowledge (External) Copyright Trade Marks Patents International Non-proprietary Names or Generic Names Legal contracts with customer / suppliers, non-disclosure agreements etc. Protected Denomination of Origin eg Champagne Technical standards e.g ISO standards Time to market
- 24. The Prisoner’s Dilemma Silent Prisoner B Silent Talks Talks Prisoner A Long Sentence Long Sentence Maximum Sentence Freedom Freedom Minimum Sentence Maximum Sentence Minimum Sentence
- 25. The Employee’s Dilemma Share Employee B Share Hoard Hoard Employee A Modest gains Modest gains Played the fool Windfall gains Windfall gains Significant gains Played the fool Significant gains
- 26. Dimensions of Knowledge Apart from the distinction of knowledge as either tacit or explicit, a further categorization can be identified Embodied – this knowledge is action-oriented and is only partly explicit. Embedded – this is knowledge that exists within systems and routine. Enbrained – this is the knowledge based on cognitive abilities and conceptual skills, which can develop into rules and causation. Encultured – this comprises the shared understandings and cultural meanings that people have within the organization. Encoded – this is knowledge captured in books, operating manuals and information systems.
- 27. The Knowledge Management Cycle Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 28. Vision and search Probably the main driver for a commercial organization is the desire to earn income and generate profit. In addition to this there are the inner motivations of the owners, managers and employees of the organization. Our aspirations are also very important. Our aspirations are rooted in our deep values. They are the things for which we have passion. They are the energy sources of our actions. They are the drivers for invovation, creativity and excellence. They point us to the future and its possibilities Bertels and Savage Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 29. Generating Knowledge Encouraging the generation and acquisition of knowledge is the lifeblood of a commercial organization, and it can occur in many forms. Arguably, knowledge is created each time employees share their knowledge with others, or a person reads or understands something for the first time. There are numerous approaches to the generation of knowledge, and a range of these will now be considered. Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 30. GK – Research and Development If an organization has an R&D department, this is an obvious area to look for the generation of new knowledge. However, it should not be considered the only place to find innovative capacity. The potential for innovation is high for all employees in their work practices, and it is only through the whole organization seeking alternative ways of working that there can be continuous improvement. Alexander Fleming Harry Brearley Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 31. GK – Employees as a source The generation of ideas and knowledge can be encouraged in a wide variety of ways including Desk Research Think tanks The Delphi technique Creative Friction Devil’s advocate Ideas contest Suggestion boxes Brainstorming Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 32. GK – Suppliers and Customers No organization operates in a vacuum, since it is designed to provide a product or service for the benefit of its stakeholders or customers. Moreover it also interacts with its suppliers ad together with customers these constitute the supply chain, if the organization consults with customers, areas for improved performance may be identified, or even new markets, likewise with suppliers. Uber Airbnb Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 33. GK – Systematic creativity Systems and processes in an organization are often regarded as the kiss of death to encouraging creativity, but this need not be the case. Without a system, the generation of ideas and applications can be lost of forgotten. Creativity is very important in the early stages of the product development. Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 34. GK – Diversity and culture In order to maintain company values and also avoid personal disputes, managers sometimes recruit people with similar dispositions. This may bring short-term harmony but unfortunately it may cause a form of inbreeding which cause people to think in the same way. It is simpler to manage knowledge of technology or products than to manage knowledge at a human and cultural level, because this latter kind of knowledge is much deeper. Thus, for organizations to embed a culture it needs to have key values that are communicated regularly to all employees. Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 35. Knowledge Acquisition Many organizations no longer exist or have failed to anticipate changes in their markets and now hold only a small percentage of their former market share. We do not have to invent new ideas or solutions. It may be possible to purchase, lease, license or share knowledge or acquire or merge with another organization. Some od these solutions are often much cheaper than generating new knowledge. It is often cheaper to imitate than to innovate. Supermarkets / news blogs Steal ideas shamelessly – Michael Milliken Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 36. Capture Knowledge generated in an organization can be lost if it is not captured and stored in some form: for example electronically, in text or in prototypes. Storing knowledge also allows its use at some time in the future assuming it has not yet reached its sell-by-date. Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 37. Transform Knowledge can be generated by compiling or recombining information in new forms. Other approaches to transforming existing information or knowledge can be through integration, synthesis, fusion and adaptation. Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 38. Knowledge Transfer The generation of knowledge in an organization is important, but without transmission, its impact can remain minimal. For this reason knowledge and ideas have their greatest value and effect when they are shared and held by a large number of people rather than just a few. Mechanisms for transfer include written reports, oral presentations, site visits, tours, job rotation, education and training programmes, coaching and mentoring, conference, job descriptions, work manuals, meetings and communities of practice. Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 40. Application Creation of new knowledge is not an end in itself, since it possesses little value unless it is applied. The application of knowledge is everything, as John Ruskins, the naturalist and reformer said, ‘What we think, or what we know, or what we believe is, in the end, or little consequence. The only consequence is what we do.’ Vision and Search Generate Acquire CaptureTransform Transfer Apply
- 41. Conclusion We are at a revolutionary period, moving from physical capital to knowledge capital. KM would not disappear in the next few decades rather it would become routine, along with tools and practices needed to support it. KM is a journey not a destination. There is less to fear from outside competition then from inside inefficiency, miscalculation, lack of knowledge. Beat your competitors with the knowledge edge! Annonymous