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Alex Domínguez [email protected] [email protected] www.unitec.mx Lecture notes, Grenoble Graduate School of Business, France, May 2008.

Knowledge management

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Page 1: Knowledge management

Alex Domí[email protected]

[email protected]

Lecture notes, Grenoble Graduate School of Business, France, May 2008.

Page 2: Knowledge management

Contents

2

1. Symbols, Data and

Information

2. On Knowledge

3. The Problem of KM in

Organisations

4. The Learning Organisations

5. Knowledge Sharing

6. Social Networks

7. Organisation’s

Culture

8. Communities of Practice

9. Storytelling10. KM

Technology

11. KM Strategy12. Business Case for KM

13. KM Framework and

Processes

14. The Chief Knowledge

Officer

From the point of view of non-IT management, the main objective of this course is to• Understand the relationship between knowledge, information and data

• Understand why knowledge management is an issue today, when it never was

before

• Understand how to specify and implement a knowledge management project in an

organisation

Page 3: Knowledge management

Information Technology Requirements

3

• Lap Top computer, if possible

• Speakers

Hardware

• Acrobat Reader – Version 7 or higher

• Windows Media Player – Version 9 or higher

• MindManager software (you can download a 21-days free trial version on www.mindjet.com)

Software applications

• Internet Connection

Telecommunications

Page 4: Knowledge management

Bibliography

• Groff, T.R. Introduction to Knowledge Management: KM in Business. Butherworth-Heinemann, UK, 2003.

• MacDonald, J. Understanding Knowledge Management in a Week. Institute of Management. Hodder &Stoughton, UK, 1999.

• O‟Dell, C. The Executive‟s Role in Knowledge Management. APQC Publications, USA, 2004.

• Liebowitz, J. (Editor). Knowledge Management Handbook. CRC Press, USA, 1999.

• Rumizen, M.C. The Complete Idiot‟s Guide to Knowledge Management. Alpha Books, USA, 2003.

• Skyrme, D.J. Knowledge Networking: Creating the Collaborative Enterprise. Butherworth-Heinemann, UK, 1999.

• Tiwana, A. The Knowledge Management Toolkit. 2nd Edition. Prentice-Hall, PTR, USA, 2002.

Books

• BRINT: Knowledge Management: www.brint.com/km/

• Knowledge Board, Your Global Community: http://www.knowledgeboard.com/

• Knowledge Connections, Home of the I3 Update: www.skyrme.com/index.htm

• The Gurteen Knowledge Website: http://www.gurteen.com/

• The Knowledge Management Advantage: www.providersedge.com/kma/index.html

• The Knowledge Management Resource Centre: www.kmresource.com/

Websites

4

Page 5: Knowledge management

From facts to symbols

5

Sym

bo

ls,

Da

ta, a

nd

In

form

ati

on

Observer Fact or event

Symbols are objects,

characters, figures, sounds or

colors used to represent

abstract ideas or conceptsAbstraction /

Representation

At the lowest level of comprehension / understanding, a

symbol has no structure

Poor / no comprehension

Poor / no understanding

Page 6: Knowledge management

From symbols to data

6

{a, b}

Symbols

(no order)

S

Start

symbol

1. S aSb

2. S ba

Production rules

(syntax rules)

S aSb aaSbb aababb

A structured symbol generated

by production rules

{ba, abab, aababb, aaababbb, …}

Set of structured symbols

(ordered symbols)

Data are the representation of symbols (facts, concepts, text, numbers,

sounds, pictures, …) in an organised manner suitable for communication or

processing by human or automatic means

At the first level of comprehension / understanding, data have no meaning

Sym

bo

ls,

Da

ta, a

nd

In

form

ati

on

Data give answer to “what”

Page 7: Knowledge management

From data to information

7

Data

Condensate Calculate

ContextualiseCorrect

Categorise Information

The five C‟s filter converts

data to information

Information is data endowed with relevance and purpose; i.e., meaning

At the second level of comprehension / understanding, information has no an

established practice

Sym

bo

ls,

Da

ta, a

nd

In

form

ati

on

Information gives answer to “what”, “who”, “where”, and “when”

Page 8: Knowledge management

Organisation and immediacy of information

8

Sym

bo

ls,

Da

ta, a

nd

In

form

ati

on

Think of information as data that makes the difference

The organisation

of information

Location

Alphabet

TimeCategory

Hierarchy5 degrees

of information immediacy

Internal

Conversational

ReferenceNews

Cultural

Page 9: Knowledge management

Information and the Principle of Uncertainty

9

Information about a fact reduces the uncertainty of that fact

Sym

bo

ls,

Da

ta, a

nd

In

form

ati

on

The Principle of Uncertainty

Any interaction between an observer and the observed changes both. The

more an observer probes, the more difficult it is for him to obtain

INFORMATION about the initial STATE of what he observers and the more

are his observations contaminated by his own efforts

Page 10: Knowledge management

Paper: Project Management in Noisy Environments

10

Before lecture: Read the paper

Create multidisciplinary international teams

(3 people)

Review the paper(5 minutes)

Discuss the paper in your own team

(10 minutes)

Explain your conclusions to other teams

(3 minutes by team)

Free discussion(10 minutes)

Objective

Dimension the importance of information in business

DIRECTIONS

Page 11: Knowledge management

From information to knowledge

11

On

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Knowledge

Information in situation 1

Information in situation 2

Information in situation 3

Information in situation 4

Knowledge of a fact is when information of that fact is put in practice or used

in many situations

Page 12: Knowledge management

Knowledge properties

12

Consistent

Precise and non-redundant

Trustable

Time independent

Universal

ExpandableCompressible

Substitutable

Transportable

Diffusive

Shareable

On

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Page 13: Knowledge management

Types of knowledge: Tacit and explicit

13

Tacit knowledge is personal, context-specific knowledge that is difficult to

formulate

Explicit knowledge is that can be codified and transmitted in a systematic and

formal language

What we know

we know

What we know

we do not know

What we do not know

we know

What we do not

we do not know

Ex

plic

it K

no

wle

dg

eTa

cit

Kn

ow

led

ge

Knowledge Assets Knowledge Gaps

On

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led

ge

Page 14: Knowledge management

On

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ge

Types of knowledge: Tacit and explicit

14

Characteristics Tacit Knowledge Explicit Knowledge

Nature Personal, context-specific Can be codified and explicated

FormalisationDifficult to formalise, record, encode, or

articulate

Can be codified and transmitted in a

systematic and formal language

Development

ProcessDeveloped through trial and error

Developed through explication of tacit

understanding and interpretation of information

Location Stored in the heads of peopleStored in documents, databases, Web pages,

e-mails, charts, etc.

Conversion

Processes

Converted to explicit through

externalisation (metaphors and analogy)

IT SupportHard to manage, share, or support with

ITWell supported by existing IT

Medium

EnabledNeeds a rich communication mediums

Can be transferred through conventional

electronic channels

Page 15: Knowledge management

From tacit to explicit knowledge

15

On

Kn

ow

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Page 16: Knowledge management

Where do we acquire knowledge?

16

Knowledge is acquired

from

Procedures

• New sequence of operations or rules

Tools and Methods

• Conceptual skills

Processes

• New sequence of phases of a project

Structures

• Structure or location of organisation

Principles

• New concepts and values applicable to decision making

On

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Page 17: Knowledge management

The 3 basic processes of knowledge

17

Acquisition

• The process of development and creation of insights, skills, and relationships

• IT tools: Databases, Capture Tools (i.e., Mind Manager)

Sharing

• Disseminating and making available what is already known

• IT tools: Communications Networks

Utilisation

• Leaning is integrated on daily basis

• IT tools: Collaborative tools (e-mail, chat applications, etc.)

Acquire

Corroborate

Organise

Secure

Analyse

Share

Acquire

Corroborate

Organise

Secure

Analyse

Utilise

On

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Page 18: Knowledge management

Forms of knowledge

18

Know-how – a skill, procedures

Know-who – who can help me with this question or task

Know-what – structural knowledge, patterns

Know-why – a deeper kind of knowledge

understanding the wider context

Know-when – a sense of timing, and rhythm

Know-where – a sense of place, where is best

to do something

On

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Page 19: Knowledge management

Knowledge versus learning

19

Learning:The acquisition and integration of knowledge so that it may be used and

applied

Types of

learning

Knowledge: memorisation of facts or terms

Comprehension: translating or paraphrasing information or

rules

Application: using information in new

situations, applying rules

Analysis: breaking

information down into discrete parts

Synthesis: constructing a new idea from parts of

others

Evaluation: placing a value

judgment on data

On

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Page 20: Knowledge management

Knowledge and individual learning

20

Motivators for

Learning

Survive and meet basic

needs

Growth

Professional development

and marketability Curiosity

and intellectual enjoyment

Gain edge over

competitors

Knowledge begins with the individual

• Skills must be continually renewed or become obsolete

• New skills must be acquired

• To respond to change and use new technologies, people must be enabled to learn how to create, innovate and employ new processes

Knowledge workers must be lifelong learners

On

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Page 21: Knowledge management

Motivation to try potentially better processes

New or improved skill or ability desired

Trust in abilities and validity of those providing knowledge

Flexibility and agility

Curiosity

Safe environment

• A sense of highly focused attention

• Mental enjoyment of the activity for its own sake

• A sense of being outside of time

• A match between the challenge at hand and one's skill

Flow State

Optimal characteristics of learners

21

On

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Page 22: Knowledge management

Knowledge and models of reality

22

Facts

• Representation of reality

Symbols

• Representation of facts

Data

• Structured symbols

Information

• Data with meaning

Knowledge

• Information put in practice

Knowledge about a fact produces a model of

the real event that generates that fact

The Principle of Incomplete Knowledge:

The model embodied in a system is necessarily incomplete

On

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A model is an abstraction of the reality

Page 23: Knowledge management

Paradigms

23

Number of

solved

problems

Time

A

B

C

Paradigm

formation

A paradigm is a a pattern or model; a collection of assumptions, concepts,

practices, and values that constitutes a way of viewing reality, especially for

an intellectual community that shares them

On

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ow

led

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Page 24: Knowledge management

Born of new paradigms (paradigm shift)

24

On

Kn

ow

led

ge

Page 25: Knowledge management

Paradigm shift and paralysis

25

Image shows the way in which a paradigm shift could cause

one to see the same information in an entirely different way

Perhaps the greatest barrier to a paradigm shift, in some cases, is the reality

of paradigm paralysis, the inability to see beyond the current models of

thinking

Examples on Paradigm Shift and Paralysis in Information Management(alternative link: http://www.youtube.com/watch?v=vxmuhzLzubM)

On

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Page 26: Knowledge management

The Principle of Darkness

26

At this third level of comprehension / understanding, knowledge does not

have rules to distinguish and generate new knowledge

The Principle of Darkness:

Even though the knowledge of a part of the reality is incomplete,

it can be MANAGED effectively (black box theory)

On

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KNOWLEDGE

(black box)

Input Output

Knowledge gives answer to “what”, “who”, “where”, “when”, “how”, and “why”

Page 27: Knowledge management

What is Knowledge Management?

27

Knowledge Management (KM) is the explicit and systematic

management of vital knowledge and its associated processes of

creating, gathering, organising, diffusion, use and exploitation, in

pursuit of defined objectives

Create

Gather

Organise

Diffuse

Use

Exploit

KM Processes

On

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Page 28: Knowledge management

What KM is not about

28

KM is not knowledge engineering

KM is about processes, not just digital networks

KM is not building a smarter intranet

KM is not about a one-time investment

KM is not about enterprise-wide “infobanks”

On

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Page 29: Knowledge management

From knowledge to wisdom

29

Knowledge of a fact is when information of that fact is put in practice or used

in many situations

Wisdom is the ultimate level of understanding

This level is achieved when there are enough patterns and meta-patterns

that that can be synthesised them and then used them in novel ways

On

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Page 30: Knowledge management

From facts to wisdom: a final map

30

On

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Page 31: Knowledge management

Importance of KM to your organisation

31

On

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Page 33: Knowledge management

KM practice: Managing your knowledge

33

Directions

• Each practice is 20 minutes long + 10 minutes for group discussion

• MindManager software is needed (you can download a 21-days free trial version on www.mindjet.com)

• Notice: No previous experience in using MindManager is needed

Practice 1 - Understand your knowledge processing styles

• Think about how you acquire information and make decisions

• Mindmap your preferred ways of gaining knowledge

• Mindmap what thinking processes and preferences guide your decision-making

Practice 2 - What sort of information manager are you?

• Review a recent significant project or decision

• Mindmap what information you felt you needed to do your best, how you went about finding it, how you processed it, and how it affected the outcome of your task

• What have you now done with this information and how might you use it again?

• After reviewing the check list, would you do something different next time you are in a similar situation?

Page 34: Knowledge management

Organisational isles of information and knowledge

34

Th

e P

rob

lem

of

KM

in

Org

an

isa

tio

n

Functional Areas Organisational Levels Organisational Isles of

Information and

Knowledge

Page 35: Knowledge management

Th

e P

rob

lem

of

KM

in

Org

an

isa

tio

n

Knowledge transfer velocity and viscosity

35

Knowledge velocity

concerns

• How quickly the

knowledge moves

(knowledge speed)

• Whether the

knowledge gets to the

appropriate

organisational

members (knowledge

direction)

Knowledge viscosity

concerns

• The richness or

thickness of the

knowledge transferred

• Its resistance to flow

Tacit knowledge is more viscous than explicit knowledge

Reduce knowledge viscosity by converting tacit knowledge to explicit

knowledge whenever possible (e.g., standard operating procedures, best

practices and lessons learned)

Page 36: Knowledge management

Organisational culture

36

Observable symbols,

ceremonies, stories,

slogans, behaviours,

dress, physical settings

Underlying values,

assumptions, beliefs,

attitudes, feelings

Th

e P

rob

lem

of

KM

in

Org

an

isa

tio

n

Page 37: Knowledge management

Organisational growth

37

Phase 1Entrepreneurial

Small

Large

Org

an

isa

tio

nal S

ize

Growth through

Creativity

Leadership crisis

Growth through

DirectionAutonomy Crisis

Growth through

Delegation Control Crisis

Growth through

Coordination

Staff Crisis

Split into small

organisations

Evolution

continuation

Decline

Phase 2Collective

Phase 3Formalisation

Phase 4Elaboration

Phase 5

The Limiting Absorption

Principle for Knowledge:

In order to absorb more

knowledge, an organisation

must change and have

evolution

Th

e P

rob

lem

of

KM

in

Org

an

isa

tio

n

Page 38: Knowledge management

Resistance to change

38

ACTIVE

PASSIVE

Th

e P

rob

lem

of

KM

in

Org

an

isa

tio

n

Page 39: Knowledge management

Th

e P

rob

lem

of

KM

in

Org

an

isa

tio

n

Where is knowledge into organisations?

39

Knowledge into Organisations

Customer knowledge

• The most vital knowledge in most organisations

Knowledge in products and

services

• Smarter solutions, customised to users' needs

Knowledge in people

• Nurturing and harnessing brainpower, your most precious asset

Knowledge in processes

• Applying the best know-how while performing core tasks

Organisational memory

• Drawing on lessons from the past or elsewhere in the organisation

Knowledge in relationships

• Deep personal knowledge that underpins successful collaboration

Knowledge assets

• Measuring and managing your intellectual capital

• Human Capital -

• In the minds of individuals (knowledge, competencies, experience, know-how, etc.)

• Structural Capital

• That which is left after employees go home for the night (processes, information systems, databases, etc.)

• Customer Capital

• Customer relationships, brands, trademarks, etc.

Intellectual Capital

Page 40: Knowledge management

Organisational learning

40

• It is a process of knowledge acquisition or generation of an organisation, performed through individuals, which can be accomplished by teams

• It is based on organisational memory that is expanded, which can improve organisational actions

Organisational Learning

Organisational Learning Types

External (from outside to inside organisations)

Learning of implicit knowledge

Insiders that turn into outsiders

Outsiders that become insiders

Learning of explicit knowledge

Prepared material

Unprepared material

Internal (within an organisation)

Learning of implicit knowledge

Individual work in an unstructured

approach

Team work in an unstructured

approach

Learning of explicit knowledge

Individual work in a structured approach

Team work in a structured approach

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Page 41: Knowledge management

Th

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s

Levels of organisational learning

41

Single-loop

learning

Double-loop

learning

This occurs when errors are detected and corrected and

organisations carry on with their present policies and goals

This occurs when, in addition to detection and correction of

errors, the organisation is involved in the questioning and

modification of existing norms, procedures, policies, and

objectives

Deutero-learning

This occurs when organisations learn how to carry out single-

loop and double- loop learning

Page 42: Knowledge management

Learning organisation

42

The term learning organisation refers to an organisation‟s

capability of learning from its past experience

To build a learning

organisation, it must tackle three critical

issues:

(1) Meaning -Determining a vision of the

learning organisation

(2) Management - Determining

how the organisation

is to work

(3) Measurement - Assessing the rate and

level of learning

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Page 43: Knowledge management

Systematic Problem Solving

(using methodologies)

Experimentation with new

approaches

Learning from past experience

Benchmarking / Best practices

Transferring knowledge quickly

and efficiently through out the

organisation

Some components of a learning organisation

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43

Page 44: Knowledge management

44

Organisational system learns as a

whole

People in organisation

recognise that ongoing,

organisation-wide learning

is critical

Learning is a continuous,

process that is integrated with

work

How a learning organisation looks like

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s

Learning Organisation

Climate of openness and

“curiosity”

Tolerance for complexity

and uncertainly

Leadership involved and supporting

learning

Perceived performance gap between current and

desired performance

Resources committed to

quality learning

Organisation measures progress

Systems perspective

Processes for maximising flow of data, information, and people

Page 45: Knowledge management

Personal Mastery

• Clarify personal vision

• Focus energy

• See reality objectively

Systems Thinking

• Seeing wholes

• Identifying patterns

Shared Vision

• Create shared commitment

• Identify what we want

Team Learning

• Synergy (2+2=5)

• Dialog, conversation (not speechmaking)

Mental Models

• Identify assumptions

• Open to change

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The learning organisation: the 5 disciplines

45

Page 46: Knowledge management

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Managed learning

46

Page 47: Knowledge management

Sorting out the “M”s – Domains & Relationships

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Knowledge Mgmt

(static) Content (dynamic)

Taxonomies/Metadata

Facilitative IT Tools

Intellectual Capital• Tacit/Implicit Knowledge

• Explicit Knowledge

Social Capital• Communities/Networks

• Collaboration• Culture

Human Capital• Organisational Learning

• Succession Planning

• Business Processes

Information Mgmt(lifecycle mgmt)

Content

Mgmt

Data Mgmt(repositories)

Information “Resources”

Mgmt

Technology

Mgmt(infrastructure)

Document Mgmt• Versions

• Workflow

Records Mgmt

Information Services• Library

• Research

• Knowledge repositories

Application

Mgmt

47

Page 48: Knowledge management

Relationship among IT, IM and KM

Capability

Capacity

Connectivity Software

Hardware

The Essence of

Information

Technology

Enab

ler

Enab

ler

The Essence of

Knowledge

Management

Enab

ler

Technology

Innovation

The Essence of

Information

Management

Successes

Lessons Learned

Data

Info

Mapping

Relationships

Infrastructure Incentives

Education

Training

Physical

Assets

IPTs

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Human Capital

Social Capital

Corporate Capital

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Page 49: Knowledge management

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The essence of KM

– Expertise

– Experience

– Capability

– Capacity

– Creativity

– Adaptability

HUMAN

CAPITAL

(Individual)

– Intellectual

Property

– Processes

– Databases

– Flexibility

CORPORATE

CAPITAL

(Organisation)

– Networks

– Relationships

– Interactions

– Language

– Patterning

SOCIAL

CAPITAL

(Team)

ENTERPRISE

KNOWLEDGE

ExplicitINTELLECTUAL CAPITALTacit

49

Page 50: Knowledge management

Case – Learning organisations versus places to learn

Think about your experience in a university. Then think about that university as a learning organisation

(make a distinction between a “place to learn” and a “learning organisation”).

Say your point of view about the following topics (consider the learning environment and try to be impartial

in your answers):

• Climate of openness and “curiosity”

• Tolerance for complexity and uncertainly

• Leadership involved and supporting learning

• Perceived performance gap between current and desired performance

• Resources committed to quality learning

• Organisation measures progress

• Systems perspective

• Processes for maximising flow of data, information, and people

Do you think that a learning organisation needs a place to learn? Before you give an answer, analyse the

following video

Telefónica- Creating a Talent Pipeline

(alternative link: http://www.youtube.com/watch?v=O-x_9KVr4Kg )

Before lecture: Think about this case

Create multidisciplinary international teams

(3 people)

Review the case(5 minutes)

Discuss the case in your own team

(10 minutes)

Explain your conclusions to other teams

(3 minutes by team)

Free discussion(10 minutes)

DIRECTIONS

50

Page 51: Knowledge management

Knowledge sharing - Interplay of four factors

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Sh

ari

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People

Processes

Learning

Technology

51

Page 52: Knowledge management

Knowledge sharing needs all of these

People

Create

knowledge with:

Colleagues

Experts

Customers

Partners and

friends

Places

Where people can:

Share ideas

Form communities

Learn

Create answers to problems

Things

Structured and

unstructured

content:

Create

Classify

Capture

Share

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Page 53: Knowledge management

Why knowledge sharing?

Knowledge sharing leverages expertise and organisational

know-how to improve . . .

. . . helping enterprises do work more effectively and achieve

corporate goals

Responsiveness Innovation Competency Efficiency

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Sh

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Page 54: Knowledge management

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Sh

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What knowledge is sharing?

• Knowledge that has been articulated

• Organisation

• Mission

• Hardware/software

Explicit knowledge

• Knowledge that can be articulated but is not

• Analysing tasks involved in a process

Implicit knowledge

• Knowledge that cannot be articulated

• Ability to recognise a person‟s face

Tacit knowledge

54

Page 55: Knowledge management

How is knowledge captured and shared?

Individual knowledge

Collaboration networks

Organisational knowledge-base

TACIT TO EXPLICIT

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Page 56: Knowledge management

What happens when the K-line is crossed?In

no

va

tio

nO

ld b

us

ine

ss

Gated explicit

knowledge

Hoarded tacit

knowledge

Traditional Enterprise

Context

Enlightened Enterprise

Shared tacit

knowledge

Shared explicit

knowledge

K-line

“Traditional workplace”

where knowledge is not

shared

“Enlightened

workplace” where

knowledge is shared

Shift

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Page 57: Knowledge management

Sharing or not sharing?

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Sh

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Why do people share?

• They take pride in their expertise

• They enjoy interacting with peers

• They wish to learn

• They expect others to reciprocate

• They want to contribute to the common good

• Their culture encourages sharing

• They are loyal to the organisation

Why does not people share?

• It is not convenient

• They do not know what they know

• They do not know the value of what they know

• They believe knowledge hoarding is job security

• They do not get credit for it

• They do not have the time

57

Page 58: Knowledge management

Share your knowledge and encourage your peers to do the

same

Do not stigmatise others for not

knowing

Seek expert advice throughout the

enterprise

Value and reward the continuous

pursuit of knowledge

Network with your peers

How to share knowledge?

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Page 59: Knowledge management

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Sh

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Lessons learned – Organisational “does / does not” for knowledge sharing

Organisation does

• Integrate into

• Business strategy

• Daily work

• Provide

• Consistent and continual championship / leadership

• A trusting organisational environment

• Time to engage in knowledge sharing

• Appropriate incentives for participation

• Institutionalise organisational, lifelong learning

Organisation does not

• Create compensation systems that do not support knowledge sharing and teamwork

• Build a “Grand Database in the Sky”

• Allow technology to dictate development

• Failure to coordinate and involve entire organisation

How organisations implement

Knowledge Management

Intranet 47%

Repository 33%

Decision-support 33%

Groupware 33%

People networks 24%

Map links to expertise 18%

Source: ASTD Research

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Culture clashes

Organisational challenges to KM/KS

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ari

ng

60

Page 61: Knowledge management

Videocase: Igloo - Global Issues Network

Igloo - Global Issues Network

(alternative link: http://www.youtube.com/watch?v=xdVmGBPGbg4)

1. What can you say about the following 4 factors?

• People

• Processes

• Learning

• Technology

2. How does people create and transform

knowledge from tacit to implicit?

3. How is knowledge captured and shared?

4. How and where can people share knowledge?

5. How is content structured?

6. What can you say about responsiveness,

innovation, competency and efficiency?

7. Say some examples of how the ideas described

should be used into an organisation

Before lecture: Watch the video

Create multidisciplinary international teams

(3 people)

Review the video(10 minutes)

Discuss the video in your own team

(10 minutes)

Explain your conclusions to other teams

(3 minutes by team)

Free discussion(10 minutes)

DIRECTIONS

61

Page 62: Knowledge management

Knowledge networks and knowledge flows

Knowledge networks explain the flow or diffusion

of knowledge across a network of individuals

Cognitive knowledge networks essentially answer “who knows who knows what?”

Transactive Memory Systems are knowledge

repositories that provide individuals

with access to more knowledge than any one individual could

possibly possess alone

So

cia

l N

etw

ork

s

62

Page 63: Knowledge management

Social Network Analysis (SNA)

SNA is focused on uncovering the patterns of people's interconnectedness and

interactions

• The success or failure of organisations and societies may depend on these

patterns

• Analysis can produce understanding as well as action

SN use people to

find content

Content is used to

find people

So

cia

l N

etw

ork

s

63

Page 64: Knowledge management

Why do a SNA?

Six Myths about

Informal Networks*

To build better networks, we

have to communicate

more

Everybody should be connected to everybody else

We can not do much to aid

informal networks

How people fit in is a matter of

personality (which can not be changed)

Central people who have become

bottlenecks should make

themselves more accessible

I already know what is going on in my network

*Rob Cross, Nitin Nohria, and Andrew Parker, MIT Sloan Management Review, Spring 2002

So

cia

l N

etw

ork

s

64

Page 66: Knowledge management

What is culture?

Culture

Tradition and history, cultural strength

Jargon

Physical environment,

cultural artifacts,

Rituals, folkways,

mores, norms

Status symbols

Belief systems

Shared values

Org

an

isa

tio

nal C

ult

ure

66

Page 67: Knowledge management

Org

an

isa

tio

nal C

ult

ure

How employees absorb culture

Stories

Rituals

Symbols

Language Heroes

Reward / punishment

Social learning

The ability of an organisation to learn, develop memory, and share knowledge is dependent on its culture

Over time organisations learn what works and what does not work

Generally when a IT project fails, it is because the technology does not match the organisation‟s culture

67

Page 68: Knowledge management

Cultural typologies

Deal & Kennedy - Risk and feedback

• Focus on executive decision making

Reinmann & Wiener - Values

• Focus on values and source of values

Schein - Every organisation is unique

• Culture is the most difficult organisational attribute to change

Sonnenfeld - Academy, club, baseball team, fortress

• Focus on attraction of personalities

Strong culture is said to exist where staff respond to stimulus because of

their alignment to organisational values

Weak culture is said to exist where there is little alignment with

organisational values and control must be exercised through extensive

procedures and bureaucracy

Org

an

isa

tio

nal C

ult

ure

68

Page 69: Knowledge management

Org

an

isa

tio

nal C

ult

ure

Aspects and steps that determine KM success

Culture – Process view

• Ways to facilitate collaborative processes, learning dynamics and problem solving

Technology – Object view

• Focus on databases or other storage devices, mechanisms for sharing knowledge products such as documents, and terms such as knowledge transfer

Understand organisational culture

Analyse it

Get into the network and understand the characters

Manage it

Change it

69

Page 70: Knowledge management

Attempts to introduce changes that are generally consistent

with the current culture usually are successful

Attempts to introduce changes that are radically different than the existing culture usually are

not successful

Any KM programme requires a Change Management approach

Values Norms Practices

CURRENT

STATE

Org

an

isa

tio

nal C

ult

ure

70

Page 71: Knowledge management

Videocase: Duracell Xcells (Industrial)

Duracell Xcells (Industrial)

(alternative link http://www.youtube.com/watch?v=vBkGZ124Tjk)

1.How does Duracell define quality?

2.Describe the process used by Duracell to

get the concept of quality

3.What can you say about shared values?

4.Is the culture of Duracell a strong or

weak?

5.What is the type of culture implicit in

Duracell?

6.Why could Duracell change its

organisational culture?

Before lecture: Watch the video

Create multidisciplinary international teams

(3 people)

Review the video(10 minutes)

Discuss the video in your own team

(10 minutes)

Explain your conclusions to other teams

(3 minutes by team)

Free discussion(10 minutes)

DIRECTIONS

71

Page 72: Knowledge management

Co

mm

un

itie

s o

f P

rac

tic

e

Communities of Practice (COP)

A COP is a group of self-governing people whose practice is aligned with

strategic imperatives and are challenged to create shareholder value by

generating knowledge and increasing capabilities

Define Community Project

• Identify community elements

• Set context

• Outline project

Establish CommunityComponents

• Identify issues and approaches

• Plan project tasks

Launch Community

Establish Community

• Develop sense of community

Assess: Progress & Value

• Solicit feedback on development 72

Page 73: Knowledge management

Co

mm

un

itie

s o

f P

rac

tic

e

Components and benefits of COPs

Governance

• Community conventions & norms

Membership

• Community participants

Technology

• Enabling infrastructure

User support

• Maximising collaborative tools

Content

• Community knowledge base

Learning

• Capability to participate in community

Facilitation

• Moving the community forward; realising purpose

Communication plan

• Establishing credibility, sharing the value proposition

Accelerates the generation of capabilities

Improves and enhances meta-capabilities

Shapes a “boundary-less” culture for greater synergy

Connects people into a network for greater speed

Promotes innovation through collaboration and problem-solving situated in work

Prevents knowledge loss from the organisation through exchange of cross-generational expertise

73

Page 74: Knowledge management

Sto

ryte

llin

g

StorytellingStorytelling is the skilled delivery of stories use to present anecdotal evidence, clarify a point, support a point of view and crystallise ideas

Storytelling is the connecting device between data and reality

Stories can share a "truth" that data can not

Storytelling can help bridge the gap between data and knowledge

It also could be the result of integrating information

Knowledge managers use storytelling as a device and tool for sharing knowledge

Potential Benefits

Communicate quickly

Communicate naturally

Communicate truthfully

Communicate collaboratively

Communicate persuasively

Communicate intuitively

Communicate movingly 74

Page 75: Knowledge management

Six steps in storytelling

Propagate

Validate

Write

Extract

Plan

Interview

Definition of objectives; assignment of commentators

and interviewees; selection of the events

Collecting personal views; searching for „puzzle

stones‟

Selection of momentous statements

Preparation of the

experience document

Feedback of the

citations to the

interviewees

Sto

ryte

llin

g

75

Page 76: Knowledge management

Videocase: Cisco on Change Management1. What are the main stages of CISCO

Change Road Map?

2. What are the main reasons to implement

change?

3. What is the team project?

4. What are the team components? (issues,

approaches, plan, and project tasks)

5. How is the team launched?

6. How is it developed a sense of team?

7. How was it assed the progress and value

of the team?

8. Is the team a COP?

Before lecture: Watch the video

Create multidisciplinary international teams

(3 people)

Review the video(10 minutes)

Discuss the video in your own team

(10 minutes)

Explain your conclusions to other teams

(3 minutes by team)

Free discussion(10 minutes)

DIRECTIONS

Cisco – Change Management Training Video

(alternative link: http://www.youtube.com/watch?v=bG5na7JD7rE)

76

Page 77: Knowledge management

Layers of a KM technology platform

KM

Te

ch

no

log

y

77

Page 78: Knowledge management

Technology aspect of KM

Complete Intranet

Messaging and Collaboration

Co

mm

un

ities,

Te

am

s a

nd

Exp

erts

Po

rtals

an

d S

ea

rch

Conte

nt

Ma

na

ge

me

nt

Re

al T

ime

Colla

bora

tion

Da

ta A

na

lysis

(Da

ta W

are

ho

use

and

Bu

sin

ess In

tellig

en

ce

)

Enabling Technologies

Pre

-Requis

ites

KM

Te

ch

no

log

y

78

Page 79: Knowledge management

Messaging and collaboration

Desktop

• Easy-to-use productivity

• Comfortable e-mail systems

• Web browser

• Simple search functionalities

Services

• Collaboration services

• Web services

• Indexing services

System

• Central-storage

KM

Information

Base

Share

& Reuse

Tacit

Knowledge

Explicit

Knowledge

KM

Te

ch

no

log

y

79

Page 80: Knowledge management

KM and intranetIntranet is a corporate information network based on Internet technologies,

seeking to integrate people, processes and information within the enterprise

KM

Te

ch

no

log

y

Some applications

of an intranet

Information publishing

E-mail

Document management

TrainingWorkflow

Databases and other bespoke systems

Discussion

Challenges:

• Content is still determined by local contributors, so may not match needs

• Users are further away from contributors, so cannot communicate requirements

Opportunities:

• Centralised structure allows for detailed analysis of content usage

• Single picture of user base allows for analysis of knowledge needs across the organisation

80

Page 81: Knowledge management

Introducing portalsA portal

• Facilitates the creation of a knowledge workspace by providing a single

point of access (a virtual front door) to aggregated information

• Organises and integrates collective knowledge and communications and

makes them accessible and shareable

• Is a core component of the intranet

KM

Te

ch

no

log

y

Technology requirements

Systems that allow

customisation

Web browsers with

personalisation systems

Development suites

Catalogue and search

services

Notification services

Database replication and transformation

services

Portals and document management

• Version tracking

• Check-in and check-out

• Categories

• Application of descriptive, searchable information or meta data

• Document publishing control

• Automated approval routes

• Online discussions

• Control of document access based on roles81

Page 82: Knowledge management

Portals and e-Business

Role of eBusiness in Accomplishing

Corporate Objectives

So

luti

on

So

ph

isti

ca

tio

n

Basic Internet access

e-mail capability

Stage 1

“Get the Business

Online”

Website positioned as a marketing and communication channel

Basic e-based business capability focusing on information access

Stage 2

“Do Business

Online”

e-based business transactions

Early Stage 3 is characterised by online sales and fulfilment capability

Late Stage 3 would include back-office functions such as procurement, HR, payroll, etc.

Stage 3

“Run the

Business Online”

Collaboration Commerce

e-based interactions with customers, suppliers, partners and employees

Virtual organisation

Stage 4

“Collaboration

eCommerce

Model”

Corporate Portals

KM

Te

ch

no

log

y

82

Page 83: Knowledge management

Content Management Systems (CMS)A Content Management System (CMS) is a system used to manage the

content of a Web site

KM

Te

ch

no

log

y

ECMS = Enterprise

Content

Management

System

ECMS

Capture

Store

Index Search

Share Collaborate

Process Manage

Publish Deploy

Reuse

Record Archive

83

Page 84: Knowledge management

KM

Te

ch

no

log

y

Content Management Systems (CMS)

• The content management application (CMA)

• It allows the content manager or author, who may not know Hypertext Markup Language (HTML), to manage the creation, modification, and removal of content from a Web site without needing the expertise of a Webmaster

• The content delivery application (CDA)

• It uses and compiles that information to update the Web site

A CMS consists of two elements

84

Page 85: Knowledge management

Technology Challenges

KM

Te

ch

no

log

y

85

Page 86: Knowledge management

Case: MOODLE (Modular Object Oriented Dynamic Learning Environment)

Before lecture: Have a look at the MOODLE

Create multidisciplinary international teams

(3 people)

Review the MOODLE(10 minutes)

Discuss the MOODLE in your own team

(10 minutes)

Explain your conclusions to other teams

(3 minutes by team)

Free discussion(10 minutes)

DIRECTIONS

Describe how the MOODLE manage the following topics:

• Capture

• Store

• Index Search

• Share Collaborate

• Process Manage

• Publish Deploy

• Reuse

• Record Archive

What is MOODLE as a software application? (have a look at the following video

presentation – alternative link: http://www.youtube.com/watch?v=_o1fMQsfzoQ)

Describe the concept and components of a Learning Management System (LMS)

86

Page 87: Knowledge management

Strategy and KM strategy

Organisation‟s strategic

objectives must consider:

Operational Excellence

Sourcing & Distribution

Innovation

Growth

Be a Good Corporate

Citizen

Customer Intimacy

KM

Str

ate

gy

• Address business knowledge needs

• Support key business processes

• Adopt one predominant business focus – i.e. mine data, create new knowledge, use existing knowledge efficiently

KM Strategy should:

• Embarking on KM program

• Designing /changing IT architecture

• Building Knowledge Base

• Acquiring software or tools

Devise KM strategy before:

How can the organisation create value for customers?

How can that value be leveraged to support an economic model?

Can the organisation‟s people deliver on the value derived and its

economic model?

87

Page 88: Knowledge management

Aligning KM and business strategy

KM

Str

ate

gy

Environment

Technical opportunities

Competitive threats

Regulatory controls

Strategic Context

Products /services

Markets

Customers

Resource allocation

KM Strategy

Role of IT

Innovation

Competitive advantage

Knowledge process mapping

KM Technology

Infrastructural investments

Strategic IT choice

Collaborative richness

Exp

ressio

n b

arr

ier

Expression barrier

Imp

lem

enta

tion b

arr

ier Implementation barrier

Sp

ecific

ation

ba

rrie

r

Specification barrier

Impacts

Aligns

Enables

Imp

ac

ts

Influ

en

ce

s

En

ab

les

88

Page 89: Knowledge management

Main elements to consider in designing a KM strategy

KM

Str

ate

gy

Standard operating

procedures

Internal politics

Internal structure

Internal culture

EnvironmentCustomers

Government

Communities

SuppliersCompetitors

Worker UnionsStakeholdersRegulatory Agencies

INFORMATION

PROCESSES

PRODUCTS/SERVICES

PEOPLE

TECHNOLOGY

89

Page 90: Knowledge management

KM

Str

ate

gy

Additional issues on KM strategy: Codification & Personalisation

Codification

• Characteristics

• Knowledge carefully codified

• Stored in corporate databases

• Can be accessed by anyone

• IT Role

• Goal: knowledge reuse, economy of scale, speed

• Knowledge is introduced by experts in different (linked) databases

• IT: Databases, intranets, electronic document systems

Personalisation

• Characteristics

• Knowledge closely tied to the person who developed it

• Shared through direct person-to-person contact

• Role of IT is to facilitate communication

• IT Role

• Find people who has the experience

• Allows to tap a world-wide network of colleagues‟ experience

• IT: Telephone, e-mail, video-conferences, directories of experts, electronic document systems

Do not forget to

use

BestPractices

Communitiesof Practice

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.90

Page 91: Knowledge management

KM

Str

ate

gy

Examples of Strategy

Set up a separate organisation which collected and

distributed experience.NASA SEL

What did they do?CompanyPersonalisation? Quantitative? Qualitative?

Yes Yes

Daimler ChryslerCreated three experience factories in three different

company departments.YesYesYes

Ericsson Software

Technology

Set up new organisational roles to increase oral

communication of experience.Yes Yes

Australian Telecom

Company

Collected existing explicit information regarding software

development and made it searchable.Yes

ICL High Performance

Systems

Introduced an Intranet-based system with an "engineering

knowledge database"Yes

ICL Finland Made an Intranet-based system with three structural layers. Yes Yes

sd&mSet up a knowledge management group and Intranet

system.Yes Yes

Knowledge Management Approach

Telenor Telecom

Software

Made an expert system based on own empirical data for

effort estimation and risk management, and modified roles.YesYes Yes

Courtesy: Torgeir Dingsøyr, DCIS, NTNU

91

Page 92: Knowledge management

KM

Str

ate

gy

Benefits Reported

Reduced number of defects, reduced software production

costs, increased use.NASA SEL

What was the effect?CompanyDeveloper

satisfaction?Lower cost? Higher quality?

Yes Yes

Daimler ChryslerThe case gives no information on the effect for the

company.

Ericsson Software

Technology

The company claims that the initiative was "more valuable"

than a database and measurement-approach.

Australian Telecom

CompanyGood acceptance of product amongst users. Yes

ICL High Performance

SystemsA perception that it has facilitated a "new mode of working" Yes

ICL FinlandSaved time, because it is easier to find documents. Easier

to learn new project members about project work.Yes Yes

sd&m Previous problems due to rapid growth have diminished. Yes

Reported benefit

Telenor Telecom

Software

The company indicates that estimation accuracy has

improved, and focus on risk management has increased.Yes

Courtesy: Torgeir Dingsøyr, DCIS, NTNU

92

Page 93: Knowledge management

KM

Str

ate

gy

Phases of implementing a KM strategy

People have an understanding of the inherent

changes brought by KM System

Users log on and try

KM System

People are aware of what KM System is

People first hear about KM System

Awareness Interest

Installation

Repeated UseA D O P T I O N P H A S E

Users recognise the

advantages of using

KM System

KM System utilised

long enough to prove

its benefit

KM System is implemented

and becomes operational

Positive Perception

Recommend to OthersCommitmentL O Y A L T Y P H A S E

KM System is

formally

incorporated

into routine

operations

Knowledge-sharing

driven by personal

motivation and

beliefs

Institutionalisation

Internalisation

C O L L A B O R A T I O N P H A S E

De

gre

e o

f T

ransfo

rmation

Time93

Page 94: Knowledge management

KM Maturity Model

Level 1 - Default

Capability: Undefined

Level 2 - Reactive

Capability: Basic

Repeatability

Level 3 - Aware

Level 4 - Convinced

Level 5 - Sharing

KM

Str

ate

gy

• Quantitative decision-making

• High leverage of internal and

external expertise

• Productivity benefits through

knowledge sharing

• Proactive change response

• Restricted data-driven decision-

making

• Restricted leverage of internal

expertise

• Ability to manage virtual teams well

• Strong ROI-driven decision making

• High ability to leverage new ideas for business advantage

• Ability to shape change in technology and business

environment

94

Page 95: Knowledge management

Measures and metrics basics

A measure is a formula that describes a Key

Performance Indicator (KPI)

A metric is the numeric value assigned to the

measure

Measure = “customer service time”

Metric = “1 working day”

Select limited number of KPIs and communicate them

clearly to stakeholders

Balance use of both leading and

lagging KPIs

Include at least one KPI related

to cost, to quality, and to cycle time in

each set of KPIs

KM

Str

ate

gy

Metrics describe what you can do, not what you must do or

even what you should do

Best

Practices

95

Page 96: Knowledge management

KM measures and metrics

KM

Str

ate

gy

Significance of KM measurement

To fortify and supplement the

business case for implementation

To provide feedback and thereby help

guide and tune the

implementation process

To assess the approach to a target or goal

To measure, post-

implementation, the value of the initial investment decision and the lessons learned

To develop benchmarks for

future comparisons

To aid learning from the effort and developing best practices

Outcome metrics (enterprise or overall value)

•Concern the overall organisation and measure large scale characteristics such as increased productivity or revenue for the enterprise

Output metrics (project or task)

•Measure project level characteristics such as the effectiveness of Lessons Learned information to capturing new business

System metrics (technology tool)

•Monitor the usefulness and responsiveness of the supporting technology tools

3 types of

KM metrics

96

Page 97: Knowledge management

KM

Str

ate

gy

Identify Business

Objective

Determine Tools and

Methods to be used

Identify Stakeholders

and their Needs

Adopt a Suitable

Framework

Identify KPIs

Needs Analysis and

Methodology

Quantify Measures

and Interpret

Modify

Measures

Modify

Methods

Improve

Decision

Making

Measurement process

Analysis and

Interpretation

• Interviews or

workshops

•Structured program

flows

•Enterprise /

organisation

documents

•Organisation level

meetings involving the

performing organisation

and stakeholders

97

Page 98: Knowledge management

KM

Str

ate

gy

Know-all 10: A quick KM strategy assessment Rate your organisation (or part of it) on a score 0 to 10, where 0 is doing nothing at all, and 10 is world-class

1. Leadership Does your organisation have a compelling knowledge vision and strategy, actively promoted

by your Chief Executive, that clearly articulates how knowledge management contributes to

achieving organisational objectives..........

2. Measures Does your organisation measure and manage its intellectual capital in a systematic way, and

publish regular IC reports to its external stakeholders? .........

3. Processes Does your organisation have systematic processes for gathering, organising, exploiting and

protecting key knowledge assets, including those from external sources? .........

4. Explicit

Knowledge

Is there a rigorously maintained knowledge inventory, with a structured thesaurus or

knowledge tree, and clear ownership of knowledge entities, that is readily accessible across

the organisation?.........

5. Tacit Knowledge Do you know who your best experts are for different domains of key knowledge, and do you

have in place mechanisms to codify their tacit knowledge into an explicit format? .........

6. Culture/Structure Is knowledge sharing across departmental boundaries actively encouraged and rewarded? Do

workplace settings and format of meetings encourage informal knowledge exchange? .........

7. Knowledge

Centres

Are there librarians or information management staff that coordinate knowledge repositories

and act as focal points for provision of information to support key decision making? .........

8. Exploitation Are your knowledge and knowledge management capabilities packaged into products and

services and promoted in your organisation's external marketing? .........

9. People/Skills Have specific knowledge roles been identified and assigned, and are all senior managers and

professionals trained in knowledge management techniques? .........

10. Technological

Infrastructure

Can all important information be quickly found by new users on your intranet (or similar

network) within three mouse clicks? .........98

Page 99: Knowledge management

Videocase: WIN-SA making knowledge work

WIN-SA making knowledge work

(alternative link: (http://www.youtube.com/watch?v=c9zLAoKleS4)

Identify and describe the following topics:

• Environment

• Participating people

• Shared information

• Implemented processes

• Used technology

• Provided services

Before lecture: Watch the video

Create multidisciplinary international teams

(3 people)

Review the video(10 minutes)

Discuss the video in your own team

(10 minutes)

Explain your conclusions to other teams

(3 minutes by team)

Free discussion(10 minutes)

DIRECTIONS

99

Page 100: Knowledge management

The Business Case

Bu

sin

es

s C

as

e f

or

KM

A Business Case is a tool to support planning and decision-

making

Business Case

• Presented to a decision maker who will judge whether to proceed with the direction recommended in the plan)

Business Plan

• Done after a business case is accepted and contains all sorts of things the judge probably does not need to know such as the phasing and schedule, staffing plan, and project plan

Make a

Distinction

100

Page 101: Knowledge management

KM business case and KM projects

101

KM Business Case Project

Sources

Capturing and reusing

structured knowledge

Capturing and sharing lessons

learned from practice

Identifying sources and networks of expertise

Structuring and mapping

knowledge needed to enhance

performance

Measuring and managing the

economic value of knowledge

Synthesizing and sharing

knowledge from external sources

Embed knowledge in products and

processes

Bu

sin

es

s C

as

e f

or

KM

Page 102: Knowledge management

Question to be considered when defining a KM business case

Why?

•Why go to all this trouble?

•Why now?

•Why do you want to lead this?

•Why is this important?

•Why make this a priority?

•Why aren‟t IT doing this?

How?

•How can this help us achieve our goals?

•How do we start?

•How will people find the time to contribute?

•How much will it cost?

•How can we measure our success?

•How will you deal with coordinating the work?

•How do we get buy-in for action?

What?

•What are the benefits to the organisation?

•What resources will we need?

•What skills do you and your team have?

•What do the lawyers have to do?

•What impact will this have on my business?

•What happens if we fail?

•What is the consequence of taking no action?

When?

•When can I expect results?

•When will you need my help?

•When will our clients benefit?

•When will I know if it‟s working properly?

•When should I announce this?

•When should I free up resources?

102

Bu

sin

es

s C

as

e f

or

KM

Page 103: Knowledge management

Value of making a KM business case

Powerful decision making tool

Address the concerns of the

organisation

Think cost/benefit

Intangibles are important

Persuade the right people about the benefits – and get them to own

them

Get used to using it as a tool

Bu

sin

es

s C

as

e f

or

KM

103

Page 104: Knowledge management

Bu

sin

es

s C

as

e f

or

KM

Process of creation a KM business case

Define current state

• Understand business strategies and objectives

• Understand core business processes

• Understand key business issues and “points of path”

Define future state

• Define desired “high level” benefits

• Define “future state solution”

• Create representative “future state scenarios”

• Identify the technology required for the “future state” solution and/or scenarios

Quantify benefits and costs

• Define appropriate performance metrics

• Develop deeper “current state” understanding, as appropriate (e.g., process mapping”

• Collect data to build current state baseline

• Estimate magnitude of potential benefits from implementing “current state solution for each performance metric

• Obtain benchmarking data from case studies and best practices

• Quantify the magnitude and timing of potential benefits

• Quantify the magnitude and timing of project costs

Develop and refine business case

• Summarise benefits and costs

• Prepare business case

• Review and revise as appropriate

104

Page 105: Knowledge management

Fundamental performance KM metrics

A KM initiative can be justified in terms of the four business performance metrics they

improve

Innovation

Growth

Productivity

Cost Reduction

Bu

sin

es

s C

as

e f

or

KM

105

Page 106: Knowledge management

Budget in perspective

Considerations to budget reduction

• Understand the scale

• Understand the context and the timing

• Talk to other department heads

• Look outside for examples

• Find out what is relevant to decision-makers

• Look at everything you do

Ask yourself before do

• List of costs or financial plan?

• Forecast or commitment?

• List of targets or achievements?

• Top down or bottom up?

• Reference document or a checklist for action?

• Annual chore or linked to your strategy?

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Classification of costs

Costs

Type

Direct - Part of the service

Indirect - Overheads which are not part of the

service

Behaviour

Fixed - Paid, irrespective of the level

of activity

Variable - Direct costs, plus variable overheads

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Staff costs

Annual

Subscriptions

Overtime

Contract staff

Stationery

Building

MaintenanceHeating

(Paid, irrespective of the

level of activity)

Fixed

(Direct costs, plus

variable overheads)

Variable

Direct(Form part of the service)

Indirect(Overheads which are

not part of the service)

Hardest

to change

Tricky to

budget for

Easiest to

change + control

Predictable

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KM business case templates

KM business case: Contents page

1. Executive summary

2. Current situation

3. Benefits of KM to the organisational goals

4. Key observations on business processes

5. Information team skills

6. Collaborative team approach

7. Prioritise business needs

8. Action plan

9. Measurement

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Adding value business case: Adding

value business case: contents page

1. Executive summary

2. Skills of the Information Team

3. Services provided

4. Client case studies and feedback

5. Resource management and training

6. Benefits of a dedicated information

service

7. Future developments

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Situational case: Getting your message across the CEO

The CEO in your organisation was reading the Sunday Times on his yacht at

the weekend and came across an article on KM. He has read lots of hype

about this topic and keeps thinking he should do something about it. He put

the term into Google(his favourite research tool) and found out that it seems

to be about capturing and re-using information. He needs to know more and

is asking several people to advise him.

He has asked you to meet with him for 2 minutes of his valuable time to

explain

• What KM is

• How it can benefit him

• What you can offer to make it easy

1. How would you sell yourself and capture his imagination?

2. What would be the key points of your message about KM?

3. How would you get him to take action?

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KM Framework (KMF)

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A KMF must recognise that KM includes much more than just

the knowledge cycle or KM tasks

KMF Requirements

Allow design multiple

feedback loops

Allow multiple activities to

occur simultaneously

Allow the organisational strategies and

goals link to KM initiative

There is no “absolute” KMF

Causative factors should be

considered while developing a KMF

IT is fundamental to any KMF

Organisations should map their

strategy to feasible KMFs and find the best fit to realise

their KM objectives

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Selecting a KMF

Factors to be considered

while selecting a

KMF

Strategy

•The alignment of corporate and KM strategies

Measurement

•The measures or metrics

Policy

•The written policy or guidance that is provided by the organisation

Content

•The subset of the corporate knowledge base Process

•The processes used to achieve organisation mission and goals

Technology

•The IT that facilitates KM

Culture

•The environment and context in which KM processes must occur

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Example – APQC’s KM road map

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Example : Mitre Corporate KM Framework

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Example – Tiwana’s Road Map

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Example of a KMF: A framework for understanding innovation

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Example – Knowcom International Framework

Clarify organisation‟s business objectives

Identify the knowledge base required to meet

organisation´s business objectives

Identify the organisation´s current knowledge

and skills base

Identify the gap between available and

needed knowledge and skills

Identify organisational learning capabilities

and needs

Design and implement a people development

program

Identify and evaluate existing knowledge

codification and storage systems

Design and implement necessary knowledge

codification and storage systems

Identify and evaluate existing knowledge

distribution systems, sharing mechanisms

and organisational support structures

Design and implement necessary knowledge

distribution systems, sharing mechanisms

and organisational support structures

Monitor and maintain knowledge and skills

management structure and support systems

This KM strategic

approach places greatest

emphasis on:

• Connecting people with

people

• Connecting people with

information

• Enabling conversion of

information into

knowledge

• Encouraging innovation

through a culture of

sharing and support

People Strategy Technology Strategy

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Example – My own KM framework

What

How

Who

Where

When

Why

Analyse KMS Problem

Design KMS Functional Solution

Design KMS Structural Solution

Implement KMS Solution

Identify KMS Problem

Test KMS Solution

Maintain KMS Solution

KNOWLEDGE TAXONOMY

KM SYSTEM CYCLE

ORGANISATION’S

COMPONENTS

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KM ProcessesKnowledge

Creation

Knowledge Storage / Retrieval

Knowledge Transfer

Knowledge Application

Process Occurrence IT Issues

Knowledge

Creation

• Creativity

•Brainstorming

•Content Mapping

•Mind Mapping

• Problem Solving

• Critical Path Analysis

• Decision Trees

• Root Cause Analysis

• Combining new sources of knowledge

• Just in time learning

• Supporting IT

• Data mining

• Learning tools

Knowledge

Storage /

Retrieval

• Knowledge residing in written documentation

• Structured information stores in electronic databases

• Codified human knowledge stored in expert systems

• Documented organisational procedures

• Processes and tacit knowledge acquired by individuals

• Networks of individuals

• Organisational culture, structure, ecology information archives

• Support of individual and organisational memory

• Inter-group knowledge access

• Supporting IT

• Electronic bulletin boards

• Knowledge repositories

• Databases

Knowledge

Transfer

• Transfer of knowledge between individuals

• Transfer of knowledge from individuals to explicit sources

• Transfer of knowledge from individuals to groups

• Transfer of knowledge between groups

• Transfer of knowledge across groups

• Transfer of knowledge from the group to the organisation

• IT is mostly been applied to informal , impersonal

means, and formal

• Supporting IT

• Intelligent Agent Software

• Desktop Video Conferencing

• Electronic Bulletin Boards

• Knowledge Maps

Knowledge

Application

The source of competitive advantage resides in the application

of the knowledge rather than in the knowledge itself

• Directives

• Organisational Routines

• Self-Contained Task Teams

• IT can enhance knowledge integration and

application of organisational directives

• Organisational units can access the knowledge of

other units through IT

• Supporting IT

• Workflow Automation System

• Expert System

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Knowledge harvesting

Stage 1: Identification of knowledge

•Map the organisation‟s key processes and the individuals who possess the best know-how

Stage 2: Elicitation of knowledge

•Experts and activities are first identified; the experts are then asked to explain the activities

Stage 3: Capture of knowledge

•The expertise of the top performers must be preserved to continue the success of the organisation

Stage 4: Organisation of knowledge

•The knowledge captured from top performers must be arranged in a coherent or systematic form

Stage 5: Application of knowledge

•The purpose of organisational knowledge is to be able to ensure that the application of expert knowledge by the top performers is replicable by all

Stage 6: Recording of knowledge

•Once an application has been created, it requires refreshing so that it can evolve with use

Stage 7: Sharing of knowledge

•Knowledge that has been captured must be shared or its capture will be irrelevant and the effort and expense wasted

Stage 8: Evaluation of the knowledge creation process

•Appraisal occurs during application and sharing

Stage 9: Improvement of the knowledge creation process

•The improvement sub-process is the continuous betterment of the entire process

„Knowledge Harvesting is a proprietary suite of methodologies and technologies

for efficiently capturing the implicit intuitive knowledge of top performers,

converting that expertise into explicit knowledge, and transferring it to users.‟

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Social Capital“Social Capital consists of the stock of active connections among people: The trust, mutual

understanding, and shared values and behaviors that bind the members of human networks and

communities and make cooperative action possible” (Prusak & Cohen, In Good Company)

Social Capital

Structure

Ties

Hierarchical

Temporal features

Membership accessibility

Type

Network structures

Spatial features

Alignment

Causal Factors

DETERMINANTS

CONSEQUENCES / MANIFESTATIONS

Specific Context ChanceExternalities

Level Feedback Loops

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Protecting Knowledge

Protecting Knowledge

Intellectual property

Intellectual asset

management

Inventorying

Appraisal & strategies

Proprietary versus open

source software

Copyrights, trademarks, &

patents

Patent Law

• Protection of profit creation

Copyright Law

• Protection of culture creation

Trademark Law

• Protection of trade order

• Inventions or discovery

• Process, art or method

• Original and ornamental design

• Words

• Names

• Symbol

• Literary works

• Musical works

• Dramatic works

• Choreographic works

• Pictorial, graphic,

and sculptural works

• Motion pictures and

audiovisual works

• Sound recording

• Architectural works

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KM Process mapsKM Process Maps

• Helps identify the information that is really important in the organisation (both the

information known, as well as that which is no yet known

• They also provide insight into how knowledge is both used and produced in the

organisation

Take a particular business process and break it down into its component steps

Identify the following information about each step in the process:

•Who typically performs the step, and the required experience/qualifications

•What inputs are required for the step

•What the desired outputs of the step are

•What tools/systems are used to perform the step

•What dependencies exist, either with other steps within the same process or with an outside processes

Identify the knowledge that is both used and produced during the execution of the step, and the probable source of that knowledge

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Creating a KM Process Map - Example

Receive RFPQualify

Opportunity

Bid or

No-bid?

Assign

Resources

Send No-bid

letterNo-bid

Bid Prepare

Response

General

Qualifications

Technical

Specifications

Timeline &

Pricing

Final QA &

Approval

Submit

Proposal

Document

Results &

Lessons Learned

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•Technical Specifications

• Who performs: Proposal Technical

Manager

• Inputs: RFP requirements, product

specifications, prior installation

experience (with customer, within

industry), competitive offerings

• Tools/Systems required: KM system

• Outputs: Proposal technical specification

& resource estimate

• Dependencies: Timeframe & pricing

•Technical Specifications (continued)

• Knowledge Used:• Requirements (source: RFP)

• Product suitability

• Installation parameters (source: Product specifications, prior installation experience)

• Competitive offerings (source: Prior proposals, new research)

• Knowledge Produced:• Market demand (source: RFP requirements)

• Market suitability of product (source: Proposal managers* & documents, competitive analysis)

• Installation parameters (source: Proposal managers* & documents)

• Competitive position (source: Proposal managers* & documents, Competitive analysis,

pricing)

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Paper: Zachman Architecture-Based Education Service Delivery

Before lecture: Read the paper

Create multidisciplinary international teams

(3 people)

Review the paper(5 minutes)

Discuss the paper in your own team

(10 minutes)

Explain your conclusions to other teams

(3 minutes by team)

Free discussion(10 minutes)

Objective

Dimension the importance of a KM framework in

business

DIRECTIONS

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The Chief Knowledge Officer (CKO)

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A CKO is a senior executive who is responsible for ensuring

that an organisation maximises the value it achieves through

knowledge. Two alternative names are Director of Intellectual

Capital and Director of Innovation

An organisation needs an CKO if it wants to An organisation does not need an CKO if

Maximize the returns on its investment in

knowledge - people, information, processes

technology, and intellectual capital

Knowledge is not important to business

Exploit its intangible assets e.g. know-how,

patents, customer relationships

It is content to leave it to local initiatives and hope it

comes good

Repeat its successes and share best practices A culture of knowledge sharing pervades and

systematic processes are in place

Improve its innovation - the commercialization of

ideas

Knowledge leadership comes from the top and is

passionately pursued

Avoid knowledge loss and leakage after

organisational restructuring

Everybody has development of knowledge in their

job plans

Its performance monitoring system explicitly has a

knowledge dimension

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CKO responsibilities

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CKO’s Responsibilities

Develop an overall

framework that guides

knowledge management

Actively promote the knowledge agenda within

and beyond the company

Oversee the development of the knowledge infrastructure -'hard' and 'soft'

Facilitate connections,

coordination and communications

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CKO personal attributes

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CKO personal attributes

Passion

Patience

Persistence

Sensitivity

Organisational Savy

SmartWise

Life Long Learner

“Thick Skinned”

Integrator

Depth and Breath of

Knowledge

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CKO competencies and skills

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Role of the CKO in public sector

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Conclusions: 10 KM Principles (after Tom Davenport)

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1. KM is expensive (but so is stupidity!)

2. Effective management of

knowledge requires hybrid solutions involving people,

process, information technology, and

products / services

3. KM is highly political

4. KM requires knowledge managers

5. KM benefits more from maps than

models, more from markets than hierarchies6. Sharing and

using knowledge are often unnatural

acts

7. KM means improving

knowledge work processes

8. Access to knowledge is only

the beginning

9. KM never ends

10. KM requires a knowledge contract

(i.e., intellectual property issues)

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Conclusions: The Intelligent-Acting Enterprise

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