Knowledge Management – Key Challenge for Government

1. Knowledge Management – Key Challenge for Government Creating Value from Knowledge - Lessons Learned

2. BACKGROUND Need for better knowledge management within the public sector has been acknowledged as a central strategic commitment. Government has a poor track record in knowledge management . Growing recognition that in a changing public sector, learning and knowledge are possibly the most crucial variables in addressing these challenges.

3. Internal challenges: • Corruption, • Ineffective and inefficient use of state resources, • Poor development practice, • policies that are poorly understood and implemented, • Services standards • External challenges • Urgent service delivery in areas such as education, healthcare, housing, social grants, and other social services

5. KEY FINDINGS • Lack of common conceptual understanding of knowledge management • Recognised the need for knowledge management • There are a number of KM initiatives in government. • There are no specific metrics or a measurement framework • No formal KM architecture in place.

7. Knowledge is: Both ”KnowThat” and ”KnowHow”Facts and Action “Talking is not doing”. Gogo

8. Levels of Capacities to Act Wise (Human) Expert (Peer-recognisedCompetence. ”Master”) Competent (Able + Achieve Results) Able (to do something)

9. The Learning Pyramid Activity and average retention rate 5% Lecture 10% Reading 20% Audio Visual 30% Demonstration 75% Practice by doing 90% Teach others / immediate use of learning Source: National Training Laboratories, Bethel, Maine

10. Two dimensions of knowledge in organizations TACIT KNOWLEDGE rooted in action, experience, and involvement in a specific context EXPLICIT KNOWLEDGE articulated, codified, and communicated in symbolic form and/or natural language Cognitive Individual's mental models consisting of mental maps, beliefs, paradigms, and viewpoints Technical Concrete know-how, crafts, and skills that apply to a specific context • There is a body of opinion that true knowledge is only tacit: as soon as it is codified or structured and stored it becomes information.

11. Knowledge sharing processes • Continuous process of transformation from one form to another. Combination Internalisation Externalisation Socialisation

12. Socialisation • Sympathised knowledge • Connected with theories of group processes and organisational culture • Process of sharing experiences • Shared mental models and technical skills • Examples: apprenticeship, on-the-job training, communities of practice • Externalisation • Conceptual Knowledge • Driven by metaphors, analogy, concepts, hypothesis and models • Triggered by dialogue or collective reflection • Holds the key to knowledge creation • Examples: abductive reasoning, new product development • Internalisation • Operational Knowledge • Embodying explicit knowledge into tacit knowledge • "Learning by doing" • Through documents, manuals, or oral stories • Example: Project management, success stories • Combination • Systemic Knowledge • Systemising concepts into knowledge systems • Combining different bodies of explicit knowledge through documents, meetings, internet • Example: Prototype, formal education and training Transformations between tacit and explicit knowledge to TACIT EXPLICIT TACIT from EXPLICIT

13. KM – Highest Value Potential Where is most money spent on KM? – Ranking • Align KM with business strategy – a knowledge-based strategy • Improve climate for knowledge creation and sharing – Collaborative Climate. • Improve knowledge sharing with customers. • Invest in Internet-based communication • Build organisation for content management (On-line library, databases) 5 4 3 2 1

14. KM: the Art of Creating Value from Intangible Assets Myths and Reality about Knowledge Management • Learning is a means to an end – KM must have a business focus • KM requires deep rooted behavioural and strategic change • KM concerns how to create environments for people to create, leverage and share knowledge • KM requires top management involvement; it is a fundamental shift in strategic perspective. • IT is a tool for information exchange, but IT investments yield low value. • It’s the same thing as learning • It’s a simple add-on to business as usual • It’s capturing knowledge kept in the heads of people • It’s a function to be delegated to HR or IT • It’s a matter of investing in IT

15. People networks IT networks Improving Knowledge Flows:Two Infrastructures Know-How Know-What Information, facts Competitive Advantage !! Collaborative Climate Trust Cable width Bits per second

16. A Knowledge-Based View of the Firm The Ten Knowledge Strategy Issues • 2. Transfer knowledge to customers, suppliers and other stakeholders. • McKinsey shares concepts w. clients • GE – shares “Black Belt experts” best practice w. customers • 3. Learn from customers, suppliers and other stakeholders. • Betz Labs – participates in customer quality teams • McKinsey – manages Alumnae actively • 1. Improve the transfer of knowledge between Experts in our organisation. • BP – Communities of Practice • Prof.services – Master/Apprentices • 6. Help our customers’ con-versation with their customers. • B-K – organises seminars by authors • Lovisenberg Hospital; fear reduction – ex-patients meet new patients • 4. Convert individually held knowledge to systems, tools and templates. • Databases, Document handling, etc • All types of software KnowledgeWorkers Customers V • 5. Improve individuals’ knowledge by using systems, tools andtemplates. • IKEA – business simulations • NASA – flight simulators • 7. Use knowledge from customers and suppliers to add value to our systems, processes and products. • Frito-Lay – adds competitive intelligence to commodities • Ritz Carlton – shares patron data for superior service Support staff, systems & processes • 9. Integrate systems, tools & processes and products effectively internally. • PwC – KnowledgeCurve • Motorola – uses KM to break silos • 8. Help customers and suppliers access knowledge via our systems, tools & processes. • E&Y – Ernie • GE – Sharing BI and market data w. customers 10. Strategic Purpose: How can the value creation capacity of the whole be maximised?

17. Purpose of a Knowledge-based Strategy Customers Knowledgeworkers V Support staff,IT systems & processes  Maximise the capacity of the whole System to create value, by enhancing the knowledge flows between customers, individuals and processes.

18. What were the gains? • Patent management – Dow Chemical ~$25M ->$100M • Sharing Technical expertise and Best Practice • Chevron – ”millions of dollars • Xerox – 5000 ideas for improvement • BP – “millions of dollars” • Shell - $5 millions in 5 months • Increased innovation – • Buckman Labs, 40% increase in new product launches. • Pillsbury 67% success rate in new product launches after KM introduction. • MTN – 15 service ideas from customers via Call centre in one week • PR-gain – Skandia Intellectual Capital Statement ~$1 Bn in MV • Expert turnover reduced by 70% - Affärsvärlden

19. Framework for KM Support

20. Some Trends in Knowledge Intensive Firms • 1st wave: Focus on knowledge worker efficiency (reduce costs): • ‘Toolification’ of tacit knowledge • Internet for storing information • Optimisation of office space • 2nd wave: Focus on knowledge worker effectiveness (increase revenues) • Technology: Internet-based Collaboration technologies • Communities of Practice • Optimisation of social space (eg. Collaborative Climate) • New organisational forms • Continuous: Focus on Superior Client Service • Technology; CRM, Internet • Personal; Account organisation

21. IMPLEMENTATION FRAMEWORK

22. Tell me, I'll forget. Show me, I may remember. But involve me and I'll understand. Lao Tzu ~600 BC