Filling the “Knowing-Doing” Gap: Implications for the Contracting Workforce

2. Filling the “Knowing-Doing” Gap: Implications for the Contracting Workforce Breakout Session # 1202 Dr. Rene G. Rendon, CPCM, C.P.M., PMP U.S. Naval Postgraduate School Date: April 14, 2008 Time: 1:50pm

3. Learning Objectives After completing this session, you will… • Understand the current knowledge management issues facing the federal contracting workforce. • Understand the concepts of explicit knowledge and tacit knowledge, and how it applies to contract management organizations.

4. Learning Objectives After completing this session, you will… • Understand the contracting knowledge paradox facing federal contracting organizations and the importance of filling this contracting knowing-doing gap. • Gain an appreciation for the various methods for increasing an organizations’ tacit contracting knowledge.

5. DoD Contract Management Environment • Increasingly complex weapon systems critical to the global war on terrorism • Constrained defense budgets • Emerging technologies • Accelerated schedules

6. DoD Contract Management Environment • Increasing reliance on defense contractors to perform DoD mission critical services and to provide program management/systems engineering functions

7. DoD Contract Management Environment • Consistent acquisition and contract management problems • Cost overruns • Schedule delays • Performance problems

8. DoD Contract Management Environment • Consistent problems in managing service contracts • Lack of strategic approach • Not employing sound business practices • Inadequate oversight

9. DoD Contract Management Environment • Increased number of contracting programs • Procurement spending increased by 90% from 1999 to 2005 • DoD awarded $278B in contracts in FY05 • No increase in size of acquisition workforce • Contracting workforce remained stable at 60,000 from 1999 to 2005 • 32% of contacting workforce eligible for retirement in 2010 • 54% will be eligible for retirement in 2015

10. DoD Contract Management Environment • Loss of experienced contract management workforce due to downsizing and retirement • Results: A decrease in workforce experience and expertise

11. DoD Contract Management Environment • Organizations are responding by investing in knowledge management technology such as on-line tutorials, on-line courses, procurement guides, regulations, lessons learned databases • Results: Increased access to information, data; knowledge

12. The Knowing-Doing Gap in the DoD • Organizations are high in explicit knowledge • Knowledge as a tangible resource • Knowledge is something to be acquired and codified • Emphasis is to build a stock of knowledge • Assumption is that possessed knowledge will be used appropriately and efficiently • Explicit knowledge is the “know-what” The Knowing-Doing Gap Pfeffer and Sutton, 2000

13. The Knowing-Doing Gap in the DoD • Organizations are low in tacit knowledge • Essential for performing the work • Based on experience, trial and error • Transferred through story-telling • Results from coaching, mentoring • The focus of on-the-job training • Tacit knowledge is the “know-how” The Knowing-Doing Gap Pfeffer and Sutton, 2000

14. What is DoD’s Knowing-Doing Gap? • Organizations are high in explicit knowledge“know-what” • Organizations are low in tacit knowledge“know-how” What are the symptoms of the Knowing-Doing Gap? The Knowing-Doing Gap Pfeffer and Sutton, 2000

15. Symptoms of the Knowing-Doing Gap • More emphasis on • Generating new knowledge management (KM) systems • Accessing knowledge from other KM systems • Less emphasis on • Social interaction processes • Organizational improvement processes The Knowing-Doing Gap Pfeffer and Sutton, 2000

16. Knowledge Management Activity Percentage Rating Performance as “Good” or “Excellent” Source: Data from Rudy Ruggles The State of the Notion: Knowledge Management in Practice California Management Review, 40:82 (1998)

17. Filling the Knowing-Doing Gap In DoD • Some approaches • Increasing the tacit knowledge level of organizations (college educated, inexperienced, entry-level employees) through • On-the-job-training • Mentoring programs • Knowledge measuring • Knowledge transferring How does your organization increase tacit knowledge?

18. Social interaction process Organizational process Current Challenges • Increasing the tacit knowledge level of organizations through • On-the-job-training • Mentoring programs • Knowledge measuring • Knowledge transferring

19. Current Challenges • Social interaction process is a more difficult method of transferring knowledge • Requires more time to develop • Requires social/people skills • Requires leadership at all levels • “Knowing-by-doing” is a less cost-efficient method of increasing knowledge

20. Turning Knowledge Into Action • Philosophy is important. • Knowing comes from doing and teaching. • Actions count more than plans. • There is no doing without mistakes. • Drive fear out. • Fight the competition, not each other. • Measure what turns knowledge into action. • What leaders do matters.

21. Turning Knowledge Into Action • Air Force Space and Missile Systems Center (SMC) • Responsible for the research, development, testing, procurement, and deployment of DoD’s space and missile systems • Manages over 606 active contracts • Contracts valued in excess of $49.6B • Organized by System Program Offices

22. Turning Knowledge Into Action • Filling the Knowing-Doing Gap at SMC • On-the-job-training • PK Acquisition University • PCO Prep Academy • Buyer’s Institute • College of Pricing • CCO Boot camp How does your organization conduct on-the-job training?

23. Turning Knowledge Into Action • Filling the Knowing-Doing Gap at SMC • Mentoring programs • SMC Mentoring Program • Knowledge measuring • Process Measurement (CMMM) • Knowledge transferring • Acquisition Center of Excellence (ACE)

24. CONTRACT MANAGEMENT MATURITY MODEL© CONTRACT MANAGEMENT KEY PROCESS AREAS B MATURITY Procurement Solicitation Source u Solicitation y Planning Contract Contract Planning Selection e LEVELS r Admin Closeout S Presales Bid/No - Bid Bid/Proposal Negotiation/ e l Decision Preparation Formation Activity l e r 5 OPTIMIZED 4 INTEGRATED 3 STRUCTURED 2 BASIC 1 AD HOC Reference Text: Contract Management Organizational Assessment Tools, by Gregory A. Garrett and Dr. Rene G. Rendon, NCMA, 2004.

25. Summary • DoD Contract Management Environment • The Knowing-Doing Gap in the DoD • Symptoms of the Knowing-Doing Gap • Filling the Knowing-Doing Gap • Current Challenges • Turning Knowledge Into Action • Closing Thoughts

26. Closing Thoughts • What are the symptoms of the Knowing-Doing Gap in your organization? • How does your organization increase and transfer tacit knowledge? • How does your organization measure tacit knowledge?