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  1. KNOWLEDGE AUDIT Jay Liebowitz R.W. Deutsch Distinguished Professor of Information Systems, UMBC; (LIEBOWIT@UMBC.EDU)

  2. What Do You Hope to Learn? • Further background on KM processes and the role of the CKO in the organization • Knowledge management methodology • Knowledge audit process • Practical advice about knowledge audits

  3. Knowledge Management Process • Developing new knowledge • Securing new and existing knowledge • Distributing knowledge • Combining available knowledge • Important element -- Connectivity

  4. Studied 20 CKOs in North America and Europe Usually appointed by the CEO (gut feeling) Primary task is to articulate a KM program CKOs spend a lot of time “walking around the organization” CKOs are conceptual designers Concentrate on tapping tacit knowledge Self-starter; not single career-track people Highly motivated (driven) Most have small staffs (3-12 persons) High level sponsorship “What is a CKO?” (Earl and Scott, Sloan Mgt. Review, Winter 1999)

  5. A SMART Methodology for Knowledge Management (Liebowitz et al., UMBC) • S=Strategize • M=Model • A=Act • R=Revise • T=Transfer

  6. Operational/Implementation Steps for the Knowledge Leveraging Model • Conceptualize and Strategize: • Define Problem (why are we doing this; what should be the end result?) • Assess Cultural Readiness, Technology Needs & Resources • Conduct a Knowledge Audit (Knowledge Gap Analysis) • Analyze and Develop an Overall KM Strategic Plan (Should Relate to the Center’s Strategic Plan; Define Leadership Role, KM Implementation Infrastructure, and Technology Needs) • Knowledge Acquisition: • Identify and Apply Methods to Capture Expertise (e.g., structured/unstructured interviews, verbal walkthroughs, observation, simulation, questionnaires, etc.)

  7. Knowledge Audit(ONLINX Research Inc.) • A knowledge audit is a review of the firm’s knowledge assets and associated knowledge management systems • A systematic and dispassionate review of the adequacy and integrity of important organizational assets and systems

  8. Knowledge Audit (Dataware, Liebowitz) • In order to solve the targeted problem, what knowledge do we have, what knowledge is missing, who needs this knowledge, and how will we use the knowledge?

  9. Knowledge Audit (Seeley, Warner-Lambert) • What information exists in my organization, and where is it located? • What expertise resides in my organization--who knows what? • What relevant expertise resides outside my organization, where does this expertise exist, and how do I gain access to it? • What are the best sources of relevant internal and external information and knowledge?

  10. Value of a Knowledge Audit(Peter Smith, ONLINX Research Inc.) • Demonstrates exactly where value is being created through human and structural capital • Highlights where leverage can best be applied through improved knowledge sharing and organizational learning • Helps prioritize projects for improving knowledge management practice • Demonstrates firm capabilities to shareholders and other stakeholders • Is a key component to strategic planning for any knowledge-based enterprise • Is a key adjunct to due diligence and business planning in mergers, acquisitions, strategic alliances, venture capital, and new company formation

  11. Why Audit? • Looking for knowledge-based opportunities in the markets? • Is your focus knowledge flows, stores, and sinks in the organization? • Is the audit to check compliance with SOPs? • Are you searching for ways to leverage internal processes using knowledge? • Will you focus on knowledge objects or are you interested in cultural barriers?

  12. Why Audit? (cont.) • Is the audit strictly for gathering baseline data (descriptive) or is there a prescriptive element? • Is the audit part of a larger BPR project? • Does the mandate include all stakeholders, suppliers, customers, stockholders, etc.? • Where does the learning take place that generates the knowledge? • How fast is the learning? • What are the key leverage points in the learning process?

  13. Top 5 Reasons for Implementing a KM Solution (Delphi Group) • Organizing corporate K (63%) • New ways to share tacit K (39%) • Support for research and K generation (31%) • New ways to share explicit K (29%) • “Smart” tools to aid DM (26%)

  14. Knowledge Reuse • Provides for the capture and reapplication of knowledge artifacts (episodes in memory, stories, relationships, experiences, rules of thumb, and other forms of knowledge acquired by individuals or groups) • Relies as much on the use of negative experiences, flawed reasoning, or wrong answers as on correct results • Failure and Lessons Learned in Information Technology Management: An International Journal (Jay Liebowitz, Editor-in-Chief; Publisher: Cognizant Communications Corp., NY;

  15. Information Audits (TFPL) • Identify the information needs of the organization, the business units, and individuals • Identify the information created and assess its value • Identify the expertise and knowledge assets • Identify the information gaps • Review the current use of external and internal information sources

  16. Information Audits (TFPL) (cont.) • Map information flows and bottlenecks within those flows • Develop a knowledge map of the organization indicating appropriate connections and collections These tasks will enable the design of content maps for intranets, knowledge management strategies, and information strategies

  17. Knowledge Management at Monsanto Co. • Developed a Knowledge Management Architecture (KMA) -- Director of Knowledge Management • Includes a learning map that identifies questions answered and resulting decisions made • Information map that specifies the kind of information that users need • Knowledge map that explains what users do with specific information (conversion of information to insight or knowledge)

  18. Audit (TFPL) • Independent team • Mix of interviews, questionnaires, discussion groups, and focus groups • Number of people in “central” positions are interviewed • Detailed questionnaire to all staff • Do post-audits periodically

  19. Perform a “knowledge audit” first! If you’re a manufacturer, you inventory your physical assets before you change your manufacturing plans and processes. Should we do less with knowledge resources? Consider such factors as: • What information do people need to do their jobs? • What is the function of the information? • Who holds that knowledge now? Who needs it? When? • How can that information be made substantially more effective? • What connection should you make between documents and “work flow”? • Do you really want “document management” tied to work flow, processes, and “business process reengineering”? • What precisely, is the nature of knowledge resources?

  20. Teltech’s Audit Process • Begins at the top, identifying the client’s key decision making areas and tasks, and drills down to evaluate the types, level, and location of info and K required to support those decisions • Gap analysis identifies information/K weak areas

  21. Teltech’s (cont.) • Teltech’s knowledge audit takes 3-4 weeks at one location with 200-600 employees • Assesses knowledge-related behavior (e.g., how receptive is a client’s culture to accessing information electronically?)

  22. Knowledge Audits & Related Projects (Liebowitz et al., UMBC) • BRI/PAC core competency process at the Social Security Administration (2 surveys, follow-up interviews) • Knowledge management strategy for the FCC • Knowledge mapping for ASID • Web-based expert system for HCFA • Agent-based system for the Navy • Other work at our Lab for KM

  23. Knowledge Organization • Invest in education and training of the firm’s human capital • Develop knowledge repositories for preserving, sharing, and distributing K • Provide incentives to encourage employees and management to contribute to the organization’s knowledge repositories and use this knowledge • Consider evaluating annually each member of the firm on the quality and quantity of knowledge contributed to the firm’s knowledge bases as well as the organizational knowledge used by that firm member

  24. Knowledge Organization (cont.) • Develop methodologies for managing and structuring the knowledge in the knowledge repositories • Provide an infrastructure of individuals whose main job is to manage the creation, development, and maintenance of knowledge repositories • Place the Chief Knowledge Officer (CKO) in either a staff position directly under the CEO or in a line position equivalent to a VP • Adapt to the changing competitive environment by forming project teams based on the employee knowledge profiles

  25. Most Centers don’t measure the value of the IC People are the most important knowledge carriers Most of the Centers’ strategic goals don’t include KM explicitly KM objective: facilitate the re-use & consolidation of K Sharing of K: intranets, documentation--Center level Unit-level: intranets, cross-functional teams, training Creation of K: lessons learned analysis Storing K: manuals and handbooks “Some” understanding and support for KM Mixed reaction on motivating and rewarding for KM No formal Webmaster function in most Centers Email & videoconferencing: intranet to support KM No tracking of new K generation CGIAR KM Survey Results