1 / 116

KM 101 Dr. Nick Bontis Associate Professor of Strategic Management , McMaster U.

KM 101 Dr. Nick Bontis Associate Professor of Strategic Management , McMaster U. Director, Institute for Intellectual Capital Research Associate Editor, Journal of Intellectual Capital Chief Knowledge Officer, Knexa Solutions www.NickBontis.com

marge
Download Presentation

KM 101 Dr. Nick Bontis Associate Professor of Strategic Management , McMaster U.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. KM 101 Dr. Nick Bontis Associate Professor of Strategic Management, McMaster U. Director, Institute for Intellectual Capital ResearchAssociate Editor, Journal of Intellectual Capital Chief Knowledge Officer, Knexa Solutions www.NickBontis.com nick@bontis.com

  2. Seminar Agenda • Phase 1: Knowledge Era • understanding the context of the information age • Phase 2: IC Multi Perspectives • What is IC? Depends on who you ask. • Phase 3: IC Models • levels of analysis, types of knowledge, stocks & flows • Phase 4: SLAM Measures • alignment of stocks and flows with performance • Phase 5: Causal Mapping • Structural equation methodology and measures • Phase 6: National IC Index • Country level measurement and modeling • Phase 7: Software Demonstration • TangoNet and Tribute

  3. Entering ANew Era ? GroupWare Tech Machine Industrial Era Agriculture Era Land Mind Knowledge Era Tobin’s q Accounting Metrics Internet

  4. Canadian Internet Usage: 1995 4%, 1998 25%, 2005 75% Nielsen In 1997 home PCs passed TVs in units soldRetail Week Internet users: 30 million - 1999 817 million - 2005WTO Internet traffic doubling every 70 daysDept. of Commerce

  5. KM Research Highlights • IDC reports FORTUNE 500 wasted $12 billion duplicating work • Ford reports $914 million cost savings due to KM from 1997 - 2000 • Chevron saves $650 million since 1991 due to KM • Texas Instruments saves $1 billion cumulatively sinceKM program launched in mid 1990s • Gartner Group reports • 90% of FORTUNE 500 working on KM • 33% of FORTUNE 1000 had begun KM programs by 1999 • will rise to over 50% by 2003 • World Economic Forum • 95% of CEOs feel that KM is critical to success

  6. Myths of Measuring KM • The reality is that when you finally do it, you are never satisfied • The few who are doing it are probably not doing it well • Those who say they are doing it are probably lying • No one is sure what it is, but they hear that it is great • Everyone thinks everyone else is doing it

  7. KM Research Highlights • Stats Canada (348 organizations surveyed) • 93% have KM initiatives, 25% dedicated budget • Why have KM? • Competitive advantage, human capital, intellectual capital retention • Fortune 500 • 80% have KM initiative(s) in place, 25% have CKOs53% have KM staff, all #s expected to grow • 6% have KM initiatives company-wide, 60% < 5 yearsKM is owned 32% Sr.Mgt., 25% HR, 16% IT • Government - all levels • Institute for Intellectual Capital Research • CKOs from 40% HR, 40% IT, plus other (hired within)

  8. Multi - Perspectives Marketing Human Resources Technological Systems Economics Finance Organizational Behaviour Accounting Sales Training & Development Strategy

  9. Volunteer for a Reading test Aoccdrnig to rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht the frist and lsat ltteer be at the rghit pclae. The rset can be a total mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe.

  10. Volunteer for a Reading test

  11. Where are we going? • Lester Thurow - MIT “The dominant competitive weapon of the 21st century will be theeducation and skills of the workforce.” • Jac Fitz-enz - Saratoga Institute “The contingent workforce will become the dominant model.” • President Clinton - U.S. White House “By having the chance to work while you learn ... You embody the growing unity between experience and education.” • Steve Maharey - NZ Labour Spokesperson on Education “Maori and Pacific Island peoples in particular remain under represented in tertiary education.”

  12. Importance of phenomenon • Choo and Bontis (2002), Bontis (2002) • Fitz-enz (2000) • Max Boisot (1998) & Choo (1998) • Knowledge Assets, Knowing in Organizations • Sveiby (1997) & Stewart (1997) & Roos (1997) • Organizational Wealth • Nonaka and Takeuchi (1995) • The Knowledge Creating Company • Drucker (1993) • arrival of the “knowledge society” • Toffler (1990), Handy (1989) • ultimate resource, intellectual assets 3 or 4 times BV

  13. Tracing KM’s History • Egyptians, Greeks, Monks, Knights • Taylor (1911) • Evidence of codification of knowledge • Simon (1945) • Cognitive capacity “bounded rationality” • Schumpeter (1952) • Innovation from new combinations of knowledge • Penrose (1959) • Organization is a knowledge repository

  14. IASC, CICA, FASB & SEC … Help!

  15. Distinguishing the Terms

  16. Devil’s Advocate

  17. The Danger of KM KnowledgeManagement OrganizationalPerformance • Achievement Driven • Paternalistic • Balance • Organizational Slack

  18. Level of Analysis: Individual • recruitment • building competencies • assessing weaknesses • retention • compensation • satisfaction

  19. Level of Analysis: Group • concerted team action • collectively aligned mind sets • synergy • cohesion • shared perception of thebusiness environment

  20. Level of Analysis: Organization Continuous Improvement Strategy Systems Trust Culture Technology Structure Leadership

  21. IC Conceptualization Human Capital Structural Capital Relational Capital • 2nd order • multi-dimensional • 3 sub-domains • drivers • trust, culture • leadership

  22. Conceptual Model - Firm

  23. House Metaphor

  24. IC Perceptual Model

  25. Nonaka (SECI Model)

  26. Metaphors and Analogies • stocks and flows • production system • capacity utilization, bottlenecks, throughput • ties-in stocks of knowledge and flow of learning • bathtub analogy • tap in and leak (knowledge flow) • water level (intellectual capital) • the whole water system (organizational learning) We need an integrative framework!

  27. Strategic Learning Assessment Map Flow Output Individual Group Organization Cross-organization Individual H R S Feed-forward Group H R S Flow Input Legend: H (human), R (relational), S (structural) = IC) Organization Feed-back H R S Cross-organization H R S

  28. Measure, Test and Evaluate • multi-method approach (quantitative and qualitative) • IICR Knowledge Audit: survey design (Likert-type) • objective proxies (www.Saratoga-Institute.com) • benchmarking of HR metrics (turnover and training & dev.) • e-mail direction (IICR e-Flow Audit) • knowledge sweeping (dynamic corporate yellow pages) • Some tools to check out ... • Knexa.com, BrassRing.com, OpenText.com • Monster.com, eLance.com, Talent websites • Tango Simulation • www.TangoNow.net • IC Disclosure • www.Celemi.se • www.Skandia.se • www.Carlbro.dk

  29. KM Continuum Tribute Technology IICR KM Diagnostic KM Seminars

  30. KM Diagnostic Audit 0.506 ManagerialLeadership Retention of Key People 0.442 R2 = 68.2% 0.530 0.326 0.360 Training &Development Human Capital Relational Capital Human Capital Effectiveness 0.307 R2 = 28.5% 0.358 - 0.337 0.475 Structural Capital 0.751 BusinessPerformance Knowledge Generation 0.491 0.734 Employee Satisfaction Employee Commitment 0.327 0.543 R2 = 44.1% 0.439 0.456 0.429 Knowledge Integration Process Execution - 0.372 Employee Motivation 0.394 0.262 0.430 ValueAlignment Knowledge Sharing Human CapitalDepletion 0.285 - 0.233 R2 = 28.5%

  31. Correlation vs Path Analysis + 0.36 + 0.32 Correlation between Age and Risk of Heart Attack + 0.36 (p < 0.01) Correlation between Obesity and Risk of Heart Attack + 0.32 (p < 0.01) Age Heart Attack Obesity

  32. Correlation vs Path Analysis X Path between Age and Obesity + 0.26 (p < 0.01) Path between Obesity and Risk of Heart Attack + 0.43 (p < 0.01) Age + 0.26 Heart Attack Obesity + 0.43

  33. Outcome Constructs Retention of Key People Human Capital Effectiveness BusinessPerformance Human CapitalDepletion 0.506 ManagerialLeadership 0.442 R2 = 68.2% 0.530 0.326 0.360 Training Human Capital Relational Capital 0.307 R2 = 28.5% 0.358 - 0.337 0.475 Structural Capital 0.751 Knowledge Generation 0.491 0.734 Employee Satisfaction Employee Commitment 0.327 0.543 R2 = 44.1% 0.439 0.456 0.429 Knowledge Integration Process Execution - 0.372 Employee Motivation 0.394 0.262 0.430 ValueAlignment Knowledge Sharing 0.285 - 0.233 R2 = 28.5%

  34. Participating Organizations ABN AMRO North America Inc. Allstate Insurance Company AMP Australia AMP UK Andersen Consulting Aon AXA Client Solutions Blue Cross Blue Shield of Florida Blue Cross Blue Shield of Illinois / Texas Blue Cross Blue Shield of North Carolina CNA Commercial Insurance Equitax Farmers Insurance Group Hartford Financial Services Hewitt Associates, LLC Intermountain Health Care International Monetary Fund Merrill Lynch National City Corp. Northwestern Mutual Life Penn National Insurance PNC Bank Savings Bank of Utica United Health Group Zurich U.S.

  35. Quantitative Metric Model _ Human Capital Depletion + Human Capital Valuation Human Capital Effectiveness Human Capital Investment +

  36. Quantitative Metric Model _ Human Capital Depletion + Human Capital Valuation Human Capital Effectiveness Human Capital Investment • Revenue Factor • Income Factor +

  37. HC Effectiveness - Income Factor

  38. Quantitative Metric Model _ Human Capital Depletion + Human Capital Valuation Human Capital Effectiveness • Compensation Expense Factor • Compensation Factor Human Capital Investment • Revenue Factor • Income Factor +

  39. HC Valuation - Compensation Factor

  40. Quantitative Metric Model _ Human Capital Depletion + Human Capital Valuation Human Capital Effectiveness • Compensation Expense Factor • Compensation Factor Human Capital Investment • Revenue Factor • Income Factor • Development Rate • Training Investment +

  41. HC Investment - Development Rate

  42. Quantitative Metric Model _ • Voluntary Turnover • Involuntary Turnover Human Capital Depletion + Human Capital Valuation Human Capital Effectiveness • Compensation Expense Factor • Compensation Factor Human Capital Investment • Revenue Factor • Income Factor • Development Rate • Training Investment +

  43. HC Depletion - Voluntary Turnover

  44. Areas of Concern

  45. Research Implication I 0.506 ManagerialLeadership Retention of Key People 0.751 ValueAlignment Knowledge Sharing 0.285 0.442 R2 = 68.2% 0.530 0.326 0.360 Training Human Capital Relational Capital Human Capital Effectiveness 0.307 R2 = 28.5% 0.358 - 0.337 0.475 Structural Capital BusinessPerformance Knowledge Generation 0.491 0.734 Employee Satisfaction Employee Commitment 0.327 0.543 R2 = 44.1% 0.439 0.456 0.429 Knowledge Integration Process Execution - 0.372 Employee Motivation 0.394 0.262 0.430 Human CapitalDepletion - 0.233 R2 = 28.5%

  46. Research Implication II 0.326 0.360 Human Capital Relational Capital Human Capital Effectiveness 0.307 R2 = 28.5% Structural Capital 0.506 ManagerialLeadership Retention of Key People 0.442 R2 = 68.2% 0.530 Training 0.358 - 0.337 0.475 0.751 BusinessPerformance Knowledge Generation 0.491 R2 = 44.1% 0.734 Employee Satisfaction Employee Commitment 0.327 0.543 0.439 0.456 0.429 Knowledge Integration Process Execution - 0.372 Employee Motivation 0.394 0.262 0.430 ValueAlignment Knowledge Sharing Human CapitalDepletion 0.285 - 0.233 R2 = 28.5%

  47. Research Implication III 0.358 BusinessPerformance 0.491 0.734 Employee Satisfaction Employee Commitment R2 = 44.1% 0.439 0.456 0.429 Employee Motivation 0.430 Knowledge Sharing 0.506 ManagerialLeadership Retention of Key People 0.442 R2 = 68.2% 0.530 0.326 0.360 Training Human Capital Relational Capital Human Capital Effectiveness 0.307 R2 = 28.5% - 0.337 0.475 Structural Capital 0.751 Knowledge Generation 0.327 0.543 Knowledge Integration Process Execution - 0.372 0.394 0.262 ValueAlignment Human CapitalDepletion 0.285 - 0.233 R2 = 28.5%

More Related