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BSBINM501A Manage an Information or Knowledge Management System. Facilitator : Lokesh Singh. Questions Revision Closed book exam. What is knowledge?. What is your company’s global strategy?. Sub4. Sub7. Sub1. Sub14. Sub9. Sub3. Sub2. Sub14. Sub10. HQ. Sub5. Sub11. Sub13.

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slide2

Questions

Revision

Closed book exam

slide4
What is

your company’s

global strategy?

from a multi domestic company to a successful global firm

Sub4

Sub7

Sub1

Sub14

Sub9

Sub3

Sub2

Sub14

Sub10

HQ

Sub5

Sub11

Sub13

Sub6

Sub8

From a multi-domestic company to a successful global firm

Multi-domestic

Global

Integrated

aligning operations increases success
Aligning operations increases success

Competence

Management

Knowledge

Global

strategy

Management

Motivation

Management

what are the benefits of knowledge management
What are the benefits of knowledge management?
  • Profitable growth through higher efficiency and innovation
    • Preventing the waste of valuable resources - avoid reinventing the wheel
    • Ensuring the use of leading-edge technology and thinking across the firm
    • Increasing customer satisfaction through shorter lead-times and consistent behavior
    • Creating a competitive cost structure
    • Facilitating breakthrough and incremental innovations through combination of technologies and ideas from across and outside the firm
  • An attractive workplace that encourages cross-functional co-operation across the globe
    • Attracting and retaining key individuals
from tacit to articulate knowledge

MANUAL

How to play soccer

From tacit to articulate knowledge

“We know more than we can tell.”

Michael Polanyi, 1966

High

Low

Codifiability

Articulated

Tacit

the knowledge management challenge
The knowledge management challenge

The majority of a company’s valuable knowledge is tacit and resistsbeing articulated

what is knowledge management
What is knowledge management?

An organization’s structures, systems, and practices that facilitate..

…with the goal of enhancing the organization’s competitiveness

KM

Embedding

knowledge

Creating

knowledge

C

Organizing knowledge

Disseminating

knowledge

C O D E

km must be aligned with strategy

KM

Global

strategy

KM must be aligned with strategy
  • Who does your company target as customers?
  • What products or services does your company offer these targeted customers?
  • How does your company do this efficiently?

CODE

  • What knowledge supports this strategy?
    • Do we have this knowledge? (Create)
    • How should we organize this knowledge? (Organize)
    • Who needs this knowledge, when, and how? (Disseminate)
    • How do we ensure we get value from this knowledge? (Embed)
information technology for km
Information technology for KM
  • Stocks of knowledge: Database and database management systems to collect and hold information
  • Flows of knowledge: Communication channels to connect individuals independent of location

IT is an enabler!

challenges to knowledge databases
Challenges to knowledge databases
  • Time consuming and difficult
    • Takes times for writer to document experiences
    • Takes time for reader to search through databases, information overload
    • Often weak incentives to contribute golden nuggets
  • Difficult to understand
    • Difficult for writer to explain context, tacit ->explicit
    • Difficult for reader to interpret experience and use in own situation
  • Data becomes out-of-date very quickly
    • Difficult to maintain, especially in fast moving industries
avoid creating information junkyards
Avoid creating information junkyards

Information junkyards

or

Empty libraries

Building knowledge repositories

organizational structure for km
Organizational structure for KM
  • Physical layout
  • Appropriate KM functions and units
  • Cross-functional and cross-location teams
  • Centers of excellence
    • Institutionalized, recognized areas of expertise
  • Socialization measures
    • Job rotation, cross-office training programs, etc.
where do individuals go for help in solving problems

Non-electronic

documents

Non-electronic

documents

Contacts in

other offices

Intranet

Internet

Internal

electronic

networks

Firm boundary

External

electronic

networks

Co-located

colleagues

Other

contacts

Where do individuals go for help in solving problems?
what are communities of practice
What are communities of practice?
  • Groups of people who come together to share and to learn from one anotherface-to-face and/or virtually.
  • They are held together by a common interest in a body of knowledge and are driven by a desire and need to share problems, experiences, insights, templates, tools, and best practices.
  • Members deepen their knowledge by interacting on an ongoingbasis.
  • This interaction leads to continuous learning and innovation
cps are not teams or personal networks

Personal Network

Community

of Practice

Team

Purpose

-Share information

-Friendship

-Solve problems

-Share info. & ideas

-Expand knowledge

-Accomplish goal

Members

-Friends &

acquaintances

-No boundary

-Mostly volunteers

-Permeable boundary

-Assigned

-Defined boundary

Activity

-One-on-one

-Meetings

-Informal communications

-Organize tasks

Value Creation

-Serendipitously

discovered

-Actively discovered

-Planned

Glue

- Friendship

-Value

-Commitment

-Obligation

-Job requirement

CPs are not teams or personal networks

McDermott 2001

communities are the grease in the km wheel
Communities are the grease in the KM wheel

KM

Embedding

knowledge

Creating

knowledge

C

Organizing knowledge

Disseminating

knowledge

C O D E

role of communities of practice
Role of communities of practice
  • Create: Own & develop knowledge
    • Develop & manage good practice
    • Build organizational competence
  • Organize: Develop & manage materials
    • Develop tools, guidelines, templates
    • Manage databases
  • Disseminate: Connect people across boundaries
    • Who knows what
    • Home in changing organization & an uprooted society
  • Embed: Share ideas & insights
    • Share tacit, complex ideas & insights
    • Help each other solve problems & find innovations
communities can have a different primary purpose
Communities can have a different primary purpose

Innovation

Helping

Best-practice

Knowledge stewarding

community membership and roles
Community membership and roles

Coordinator

Core Group

Active

Peripheral

don t forget to support informal external networks at the individual level
Don’t forget to support informal external networks at the individual level!

External

Customers and suppliers

Partners

Electronic

communities

Organization

Previous work and school colleagues

Large portion of new ideas and formal collaboration relationships come from personal external contacts

encourage an open innovation attitude
Encourage an open innovation attitude

Closed attitude

Open attitude

Not all the smart people work for us. We need to work with smart people inside and outside the company.

The smart people in our field work for us.

If you create the most and the best ideas in the industry, you will win.

If you make the best use of internal and external ideas, you will win.

Chesborough 2003

what is your organization s km vision
What is your organization’s KM vision?

British Petroleum’s KM Vision

BP knows what it knows, learns what it needs to learn, and uses knowledge to create overwhelming sustainable advantage.

in global organizations km is increasingly complicated
In global organizations KM is increasingly complicated …

Three types of boundaries

  • Internal
    • Geographical (physical & cultural)
    • Organizational (horizontal & vertical)
  • External
    • Organizational (formal & informal relationships)
challenges to successful km processes
Challenges to successful KM processes
  • Individual level
  • Subsidiary level
biggest difficulties to successfully managing knowledge in organizations
Biggest difficulties to successfully managing knowledge in organizations

Culture

Top management’s failure to signal importance

Lack of shared understanding of strategy

Organizational structure

Lack of problem ownership

IT / Communication restraints

Incentive system

Ruggles 1998

biggest difficulties to knowledge transfer
Biggest difficultiesto knowledge transfer

Changing people’s behavior

Measuring value/performance

of knowledge assets

Determining what knowledge should be managed

Justifying use of scarce resources for KM initiatives

Mapping organization’s existing knowledge

Making knowledge available

Attracting and retaining talented people

Ruggles 1998

so why should i share
You gotta remember that we’re hired to be stars here and not team players.

- Researcher at one high technology firm with poor knowledge flow

Sometimes I get calls from other offices. It feels weird if I don’t know the person. I like to help them only if I know them.

- Programmer at software multinational

So, why should I share?
what are some barriers to successful knowledge management

Knowledge is power

  • Lack of understanding
  • Lack of incentive
  • Time constraint
  • Lack of awareness
  • Not-invented-here
  • Lack of incentive
  • Time constraint
What are some barriers to successful knowledge management?
slide36

Individuals often have conflicting loyalties

Loyalty

Loyalty

Firm boundary

Organization

Profession

is knowledge trading good or bad for a firm
Is knowledge trading good or bad for a firm?

We pass over the nondisclosure agreements of different companies and trade company secrets all the time.

who owns the knowledge
Who owns the knowledge?

Organizational information

vs.

Personal expertise

what about individual performance
What about individual performance?

A high degree of participation in

local communities of practice

+

On-time

performance

Creative

performance

but here we see the reverse

+

Creative

performance

But here we see the reverse

A high degree of participation in dispersed

electronic communities

-

On-time

performance

in summary individuals have choices about how they use their knowledge
Knowledge resides in the minds of individuals

Individuals make own choices about knowledge

Share openly for the benefit of the organization

Protect and use only in work practice

Perception that an individual’s value is diminished if share knowledge

Knowledge is power

Protect and use only in external relationships for own benefit

Knowledge leakage

Leave the firm and take knowledge with them

In summary, individuals have choicesabout how they use their knowledge…
challenges to successful km processes1
Challenges to successful KM processes
  • Individual level
  • Subsidiary level
a constant local vs global tension
A constant local vs global tension

We do not want to be managed in our choice of competence elements. We would want to select those elements that we need.

  • Line Manager, Ericsson Norway

Spontaneity and creativity could be the losers in some areas by implementing global solutions. However, the “Best Practice” policy in Ericsson concerns capturing good ideas, which of course may come from other areas in the organization.

  • HR Manager, Ericsson Norway
  • Hustad & Munkvold 2005
aligning operations increases success1
Aligning operations increases success

Competence

Management

KM CODE

Global

strategy

KM CODE

Motivation

Management

supporting global km processes
Supporting global KM processes

Providing the organization with the right mix of talent to meet existing and future needs

Competence

Management

Motivation

Management

Creating an open, knowledge sharing culture with a high degree of company loyalty

a variety of tools
A variety of tools
  • Competence system
  • Recruiting
  • Incentives
  • Networks
  • A visionary organization

Competence

Management

Motivation

Management

creating a competence management system
Creating a competence management system
  • Standardization
    • Create common structure and terminology
    • Define professional, business, and human competencies related to global strategy and KM goals
      • Don’t underestimate this task!
  • Analysis
    • Personal development discussions
    • Mapping of present and future target competence levels for individuals and then for business units
    • Defining competence gap at both levels
  • Planning and implementation
    • Prepare competence development plan
    • Implement and evaluate

Magnusson & Davidsson 2004

cm supports km
CM supports KM

I think that competence management can play an important role in knowledge management. You can search for persons with certain competencies very easily through that tool. People having the same competencies and interests can be accessed and get together.

  • Competence Manager, Ericsson Croatia
  • Hustad & Munkvold 2005
a variety of tools1
A variety of tools
  • Competence system
  • Recruiting
  • Incentives
  • Networks
  • A visionary organization

Competence

Management

Motivation

Management

recruiting what should one look for
An experienced professional who has worked extensively in another company with different values and philosophy

A young person who lacks professional experience but has the right attitude

Recruiting – What should one look for?

OR

  • It is cheaper and easier to develop technical skills than trying to change mentality.
        • HR Manager, Ericsson Russia
when you hire someone
When you hire someone…

…..you “hire” his or her network.

a variety of tools2
A variety of tools
  • Competence system
  • Recruiting
  • Incentives
  • Networks
  • A visionary organization

Competence

Management

Motivation

Management

aligning incentives with km

Status and

recognition

Aligning incentives with KM
  • Recognize and reward for collaborative behavior
    • At individual, unit, and organizational levels
  • Show management commitment

Satisfaction

$$$

Monetary

Challenge

examples of incentives
Examples of incentives
  • Monetary
    • Nucor Steel: Bonuses based on performance of relevant group, e.g., individuals and their workgroup, department managers and their plant
  • Status and recognition
    • McKinsey: Practice Development Flyers
    • Xerox: Tip of the Month
  • Challenge
    • McKinsey: PD Olympics

Satisfaction

encourage experimentation and accept failure
Encourage experimentation and accept failure

Every Nucor plant has its little storehouse of equipment that was bought, tried, and discarded.

Just don’t keep making bad decisions. - Chairman, Nucor Steel

but be aware of local differences

Worldwide

innovation

& learning

But be aware of local differences

Global

efficiency

National

responsiveness

cultural differences affect km behaviors

Knowledge

acquisition

Knowledge

sharing

Cultural differences affect KM behaviors

“Work-to-live”

culture

+

Risk

avoidance

+

a variety of tools3
A variety of tools
  • Competence system
  • Recruiting
  • Incentives
  • Networks
  • A visionary organization

Competence

Management

Motivation

Management

why encourage socialization
Why encourage socialization?

Trust, commitment, and an open environment are essential for knowledge exchange in networks

socialization examples
Socialization examples
  • Cross-office and cross-function training programs
    • McKinsey’s introduction and development training programs
  • Cross-office projects
    • Projects often involve more than one office at Ericsson R&D
  • Job rotation
    • “There are 12 different ways to rotate at HP.”
    • Online career development tool at Novartis
  • Slack shops
    • HP R&D allows time and provides resources to experiment on new ideas with others who have same interests
  • Informal events
    • Plant managers at Nucor Steel organize business meetings throughout year so every employee attends one meeting per year
myths and reality checks about networks
Myths and reality checks about networks
  • I already know what’s going on in my network.
      • Those who think they know their network the best are usually the ones who know the least.
  • To build networks, we have to communicate more.
      • To build better networks, focus on a structured analysis of them.
  • We can’t do much to help informal networks.
      • Informal networks can be supported through changing the organizational context.
  • How people fit into networks is a matter of personality (which can’t be changed).
      • How people fit into networks is a matter of intentional behaviors (which can be influenced).
  • Adapted from Cross, Nohria, & Parker 2002
leverage and understand internal and external networks
Leverage and understand internal and external networks
  • Identify which networks are important to understand
    • E.g., product development, merger integration, etc.
  • Collect network data
    • E.g., observe, interview people, conduct questionnaire, track email, etc.
    • Ask appropriate questions, e.g., advice, trust, innovation, etc.
    • Pretest survey on employee sample for reactions
  • Determine causes of fragmented networks
    • E.g., physical layout, workflow, job description, leadership style, knowledge attitudes, etc.
  • Adapted from Cross, Nohria, & Parker 2002
improve connectedness and unplug bottlenecks internally

Department 1

Department 2

Improve connectedness and unplug bottlenecks internally
  • Reevaluate design of teams, roles, etc.
  • Rethink work processes and provide support
  • Reassign tasks, rotate individuals, etc.
  • Shift responsibilities
a variety of tools4
A variety of tools
  • Competence system
  • Recruiting
  • Incentives
  • Networks
  • A visionary organization

Competence

Management

Motivation

Management

nurturing a visionary organization a framework
Nurturing a visionary organization - A framework

A well-conceived vision consists of two major components:

  • What we stand for & why we exist
  • (constant)

(2) What we aspire to become, achieve, & create

(changing)

Collins & Porras 1996