Book Summary Preview :
People- Focused Knowledge Management

The Big Idea

Today’s global economy demands excellence. As enterprises scramble to remain on top by being competitive, they also need to innovate faster than their competitors. One example is the globally competitive company called Jones Development and Engineering. Now, this 25-year old company operates much like its competitor, but its business practices set them apart from other companies. The company has provided superior customer value, innovated faster than its competitors, supported personal learning in the company, and fostered knowledge-focused mentality and culture.

Now, this particular example has shown us that operating in a global economy is very challenging. As technology developed, the work became more sophisticated and complex, and many knowledge-related, people-focused factors have influenced the trend of globalization. Therefore, work has now expanded to take advantage of new knowledge capabilities.

Enterprises must now learn to manage knowledge-intensive work, which deals with the intellectual work done by high performing people. The intensity of work is actually a function of at least four factors:

• The degree of knowledge intensity is determined by the amount of knowledge needed to deliver competent work under normal conditions.
• The degree of knowledge intensity is influenced by the variety of challenges that a person handles competently.
• Knowledge intensity increases in high-value situations where the consequences of errors are large.
• The degree of knowledge intensity is parallel to the swiftness of action.

In order to survive, enterprises must change their approaches to business practices in a globalized economy. However, there are six major challenges to doing this:

• Work is becoming more complex as a result of increased demands to create and deliver better, greater complexity of management and operating practices, and increase of knowledge-intensive work.
• The nature of business has changed and the competitive environment is more demanding as a result of changes caused by pressures from globalization, better informed customers, and increased dependence on intellectual capital.
• New and complex management, operational, and technical approaches are introduced.  These are new generation knowledge management, advanced information management and technology, and an explicit people-focused knowledge management.
• The changes in technology, business conditions, regulatory and legal requirements, practices, and demands are faster than ever before.
• Workers are less satisfied with traditional employment situations, and now demand greater involvement.
• The need for traditional training and education often exceed allotted time.

These challenges can be addressed by following four management initiatives. These are:

• The enterprise should provide a systematic and comprehensive knowledge management disseminated widely and guided by central management.
• Pursue integrative management practices on personal, departmental, and business unit levels, with collaboration and understanding of common goals.  
• Foster a widespread mentality that capitalizes on the company’s intellectual capital and assets, operational and strategic value of human capital, and information capital.
• Provide competitive products and establish people-focused management and organization of knowledge-related work. . . .