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Book Summary/Review: Working Knowledge
This article is based on the following book:
Working Knowledge
"How Organizations Manage What They Know"
by Thomas H. Davenport & Laurence Prusak
Printed with permission from: 
Recently, many firms have come to understand that they require more than a casual (and even
unconscious) approach to corporate knowledge if they are to succeed in today’s and tomorrow’s
economies. A company truly is a collection of people organised to produce goods, services or some
combination of the two. Their ability to produce depends on what they currently know and on the
knowledge that has become embedded in the routines and machinery of production. The material
assets of a firm are of limited worth unless people know what to do with them.
1. What do we talk about when we talk about knowledge?
Data is a set of discrete, objective facts about events. In an organisational context, data is most
usefully described as structured records of transactions. Gather enough data, the argument goes,
and objectively correct decisions will automatically suggest themselves. But gathering too much
data can make it harder to identify and make sense of the data that matters. Second, there is no
inherent meaning in data. Data provides no judgement or interpretation or basis of action.
Information is a message, usually in the form or a document or an audible or visible
communication. It has a sender and a receiver. Information is meant to change the way the receiver
perceives something. Information moves around organisations through hard and soft networks.
Unlike data, information has meaning. Data becomes information when its creator adds meaning,
for example by contextualising, condensing or categorising it. It should be noted, though, that
information (or knowledge) should not be confused with the technology that delivers it: The
medium is not the message.
The word knowledge is very difficult to define comprehensively, as one should first understand
what it means to know something. Thus, Davenport and Prusak do not even try to give us a
definition of knowledge but focus instead on a “working definition” more suitable for the purposes
of their book: Knowledge is a fluid mix of framed experience, values, contextual information, and
expert insight that provides a framework for evaluating and incorporating new experiences and
information. It originates and is applied in the minds of knowers. In organisations, it often becomes
I embedded not only in documents or repositories but also in organisational routines, processes,
practices, and norms. Knowledge derives from information as information derives from data. The
transformation happens for example through connecting, conversating or comparing information.
Knowledge is valuable because it is close to action. Knowledge should be evaluated by the
decisions or actions to which it leads. Better knowledge can lead, for example, to more efficient
product development and production. Knowledge can also move down the value chain, returning to
information and data. The most common cause of this is having too much knowledge present to be
able to handle it.
Knowledge is aware of what it doesn’t know. Since what you don’t know can hurt you, this
awareness is important.
Values and beliefs are integral to knowledge, determining in large part what the knower sees,
absorbs, and concludes from his observations. People with different values see different things in
the same situations and organise their knowledge by their values1.
Experience refers to what we have done and what has happened to us in the past. Knowledge born
of experience recognises familiar patterns and can make connections between what is happening
now and what happened then. Experience based understanding that knowledge of the everyday,
complex, often messy reality of work is generally more valuable than theories about it.
Knowledge works through rules of thumb (or as AI people call them, heuristics): flexible guides to
action that developed through trial and error and over experience and observation. Intuition can be
called “compressed expertise”, that is, the steps leading to the intuition have been so throughoutly
learned that they happen without conscious thought.
Increasingly, knowledge and related intangibles not only make businesses go but are part or all of
the “products” firms offer. Old distinctions between manufactured objects, services, and ideas are
breaking down. Even traditional manufacturing firms are increasingly both users and sellers of
knowledge. The intangibles that add value to most products and services are knowledge-based.
At a time when firms need to “know what they know” and must use that knowledge effectively, the
size and geographic dispersion of many of them make it especially difficult to locate existing
knowledge and get it to where it is needed. The maximum size of an organisation in which people
know one another well enough to have a reliable grasp of collective organisational knowledge is
200-300 people. In larger organisations people solve the same problems from scratch again and
again, duplicating effort because knowledge of already developed solutions has not been shared
within the company.
The low cost of computers and networks has created a potential infrastructure for knowledge
exchange and opened up new knowledge management opportunities. But this new technology is
only the pipeline and storage system for knowledge exchange. It does not create knowledge and
cannot guarantee or even promote knowledge creation or knowledge sharing in a corporate culture
that doesn’t factor those activities.
2. The promise and challenge of knowledge markets.
Market forces power the movement of knowledge in organisations. Like markets for goods and
services, the knowledge market has buyers and sellers who negotiate to reach a mutually
satisfactory price for the goods exchanged. Knowledge market transactions occur because all of the
participants in them believe that they will benefit from them in some particular way.
Many knowledge initiatives have been based on the utopian assumption that knowledge moves
without friction or motivating force, that people will share knowledge with no concern for what
they may gain or lose by doing so. But such one-sided transactions do not happen in most of life.
Just because the object of exchange is intangible does not mean that the market forces are less
strong. Knowledge initiatives tat ignore the dynamics of markets (and human nature) are doomed
to fail.
Of course, there really are no such things as “pure” markets. In addition to “economic”, social and
political realities of the organisation have also to be taken into account. For example, if the political
reality of an organisation is such that calculating and secretive hoarders of knowledge thrive, then
potential knowledge buyers will have no currency valuable enough to tempt them to share their
expertise. The knowledge market won’t operate well.
In order to understand the operations of the knowledge market, we have to look at the players
involved:
• Knowledge buyers are people trying to resolve an issue whose complexity and uncertainty
precludes an easy answer. They are looking for insights, judgements, and understanding.
• Knowledge sellers are people in an organisation with an internal market reputation for having
substantial knowledge about a process or subject. One of the challenges of knowledge
management is to ensure that knowledge sharing is rewarded more than knowledge hoarding.
• Knowledge brokers (gatekeepers, boundary spanners) make connections between buyers and
sellers.
When firms buy knowledge from outside they frequently pay with cash, but within organisations,
the medium of exchange is seldom money. Instead, there are agreed-upon currencies that drive the
knowledge market. Actually, there are at least three factors at work: reciprocity (the seller expects
the be paid with equally valuable knowledge), repute (seller wants to be known as a knowledgeable
person with valuable expertise that he is willing to share), and altruism (seller just likes helping).
For the knowledge market to operate,
mutual trust must be established in a visible and ubiquitous manner. The knowledge market – with no written
contracts and no court of appeals – is very much based on credit instead of cash. What is more, trustworthiness must
start at the top.
Knowledge market signals indicate both where knowledge actually resides in the organisation and
how to gain access to it. There are formal market signals like position and education of potential
sellers, but informal signals are generally more accurate guides to where knowledge can be
“bought”. For example, informal networks are probably the best market signals. As informal
networks consist of people continually in communication with one another, they tend to update
themselves as conditions change. The updating process is called gossiping. In comparison, more
formal systems, such as electronic repositories of employee skills and interest, begin to get stale as
soon as they are established.
Communities of practice are a more focused version of an informal network, and managers should
regard them as company assets and look for ways to preserve them. For example reengineering can
discourage the conversations and self-forming groups in which so much of the firm’s knowledge
work is done.
In practice, efficient markets generate the most good at the least cost. Markets for knowledge,
however, are notably inefficient in most organisations. Much of the current interest in knowledge
management derives from the fact that organisations lack good information about where their
knowledge is and therefore have difficulty getting it and making use of it. Three factors in particular
often cause knowledge markets to operate inefficiently:
• Time zone shifting, where the resource of time seems to expand or shrink at will.
• Incompleteness of information: For example lack of maps etc. to guide buyers to sellers, and
absence of explicit pricing structure.
• Asymmetry of knowledge: A certain amount of asymmetry is needed in any market, but strong
asymmetry prevents knowledge from getting where it is needed.
• Localness of knowledge: Market depends on trust, and individuals generally trust the people
they know. Face-to-face meetings are often the best way to get knowledge. Also, mechanisms
for getting access to distant knowledge tend to be weak or nonexistent.
Some knowledge markets have deep flaws that can be called pathologies, distortions that drastically
inhibit the flow of knowledge:
• Monopolies: Only one person or group holds knowledge that others need and use it to establish
a position of power.
• Artificial scarcity: A corporate culture in which knowledge hoarding is the norm. Downsizing
can also create scarcity by eliminating employees whose absence shows them to be owners of
essential knowledge.
• Trade barriers: For example the not-invented-here mentality that refuses to accept new
knowledge.
There are a number of ways firms can overcome the inefficiencies and pathologies of their
knowledge markets:
• Using information technology wisely to provide an infrastructure for moving knowledge and
information about knowledge as well as for building virtual knowledge marketplaces.
• Building marketplaces – physical and virtual spaces dedicated to knowledge exchange (coffee
rooms, knowledge fairs, corporate universities, intranet discussion groups etc.) One should note that
the presence of a marketplace does not help if people are too busy working to take time to learn
things that would help them work more efficiently.
• Creating and defining knowledge market value: The absence of reliable information about the
apparent value attached to sharing knowledge will stifle market activity. Firms “get what they pay
for” in creating knowledge awards.
A thriving knowledge market also creates benefits that are peripheral to the principal market aim of
making knowledge available when and where it is needed. For example, when employees see that
their expertise is valuable and know that others in the organisation will cooperate with them when
needed, their morale becomes higher. Corporation becomes more coherent as information and ideas
are exchanged actively in an atmosphere of openness and trust. The knowledge stock of the
organisation expands. Ideas become more meritocratic as an open knowledge market tests official
beliefs and exposes the flaws.
3. Knowledge Generation
There are five modes of knowledge generation that cover both knowledge acquired by an
organisation as well as that developed within it:
Acquisition means that knowledge
does not have to be newly created, only new to the organisation. For example British Petroleum gives a “Thief
of the year” award to the person that has “stolen” the best ideas, and Texas Instruments has a corresponding
“Not Invented Here, but I Did It Anyway” award. The most direct and often most effective way to acquire
knowledge is to buy it – to buy an organisation or hire individuals that have it. But attempts to devise formal
measures to guide knowledge purchases have so far been imperfect and incomplete and the purchaser may end up with
only a fraction of the knowledge that existed before the sale. Many of the people whose knowledge makes the purchased
organisation work are not often identified or officially responsible for the results that they achieve. The knowledge
you think you’re buying may walk out the door.
Rental means that outside
knowledge can be leased or rented, for example by providing financial support to an university or research
institution in exchange for the right to first commercially use promising results. Renting knowledge really
means renting a knowledge source, for example a consultant. One should just make certain that a considerable
portion of the rented knowledge is retained, too.
Dedicated Resources a units or groups established specifically for knowledge generation: R&D
departments, centres for business, innovation, etc. Because dedicated knowledge resources are by
definition somewhat distinct from the everyday work, transferring knowledge to where it can be
used is often complicated.
Fusion brings together people with different perspectives to work on a problem or project. But
while chaos and complexity can create new synergies, total chaos is not creative, though. Group
members must developed enough of a common language to understand one another. In addition, the
group has to be aware of the value of the knowledge sought.
Adaptation if brought about by external (and internal) changes. Some companies even try to instil
a sense of artificial crisis in order to foster continuous innovation. A firm’s ability to adapt is based
on two principal factors: Having existing internal resources and capabilities that can be utilised in
new ways and being open to change or having a high “absorptive capacity”.
Networks, communities of knowers, brought together by common interests, informal, selforganising
networks within organisation generate knowledge, and may over time become more
formalised. In the absence of formal knowledge policies and processes, networks act as critical
conduits for more innovative thinking.
The common denominator for all these efforts is a need for adequate time and space devoted to
knowledge creation and acquisition. In some instances, the shared space may be electronic, but
meeting places of some kind must exist. Unfortunately, time, not space, is the resource most likely
to be begrudged to knowledge activists. The third critical factor is a recognition by managers that
knowledge generation is both an important activity for business success and a process that can be
nurtured.
4. Knowledge Codification and Coordination
The aim of codification is to put organisational knowledge into a form that makes it accessible to
those who need it. It literally turns knowledge into a code to make it as organised, explicit, portable,
and easy to understand as possible. Codification gives permanence to knowledge that may
otherwise exists only inside an individual mind. It represents knowledge in forms that can be
shared, stored, combined, and manipulated.
The primary difficulty encountered in codification work is the question of how to codify knowledge
without losing its distinctive properties and turning it into less vibrant information or data. For
example, providing access to people with tacit knowledge is more efficient than trying to capture
and codify that knowledge electronically or on paper. The more rich and tacit knowledge is, the
more technology should be used to enable people to share that knowledge directly.
A knowledge map (a metaphor) point to knowledge but does not contain it. Developing a
knowledge map involves locating important knowledge in the organisation and then publishing
some sort of list or picture that shows where to find it. The information needed to create a
knowledge map often already exists in organisations, but it’s usually in a fragmented and
undocumented form. A firm’s organisational chart is a poor substitute for a knowledge map and
knowledge maps may even lead to political tensions as expertise does not reflect people’s titles.
Most maps have a political dimension. A map is a representation of reality, but if that reality is
ambiguous or in dispute, any one map will be seen as favouring one viewpoint over another. It
should also be noted that technology alone cannot ensure that a knowledge map will be used
effectively in an organisation: If more than a third of the total time and money of a project is spent
on technology, the project becomes an IT project, not a knowledge project.
Any manufacturing process is constructed from what was once the knowledge of individuals. It is
difficult to locate the dividing line between knowledge that is fully embedded in a process an the
tacit, human knowledge that keeps the process going.
5. Knowledge transfer
Transfer = Transmission + Absorption (and use)
How can an organisation transfer knowledge effectively? By hiring smart people and letting them
talk to one another. Unfortunately, the second part is the more difficult to put into practice. Or as
Alan Webber says, “ In the new economy, conversations are the most important form of work.
Conversations are the way knowledge workers discover what they know, share it with their
colleagues, and in the process create new knowledge for the organisation.”
While greater size of an organisation may increase the chances that the knowledge needed exists
somewhere, but it decreases the likelihood that we will know how and where to find it. Tacit and
ambiguous knowledge is especially hard to transfer from the resource that creates it to other parts of
the organisation.
Transferring knowledge through personal conversations is being threatened not only by industrialage
managers but also by the move to “virtual offices”. While these arrangements offer benefits,
they also lower the frequency of informal knowledge transfer.
Knowledge transfer methods should suit the organisational (and national culture). Informal
knowledge transfer is endangered by a particularly American sense of what is and isn’t work.
Managers need to recognise that the availability of “slack” time for learning and thinking may be
one of the best metrics of a firm’s knowledge orientation.
Organisation need to create locations and occasions for workers to interact informally. For example
corporate picnics provide opportunities for exchange between employees who never get to talk to
one another in the course of their daily work. It should be noted that in any gathering (f.ex.
conference) there needs to be room for choice and time for conversation.
There are many cultural factors that inhibit knowledge transfer. The most common of these frictions
include:
• Lack of trust.
• Different cultures, vocabularies, frames of reference.
• Lack of time and meeting places; narrow idea of productive work.
• Status and rewards go to knowledge owners.
• Lack of absorptive capacity in recipients.
• Belief that knowledge is prerogative of particular groups, not-invented-here syndrome.
• Intolerance for mistakes or need for help.
What is more, Kanouse and
Jacoby’s words should be heeded: “There are good reasons to believe that behaviour change is a much rarer
event than acquisition of knowledge.
Velocity of knowledge transfer
is the speed with which knowledge moves through an organisation. Viscosity refers to the richness of the
knowledge transferred.
It is time for firms to shift
their attention from access to attention, from velocity to viscosity, from documents to discussions.
6. Knowledge roles and skills
Despite the corporate mantra that
employee knowledge is a valuable resource, most firms do not make concerted efforts to cultivate the knowledge-oriented
activities of their personnel. Ultimately, managers and workers, who do not do knowledge management for a living have
to do the bulk of the day-to-day activities of knowledge management, it is to succeed.
There are four levels of knowledge
management roles: line workers who must also manage knowledge within their own jobs; knowledge management workers;
knowledge project managers; and the senior knowledge executive.
Instead of technologists, the most intriguing new knowledge jobs are integrators, librarians,
synthesisers, reporters, and editors. Few organisation have many workers who are skilled at framing
and structuring their own knowledge; even fewer of them have tome to sit down and input it into a
system. Thus, organisations need people who will extract knowledge from those who have it, put it
in structured form, and maintain or refine it over time.
Good knowledge workers at any level should have a combination of “hard” skills (structured
knowledge, technical abilities, and professional expertise) with “softer” traits (a sure sense of the
cultural, political, and personal aspects of knowledge). The human resource issues, – setting up
structures for the development and maintenance of knowledge bases – are more difficult to create
and manage.
Knowledge initiative managers should have facility in project management, change management,
and technology management. But managing knowledge projects isn’t just about project
management. The role demands an unusual mix of technological, psychological , and business
skills. They also need a certain humility so that they understand that they must not become the
primary source and arbiter of particular knowledge for the organisation.
The chief knowledge officer
in an organisation must:
• Advocate for knowledge and learning from it.
• Design, implement, and oversee a firm’s knowledge infrastructure.
• Manage relationships with external providers of knowledge.
• Provide critical input to the process of knowledge creation and use around the firm.
• Design and implement a firm’s knowledge codification approaches.
• Measure an mange the value of knowledge.
• manage the organisation’s professional knowledge managers.
• Lead the development of knowledge strategy.
If you’re
thinking you’d like to be a chief knowledge officer (CKO), you should have:
• deep experience in some aspect of knowledge management, including its creation,
dissemination, or application.
• Familiarity with knowledge-oriented organisations and technologies.
• Display of a high level of “knowledgeability” directly related to one’s professional stature.
• Comfort (and ideally experience) with the primary operational processes of the business.
There are three options for the location of the CKO role in a firm’s organisational chart. It can be a
senior stand-alone role, or it can be combined with either the human resources or information
systems functions. The stand-alone role is the most desirable situation, as combining knowledge
management with other functions is bound to dilute its importance.
If there is one overriding principle to keep in mind, it is that knowledge management roles and
responsibilities should be real jobs requiring dedicated resources.
7. Technologies for Knowledge Management
In spite of the fact that knowledge management is much more than technology, so called
“techknowledgy” is a part of knowledge management. When Hewlett-Packard information systems
managers convened a workshop to discuss knowledge management applications, they were
surprised to hear about more than twenty.
Technology’s most valuable role in knowledge management is extending the reach and enhancing
the speed of knowledge transfer. Information technology enables the knowledge of an individual or
group to be extracted and structured, and then used by other members of the organisation or its
trading partners world-wide. Technology also helps in the codification of knowledge and
occasionally even in its generation.
While knowledge management is a relatively recent field of study, attempts to use technology to
capture and manipulate knowledge have been underway for decades under the name of “artificial
intelligence”. The efforts have concentrated on managing narrow domains of knowledge. AI
technologies include6: Expert systems, Case-based reasoning and Neural networks.
Since it is the value added by people – context, experience, and interpretation – that transforms data
and information into knowledge, it is the ability to capture and manage those human addition that
make information technologies particularly suited to dealing with knowledge. Knowledge
technologies are more likely to be employed in an interactive and iterative manner than, say, data
management technologies. Therefore, the roles of people in knowledge technologies are integral to
their success.
A critical differentiating factor is the level of knowledge required to successfully use a particular
technology. The other key dimension is the time required to find a knowledge management solution
in a particular tool. Some knowledge-work environments allow time for search, synthesis, and
reflection; others require real-time or near real-time performance:

One of the best-known approaches
to using technology in KM is the repository of structured, explicit knowledge – usually in document form. Lotus
Notes and Intranet-based Webs are the two leading toolkits for managing knowledge repositories today. Notes excels
at database management, discussion-group creation and management, and replication of databases for remote disconnected
use in the field. The Web is ideal for publishing information across multiple types of computer
platforms, for multimedia databases, and for displaying knowledge that is linked to other
knowledge through hypertext links. In the fairly near future these capabilities will be available in
both technologies.
Repositories based on the World Wide Web are rapidly picking up steam. The Web is a very
intuitive technology, and deals easily with audio, graphic, and video representations of knowledge.
However, if you plan to use Web for knowledge management (particularly the search-and-retrieval
of structured, document-based knowledge), don’t think that a Web browser and server software is
all you need. A complex suite of tools is necessary to capture the information, to store, and to allow
broad access. Another requirement for search-and-retrieval KM is the development of an on-line
thesaurus. Searchers will be looking for knowledge using terms that you can’t anticipate. The idea
behind a thesaurus is to connect the terms by which you’ve structured the knowledge with the terms
employed by the searcher.
The underlying technique
for both web and Notes-base knowledge repositories is text search-andretrieval. On the positive side,
the knowledge itself typically has plenty of meaningful context that was created by the original author.
However, the knowledge in textual databases is indexed on the basis of keywords and their proximity in
the text, which are relatively shallow aspects of the knowledge.
Another popular application
is the expert locator, which allows users to search through a set of biographies for an expert on a particular
knowledge domain.
It should be noted that the emergence of human Internet brokers or librarians would enhance the
value of the Internet as a knowledge tool more significantly than the purely technical improvements
going on at the moment.
Some organisations have
concentrated knowledge domains rather than a community of expert users. This is the best situation for
expert systems, which can enable the knowledge of a few experts to be used by a much broader group of
workers who need the knowledge. However, it can be difficult to extract knowledge for an expert in the
first place. He or she may not know what he or she knows of he or she may not be willing to surrender
the knowledge. What is more, as expert systems are difficult to maintain or add knowledge to, the knowledge
domain needs to be fairly stable. One study found that only a third of the expert systems developed in the
1980s were still in use by 1992. The systems were abandoned less for technical reason than for organisational ones.
Constraint-based systems capture and model the constraints that govern complex decision making.
Because constraint-based systems are usually object-oriented underneath rather than rule-based,
they are easier to modify than expert systems; there are no complex interactions to understand and
modify.
Case-based reasoning (CBR) applications require someone to input a series of “cases” which
represent knowledge about a particular domain expressed as a series of problem characteristics and
solutions. CBR works best when you have on or a few experts construct the cases and maintain
them over time. There must also be a domain expert who can decide when a new case is worth creating,
when an old case has become obsolete, and whether a newly submitted case is actually correct.
A neural network is a statistically oriented tool that excels at using data to classify cases into one
category or another. The classifications become more accurate with more cases, and neural nets
require a lot of (normally quantitative) data and a high-powered computer. Setting up the analysis
and interpreting results can be very tricky, and these systems require a very knowledgeable user, at
least to set up the initial model.
8. Knowledge management projects in practice
When people talk about
knowledge management, the conversation often devolves into highly abstract and philosophical statements.
But there is a real world of knowledge management, too. Knowledge management projects attempt to make
practical use of knowledge, to accomplish some organisational objective through the structuring of people,
technology, and knowledge content.
Knowledge management project share in common three broad types of knowledge management
objectives: attempts to create knowledge repositories, attempts to improve knowledge access, and
attempts to improve knowledge cultures and environments. In real life, knowledge management
projects are combinations of the different types discussed below.
Many treat knowledge as an “it”, an entity separate from the people who create and use it. A typical
goal of such a project is to take knowledge embodied in documents and put it into a repository. The
authors have come across three basic types of knowledge repositories:
1. External knowledge (competitive intelligence).
2. Structured internal knowledge (research reports, marketing materials and methods).
3. Informal internal knowledge (discussion databases).
Another type of a
project tries to provide access to knowledge or facilitating its transfer among individuals. Where
knowledge repositories aim at capturing knowledge itself, knowledge access projects focus on the
possessors and prospective users of knowledge. These projects acknowledge that finding the person
with the knowledge one needs, and then transferring it from one person to another, can be daunting process.
The last type of project attempts to establish an environment conducive to knowledge management.
The projects intend to measure or improve the value of knowledge capital, build awareness and
cultural receptivity, change behaviour as it relates to knowledge and improve the knowledge
management process. Some firms now treat knowledge as another kind of capital asset.
The primary attributes the authors use to define success in knowledge management:
• Growth in the resources attached to the project, including staffing and budgets.
• Growth in the volume of knowledge content and usage.
• The likelihood that the project will be sustaining beyond a particular individual or two (an
organisational initiative, not an individual project).
• Comfort throughout the organisation with the concepts of “knowledge” and “knowledge
management”.
• Some evidence of financial return, either for the knowledge management activity itself or for
the larger organisation.
1. LEARNING IN ORGANISATIONS
In evaluating knowledge management projects,
the authors have observed two degrees of success: The most impressive type involved the fundamental transformation of a company. The other type
involved operational improvement limited to a bounded process or function. There were nine
factors leading to knowledge project success:
• A knowledge oriented culture: A positive orientation to knowledge, the absence o knowledge
inhibitors, and KM fits the culture. Employees may feel that their knowledge is critical to their
unique value as an employee and thus their continued tenure in the organisation. A “hero”
mentality may respect only individual achievements. Use of existing designs may be viewed as
an admission of weakness.
• Technical and organisational infrastructure: Technological infrastructure is the easier of the two
to put in place. Building an organisational infrastructure for KM means establishing a set of
roles, organisational structures, and skills from which individual projects can benefit.
• Senior management support: Strong support from executives is critical for transformational
knowledge projects. Sending out messages to the organisation that KM and organisational
learning are critical. Clearing the way and providing funding for infrastructure. Clarifying what
type of knowledge is most important to the company.
• A link to economics or industry value: The most impressive benefits involve money saved or
earned. Benefit calculations may also be indirect, f.ex. cycle time, customer satisfaction, or even
phone calls avoided.
• A modicum of process orientation.
• Clarity of vision and language: The terms used, f.ex. “knowledge” and “organisational learning”
are subject to wide interpretation. Clarity of purpose and terminology is critical with any type of
organisational change project.
• Nontrivial motivational aids: Motivational approaches for knowledge behaviours should be
long-term incentives tied in with the rest of the evaluation and compensation structure.
• Some level of knowledge structure: Because knowledge is naturally fluid and closely linked to
the people who hold it, its categories and meaning change frequently. However, if a knowledge
repository has no structure at all, it won’t be able to serve its purpose.
• Multiple channels for knowledge transfer: Knowledge should be transferred through multiple
channels that reinforce each other (especially when knowledge is transferred between
individuals). People exchange knowledge in direct proportion to their level of personal contact.
In a “high bandwidth” situation, trust can be established, structures for knowledge can be
developed, and difficult issues can be resolved.
Unfortunately the factors
that matter most tend to be the factors that are most difficult to develop: culture, human infrastructure,
and senior management support. In the knowledge management initiatives the authors have observed, the level
of human issues and problems was much higher than for most data or information management projects. Because
of the prominent human element in knowledge, a flexible, evolving structure for knowledge is desirable.
Furthermore, the motivational factors are critical. Data and information are constantly transferred
electronically, but knowledge seems to travel most efficiently through a human network.
Successful knowledge management
requires an unusual combination of human, technical, and economic skills.
9. The pragmatics of knowledge management
The good news about knowledge management is that good sense goes a long way:
• The place to start is with high-value knowledge.
• Start with a focused pilot project and let demand drive additional initiatives.
• Work along multiple fronts at once (technology, organisation, culture).
• Don’t put off what gives you the most trouble until it’s too late.
• Get help throughout the organisation as quickly as possible.
Knowledge management is
not totally new. It draws from exiting resources that organisations may already have in place. While the
ideas of KM are simple, it is the actual implementation that’s the hard part and it may make more sense
to turn outside for help in implementation of a KM project than in its design. It is also sensible to
look broadly for help inside the organisation. For knowledge management to prosper everyone has to help out.
In knowledge management
it is important to start small, actually accomplish something and then trumpet what's been achieved. KM
should start with a recognised business problem that relates to knowledge. The most important factors in
deciding where to start are the importance of the specific knowledge domain to the firm and the feasibility
of the project.
Whenever possible, firms should
try to use existing management approaches and tactics as levers to assist in getting going with knowledge
management. Many of them have better management of what the organisation knows as an important component.
Most firms make their
first move with knowledge management in the domain of technology. They install Notes or an intranet,
and then start searching for content to distribute with these tools. However, if you’re implementing
new technology just for the purpose of KM, it may be a waste of money. The knowledge behaviours you’re
seeking from users of knowledge systems may be slow to emerge. Getting content into those systems can
also take a while. Since the market value of, say, a server for a knowledge repository decreases at about
7 percent a month, you may be better of buying the computers and software after you’ve got the other
things in place. Unfortunately, it’s usually much harder to get organisational consensus for behaviour
change and new roles than it is for technology.
To begin knowledge management
with a focus on organisational learning would be a good idea, but firms rarely do so. The concepts and
approaches involved may include:
• Thinking about the organisation as a “system”.
• Building and facilitating communities of learning and practice.
• Focusing on issues of personal development and “mastery”.
• Creating less hierarchical, more “self-organising” organisation structures.
• Planning with the use of scenarios.
However, the world of
organisational learning places too little emphasis on structured knowledge and the use of technology
to capture and leverage it. For example the word “knowledge” is not in the index of Peter Senge’s The
Fifth Discipline. Without an approach to managing structured knowledge, organisational learning is too
conceptual and abstract to make a long-term difference.
What makes knowledge valuable to organisations is ultimately the ability to make better the
decisions and actions taken on the basis of the knowledge. Unfortunately it is difficult to link
knowledge to decisions. And even if we are aware of all that is going on in the decision maker’s head,
politics may become a problem. Senior managers, in particular, might balk at the idea of examining their
decisions in detail to understand what knowledge they applied and how the decision turned out.
The most common pitfalls
firms encounter in the knowledge management business include:
• If we build it ... they won’t come. You can buy as many Notes or Netscape licenses as you
want – but it doesn’t mean anyone will use or get value out of your investments.
• Let’s put the personnel manual on-line. Simply putting your yawn-inducing paper document
tomes on-line will weaken your terminological currency, and should you later decide to put
some real knowledge into this repository, no one will notice.
• None dare call it knowledge. The inability to use the word “knowledge” suggests that the
senior management doesn’t buy into the big idea behind knowledge management – that what
people know and can learn is more valuable than any other business resource.
• Every man a knowledge manager. “So since it’s also everybody’s job to monitor costs and
enhance revenues, you’ve also eliminated the finance and accounting organisations?”
• Justification by faith. Faith can get you a long way, but concrete evidence of the worth of what
you do saves you when the crunch eventually comes.
• Restricted access. Better access does increase the likelihood that knowledge sources will be
consulted, but it does not necessarily mean attention or appetite or affiliation.
• Bottoms Up! For thousands of years knowledge has been strongly associated with hierarchy,
and we see no evidence that things are any different today. Knowledge management is a highly
political undertaking. You’ll have to tread lightly in giving access to knowledge to those who
formerly lacked it, or you will run afoul of someone powerful to whom your KM acitivities are
threatening.
(c) Copyright Jyrki J.J. Kasvi
www.knowledge.hut.fi/projects/itss/itssref.html
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