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Notes for the Private and Public Sectors What is KM good for?

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1 Notes for the Private and Public Sectors What is KM good for?

2 Key Concepts Effects of KM in an organization are widespread An organization’s knowledge base is a key strategic resource Public sector priorities differ greatly from private sector, but knowledge management is just as relevant to success The Knowledge-Based View of the Firm involves organizations that require a high level of interaction in order to provide value

3 “[KM] supports all elements of the operations and decision-making processes. Knowledge managers integrate the KM process and its activities into all the processes and information systems of an organization to ensure that knowledge is shared. This integration helps to enable the flow of knowledge that resides in individuals and small elements across the organization so it can be applied to mission or operational requirements, and to support organizational learning, innovation, and performance.” (HQDA, 2012, pp. 1-1) Headquarters, Department of the Army. (July 2012). Knowledge Management Operations. (FM 6-01.1). Washington, DC: Army Knowledge Online (https://armypubs.us.army.mil/doctrine/index.html)https://armypubs.us.army.mil/doctrine/index.html KM Supports the Entire Organization

4 Organizational knowledge is … the sum of all past experiences, group knowledge and individual knowledge that is useful for decision-making on future operations is distributed throughout the organization – may reside in many forms and may be stored in many different places must be harnessed for innovation and complex problem solving Alan Frost, author of KMT: An Educational KM Site defined organizational knowledge as, “all the knowledge resources within an organization that can be realistically tapped by that organization.” (Frost, 2010) Frost, A. (2010). Introducing Organizational Knowledge. Retrieved from KMT: An Educational KM Site located at URL: http://www.knowledge-management-tools.net/introducing-organizational- knowledge.html#ixzz2i530uhb9 Organizational Knowledge is a Key Resource

5 Knowledge-based firms are typically those that operate in a market or economy in which… “innovation is driven by the interaction of producers and users in the exchange of both codified and tacit knowledge… [e]mployment [is] characterized by increasing demand for more highly-skilled workers… [and] key functions [include] knowledge production, transmission and transfer.” (OECD, pp. 7) (I would argue KBV employment today is also characterized by a high level of social network interaction (aka teamwork) required from many positions in the firm) Organisation for Economic Co-Operation and Development. (1996). The Knowledge-Based Economy. (OCDE/GD(96)102). Paris, France: Retrieved on October 17, 2013 from URL: http://www.oecd.org/sti/sci-tech/theknowledge-basedeconomy.htm http://www.oecd.org/sti/sci-tech/theknowledge-basedeconomy.htm Knowledge-Based View of the Firm (KBV)

6 Levels of Interaction in the Firm A recurring challenge that firms encounter in the course of doing business is: Identifying a customer problem and then, identifying a suitable solution Low-interaction/decomposable problems are “problems in which the value of solutions depends very little on the interactions among knowledge sets and design choices” High-interaction problems are problems in which “the value of solutions depends on interactions among design choices” Nickerson, J.A & Zenger, T.R. (2004). A Knowledge-Based Theory of the Firm—The Problem-Solving Perspective. Organization Science 00(0), pp. 1–16, ©2004 INFORMS. Retrieved on October 17, 2013 from URL: http://coin.wne.uw.edu.pl/lhardt/A%20knowledge%20based%20theory%20of%20the% 20firm.pdf http://coin.wne.uw.edu.pl/lhardt/A%20knowledge%20based%20theory%20of%20the% 20firm.pdf KBV PBO

7 What can KM do for private-sector firms? Better Decision-making: Focus on Business Value-added Activities Increases Customer Satisfaction Increases Employee Engagement Enhances Innovation: Cultivates Firms Competitive Advantage

8 What can KM do for the public-sector? Enhanced Ways of Achieving the Mission Better Financial Stewardship Improved Citizen Services & Engagement Ensuring National Security

9 Better Decision-making: Focus on Business Value-added Activities Use of KM adds context to communication Breaks down silos and knowledge hording and encourages sharing – lays foundation for problem solving More effective search for complex problems which require a wide search

10 Achieving the Mission New methods necessary for achieving mission E-government = Framework for a knowledge infrastructure Decision support knowledge structures can be erected By its nature, ensures Transparency

11 Enhances Innovation: Cultivates Firms Competitive Advantage A firm’s organizational knowledge is a unique resource that … cannot be easily copied can be shared amongst all business lines distinguishes a firm from it’s competitors KM encourages social interaction and sharing which fosters innovative thought and discovery of new, useful ideas Ensures capture of useful lessons learned so organizational knowledge can be increased over time

12 Better Financial Stewardship KM has been proven to result in - Doing More With Less - Working More Efficiently And Effectively - Greater accountability for mismanaged funds

13 Solution Supply System for All Customers Increases Customer Satisfaction (external KM customer) Better response time Relevancy of answer to customer’s problem Increases Employee Engagement (internal KM customer) The individual is more effective at solution finding, thus more productive Interaction leads to feeling of “Connectedness” to the organization Aids in systems thinking

14 Improved Citizen Engagement & Services KM provides a strategy to better Use of E-Government leads to citizen-centric focus Improved And More Consistent Public Service Quality More Accessible Services More Streamlined & Efficient Customer Service Processes

15 Better Ensure National Security Knowledge Structure In Place To - Make sure decision-critical knowledge is accessible and available - Quickly And Correctly Deal With Complex Government Scenarios

16 Needs for Building KM Strategies Understand Customer/Citizen Needs for Knowledge Search and Retrieval (internal/external) Understand Customer/Citizen Needs for Use of Knowledge Is your Business KBV? Is your department knowledge dependent? Identify current disposition of useful knowledge among the organization Identify cultural barriers to greater knowledge sharing


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