1. Knowledge Management Patrick McDermott The University of San Francisco pmcdermott@peralta.edu Copyright © 2003 Patrick McDermott

2. Knowledge Management Buried in jargon Perpetually in search of itself A consultant’s dream –Promises without end –Certainties that are impregnable –Definition that is impossible

3. Learning Organization Perfect for gurudom –Murky, confusing and filled with abstruse jargon –If-I-can’t-understand-it-then-it-must-be-good A magical and reverential search A “big conceptual catchall” Readers came away saying, “But what do we do Monday morning to put these ideas into practice?”

4. KM Issues The difference between data, information and knowledge The difficulties organizations have in measuring their intellectual capital The process of knowledge creation The concept of knowledge markets Strategies for implementing knowledge management The human aspects of knowledge creation and transfer

5. The New Meaning of Knowledge [Peter] Drucker reminds us that knowledge has meant different things throughout history. For hundreds of years, knowledge was applied to a person’s “being,” and two theories dominated in both the West and East. One theory, associated with Plato and Socrates in the West and the Taoist and monks in the East, held that the purpose and function of knowledge was to enable self-knowledge through intellectual, moral, and spiritual growth. A competing theory, associated with Protagoras in the West and Confucius in the East, held that the purpose and function of knowledge was the acquisition of logic, grammar, and rhetoric to enable the holder of know what to say and how to say it. Somewhere around 1700, the meaning of knowledge changed radically. Knowledge began to be applied to “doing,” not just to “being.” That change in the meaning and purpose of knowledge, writes Drucker, initiated one of three revolutions in the application of knowledge that created and then destroyed both communism and capitalism and ultimately led to the creation of a postcapitalist knowledge society.

6. 3 Revolutions The Age of the Artisan Phase 1: The Industrial Revolution –1700-1880 Phase 2: The Productivity Revolution –1881-Post WWII Phase 3: The Management Revolution –Post WWII-2020 Drucker’s Post Capitalist Era

7. Age of the Craftsworker Stand at one spot and observe the construction of the product in its entirety One person often accomplished the entire process, not just the manufacturing, but even marketing, sales, design, and service. Today: You would have to visit several continents to view the entire process

8. The Industrial Revolution The Age of the Factory Adam Smith, The Wealth of Nations, 1776 Watt’s Steam Engine Gare St.-Lazare, Paris Claude Monet c. 1877 Smith, Adam An Inquiry into the Nature and Causes of The Wealth of Nations London: W. Strahan & T. Cadell in the Strand, 1776

9. The Productivity Revolution The Age of the Specialist Drucker Dates it from 1881 –Frederic Winslow Taylor J. Howard Miller 1942

10. The Management Revolution Age of the Professional GI Bill Of Divisions & Modern Major Generals When I can tell at sight a Mauser rifle from a javelin, When such affairs as sorties and surprises I'm more wary at, And when I know precisely what is meant by “commissariat”, When I have learnt what progress has been made in modern gunnery, When I know more of tactics than a novice in a nunnery – In short, when I've a smattering of elemental strategy … Gilbert & Sullivan The Pirates of Penzance Opened April 3, 1880

11. Factors of Production Land –Agriculture & Natural Resources Labor Capital –“The Means of Production/Tools” Entrepreneurial Ability –Now Hired Managers Technology? –Knowledge?

12. The Post Capitalist Era “ The organization’s function is to put knowledge to work. ” Focus on What you do well –Outsource the rest An Organization of Equals Constant Change Decentralized A Mobile Society A Competitive Society