1. Know-How Transfer and Change Management in Organisations 1 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Know-How Transfer and Change Management in Organisations Hauptseminar Innovation, change & decision making in international organisations Prof. Dr. Jürgen Beneke SS 2004 22th June 2004

2. Know-How Transfer and Change Management in Organisations 2 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Structure Introduction: Evolution of Know-How Transfer Know-How Transfer in organisations Knowledge Knowledge Management Knowledge Management in action – the transfer of best practices Practice Exchange in a Best Practice Marketplace at Siemens Change Management Use and Definition of Change Management Three Phases of change process by Lewin Barriers of Change and means to overcome them -Factors of acceptance -Change of attitude -IPK Model of Intervention Intercultural Dimension of Management Theories On Change Management On Knowledge Management General decision-making in different cultures

3. Know-How Transfer and Change Management in Organisations 3 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Introduction Knowledge Proliferation lies in human behaviour since its existence For passing and preserving knowledge, devices and methods have been developed and used during our evolution In ancient times most of the knowledge was passed down through generations orally By recording it, knowledge also became available for further generations In modern times new technologies offer unprecedented opportunities to utilise much more of humans inherent knowldege

4. Know-How Transfer and Change Management in Organisations 4 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Study of Knowledge Michael Polanyi Ikujiro Nonaka Professor of Hitotsubashi University Graduate School of International Scientist and philosopher who lived from 1891 to 1976

5. Know-How Transfer and Change Management in Organisations 5 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM What do we mean by Knowledge?

6. Know-How Transfer and Change Management in Organisations 6 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Explicit knowledge comes in the form of books and documents, white papers, databases…it is transmittable in formal and systematic language. Tacit knowledge is personal, context-specific, and therefore hard to formalize and communicate…it is difficult to document in any detail.

7. Know-How Transfer and Change Management in Organisations 7 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Knowledge that doesn`t flow doesn`t grow and becomes useless…

8. Know-How Transfer and Change Management in Organisations 8 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Knowledge Life-Cycle (adapted from Nonaka and Takeuchi 1995

9. Know-How Transfer and Change Management in Organisations 9 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Knowledge is no good if you don´t apply it, said Goethe.

10. Know-How Transfer and Change Management in Organisations 10 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Knowledge Management The management of the enviroment that makes knowledge flow through all the different phases of its life-cycle. KM is therefore a concious strategy of getting the right knowledge to the right people at the right time.

11. Know-How Transfer and Change Management in Organisations 11 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Knowledge Management in Action - The Transfer of Best Practice

12. Know-How Transfer and Change Management in Organisations 12 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Why Best Practice Sharing?

13. Know-How Transfer and Change Management in Organisations 13 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Practice Exchange in a Best Practice Marketplace at Siemens What is inside?

14. Know-How Transfer and Change Management in Organisations 14 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Practice Exchange in a Best Practice Marketplace at Siemens The person offering a practice describes: The Problem The Problem-solving approach The solution process The critical success factors The expense involved The results

15. Know-How Transfer and Change Management in Organisations 15 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Practice Exchange in a Best Practice Marketplace at Siemens Support Top-Management Mobilizing Employees Design of a content structure

16. Know-How Transfer and Change Management in Organisations 16 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Practice Exchange in a Best Practice Marketplace at Siemens Summary: 1.The installation of an intranet-based database system 2.The mobilization of employees for the exchange of experience 3.The collecting of business-relevant best practices 4.The communication of the project

17. Know-How Transfer and Change Management in Organisations 17 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Practice Exchange in a Best Practice Marketplace at Siemens Groups to be defined: To control communication and promotion activities Persons who are responsible for relevant topics at the operational level To mobilize employees to actively participate in the process To find sponsors and ensure that the top-management is committed

18. Know-How Transfer and Change Management in Organisations 18 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Change Management Use and Definition of Change Management Change Management offers the right means to get innovations into action Change Management can be defined as management of all measures concerned with the initiation and the realisation of new strategies, structures, systems, and modes of behaviour The measures aim to overcoming barriers and blockades hindering the employees to use these new concepts

19. Know-How Transfer and Change Management in Organisations 19 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Change Management Change-Process by Lewin

20. Know-How Transfer and Change Management in Organisations 20 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Change Management Barriers of Change Mental barriers of employees as well as hindering factors in their work surroundings make the change process a difficult task Four main factors for accepting change: Sensibility: being informed about the ongoing change measures Ability: enough competence to fit requirements of new activities Liability: Executives need to initiate appropriate measures of control Commitment: Employees involvement in change process If these factors are considered comprehensively maximum motivation of employees can be achieved

21. Know-How Transfer and Change Management in Organisations 21 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Change Management Change of employees way of thinking and acting Behavioural change due to incentives Change of attitude due to direct and personal experience Change of attitude due to socially transmitted experience

22. Know-How Transfer and Change Management in Organisations 22 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Change Management A substantial means for the achievement of a change of attitude is participation Successful implementation of new concepts highly depends on the motivation of staff Pro-Active Change Management with its model of intervention aims at systematic realisation of new projects by anticipating barriers and finding the means to overcome them.

23. Know-How Transfer and Change Management in Organisations 23 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Change Management Pro-Active Change Management does: Hermeneutical talks and observations as well as partly structured interviews ( qualitative analysis) Use of structured questionaires ( quantitative analysis) Description od causes and interrelations of barriers and proposals for their defeat Deduction of measures from barriers and dirvers concentrating on the four factors of motivation of employees Sensibility, Ability, Liability and Commitment

24. Know-How Transfer and Change Management in Organisations 24 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Change Management

25. Know-How Transfer and Change Management in Organisations 25 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Intercultural Dimensions of Management Theories Knowledge Management and Change Management are based on cultural background To put a management theory into practice one needs to consider cultural differences Dimensions which have to be taken into account in these cases are: -Uncertainty avoidance -Power distance -Individualist or collectivist society -High context or low context

26. Know-How Transfer and Change Management in Organisations 26 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Intercultural Dimensions of Management Theories Change Management In countries with a higher uncertainty avoidance and less tolerance for ambiguity employees have a need for stability and expect loyalty from their employers Assumption: countries with less acceptance of uncertainty will face more problems to undertake any radical changes

27. Know-How Transfer and Change Management in Organisations 27 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Intercultural Dimensions of Management Theories Knowledge Management Explicit knowledge is highly codified and relatively easy to transfer Context related knowledge varies across cultures. Degree to which knowledge is tacit determines the use of appropriate knowledge management tools and its eventual success

28. Know-How Transfer and Change Management in Organisations 28 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Intercultural Dimensions of Management Theories General decision-making in different cultures Decision-making is influenced by the cultural dimensions: Power-Distance, uncertainty avoidance, individual-/collectivism Affects interaction of managers with employees concerning the participation, inclusion and empowerment of employees Comparison between german, U.S. and african managers

29. Know-How Transfer and Change Management in Organisations 29 von X Janine Dietrich, Ingo Trenkner UNIVERSITÄT HILDESHEIM Conclusion The transfer of knowledge is about finding out what you know and using it to improve performance. The transfer of best practices is the fastest and most effective way to achieve improvements. Change Management offers the right means to get new concepts into action. For the implementation of KM and CM cultural differences need to be taken into consideration.