1. Chapter 2 An Introduction to Strategic Knowledge Management

2. Introduction
Organizations need to understand how knowledge operates, and who possesses strategic knowledge
Organizational knowledge needs to be identified and carefully managed to ensure its contribution is maximized
Knowledge work is an increasing component of workplaces
Page 31
Our knowledge economy has forced organisations to consider more carefully how knowledge operates, and how it may be identified, preserved and accessed.
The holders of strategic knowledge are critical assets who also need to be recognised and retained within the organisation.
Many organisations manage their knowledge assets very poorly: they often have little understanding of what should be valued, who holds critical strategic knowledge and how existing knowledge can be maximised to achieve the greatest value for the organisation.
Knowledge work is increasing in importance and frequency, thereby placing greater pressure on knowledge management strategies.

3. Knowledge Workers
Apply their personal knowledge to work problems or situations
Regularly build on existing knowledge
Use their heads, more than their hands
Valued for their intellectual contributions
LO1 - Page 31 – 32.
As a result, knowledge workers now abound in many organisations. These workers are expected to draw on their expertise and theoretical knowledge to make judgements and decisions.
They consistently draw on their existing knowledge to work on problems or to resolve new situations. In addition, they build new knowledge as part of their work roles, learning from past experience to ensure improved performance in the future.
Knowledge workers are generally focused on using their intellectual assets as their main work focus. This is in contrast to those who work with their hands and produce physical or tangible products. Thus, the knowledge worker should be valued for the intellectual contributions which are made to the organisation.

4. Organizational Knowledge
Know what – what is useful
Know who – who has the knowledge
Know how – how to use the knowledge
Know why – why is this knowledge chosen
Know where – where can this knowledge be found
Know when – when is the best time to use this knowledge
Know if – in what occasion can this knowledge be used
Page 31 – 32.
Knowledge workers possess many different forms of knowledge. For example, they may be valued for any or all of the following forms of organisational knowledge:
Know what – sources, systems and organisational processes which assist with undertaking knowledge work
Know who – awareness of the different individuals, groups, and organisational units which can act as knowledge sources on important issues
Know how – the capacity to perform complex mental tasks using a range of analytical and reflective techniques (such as analysis, researching, testing, innovation)
Know why – the ability to explain and justify the decisions which are made
Know where – the capacity to identify and find suitable sources of guidance on a problem
Know when – the ability to judge the optimal time to undertake certain actions and tasks
Know if – the anticipation of future possibilities to test the suitability of potential courses of action.

5. Phases of Knowledge Development (1/2)
Knowledge evolves and grows with use and re-use — it is dynamic in nature
Organizational knowledge draws on collective and individual contributions of those within the workplace
Five phases of organizational knowledge creation can be identified
LO2 - Page 32.
Organisational knowledge is a complex activity, as it evolves and builds on many influential sources. As each person interacts with various sources of knowledge, the individual’s insights are reshaped and altered. This dynamic nature of knowledge makes it a valuable commodity in any organisation, but it also places greater pressure on firms to manage and monitor the ways in which organisation is evolving.
The collective activities of many employees contribute to the growth and refinement of the organisational knowledge. Over time, new ways of thinking and problem-solving have been introduced, so that the collective insights of many people can be used to enrich decision-making. Think-tanks, committees and working parties are examples of the ways organisations have moved toward building greater collective knowledge.
Within organisations, people spend much time creating new organisational knowledge or refining knowledge previously created. Five phases of creation can be identified – as the next slide illustrates.

6. Phases of Knowledge Development (2/2)
Figure 2.1 (page 33) in the text provides a simple depiction of the five stages of organisational knowledge creation. Each of these will be explored in the next slides.
When reviewing each of these phases, students are encouraged to consider how the process is undertaken by an individual as well as a collective group. In organisations, knowledge can be developed by individuals who hold that knowledge and provide it on request to others. Alternatively, it may be developed collectively by a group through learning and ongoing experience. Thus, organisational knowledge can be a complex interchange of what individuals know, and what various individuals contribute to a broader knowledge development process.
These two layers will be explored in the following slides.

7. Knowledge Management Infrastructure
Managerial
Technical
Social
LO3 – Pages 35 – 41
Knowledge management is a complex activity which requires an integrated approach across a number of major systems and processes. Three major infrastructure zones relate to the managerial, technical and social aspects of the organisation. Each of these needs to reflect and support the principles of knowledge management to ensure its full adoption by members of the organisational community. Each of these will be explored in turn.

8. Managerial Infrastructure (1/2)
Managerial support for knowledge workers
Formal management processes which are applied
Impact strongly on the resourcing, decision-making and innovative practices which are allocated to knowledge management
Management can facilitate or hinder knowledge management
Pages
Managerial infrastructure provides a supportive framework for resourcing, decision-making and innovative practices, so that knowledge activities can be successfully pursued.
Management provides the resources and support to ensure those goals are achieved. Generally, managers are responsible for the effective resource utilisation of their staff, finances, resources and overall performance of the operational unit they head. In knowledge-intensive communities, the manager generally operates as both facilitator and partner with knowledge workers.
Successful knowledge management requires an open management style which encourages sharing across the organisation. Silo mentalities, which promote withholding of knowledge can be major barriers to sharing knowledge.

9. Managerial Infrastructure (2/2)
Human resource management (HRM)
The processes which facilitate effective recruitment, retention, development and nurturing of staff
Align individual staff member’s efforts with the organizational priorities through appropriate practices and strategies
HRM operates at all levels within organizations
Page 36
Human resource management (HRM) facilitate the recruitment, retention, development and nurturing of staff within the organisation.
HRM focuses on developing the optimal employee support systems and rewards to achieve maximum organisational benefit. Its key purpose is to align the people processes with the corporate priorities, so that each individual strives to achieve these goals.
In a knowledge-intensive community, people need to be encouraged to learn and grow as part of their normal work expectations.
HRM is the responsibility of many people across the organisation. It is not just a role that a central group undertakes. Every manager plays a role in encouraging good deployment of staff members.

10. Technological Infrastructure
Technical and information management systems
Help the recording, transmitting and sharing of information and knowledge
Includes library and information services and records management strategies
Page
Various technical and information management systems including those related to financial, information, records, customer, human resources, project and library management offer strong support to the knowledge management process. They assist people to share and transfer information and knowledge.
Effective organisational systems facilitate the ongoing recording, transmitting and sharing of information and knowledge. Some barriers are systems operating with different technical structures or restricted access to systems. The organisation needs to be conscious of how it encourages knowledge practices through its systems and their management.
Important systems include the library and information services within the organisation, and the processes by which records are managed and maintained.

11. Social Infrastructure
Enabling social and professional interchange between organizational members and other stakeholders
Strongly influenced by the values which are emphasized within the organization
Knowledge management can help to develop social capital across the organization
(Page 38 – 41)
Social infrastructure is often taken for granted in many organisations. However, in knowledge intensive communities, the way in which social interaction is encouraged and supported strongly influences the effectiveness of the social and professional interchange across members of the community.
The values in an organisation impact on the social infrastructure. For example, the degree to which the organisation encourages a collective or an individual focus , long-term or short-term emphases and a competitive or collaborative outlook will influence the social community.
Knowledge management can assist with developing a social community, as it seeks to share and build trust across many different members of the organisation. It encourages the creation of social capital, that is the building of sustained and robusted relationships which encourage interchange and sharing.
Implicit in this concept is the valuing of these processes by the organisation.

12. Harnessing Organizational Knowledge (1/3)
The knowledge core is the accumulated mass of knowledge which is identified, publicly valued, captured and disseminated by the organization
Ensures staff members focus on the generation and preservation of critical knowledge
LO4, Page 41 – 2
The challenge for organisations is to manage their knowledge effectively, so that the important components are accessible and recognised when and as needed.
The knowledge core is that knowledge which is identified, publicly valued, captured and disseminated by the organisation. It is the essential knowledge which is required to undertake the key business activities of the unit. An important organisational goal would be to ensure the right knowledge is generated and distributed.
To facilitate this diffusion, it is important that each staff member is able to access and identify the knowledge that most assists with the organisational outcomes. In order to do this, employees need to know what is important and how they can contribute to the outcomes. This requires ongoing awareness of the strategic directions of the organisation.

13. Harnessing Organizational Knowledge (2/3)
Enabling knowledge transfer
Critical knowledge needs to be regularly and effectively disseminated to all who require it
Increasing value of knowledge has changed the way in which communication and strategic interactions occur in organizations
Three knowledge transfer models demonstrate the evolving nature of organizational communication:
Page 42 – 43.
Organisations need to ensure their critical knowledge is regularly and effectively disseminated to all who need it to perform their roles.
In many organisations, communication has been a barrier to knowledge sharing, as it has regulated the flow of information between parties. As the value of knowledge has increased, modes of interaction have also changed to enable more flexible knowledge transference.
Mintzberg and Van der Heyden have explored the ways in which knowledge transference occurs. Their models of the knowledge chain, hub and web reflect the growing evolution of the communication of processes. These are explored individually over the next slides.

14. Harnessing Organizational Knowledge (3/3)
Knowledge objects
Intellectual property
Standardization
Customization
Pages 44 – 45.
Knowledge transference opens up some challenging issues for organisations, as people exchange and adapt information.
One type of knowledge source which is increasing in variety and sophistication is knowledge objects. These sources are explicit forms of knowledge which are captured and recorded in a form which can be retrieved and adapted by others.
Some issues arise as these objects are used and re-used. Organisations need to consider how they will approach the ownership of the original ideas which generated the object. People like to be recognised for their contribution, although ownership becomes more difficult to determine when it is a work product used by many. Preservation of individual ownership may not be a beneficial or wise strategy in a knowledge intensive community.
Organisations may also wish to consider how they approach the use of knowledge objects. Should a standardised approach be followed, so that all users develop objects with a similar feel, or should the capacity to customise and adapt be supported?

15. Communities of Practice (CoP)
Groups of people with common interests who share their insights and knowledge
Collectivist mentality
Self-managed groups who continue through the personal commitment of members
Page 45 – 46: LO6
Communities of practice are important elements of a knowledge intensive organisation. They are not formally constructed groupings, but rather, evolve over time.
CoPs generally grow through a common need to share and collaborate. Members remain connected while they have a common purpose and interest. As they are not structurally organised, they facilitate interaction of many different parties – regardless of seniority or location.
CoPs have a strong collectivist mentality: they bond through their common interest and generally seek to build good collaboration across their members. They seek to share as much as possible.
A feature of CoPs is that they are self-managing: no one is in charge. Instead, members maintain the group’s cohesion through their personal interest and commitment.
KM Viewpoint 2.3 provides an interesting example of an Australian CoP which transcends organisational boundaries.

16. The Five Ps of Strategic Knowledge Management
LO6: Pages 46 – 48. (Figure 2.3, page 46).
The five Ps of Strategic knowledge management summarise the major elements which should be found in successful knowledge communities. In brief, these are:
Planning – Careful planning ensures the knowledge core is defined and supported. Careful strategies to build effective systems and processes and to monitor their long term effectiveness facilitate good knowledge management.
People – Knowledge management relies on people to provide the knowledge and to use it effectively. They also contribute to system development. The creation of a social community and knowledge webs are important elements of any community.
Processes – Various systems and processes need to be established to facilitate the easy transferral of knowledge across members and channels.
Products – Similarly, clear definition of the critical knowledge objects and outcomes assists with preserving and facilitating access.
Performance - Long-term and short-term outcomes need to be considered and monitored to ensure the knowledge community is effectively building its knowledge strategy. Evaluation is an important part of knowledge management.

17. Building Knowledge Management into the Strategic Framework
Organizations need to emphasize capacity building to anticipate future needs
Knowledge sharing is an important core competency
The development of a strategic knowledge community requires active support
Knowledge management should add value
LO7 – pages 48 – 50
Knowledge management needs to be regarded as a fundamental activity of the organisation. It facilitates effective use of the expertise which is to be found in that community, and encourages a stronger focus on the real issues and focus of the organisation.
However, the evolving nature of the knowledge community means that knowledge workers must continue to build new skills and capabilities. This capacity building relates to the ongoing development of new competencies and skills to meet future challenges. Capacity building encourages employees to anticipate future needs and to prepare for them.
A core competency which needs to be cultivated is knowledge sharing. Organisations need to actively encourage this practice, and to assist employees with the necessary skill and know-how to apply this competency.
Similarly, the knowledge community needs strong leadership and guidance to ensure members feel connected and valued. This also requires strong leadership.
A final principle is that knowledge management should add value to the community. People should feel that the effort spent on knowledge management is worthwhile; that it generates major advantage to the organisation. In particular, it needs to be sympathetic to the nature of the individual organisation.

18. Concluding Points Knowledge management is a complex systemic process
Organizational knowledge needs to be identified, developed and shared to ensure it is optimally used
Organizational infrastructure plays a major part in encouraging effective knowledge management
In conclusion, the following points need to be re-emphasised:
Knowledge management is complex: it impacts on all aspects of the organisations systems and practices – from communication through to the human resource management systems. It needs to be reflected across all the layers of activity which occur.
Optimal use of organisational knowledge can only be achieved if it is carefully managed. This includes the identification, development, retention and sharing of knowledge which is strategically critical.
The infrastructure of the organisation needs to be recognised as playing a significant role in creating an effective knowledge environment. As systems, activities and outcomes align, there is increasing encouragement to see knowledge management as every individual’s business.

19. Today’s focus questions:
What types of work do knowledge workers undertake?
How does knowledge develop?
How can knowledge be optimized in organizations?
Lecture Reference: Debowski, Chapter 2
Students may wish to reflect further on these questions.
Knowledge work
What type of work do they anticipate doing when they finish their course? How does this reflect the knowledge work described in KM Viewpoint 2.1. They might find it interesting to consider how well their course is preparing them for this role…
Knowledge development
Students might like to think about how they develop their own knowledge. Do the five phases reflect their processes? How much time do they spend on reflection and exploration of concepts before applying that learning?
Knowledge optimisation
There have been many issues raised in this chapter. Students may like to think about which strategies they regard as most critical if knowledge management is to be firmly established and cultivated in an organisation. They might like to consider how infrastructure contributes, or whether values are most critical. How much support should there be for communities of practice? What role does communication play?