What We Know About Knowledge and Learning Peter J. Engstrom Chief Knowledge Officer SAIC Strategies Group Vice President for Corporate Knowledge Development Performing and Learning at the Speed of Change… For the Second Army Knowledge Symposium April 1, 2002

We Are Drowning in Information and Starving for Knowledge Hubert Saint Onge: Claricia

KM Challenges Facing The Government Organizational impediments –Size and complexity of the organization –Contradictory policy and directives –Lack of coordination across the Service stovepipes –Multiple, non-sequenced, IT strategies and technologies created with inadequate integration strategy Cultural impediments –Differences between X/Y generation and “baby boomers” –Natural resistance to change –50 percent of government knowledge is contained in and is easily lost as change advances –Most military knowledge is embodied in practice, not books –Competition for resources limit Service’s collaboration –Local knowledge is hard to convert into universal knowledge

Knowledge Is Everywhere In the experience of the members of the organization In the interactions between members of the organization In the written artifacts of the organization

So, What Is Knowledge? All the information in an Enterprise All the experience in the Enterprise Focus Knowledge is the combination of critical information and collective intellect that enables an organization to make a decision, create a solution, or change a position.

Knowledge Management Is Not Information Management Information Management is designed and deployed to enhance, rather than substitute for the social practices that underlie knowledge creation and organizational sharing. Knowledge Management is designed and deployed to enable active learning in the moment, capture that learning, leverage it across other information sources in order to create and share enabling information

Knowledge Creation and Sharing: Friction at Every Level Types of knowledge Explicit (artifacts) Tacit (skills possessed by the individual) Individual Sharing Individual Receiving Tacit-Tacit Individual sharing Explicit storage Tacit-Explicit-Tacit Individual receiving Explicit Reuse Explicit Archive Explicit Capture Explicit-Explicit Increased knowledge lost due to friction Organization capturing information

Thinking Holistic: Integrated Knowledge Architectures Explicit Knowledge Tacit Knowledge Information Portal Knowledge asset Intel Search Engines Expertise Locator Best Practice Capture Virtual Collaboration Communities of Practice Knowledge mapping Integrated Knowledge Architecture Codification StrategyPersonalization Strategy

Working the Knowledge Edge? Where KM Really Makes a Difference Rate of Normal Knowledge Loss Rate of Loss Mitigated by good KM KM Critical Gap Cost of Change to Organization Time Greater Organizational Agility

Performance Through Learning: The Secret of Tacit Transfer Doing Learning While Doing Cost of Doing Business Time 2 months ? ? Greatest Leverage for KM

Again, and Again, and Again! Cost Savings, $, etc Time Using KM to create organizational agility and stay on the curve

What It Takes to Learn Fast: Tacit Transfer Leadership, performance focus, and common infrastructure Processes, tools, and skills for managing knowledge People instinctively seek and share know-how, and new ideas Right Conditions Right Means Right Actions

Tacit Knowledge Functions Tacit knowledge promotes member identification with an organization. It coordinates social interactions within the organization. It is the ultimate way we pass on what we know to others. Establishes norms and rules by which action within organizations is guided. Inclusion of these conventions within each employee promote identity and esprit de corp.

Understanding Tacit Knowledge Manifest in soldier understanding of implicit norms and operating procedures. Only acquired through experiential learning. Observation must be accompanied by “learning by doing” and “learning while doing” for it to stick. Individuals “remember” tacitly through experimentation and accumulation of experiences. Organizations “remember” through recognition, aggregation, and accumulation of individual experiences.

Tacit Exploitation Framework “We Have Always Used Our Heads” Bottom Line Impact Goals People & Teams Results Using Knowledge

Tacit Exploitation Framework “It’s All About People and Learning” Bottom Line Impact Goals People & Teams Results Learn during Using Knowledge Learn after Learn before

Leveraging Tacit Opportunity 3 Simple Learning Processes Bottom Line Impact Goals People & Teams Results Learn during Using Knowledge Learn after Learn before Peer Assists Retrospects AARs

Quickly Disseminating Critical Info … People Talking to Other People Bottom Line Impact Access & Apply Renew Learning Communities of Practice Goals People & Teams Results Learn during Using Knowledge Learn after Learn before Continuous

Community of Practice: Dual Citizenship Community of Practice Dual citizenship Team 1 Team 2 Team 3

Capturing Tacit Knowledge: Storytelling…War Stories Storytelling is the best way we have to convey tacit knowledge Storytelling provides a framework for sharing information and meaning Stories capture things that cannot be captured any other way Stories provide context which in turn conveys emotions, triggers memories, and Stories provides insight and organizational intuition

Leverage of Organizations Total Knowledge Potential Explicit data bases, knowledge search engines, and information management technologies Agile, knowledge enabled, learning organization Tacit understanding of an organizations implicit norms and underlying operating procedures is only acquired through experiential learning Must leverage explicit with tacit to maximize organizational potential

Leveraging Knowledge in Schiehallion Reduced Oil Field Development Costs by $80m! Execute Learn Input Plan InputPlan ExecuteLearn

A Strategic KM Architecture...Treating Knowledge As an Asset Bottom line Impact Knowledge Assets Communities of Practice Business Context & Performance Histories Histories Access & Apply Renew Learning Goals People & Teams Results Using Knowledge Learn after Learn during Learn before Continuous

How Do You Use Leverage Knowledge? “Learning while doing”Creates Force Multiplier Knowledge Yellow Pages “Three phone call” location…every time Communities of Practice/Story Telling Rapid transfer between similar communities Knowledge technologyEnhances knowledge creation and sharing

KM Problems We All Face Creating a base understanding of what KM is… and is not! Instituting a reward system that rewards sharing and discourages knowledge hoarding. “Willingness to invest in technology” easy… “willingness to invest in people” hard for corporate leadership. Balancing the “risk tolerance” of leadership with the need for the organization to share in order to obtain real results. Creating a KM story that connects the issues, directions, and outcomes, and derisks the change journey for the organization. Enabling partners understanding that KM is a holistic process and cultural change… not a technology or product. Focusing the power of KM to solve real world problems. Unwillingness of client to go the “full Monty” and employ all aspects of KM strategy or “there are no shortcuts to success.”

9-11 Implications of Grand Terrorism on Knowledge Management Peter J. Engstrom Chief Knowledge Officer SAIC Strategies Group Vice President for Corporate Knowledge Development An update for the Second Army Knowledge Symposium 1 April 2002

Post 9-11 Observations There are profound knowledge changes ahead as a result of learnings from 911 There was significant and unanticipated loss in organizational agility in companies that lost senior leadership talent in the WTC The explicit knowledge archived by corporations more often than not proved to be insufficient to backstop decisions required by remaining senior leadership decision makers Business continuity planning was not focused on human capital protection Loss and displacement of people resulted in loss of knowledge and intelligence necessary to conduct every day business operations… in every organization, regardless of size

Law of Unintended Consequence Explicit ArchiveTacit Exploitation Corporate Resource Decision Redundant Storage Corporate Leadership Team Personal Experiences Legacy Histories Grand Change Disaggregating Corporate HQ Reverse Mentoring Teams Redundant Competencies OK Before...Not OK After Geographic Separation

The Slippery Slope of Knowledge Loss in Crisis Normal Rate of Tacit Loss Normal Rate of Learning Unexpected Change Increases Rate of Loss and Cost Time Break Point Impact on Organization Accelerated Rate of Loss due to Tacit deficit

Reducing the Impact of Sudden Change…Creating a New Strategy Rate of Change/ Tacit Loss Enhanced Rate of Learning Greater Loss and Cost Without KM Impact on Organization Time KM Reduces Risk and Cost of Loss Break Point Increased Rate of Change/Tacit Loss

Human Capital Protection … Recognition of a Critical Shortfall Most (but not all) companies: Backed up their data Documented their procedures Established contingency plans for physical facilities, IT, telecommunications, and emergency operations Few were prepared for the loss of human capital Talent Expertise Experience Creativity Business judgment Corporate knowledge September 11, 2001 Redefined Business Knowledge Strategy

Strategy for Human Capital Loss Protection Strategy must protect and capture: Judgment Perspective Contacts Mentoring Understanding Creative resources Of key individuals and offices Focus must be on: Pre-crisis identification and capture of critical knowledge Post-crisis resilience and recovery Approach should provide a balance between collection and connection of critical tacit assets

Post 9-11 Organizational Knowledge at Risk Strategy must protect and capture:  Critical categories of acquired knowledge within the business  Personal operating principles of key performers  Historical memory and illustrative anecdotes  Nuts and bolts of the corporate culture  Explicit and implicit “knowledge DNA” Focus must be on:  Long-term plans, unseen agendas, and tacit aspirations as they affect current decisions  Specific examples of unintended consequences  The true communications hierarchy (who gets listened to first? Last? Why? What do they contribute?)  Implicit sieves and sorters of incoming information

Strategy must protect and capture: Decision trees and decision trains ( which decisions must be made first?) Resource networks, including "high priests," personal mentors, knowledge sources, and expediters (potentially, anyone from the CEO to a secretary.) Focus must be on: Issue-specific connections (whom do you consult/what are your information sources in these situations?) Trade secrets and proprietary processes (who knows what?) Real world procedures Priorities, assumptions, and plans for dealing with crisis Post 9-11 Personal Knowledge at Risk

Integrated Knowledge Architectures Explicit Knowledge Tacit Knowledge Information Portal Knowledge asset Intel Search Engines Expertise Locator Best Practice Capture Virtual Collaboration Communities of Practice Knowledge mapping Integrated Knowledge Architecture Codification StrategyPersonalization Strategy Pre 9-11 Normal Corporate Focus Post 9-11 New Corporate Focus

Projected Government Knowledge Loss After 9-11 Most agencies with key responsibilities under the Federal Response Plan face potential losses of nearly half their current staff in the next five years

Exodus Project: Creating A Serious Mentoring Initiative Personnel “Bathtub” Number of Personnel JuniorsMid LevelSeniors Knowledge Harvesting Retired Capture and Reuse at Every Level Exodus Mentoring

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