Knowledge Management and the Accountancy : It is Not Hard Numbers Liz BLANKSON-HEMANS Manager, Information Professional Development Programs, Dialog United Kingdom

Knowledge Management & Accountancy: It’s Not Hard Numbers Liz Blankson-Hemans Dialog The 16 th World Congress of Accountants November 2002

What Does ‘Knowledge’ and ‘Knowledge Management’ Really Mean? Knowledge Management?

What Does ‘Knowledge’ and ‘Knowledge Management’ Really Mean? Knowledge –Knowledge is part of the hierarchy made up of data, information, knowledge and wisdom Data are raw facts Information is facts with context and perspective Knowledge is information with guidance for action Wisdom is understanding which knowledge to use for what purpose

What Does ‘Knowledge’ and ‘Knowledge Management’ Really Mean? Management –Management is part of another hierarchy that includes supervision, management and leadership Supervision is dealing with individual tasks and people at the operational level Management is dealing with groups and priorities at the tactical level Leadership is dealing with purpose and change at the strategic level

What Does ‘Knowledge’ and ‘Knowledge Management’ Really Mean? + = Create, Capture and Re-use Knowledge to achieve organisational objectives Knowledge is Data Information Knowledge Wisdom Management is Supervision Management Leadership

Cultural Blockers in a Professional Service Firm It’s a partnership! Internal competition Knowledge is power – it’s how you’re measured I want to look good Others will take credit and get promoted Chinese Walls – Client Confidentiality I have no time Why should I? It’s not my responsibility Behaviour change applies to ‘others’ Risk!

What Worked A business focus Intranets including communities of interest KnowHow systems Contact Databases eg of law firm referrals Enterprise portals including news, analysis, competitive intelligence Extranets including virtual deal rooms Structured exchange of knowledge eg internal KM conferences Project debriefs

5 Categories of Knowledge Transfer Nancy M. Dixon in Common Knowledge: How Companies Thrive by Sharing What They Know Serial transfer : re-application by same team, of tacit and explicit knowledge gained in one context by a team, in a completely new context, usually through meetings Near transfer : explicit routine and frequent knowledge from one team to another team doing similar work in a different location, by electronic dissemination Far transfer : tacit knowledge gained from non-routine task by one team, transferred reciprocally to other teams doing similar work in another part of the organisation Strategic transfer : required complex explicit and tacit knowledge existing somewhere within the organisation is used to accomplish a strategic or mission critical task Expert transfer : explicit knowledge about infrequent tasks is sought from others in the organisation who have the expertise through electronic forums segmented by topic

Costs Associated with Knowledge Management Personnel to collect information and monitor systems Equipment costs Travel costs to move tacit knowledge Costs of benchmarking and site visits Consulting costs Costs of ‘mistakes’

A Message to Accountants “Knowledge is not impersonal, like money. Knowledge does not reside in a book, a databank, a software programme – these contain only information. Knowledge is always embodied in a person; carried by a person; created, augmented or improved by a person; applied by a person; taught and passed on by a person; used or misused by a person” Peter Drucker in Post Capitalist Society

Questions? Dialog Palace House 3 Cathedral Street London SE1 9DE United Kingdom