Knowledge Management Strategy Chapter 05 Knowledge Management Strategy

Objectives and outcomes Overall objective: To apply tools and models to develop knowledge management strategies Learning outcomes: Understand the nature of organisational knowledge; Assess the value of organisational knowledge; Identify key management issues of knowledge management; Select and assess the value of information systems to knowledge management.

Management issues How do we use knowledge to increase organisational efficiency and competitiveness? How can ICT support a knowledge management strategy? What are typical barriers to effective knowledge management? How should knowledge management strategy be aligned with corporate strategy?

Introduction Knowledge has grown as a concept since it first emerged in the 1990s. Realization emerged that if organizations can manage the learning process better, then they can become more efficient. Knowledge Management Strategy definition: ‘Defined and co-ordinated plan of actions to enable core business processes using knowledge management techniques.’

KM Strategy Process Figure 5.1 KM Strategy Process Source: BIM

Defining knowledge Data: Discrete, objective facts (numbers, symbols, figures) without context or interpretation Information: Data which adds value to the understanding of a subject and in context, is the basis for knowledge Knowledge: The combination of data and information, to which is added expert opinion, skills and experience, to result in a valuable asset which can be used to aid decision making. Knowledge may be explicit and/or tacit, individual and/or collective

Data, Information and Knowledge Figure 5.2 Data, Information and knowledge Source: BIM

Alternative view of Data, Information & Knowledge Figure 5.3 Alternative view of Data, Information & Knowledge Source: Dave Snowden IBM, Gurteen Conference 2003

The Tacit/Explicit knowledge model Nonaka (1995) identifies four different processes in which knowledge is created and transferred: Tacit to Tacit through a process of socialization Tacit to Explicit through a process of externalization Explicit to Tacit through a process of internalization Explicit to Explicit through a process of combination

Nonaka's Tacit/Explicit model Figure 5.4 Nonaka's Tacit/Explicit model Source: Nonaka and Takeuchi (1995)

Knowledge in terms of function define knowledge by type in terms of function: · Declarative knowledge (knowledge about) · Procedural knowledge (know-how) · Causal (know why) · Conditional (know when) · Relational (know with) Source: (Zak, 2002)

Spender’s framework Individual/explicit (conscious) Individual/implicit (automatic) Social/explicit (objectivified) Social/implicit (collective)

Blackler’s five images of knowledge Embrained knowledge: is dependent on conceptual skills and cognitive abilities Embodied knowledge: is action orientated and is likely to be only partly explicit Encultured knowledge: refers to the process of achieving shared understandings Embedded knowledge: knowledge which resides in systemic routines Encoded knowledge: is information conveyed by signs and symbols Internet Article Source: Blackler (1995)

Defining Knowledge Management Royal Dutch/Shell definition taken from the BSI Guide to Good Practice: ‘The capabilities by which communities within an organization capture the knowledge that is critical to them, constantly improve it and make it available in the most effective manner to those people who need it, so that they can exploit it creatively to add value as part of their work.’

European KM Framework Figure 5.5 European KM Framework Source: Heisig & Iske (2003)

Knowledge Management relationships Figure 5.6 Knowledge Management relationships Source: Bahra (2001)

Knowledge Management Strategy Three strategy imperatives: 1. A knowledge management strategy must be aligned with corporate business objectives and activities 2. The strategy must enable all elements of the knowledge processing lifecycle 3. A balance must be developed between individual and organisational capabilities according to 1 and identification of key processes in 2

Analysis for KM Strategy What are the core aspects of our business? How is the industry we operate in changing? What are our competitors doing to differentiate themselves in the marketplace?

SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis: KM SWOT SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis: What areas of our business benefit from applied, valued knowledge? What areas of our business lack knowledge? Are there opportunities to exploit knowledge? What competitive threats are there to knowledge being lost or losing value?

Knowledge Audit Definition: ‘a systematic review, typically based on questionnaires, interviews or narrative techniques of the knowledge within an organisation. Often also includes a systematic mapping of knowledge interactions and flows within and between organisations, teams and individuals.’ (European Framework) Source: Mekhilef et al. (2003)

Knowledge Audit process Figure 5.7 Knowledge Audit process

ASHEN model ASHEN model focuses on what Snowden describes as Knowledge Disclosure Points. These are any events or activities that reveal knowledge through use: Decisions Problems resolution Solution creation Judgement Learning points

ASHEN Categories Artefacts Skills Heuristics Experience Natural Talent

Knowledge Maps A visual representation of organisational knowledge assets, flows and relationships. Social Network Analysis [SNA] [DK – See this] ‘the mapping and measuring of relationships and flows between people, groups, organizations, computers or other information/knowledge processing entities. The nodes in the network are the people and groups while the links show relationships or flows between the nodes. SNA provides both a visual and a mathematical analysis of human relationships’ (Krebs, 2002)

Kite Network Map Figure 5.8 Kite Network Map

Knowledge value chain Figure 5.11 Knowledge value chain

Knowledge value chain: types of knowledge Figure 5.12 Knowledge value chain: types of knowledge

Mapping activities against knowledge Figure 5.13 Mapping activities against knowledge

Gap analysis Knowledge gap: what the organization must know and the what the organization knows It was first proposed by Phillip J. Tichenor and his colleagues. Strategic gap: What the organization must do and what the organization can do

Strategy selection Codification versus Personalization Explorer versus Exploiter Aggressive versus Conservative Technocratic versus Economic versus Behavioural

Aggressive Vs Conservative Strategy Figure 5.14 Aggressive Vs Conservative Strategy Source: Zak (2002)

Strategy options:Communities of Practice Definition: ‘A group (often inter-disciplinary) linked by their shared interest in a subject area, the group will organically evolve over time in terms of membership and scope. The purpose will be to learn and share.’

Communities of Practice How communities of practice differ from other forms of organisational structure: Formal departments: clearly defined boundaries, permanent, structured around organisational goals Operational units: clearly defined boundaries, permanent, structured around ongoing operations and processes Project teams: clear boundaries, though may work across departments and operational units, limited lifespan, structured around project goals Communities of practice: fuzzy boundaries, delineated across the organisation. Organic evolution

Communities of Practice Figure 5.15 Communities of Practice

Competitive Intelligence Four phases of the Competitive Intelligence cycle: Identification of key decision makers and their intelligence needs Collection of information Analysis of information and upgrading it to intelligence Dissemination of intelligence to decision makers Source: Miller (2001)

Story and narrative management Stories can be important for the following reasons: 1. They can be used as a way for a company to obtain information about its customers, their needs, and the contexts of use for their products 2. They can be a useful way to share information within a company 3. They can be used to help explain how and why products and services might be used 4. Stories about products, services, and practices can be shared by customers

Storytelling and narrative process Figure 5.17 Storytelling and narrative process

Using Information and Communications Technologies (ICT) to enable knowledge management ICTs cannot manage knowledge on their own ICTs can provide access to the right mix of data and information ICTs should enable workers to extract, create, share and transfer knowledge

ICT options Intranets and extranets Expertise databases and Corporate yellow pages Collaborative Tools Corporate portals Customer Relationship Management systems (CRM) Document Management/Content management Systems E-learning

Roles and competencies for KM When assessing capabilities for knowledge management the following capabilities need to be considered (TFPL, 2003): Strategic and business Management Intellectual and learning Communication and interpersonal Information management and IT

Chief Knowledge Officer KM Roles Chief Knowledge Officer The organisational knowledge management champion, will provide the KM vision and strategy Knowledge manager Manager who will implement the knowledge management strategy

Rewards and incentives for knowledge management Tangible rewards Economic Reciprocal access gained to information and knowledge Intangible rewards Employees will enjoy seeing the positive results of their knowledge sharing Enhanced reputation and personal satisfaction