Working Smarter Not Harder Chapter 1 OBJECTIVES What

Working Smarter, Not Harder Chapter 1

OBJECTIVES • • What is Knowledge Management? Why Knowledge Management KM Myths Implications for Knowledge Management 2

Knowing ignorance is strength Ignoring knowledge is sickness —Lao Tsu Knowing ignorance is strength. Ignoring knowledge is sickness. If one is sick of sickness, then one is not sick. The sage is not sick because he is sick of sickness. Therefore he is not sick. 老子道德經第七十一章 知不知上 不知知病 夫唯病病 是以不病 聖人不病 以其病病 3

Working Smarter, Not Harder • Overlapping Human/Organizational/ Technological factors in KM: – People (workforce) – Organizational Processes – Technology (IT infrastructure) 4

OVERLAPPING FACTORS OF KM PEOPLE • Knowledge ORGANIZATIONAL PROCESSES TECHNOLOGY 5

OVERLAPPING FACTORS OF KM • The ideal organization is one where people exchange knowledge across functional areas of the business by using technology and established processes. The exchange may be for policy formulation and strategy, for training and development, or for problem solving in teams. None of the three areas can function independently of one another. 6

WHAT IS KNOWLEDGE MANAGEMENT? • Process of capturing and making use of a firm’s collective expertise anywhere in the business • Doing the right thing, NOT doing things right • Viewing company processes as knowledge processes • Knowledge creation, dissemination, upgrade, and application toward organizational survival • Part science, part art, part luck 7

EXPLICIT AND TACIT KNOWLEDGE Oral Communication “Tacit” Knowledge 50 -95% Information Request Information Feedback “Explicit” Knowledge Explicit Knowledge Base 5 % 8

THE KNOWLEDGE ORGANIZATION Culture Competition Collect Create Techno. Maintain logy Organize Intelligence Knowledge Organization Refine Knowledge Management Process Disseminate Leadership KM Drivers 9

THE KNOWLEDGE ORGANIZATION • The middle layer addresses the KM life cycle • A knowledge organization derives knowledge from customer, product, financial, and personnel practices knowledge. 10

THE KNOWLEDGE ORGANIZATION • Customer knowledge – Their needs, who to contact, customer buying power, etc. • Product knowledge – The products in the market place, who is buying them, what prices they are selling at, and how much money is spent on such products • Financial knowledge – Capital resources, where to acquire capital and at what cost • Personnel practices knowledge – The expertise available, the quality service they provide, and how to go about finding experts, especially in customer service 11

THE KNOWLEDGE ORGANIZATION • Indicators of knowledge: thinking actively and ahead, not passively and behind • Using technology to facilitate knowledge sharing and innovation 12

IDEAL KNOWLEDGE MANAGEMENT Existing methods/ processes Outside Environment Learning Conversion Insights PEOPLE New ideas • New products • New markets • Smarter problem-solving • Value-added innovation • Better quality customer service • More efficient processes • More experienced staff Knowledge Creation Knowledge Base Organizational Benefits Codified Technology 13

IDEAL KNOWLEDGE MANAGEMENT • The ideal knowledge organization allows people to exchange knowledge across functional areas via technology and established processes • Knowledge internalized and adopted within the culture of the organization 14

DETERMINANTS OF KM SUCCESS • People • Sharing knowledge based on mutual trust 15

WHY KNOWLEDGE MANAGEMENT? • Sharing knowledge, a company creates exponential benefits from the knowledge as people learn from it • Building better sensitivity to “brain drain” • Reacting instantly to new business opportunities • Ensuring successful partnering and core competencies with suppliers, vendors, customers, and other constituents • Shortens the learning curve 16

THE DRIVERS • Technology Drivers. – Data communications, networking, and wireless transmission – Store, communicate, and exchange data at high speed • Process Drivers – Elimination of duplicate mistakes – The way companies react to market changes (JIT) • Personnel-Specific Drivers – Minimizing personnel turnover – Minimizing knowledge walkouts 17

THE DRIVERS • Knowledge-Related Drivers – Knowledge sharing knowledge transfer • Financial Drivers – Knowledge defies economic theory, where assets are subject to diminishing returns over the long run. – Knowledge assets increase in value as more and more people use them. 18

GOAL OF KM • Produce a positive return on investment in people, processes, and technologies. 19

INTERNET CONTRIBUTES TO THE USE OF KM • The Internet is an incredible information source • With the World Wide Web, every user can share and update information at will • The Internet uses a universal communication standard protocol • The Internet provides quicker interaction and communication with knowledge workers 20

KEY CHALLENGES • Explaining what KM is and how it can benefit a corporate environment • Evaluate the firm’s core knowledge, by employee, by department, and by division • Learning how knowledge can be captured, processed, and acted on • Addressing the still neglected area of collaboration • Continue researching KM to improve and expand its current capabilities • How to deal with tacit knowledge 21

KM MYTHS • KM is not a fad. Knowing what you know or what you need to know is not a fad. • KM and data warehouse are not the same. First, data warehousing is a mere repository of data, not knowledge. It is critical for KM, because data warehousing is used in data mining and eliciting new information for new products, new customer demand, etc. • KM is not a new concept. It has been practical since the early 1980 s. 22

KM MYTHS • KM is not technology, per se. It relies on technology to expedite knowledge sharing and transfer. It is a unique way of thinking about work and about working. • It is true that technology can store data, information, and knowledge, but it cannot guarantee that people will use it. Human intelligence is usually tied to tacit knowledge, which is in the human brain. Any exchange or sharing of such knowledge is done face-to-face, using specialized tools or methodologies. 23

KM LIFE CYCLE Four-Process View of KM: • Capturing – data entry, scanning, voice input, interviewing, brainstorming • Organizing – cataloging, indexing, filtering, linking, codifying • Refining – contexualizing, collaborating, compacting, mining • Transfer – flow, sharing, alert, push 24

OVERSIGHTS OR PITFALLS • Failing to modify the compensation system to reward people working as a team • Building a huge database that is supposed to cater to the entire company • Viewing KM as a technology or a human resources area • Placing too much emphasis on technology 25

OVERSIGHTS OR PITFALLS • Introducing KM into the organization via a simple project to minimize possible losses • Pursuing KM without being ready • Having poor leadership 26

THE KM CYCLE AND THE ORGANIZATION Organizational personnel Culture Management Decision making KM Life Cycle. capture. gathering. organizing. refining. transfer Information technology 27

ROLE OF TRUST IN THE KM LIFE CYCLE • Trust supports the KM process by giving employees clear impression that reciprocity, free exchange, and proposing innovations will be recognized and fairly compensated. • The bottom line is that one cannot have an open, candid dialogue with someone he/she does not trust. 28

PROMOTING TRUST • Decentralize organization structure to allow decision making by teamwork • Reduce control-based management and encourage management by results • Revisit company’s mission statement and ethics policy to demonstrate its new views about values • Assess and improve employee responsibilities and accountability • Eliminate unnecessary directives or barriers • Install programs to improve employee commitment to knowledge sharing 29

THE WORLD OF RE-EVERYTHING • Knowledge is productive only when captured in people’s mind • Shareability requires decentralized intelligence • We need to empower knowledge workers • Top performers can be a problem; they are not the most humble 30

• The Knowledge Business has already changed • Are you in the knowledge business? • How will you close your knowledge gap? • Is your mind geared to re-think what you think you know? 31

QUESTIONS FOR DISCUSSION • Suppose you were asked to do a 15 -minute presentation before the managers of a small retailer about the pros and cons of knowledge management. What would you say? Outline the content of your talk. • A business manager, a programmer, and a psychologist all want to become KM designers. Which one do you feel will have the least difficulty? Why? 32

QUESTIONS FOR DISCUSSION • Search the Internet and current journals for surveys that show well companies are adopting (or struggling with) KM. Report your findings to class. 33

Working Smarter, Not Harder Chapter 1