KNOWLEDGE MANAGEMENT Division: Management Module: Special Forms of Management

1. KNOWLEDGE MANAGEMENT Division: ManagementModule: Special Forms of Management

2. Knowledge Management The students are introduced to knowledge as a key resource for organizations with properties significantly different to "classical resources" such as capital or labor. They identify the main drivers of Intellectual Capital and get an idea about strengths and weaknesses of Intellectual Capital in their organizations. Participants learn about the prioritization and systematic development of Intellectual Capital, they are introduced to selected methods and instruments and apply them on business situations. • Classification and strategic evaluation of knowledge and Intellectual Capital • Methods and instruments for knowledge management • Prioritization and implementation of knowledge management

3. At the end of this course youshould be able to… • … discuss the differences between intangible and tangible resources • … apply ideas of knowledge management strategies • … and selected methods to manage knowledge (instruments) • … differentiate strategic relevant drivers of Intellectual Capital • … apply a toolbox to document, assess and manage Intellectual Capital

4. Assessment methods and criteria First attempt: learning checks at the end of each of the four learning units. Knowledge management is included in the final grade with 50% weight. Second attempt: Oral examination over the entire syllabus. Knowledge management is included in the final grade with 50% weight.

5. Time table / content structure Part 3 Part 1 Part 2 Part 4 break Test Understandthe impactof knowledge drivingchange Intellectual Capital Statements as strategic KMInstrument Management 2.0 KM methods in organizations Basic Concepts Of Knowledge Management • Introduction • Attributes of knowledge • Model for KM • Strategies for KM • Analyses of Intellectual Capital • Introduction to Intellectual Capital Reporting • Application - first steps with the IC-toolbox • Individual exercise: definition of assessment questions • Measuring IC (quick check) • The Future of Management • Overview to references and players in KM • Summary of KM methods • Exercise: present the essentials of one KM instrument • Interpretation of QQS portfolio • Impact of Intellectual Capital? Causes and effects • Modeling the impact of change measures (case study) • Implementation of Knowledge Management • Summary Sam

6. Objective of this lecture Students develop some ideas about the concepts of “Knowledge", “Intangible Assets", and “Intellectual Capital“. Students understand essential terminology and concepts of knowledge management and are able to relate them to other management fundamentals. We learn to apply the instrument of Intellectual Capital Reporting (toolbox) and use it to better understand some of challenges of knowledge management. A conceptual basic model provides the framework for our discussions. Additional references and some case studies support group interaction and reflection.

7. Grading individual tests comprehension of KM methods / video comprehension Reflection / Summary Hamel (participation) IC test (participation) multiple choice test (participation) teamwork presentation of one method of knowledge management (participation) presentation of an Intellectual Capital Statement as a case study (participation)

8. Dr. Manfred Bornemann Intangible Assets Consulting GmbH since 1996 Implementation of IC reports in the German speaking Market Teaching assignments at several (applied) universities Member in the board of editors International Journal for Intellectual Capital Management Knowledge Management Research & Practice The Learning Organization

9. The Story of Light To produce light for one candle for one hour, prehistoric man had to invest about an hour to collect wood or create torches and ignite them. That was a considerable effort and thus limited activity to the natural rhythm of day and night. Several steps of innovation from candles to oil lamps, using various wicks, allowed for the improvement of efficiency by not only providing more and better-quality light (in terms of candles), but also less labor and less unpleasant side effects (smoke, grime, risk of injury because of fire, etc.). According to Nordhaus (1998) one hour of labor today produces 350,000 times more light than a Babylonian man could consume with the same effort. Today, we create so much light at such a low cost that now the opposite of scarcity is the problem: light pollution in urban and densely populated areas with its negative effects on our well-being. Thanks to human creativity and effort, an awkward problem that consumed relevant resources was resolved. Yes, it took a very long time, because rates of innovation were extremely low for most of the period. But innovation rates accelerated tremendously from 0.003% per year from the Stone Age to the Middle Ages to 1% until roughly a century ago and 3% since then. http://www.ajoma.de/html/dark_sky.html Source: http://cowles.econ.yale.edu/P/cp/p09b/p0957.pdf

10. What EXACTLY supports OUR performance? • What is knowledge? • What attributes has knowledge? • What is the impact of knowledge? enterprises asblack box

11. good relations to suppliers and partners team work of employees three star chef first grade supplies outstanding recipes

12. What exactly supports our performance?

13. Hard questions ??? If Intangibles are our competitive advantage … how exactly do they look like? What is the status quo of intangibles in our eco system? What is the source of intangibles? How are they developed systematically? What is the impact of intangibles? Where do they have effects (industry, governmental, social, science)? How could we commercialize intangibles in SME structures in the medium technology level (not: high tech sectors)? How does this work right now – and how could it work? What are limiting and supporting drivers? Which management instruments and management philosophies are beneficial? What are the implications for management from the perspective of politics and other stakeholders in these systems? How would a task force be organized to first clarify these questions, to provide answers and then to communicate them?

14. Hard questions in SMEs Which knowledge assets are available (resource based approach) – and what could we do with them? (Alternative: what would we like to accomplish – and what would it take to do so?) How can we grasp Intangibles? (examples: what is the difference between Microsoft and Apple or Oracle and SAP or Sturm and Rapid; what is the difference between a job applicant from university/FH or Harvard or BFI? What are our Value Propositions? How can we balance a group and achieve homogeneity? (==> concept of people / idea of men) What prerequisites need to be accomplished to prevent erosion of competitive advantages but grow them? (==> corporate values / culture / visions) How can we transfer Intangibles? How to protect Intangibles? What are the essential business models to utilized Intangibles? ==> requirements: differences in perception … (based upon prior knowledge) articulation and communicating perceptions definition of categories / taxonomies to support connectivity pattern recognition – complexity – interdisciplinary approaches

15. Knowledge in a narrow and wide sense Praxishandbuch Wissensmanagement

16. Knowledge as a Resource MONEY / tangible assets Increasing scale effects Transparent financial markets Money can be spent only once (it is scarce) Intangibles decreasing scale effects Seller and buyer do not have the same level of information by definition. Intangibles are not scarce (but TIME to learn is)

17. Justification and legitimation We discuss knowledge management because Knowledge and Intellectual Capital have different attributes than tangible or financial assets. We can share knowledge – an sharing (partially) increases the value of knowledge. At the same time, we still keep our knowledge. Intangibles are easy to copy or to reproduce (software, music, pdf-documents). Parallel, we face severe barriers (prior knowledge) and lock-in-effects (language, operating systems) that prevent or delay change. When used effectively, knowledge supports scale effects (e.g. technology, medical knowledge, consulting). Alternatively, mistakes in handling knowledge lead to full loss of competitive advantages (e.g. solar technology).

18. Objectives of KM Short term Avoid errors? Identify new strategies? Improvement of processes / products? Long term Better accomplishment of strategic objectives! Improvement of productivity (input/output)! Better understanding of our own core competencies (who? why? what? how? how better? Establishment of a Learning Organization

19. Management?! Karl Weick source: http://faculty.fuqua.duke.edu/~charlesw/s591/Bocconi-Duke/Papers/new_C11/Cartographic%20Myths%20in%20Organizations.pdf

20. Basic model of KM Source: Praxishandbuch Wissensmanagement

21. Knowledge is embedded in processes Source: Praxishandbuch Wissensmanagement

22. A staircase model of knowledge competency act + uniqueness applying + act “correct” knowledge + strategic intent information + focus of application data + context (experiences, expectations) symbols + meaning + syntax competitive advantage strategic knowledge management operational knowledge management Source: North, K. (1999): Wissensbasierte Unternehmensführung: Wertschöpfung durch Wissen. 2. Aufl., Wiesbaden: Gabler.

23. What is knowledge ? than we can tell“ Polanyi 1966 explicit knowledge „We know more … implicit knowledge

24. Different types of knowledge knowledge private collective documented processes, organi-zational structures, data, other docs private documents and competencies explicit stored stable over time established shared practices, values, un-codified rituals and norms individual experiences, intuition, ability to think in abstract terms implicit hard to share, depending on action and person

25. The SEKI model Source: I. Nonaka & H. Takeuchi, The Knowledge Creating Company: How Japanese Companies Create the Dynamics of Innovation (Oxford: Oxford University Press, 1995).

26. Feedback loop of strategic Knowledge Management Source: Praxishandbuch Wissensmanagement

27. Which knowledge strategy to apply? Personalization Creative Abilities Facts Facts Deliver Facts - Systematize - Correlate - Analyze - Plan - Arrange - Design Concept Codification Tables Written Documents Relative importance for the business Hypertext Process- and System models applied systems Knowledge Bases Systems Difficulty of the task Siemens, 1998

28. Best practice transfer with personalization and codification Praxishandbuch Wissensmanagement

29. pro and con for personalization and codification strategy Permanently available, Useful for frequent reuse Simple and fast transferability Knowledge remains updated Complexity of knowledge transfer is flexible Potential for learning and innovation for each transfer Costly and difficult codification process Danger of outdated knowledge base Lacking context Diverging mental models make utilization difficult Sometimes hard to identify ideal expert Experts might not be available Inter-personal dislikes codification personalization Praxishandbuch Wissensmanagement

30. Examples form consulting Source: Hansen / Nohira, HBS, 1999

31. Knowledge activities based on Probst et al. Praxishandbuch Wissensmanagement

32. Knowledge activities by Bergeron Bergeron, Bryan: Essentials of Knowledge Management, Wiley 2003

33. Time table / content structure Part 3 Part 1 Part 2 Part 4 break Test Understandthe impactof knowledge drivingchange Intellectual Capital Statements as strategic KMInstrument Management 2.0 KM methods in organizations Basic Concepts Of Knowledge Management • Introduction • Attributes of knowledge • Model for KM • Strategies for KM • Analyses of Intellectual Capital • Introduction to Intellectual Capital Reporting • Application - first steps with the IC-toolbox • Individual exercise: definition of assessment questions • Measuring IC (quick check) • The Future of Management • Overview to references and players in KM • Summary of KM methods • Exercise: present the essentials of one KM instrument • Interpretation of QQS portfolio • Impact of Intellectual Capital? Causes and effects • Modeling the impact of change measures (case study) • Implementation of Knowledge Management • Summary Sam

34. Flash IC assessment www.wissensbilanz-schnelltest.de

35. Useful material for KM Prowis is a collection of knowledge management instruments with several examples provided by the German BMWIhttp://www.prowis.net/prowis/sites/default/files/pdf/Literatur/Leitfaden/prowis_leitfaden_fraunhofer_web.pdf EU-guideline for knowledge managementftp://cenftp1.cenorm.be/PUBLIC/CWAs/e-Europe/KM/German-text-KM-CWAguide.pdf GfWM - Landkarte zu Wissensmanagementhttp://gfwm-online.de/files/GfWM-Wissenslandkarte.pdf Studie zum Wissensmanagement (Pawlowsky et al)http://www.bmwi.de/BMWi/Redaktion/PDF/S-T/studie-wissenmanagen,property=pdf,bereich=bmwi2012,sprache=de,rwb=true.pdf D-A-CH Glossar Wissensmanagementhttp://wm-wiki.wikispaces.com/file/view/D-A-CH_Wissensmanagement_Glossar_v1-1.pdf

36. Associations active in KM Plattform Wissensmanagementwww.pwm.at Wissensmanagement Forumwww.wm-forum.org Gesellschaft für Wissensmanagementwww.gfwm.de

37. time table / content structure Part 3 Part 1 Part 2 Part 4 break Test Understandthe impactof knowledge drivingchange Intellectual Capital Statements as strategic KMInstrument Management 2.0 KM methods in organizations Basic Concepts Of Knowledge Management • Introduction • Attributes of knowledge • Model for KM • Strategies for KM • Analyses of Intellectual Capital • Introduction to Intellectual Capital Reporting • Application - first steps with the IC-toolbox • Individual exercise: definition of assessment questions • Measuring IC (quick check) • The Future of Management • Overview to references and players in KM • Summary of KM methods • Exercise: present the essentials of one KM instrument • Interpretation of QQS portfolio • Impact of Intellectual Capital? Causes and effects • Modeling the impact of change measures (case study) • Implementation of Knowledge Management • Summary Sam

38. some more quotes In the old economy, the challenge for management was to make product. Now the challenge for management is to make sense. (John S. Brown) Treat people as if they were what they ought to be and you help them become what they are capable of becoming. (W. Goethe) Before you become too entranced with gorgeous gadgets and mesmerizing video displays, let me remind you that information is not knowledge, knowledge is not wisdom, and wisdom is not foresight. Each grows out of the other, and we need them all. (Arthur C. Clark)

39. exercise Please extract the main ideas of the following video link. After watching the video, you have 5 minutes for a brief summary and personal comment.

40. https://www.youtube.com/watch?v=K3-_IY66tpI

41. Reflection Hamel What are the main points of Hamel?

42. Routine processes and knowledge intensive processes Bergeron, Bryan: Essentials of Knowledge Management, Wiley 2003

43. Bridging the knowledge gap Bergeron, Bryan: Essentials of Knowledge Management, Wiley 2003

44. Examples of KM instruments Praxishandbuch Wissensmanagement

45. example of the status quo of Intellectual Capital in an SME Maximum Average Minimum • What exactly is the meaning of these drivers? • What exactly is the reference or scale? • Why is the deviation of scoring in our team so substantial?

46. Primary field of intervention in Knowledge Management internal COMMUNICATION and knowledge transfer

47. Challenges for knowledge transfer 7 8 Type of knowledge explicit tacit 5 6 3 4 1 2 Routine non-routine type of task local global context Bornemann, based on: Nancy Dixon: Common Knowledge, HBSP, 2000

48. Methods Chat Forum; blackboards, checklist Intranet, manuals local Project archive, global Project archive incl. maintenance Mentoring, personal coaching, team meeting - usually no top down implementation possible; awareness creation corporate meetings, lessons learned workshops, C.U., Yellow pages, staff rotation, ??? little intervention! Allow for time budget (subsidiary) story telling, personnel rotation

49. 7 8 Art des Wissens explizit tacit 5 6 3 4 1 2 Routine Nichtroutine Art der Aufgabe local global Kontext Which measures are supported? Where is demand for more? explicit methods 1) existing, room for improvement 2) quite well implemented 3) only partially available 4) Not available – implementation is currently not yet discussed implicit methods 5) yes – still room for improvement 6) Not yet, but already planned as learning platform 7) yes 8) Not really, partially covered from Robert methods: 1Chat Forum; blackboards, checklist 2 Intranet, manuals 3 local Project archive, 4 global Project archive incl. maintenance 5 Mentoring, personal coaching, team meeting - usually no top down implementation possible; awareness creation 6 corporate meetings, lessons learned workshops, C.U., Yellow pages, staff rotation, ??? 7 little intervention! Allow for time budget (subsidiary) 8 story telling, personnel rotation Caution: case - dependent!!!

50. Some more methods of Knowledge Management Quelle: Deutsche Gesellschaft für Personalführung e.V. 2002. Wissensmanagement im 21. Jahrhundert