Knowledge Management Strategy Hazel Hall School of Computing, Napier University

1. Knowledge Management Strategy Hazel Hall School of Computing, Napier University

2. KM strategy rationale 1. Recognition of the �knowledge organisation� where KM is a business enabler Knowledge as key strategic resource in global business environment, inimitable tacit knowledge is the most valuable, e.g. demonstrated in �value� of companies such as Microsoft Move from �classic� corporation (employees follow orders) to environment where employees are empowered ? increase organisation�s capacity to anticipate and react to market forces Stakeholder demands for information

3. KM strategy rationale 2. Knowledge role in product/service innovation Push: R&D ? design, manufacture and sale of product pushed to customers Pull: Market research, R&D ? design, manufacture and sell New complexity: closer supplier-manufacturer-customer relationships; new roles (e.g. consumer interaction through electronic means); pace of change Requirement for knowledge, recognised formally in company efforts to become �learning organisations�

4. KM strategy rationale 3. General To maximise the benefit held in knowledge assets and knowledge flows. 4. Specific to organisational goals e.g. innovation � to facilitate faster group learning

5. KM strategy main features Lack of uniformity in focus Codification Socialisation Networking individuals and groups Intellectual asset measurement and management Absorptive capacity Etc

6. KM strategy main features Actual document

7. KM strategy main features Content Aligns with general business strategy Appreciates the environment in which the organisation operates � competition, customers, employees etc. Imparts a strategic vision of the organisation Sets standards Explains how knowledge and knowledge management add value to the organisation�s activities

8. KM strategy main features Industry focus examples Pharmaceuticals: innovation Retail: brand recognition and reputation Banking: compliance

9. KM strategy main features Content focus example � innovation as priority Means of determining what competitors know - competitor knowledge to prompt internal innovation processes Communities of practice or staffing structures � organisational interaction and design important as �sites� of knowledge creation Absorptive capacity � external information sources and �borrowing� as spurs to innovation (not pure R&D, invention) Methods for transforming tacit knowledge into explicit formats

10. KM strategy main features Depends on the nature of the firm within the industry - example 1 assemblers Assemble products to sell Need for KM strategy that supports exploitation of externally produced knowledge in order to create assembled products

11. KM strategy main features Depends on the nature of the firm within the industry - example 2 creators Creators that develop products and services internally need a KM strategy that supports internal knowledge transfer

12. KM strategy main features Depends on the nature of the firm within the industry - example 3 imitators �Imitators� who innovate by learning from the mistakes of others need knowledge to develop external networks � poach staff, copy ideas

13. KM strategy document creation Initial steps � assessment of knowledge resources, capabilities and gaps Knowledge audit Knowledge-based SWOT analysis or knowledge mapping (Davenport & Prusak, 1997) Modelling (e.g. Kingston & Macintosh, 2000) i.e. methods that match with Davenport & Cronin�s (n.d.) �process� approach

14. KM strategy implementation planning Importance of local factors Organisational size Organisational focus, e.g. need for boundary spanning, creative abrasion Role of knowledge in the organisation (e.g. core to consultancy, adjunct to support manufacturing) Existing practices, e.g. informality in knowledge transfer suggests CoPs approach

15. KM strategy implementation planning Operational requirements for strategy to be Communicated to staff Supported and acted upon throughout the organisation, especially at senior level Evaluated Revised

16. KM strategy implementation methodology Stages Analyse business vision and performance gaps Identify opportunities Examine alternative initiatives Undertake suitability and CSF analysis Allocate resources Evaluate

17. KM strategy implementation issues Questions Will it be a centralised versus decentralised implementation? Who will co-ordinate and managed it? How will teams be configured? Will it be an in-house or out-sourced implementation? How will the political environment be managed? For example, how will the strategy affect work in the organisation and who will make decisions about these efforts? How can the strategy be costed? What will be the cost of the strategy? What are the training implications of the strategy? How will progress be monitored? What will be the knowledge-base to support the strategy?

18. KM strategy implementation advice Kelleher & Levene (2001, p. 32) Set up online collaboration space for the implementation team Organise existing content coherently for (1) access, (2) identifying gaps Cultivate key KM informants Communicate outputs to sponsors, then whole organisation, as part of communications strategy Measure outputs Create rationale and business case for senior management Use pilot initiatives for quick wins and measurable gains May need dedicated resource

19. KM strategy evaluation Output indicators Financial return Volume of knowledge-based transactions Transformation of content Increased use of organisational knowledge Growth in knowledge resources Higher project survival/success rate

20. KM strategy constraints General constraints (1) Devising a strategy does not equate to implementing a strategy e.g. need to act on findings from audit work. Gap analysis may reveal chasm between strategic goals and knowledge to achieve them ? knowledge needs to be generated Expectations of strategy may not be delivered Success of attempts to copy good practice are subject to local conditions e.g. case studies reported by Newell, Scarbrough, Swan & Hislop (2000), Eastern versus Western values Undue focus on technology as a �solution� to KM �problems�

21. KM strategy constraints General constraints (2) Written documents cannot provide strategy for complex psychological processes that support knowledge transfer between individuals - mistaken assumption of knowledge work as a linear process Value of KM strategy is difficult to measure

22. KM strategy constraints General constraints (3) � how far should you go? Facilitating access, especially across large distributed organisations e.g. to what extent should a strategy impose rules on creation of online collections of �good practice� material? Should a KM strategy cover strategic alliances? Should a KM strategy cover industry clusters? Does a KM strategy have power to influence the organisation�s corporate, communications or ICT strategy, organisational structure, allocation of financial resources?

24. KM strategy constraints General constraints (4) � strategies required at all? Environment of care (Von Krogh, 1998) Social capital (Nahapiet & Ghoshal, 1998) Story-telling (David Snowden)

25. References Davenport, E. & Cronin, B. (n.d.). Knowledge management: semantic drift or conceptual shift? retrieved July 9, 2002 from http://www.alise.org/nondiscuss/conf00_Davenport-Cronin_paper.htm Davenport, T. & Prusak, L. (1997). Information Ecology: Mastering the Information and Knowledge Environment. New York: Oxford University Press. Kelleher, D., & Levene, S. (2001). Knowledge management: a guide to good practice. London: British Standards Institution. Kingston, J. & Macintosh, A. (2000). Knowledge management through multi-perspective modeling: representing and distributing organizational memory. Knowledge-based Systems, 13, 121-131. Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2), 242-266. Newell, S., Scarbrough, H., Swan, J., & Hislop, D. (2000). Intranets and knowledge management: decentred technologies and the limits of technological discourse. In C. Prichard, R. Hull, M. Chumer & H. Willmott (Eds.), Managing knowledge (pp. 88-106). Von Krogh G. (1998) Care in knowledge creation. California Management Review 40(3),133-153.