BSBINM501A Manage an Information or Knowledge Management System

1. BSBINM501A Manage an Information or Knowledge Management System Facilitator: Lokesh Singh

2. Questions Revision Closed book exam

3. What is knowledge?

4. What is your company’s global strategy?

5. Sub4 Sub7 Sub1 Sub14 Sub9 Sub3 Sub2 Sub14 Sub10 HQ Sub5 Sub11 Sub13 Sub6 Sub8 From a multi-domestic company to a successful global firm Multi-domestic Global Integrated

6. Aligning operations increases success Competence Management Knowledge Global strategy Management Motivation Management

7. What are the benefits of knowledge management? • Profitable growth through higher efficiency and innovation • Preventing the waste of valuable resources - avoid reinventing the wheel • Ensuring the use of leading-edge technology and thinking across the firm • Increasing customer satisfaction through shorter lead-times and consistent behavior • Creating a competitive cost structure • Facilitating breakthrough and incremental innovations through combination of technologies and ideas from across and outside the firm • An attractive workplace that encourages cross-functional co-operation across the globe • Attracting and retaining key individuals

8. What is knowledge?

9. MANUAL How to play soccer From tacit to articulate knowledge “We know more than we can tell.” Michael Polanyi, 1966 High Low Codifiability Articulated Tacit

10. The knowledge management challenge The majority of a company’s valuable knowledge is tacit and resistsbeing articulated

11. What is knowledge management? An organization’s structures, systems, and practices that facilitate.. …with the goal of enhancing the organization’s competitiveness KM Embedding knowledge Creating knowledge C Organizing knowledge Disseminating knowledge C O D E

12. KM Global strategy KM must be aligned with strategy • Who does your company target as customers? • What products or services does your company offer these targeted customers? • How does your company do this efficiently? CODE • What knowledge supports this strategy? • Do we have this knowledge? (Create) • How should we organize this knowledge? (Organize) • Who needs this knowledge, when, and how? (Disseminate) • How do we ensure we get value from this knowledge? (Embed)

13. Information technology for KM • Stocks of knowledge: Database and database management systems to collect and hold information • Flows of knowledge: Communication channels to connect individuals independent of location IT is an enabler!

14. Challenges to knowledge databases • Time consuming and difficult • Takes times for writer to document experiences • Takes time for reader to search through databases, information overload • Often weak incentives to contribute golden nuggets • Difficult to understand • Difficult for writer to explain context, tacit ->explicit • Difficult for reader to interpret experience and use in own situation • Data becomes out-of-date very quickly • Difficult to maintain, especially in fast moving industries

15. Avoid creating information junkyards Information junkyards or Empty libraries Building knowledge repositories

16. Organizational structure for KM • Physical layout • Appropriate KM functions and units • Cross-functional and cross-location teams • Centers of excellence • Institutionalized, recognized areas of expertise • Socialization measures • Job rotation, cross-office training programs, etc.

17. Creating centers of excellence HQ COE

18. Non-electronic documents Non-electronic documents Contacts in other offices Intranet Internet Internal electronic networks Firm boundary External electronic networks Co-located colleagues Other contacts Where do individuals go for help in solving problems?

19. What are communities of practice? • Groups of people who come together to share and to learn from one anotherface-to-face and/or virtually. • They are held together by a common interest in a body of knowledge and are driven by a desire and need to share problems, experiences, insights, templates, tools, and best practices. • Members deepen their knowledge by interacting on an ongoingbasis. • This interaction leads to continuous learning and innovation

20. Personal Network Community of Practice Team Purpose -Share information -Friendship -Solve problems -Share info. & ideas -Expand knowledge -Accomplish goal Members -Friends & acquaintances -No boundary -Mostly volunteers -Permeable boundary -Assigned -Defined boundary Activity -One-on-one -Meetings -Informal communications -Organize tasks Value Creation -Serendipitously discovered -Actively discovered -Planned Glue - Friendship -Value -Commitment -Obligation -Job requirement CPs are not teams or personal networks McDermott 2001

21. Communities are the grease in the KM wheel KM Embedding knowledge Creating knowledge C Organizing knowledge Disseminating knowledge C O D E

22. Role of communities of practice • Create: Own & develop knowledge • Develop & manage good practice • Build organizational competence • Organize: Develop & manage materials • Develop tools, guidelines, templates • Manage databases • Disseminate: Connect people across boundaries • Who knows what • Home in changing organization & an uprooted society • Embed: Share ideas & insights • Share tacit, complex ideas & insights • Help each other solve problems & find innovations

23. Communities can have a different primary purpose Innovation Helping Best-practice Knowledge stewarding

24. Community membership and roles Coordinator Core Group Active Peripheral

25. Two extreme communities of practice Face-to-face Virtual

26. Competitors Communities cross all boundaries Customers Suppliers Company

27. Don’t forget to support informal external networks at the individual level! External Customers and suppliers Partners Electronic communities Organization Previous work and school colleagues Large portion of new ideas and formal collaboration relationships come from personal external contacts

28. Encourage an open innovation attitude Closed attitude Open attitude Not all the smart people work for us. We need to work with smart people inside and outside the company. The smart people in our field work for us. If you create the most and the best ideas in the industry, you will win. If you make the best use of internal and external ideas, you will win. Chesborough 2003

29. What is your organization’s KM vision? British Petroleum’s KM Vision BP knows what it knows, learns what it needs to learn, and uses knowledge to create overwhelming sustainable advantage.

30. In global organizations KM is increasingly complicated … Three types of boundaries • Internal • Geographical (physical & cultural) • Organizational (horizontal & vertical) • External • Organizational (formal & informal relationships)

31. Challenges to successful KM processes • Individual level • Subsidiary level

32. Biggest difficulties to successfully managing knowledge in organizations Culture Top management’s failure to signal importance Lack of shared understanding of strategy Organizational structure Lack of problem ownership IT / Communication restraints Incentive system Ruggles 1998

33. Biggest difficultiesto knowledge transfer Changing people’s behavior Measuring value/performance of knowledge assets Determining what knowledge should be managed Justifying use of scarce resources for KM initiatives Mapping organization’s existing knowledge Making knowledge available Attracting and retaining talented people Ruggles 1998

34. You gotta remember that we’re hired to be stars here and not team players. - Researcher at one high technology firm with poor knowledge flow Sometimes I get calls from other offices. It feels weird if I don’t know the person. I like to help them only if I know them. - Programmer at software multinational So, why should I share?

35. Knowledge is power • Lack of understanding • Lack of incentive • Time constraint • Lack of awareness • Not-invented-here • Lack of incentive • Time constraint What are some barriers to successful knowledge management?

36. Individuals often have conflicting loyalties Loyalty Loyalty Firm boundary Organization Profession

37. Is knowledge trading good or bad for a firm? We pass over the nondisclosure agreements of different companies and trade company secrets all the time.

38. Who owns the knowledge? Organizational information vs. Personal expertise

39. What about individual performance? A high degree of participation in local communities of practice + – On-time performance Creative performance

40. + Creative performance But here we see the reverse A high degree of participation in dispersed electronic communities - On-time performance

41. Knowledge resides in the minds of individuals Individuals make own choices about knowledge Share openly for the benefit of the organization Protect and use only in work practice Perception that an individual’s value is diminished if share knowledge Knowledge is power Protect and use only in external relationships for own benefit Knowledge leakage Leave the firm and take knowledge with them In summary, individuals have choicesabout how they use their knowledge…

42. Challenges to successful KM processes • Individual level • Subsidiary level

43. A constant local vs global tension We do not want to be managed in our choice of competence elements. We would want to select those elements that we need. • Line Manager, Ericsson Norway Spontaneity and creativity could be the losers in some areas by implementing global solutions. However, the “Best Practice” policy in Ericsson concerns capturing good ideas, which of course may come from other areas in the organization. • HR Manager, Ericsson Norway • Hustad & Munkvold 2005

44. Aligning operations increases success Competence Management KM CODE Global strategy KM CODE Motivation Management

45. Supporting global KM processes Providing the organization with the right mix of talent to meet existing and future needs Competence Management Motivation Management Creating an open, knowledge sharing culture with a high degree of company loyalty

46. A variety of tools • Competence system • Recruiting • Incentives • Networks • A visionary organization Competence Management Motivation Management

47. Creating a competence management system • Standardization • Create common structure and terminology • Define professional, business, and human competencies related to global strategy and KM goals • Don’t underestimate this task! • Analysis • Personal development discussions • Mapping of present and future target competence levels for individuals and then for business units • Defining competence gap at both levels • Planning and implementation • Prepare competence development plan • Implement and evaluate Magnusson & Davidsson 2004

48. CM supports KM I think that competence management can play an important role in knowledge management. You can search for persons with certain competencies very easily through that tool. People having the same competencies and interests can be accessed and get together. • Competence Manager, Ericsson Croatia • Hustad & Munkvold 2005

49. A variety of tools • Competence system • Recruiting • Incentives • Networks • A visionary organization Competence Management Motivation Management

50. An experienced professional who has worked extensively in another company with different values and philosophy A young person who lacks professional experience but has the right attitude Recruiting – What should one look for? OR • It is cheaper and easier to develop technical skills than trying to change mentality. • HR Manager, Ericsson Russia