Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Chapter 12 Leadership and Assessment of Knowledge Management

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Introduction What is knowledge management leadership and how is it implemented? Why do we need to assess knowledge management in an organization? How to assess knowledge management in an organization?

Leadership of Knowledge Management The CEO designates the KM leadership who could be the Chief Knowledge Officer, Chief Learning Officer or the Chief Information Officer The chief knowledge officer is usually expected to balance social and technical aspects of KM, the chief learning officer and the chief information officer are generally charged with KM in organizations where the emphasis is on the social aspects and technical aspects, respectively Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe

Chief Learning Officer Chief Learning Officer is usually charged with KM in the organizations where the emphasis is on the social aspects. The CLO is the business leader of corporate learning and leads the organization’s learning and development strategy, processes and systems. The CLO usually focuses on human resource development, and employees’ learning and training. CLOs usually focus on people and on social aspects of KM, although the CLO’s role increasingly involves utilizing ITs to improve KM, often in collaboration with the CIO. Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe

Chief Knowledge Officer Chief Knowledge Officer is usually expected to balance the social and technical aspects of KM. Organizations that recognize the importance of knowledge management as a critical function that goes beyond either information management or human resource development appoint a CKO and charge that individual with the management of the organization’s intellectual assets and knowledge management processes, systems, and technologies. CKOs are technologists because they invest in IT, and they are environmentalists because they also create social environments that stimulate conversations and knowledge sharing. The model CKO is also an entrepreneur, because they are visionary and starting a new activity; and at the same time that they are consultants, because they match new ideas with managers business needs. Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe

Importance of KM Assessment It helps to identify contributions being currently made by KM A KM assessment enhances the understanding of the quality of the efforts being put in KM, as well as the intellectual capital produced through these efforts Helps understand whether costs of KM efforts are justified by the benefits they produce Helps identify the gap in KM efforts Help make a case for more investment in KM efforts

Types of KM Assessment Classification of KM assessments are related to the following aspects:  When is KM assessed?  How is KM assessed?  What aspects of KM are assessed? Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe

The Timing of KM Assessment Periodically for an entire organization or subunit At the start of a KM project At the end of a KM project

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe The Nature of KM Assessment Qualitative KM assessments aim to develop a basic understanding of whether the KM efforts are working Quantitative assessments of KM produce specific numerical scores indicating how well an organization, an organizational subunit, or an individual is performing with respect to KM

Aspects of KM Assessed Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe KM assessment can focus on: The KM solutions The knowledge produced or shared through KM solutions The impacts of KM solutions or knowledge on performance

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Assessment of KM Solutions Involves evaluating the extent to which knowledge discovery, capture, sharing, and application processes are utilized, and how well they are supported by KM technologies and systems

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Illustrative Measures of Key Aspects of KM Solutions

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Assessment of Knowledge Identification of the relevant areas of knowledge Evaluation of the extent to which knowledge in each of these areas is available Value each area of knowledge contributed to the organization

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Assessment of Impacts KM solutions and knowledge can impact the organization performance and therefore it is essential to assess the impacts Impact on employees Impact on processes Impact on products Impact on organizational performance

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Illustrative Measures of Impacts on People

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Illustrative Measures of Impacts on Organizational Processes

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Illustrative Measures of Impacts on Organizational Products DimensionIllustrative Measures Value- added Products  Increased rate of new product launch.  More frequent improvements in products.  Average of the ratio of profit margin to price across the range of products offered by the organizations. Knowledge -based Products  Increased information content in products.  Greater product-related information provided to customers.  Proportion of customers accessing product-related knowledge that the organization places on the Internet.

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Illustrative Measures of Impacts on Organizational Performance

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Who Performs KM Assessment and What It Incorporates? Team of both internal and external members Peer review of internal performance External appraisal Business evaluation of effectiveness, efficiency and innovativeness Evaluation of the knowledge assets created

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Approaches for KM Assessment Benchmarking Balanced Scorecard method Intangible assets monitor framework Skandia Method Real options approach

Becerra-Fernandez & Sabherwal -- Knowledge Management © 2010 M.E. Sharpe Recommendations for KM Assessment Remember why you are doing KM Establish a baseline Consider qualitative methods Keep it simple Avoid KM metrics that are hard to control Measure at the appropriate level Link rewards to KM assessment results Be conservative in your claims