Knowledge Management Because People Know More Than They Can Tell,. And Knowledge Management Because People Know More Than They Can Tell, And Tell More Than They Can Write Down. WALTON By PRAMOD NIROULA-NASC

Presentation Outline Warm up Questions Knowledge: The Big Picture Knowledge Management: Journey from Creation to Application Digging Deeper into Knowledge Management : Process and Tools Why Managing Knowledge is Crucial: the Strategic Perspective Refining the Knowledge Management: The Synthesis and Knowledge Cycle

Knowledge Management: The Big Picture Assembling Facts Data Making Meaning Information Applying to Improve Lives Knowledge Expertise/Wisdom

Value of Data, Information & Knowledge H T H T T H H H T H … T T T H T pH = 0.40 pT = 0.60 RH = +$10 RT = -$8 nH = 40 nT = 60 Information Data Zero Low Medium High Very High Value Knowledge (approximation only) EV = -$0.80 Counting pH = nH/(nH+nT) pT = nT/(nH+nT) EV=pH RH+ pT RT

Data –> Information –> Knowledge -> Wisdom Knowledge – the know how actionable information e.g., Increasing the production capacity before X’mas each year to handle the extra sales volume Wisdom – the know why e.g., why there is increasing sales volume just before X’mas? inclination to adjust Tacit/Explicit/ Embedded Knowledge Data Information Knowledge Wisdom

Relating Data, Information, Knowledge to Events System Data Information Knowledge Decision Support System Use of information Decision actions Events

Knowledge Creation British Petroleum gives a “Thief of the year” award to the person who has “stolen” the best ideas in application development. That is why, the Spanish proverb “Well stolen is half done” is sound reasoning if you are in the knowledge business.

How do we Create Knowledge in Organization? SN Source Ways 1. Buy it The knowledge you think you are buying may walk out the door. 2. Rental If you are renting a knowledge, make sure you take steps to retain it too. 3. Dedicated Resources Establish units or groups specially for that purpose i.e. R&D are the standard example. 4. Fusion Bringing together people with different perspectives to work on a problem or project, forcing them to come up with a joint answer 5. Networks Generation/creation through informal, self organizing networks within organization 6. Adaptation External and internal changes cause business to adapt.

JOHARI Window for this purpose Feedback Unknown to self Known to self Known to others PUBLIC BLIND PRIVATE UNKNOWN Disclosure Unknown to others

Knowledge Creation : Self Methods Brainstorming Mind mapping(Concept Mapping) Attribute Listing Problem Reversal Forced Analogy Researching

The Knowledge Spiral: Continuous Cycle Knowledge Type Process Method/Tool (How ) 1. Tacit-Tacit Socialization Sharing Experiences and ideas 2. Tacit-Explicit Externalization Articulation via Metaphor and model 3. Explicit-Explicit Combination Sorting/Combining 4. Explicit-Tacit Internalization Learning by Doing, technical Know how

Major KM Tools & Techniques Brainstorming Peer Assist Learning Reviews After Action Reviews Communities of Practice Storytelling Virtual Work Spaces Physical Work Spaces Quality Circles Social Network services Document Libraries Blogs Advanced Search Knowledge Clusters Knowledge Café Exit Interview

Why People do not Want to Share Knowledge? “Knowledge is power”  “I don’t have time”  “I’ve got too much real work to do”  “That’s not my job”  “You’re just using other people’s ideas and taking the credit”  “I want to do things my way”  “This is how it’s always been done” “I’m already suffering from information overload” “You should already know all the answers”  “It’s just another management fad; if I ignore it, it’ll eventually go away” “What’s in it for me?”

Explicit (Structured) Most knowledge management systems typically only capture a fraction of Knowledge! Type of Knowledge Percentage of Data Explicit (Structured) 40% Tacit (Unstructured) New/recently created 20%

Successful Implementation for Knowledge Management Understanding of People with Process and Technology: Knowledge Inputs Successful Implementation for Knowledge Management Technology Process People WALTON – LEAD Enterprise 2.0 is not simply a series of technology tools, but a transformation of the enterprise mindset to build strategy to address business requirements that realize cost savings, performance improvement, and if possible, new innovative sources of revenue. The building blocks of this potential enterprise success are in the people, processes, and technology that make up the organization. Over the last few years, as agencies and corporations have sought to solve this problem of knowledge loss, Enterprise 2.0 showed much promise to help them capture information from staff, management, and interconnected systems. However, as with most technological changes, Enterprise 2.0 suffered from too much focus on tools and technologies, and not enough on the processes, people, and strategies needed to drive success in the long term. Very often, organizations apply technology to solve complex challenges only to find that the technology multiplies the impact and visibility of the problem. A people-and-process-first strategy is key to unlocking the benefits of Enterprise 2.0 technologies and must include a focus on the organization’s mission, the initiatives that are truly required to achieve the mission, and defining the metrics to measure success in both the short and long term. The building blocks of the organization—people, processes, and technology— must be evaluated and incorporated into the Enterprise 2.0 planning process. By first making people and processing more efficient and then investing in the technology to make them more effective, organizations can achieve their missions measurably, more effectively, and at a lower cost over time.

It’s everything underneath that we so often forget about Technology is just the tip of the iceberg – the part that everyone pays attention to It’s everything underneath that we so often forget about Steve – Lead People and Processes - examples What’s your policy regarding social vs. professional content? How are you defining each term? Are employees comfortable sharing “unfinished” work without peer or manager review? Is senior leadership ready to not only support the initiative but be visibly active? How will you handle employees who publicly complain about a new policy? What’s your content policy? Who owns the intellectual capital that’s posted? How do you handle the content of an employee who leaves? What’s your funding plan for year 2? Year 4?

Different Types of Knowledge

Knowledge Management Processes Discovery Combination Socialization Sharing Socialization Exchange Application Direction Routines Capture Externalization Internalization

Knowledge Enablers Knowledge Resources Culture & Learning Practices What do we know and where is it ? Culture & Learning Practices What processes leverage How do we participate that know-how? with this know-how? Collaborative Technology How do we support this know-how?

Organizational Learning Process Diffusion - Tacit, Explicit Incentives Integration Modification Identification Creation Metrics Action Overall focus is on learning actionable knowledge Organizations successful at KM Generate and Generalize knowledge Generate - Create new knowledge and Identify knowledge that exists inside and outside the organization Generalize - Transfer Knowledge from person to person, group to group, organization to organization Diffusion - tacit/explicit - Tacit - Dialogue, Explicit - someone creates an external representation of their understanding (Word, e-mail, PowerPoint) Integration - Knowledge transfer only matters to the receiver. Person knowledge is transferred to must be open to new ideas, able to challenge assumptions to integrate into their mental model. Modification - Knowledge is never received “pure”, typically the receiver takes out the pieces that work for him/her. Action - Important experiential knowledge is built through action. Wouldn’t expect someone to be able to <choose example> by reading a book or paper. Need tacit knowledge built up in action. Need metrics to determine success in each area and to provide incentive. Not measured it won’t get done. Focus of this MSR is on metrics and incentives for the diffusion process. Examine available tools and develop tools for each area. (I.e. Expert Finder (identification), CVW - diffusion, Invention Machine (integration), PowerSim (Action) Source: Reinhardt and Pawlowsky

Knowledge Management Metrics Measuring Success (How am I doing?) Benchmarking (How am I comparatively doing?) Tracking Improvement (Am I getting better?) Direct future investment (technology, employees) strategy alignment (culture, incentives) “One way to ensure your doing worse is to not measure” - Adapted from Pressman Why take Metrics? - they provide a normative direction. Give goals to an organization.

KM Architecture

Knowledge Management Process Model Acquisition Refinement Storage/ Retrieval Distribution Presentation Expertise Domain Model Business Rules Ownership; Federation Agreements, Data Sources External Sources and Formats. Wrappers Politics of data Data Cleansing Indexing Metadata Tagging Concept Formulation Information Integration Ontology & Taxonomy Knowledge Curation. Storage and indexing of Knowledge Concept-based Retrieval Retrieval by Author, Content, Threads, etc. Knowledge Security. Intranet & Internet Knowledge Portals XML Active Subscriptions Discussion Groups. Digital Rights Management User Profiles for dynamic tailoring links. Knowledge creation, update annotation, and storage in Knowledge Repository. Collaboration Environments

Knowledge Management System

Learning Before, During and After Knowledge Management Framework Using Knowledge Learn during after before Learning Review After Action Review Peer Assist 25

Knowledge Strategy Model Resources Organization, Capabilities, Core Competencies Firm’s Knowledge Strategy Customer Relationships Strategic Resources Networks, Partners

Knowledge Strategic Drivers Growth through share, market strength, distribution – external market focus Forging long-term, deep relationships with customers – external focus, growing with customer success Market Growth Customer Intimacy Operational Effectiveness Profit through productivity and cost control – internal development focus

TOP Down VS Bottom UP Management Strategically linked, Organizational Opportunity for knowledge integration: Middle sees organizational needs best Top-down knowledge strategy authoritarian Communities have limited access to big picture Dynamic business conditions require view from the middle Customers, Context, Constituents Recognition of: Knowledge communities, local initiatives Bottom-Up

Where do you stand? Your Organization Competitors Innovator Innovative Leader Viable Competitor Advanced Laggard advancement At Risk Core “exit strategy” Core Knowledge Advanced Knowledge Innovative Knowledge Competitors

Knowledge Management Cycle Knowledge Creation and Acquisition Knowledge Representation Knowledge Dissemination and Sharing Knowledge Manipulation And Use None of these things were endorsed by military acquisitions, but all have gradually started happening out of necessity and user requirements.

Knowledge Management (Summary) Knowledge Discovery Knowledge Capture Knowledge Sharing Knowledge Application KM Processes Combination Socialization Internalization Externalization Exchange Direction Routines Knowledge Discovery Systems Knowledge Capture Systems Knowledge Sharing Systems Knowledge Application Systems KM Systems KM Mechanisms Analogies and metaphors Brainstorming retreats On-the-job training Face-to-face meetings Apprenticeships Employee rotation Learning by observation …. Decision support systems Web-based discussion groups Repositories of best practices Artificial intelligence systems Case-based reasoning Groupware Web pages … KM Technologies Organization Culture Organization Structure IT Infrastructure Common Knowledge Physical Environment KM Infrastructure

And Finally: Knowledge Management in a Sentence Getting the right information to the right people at the right time.

FINANCIAL STATEMENTS Balance Sheet Income Statement: - Trading and Profit & Loss Account in the case of profit making entity and Income & Expenditure Account in the case of non profit making entity. Statement of changes in equity Cash Flow Statement Accounting policies and explanatory notes.