Managing Organizational Knowledge Our session today will focus on knowledge management concepts and business process analysis. However, as you saw from the learning objectives, this AOE covers many more topics that you will want to study for the exam. Remember, this AOE only has an 8% weighting in the exam…that’s only 12 questions.

Session Topics Concepts Components Goals Best Practices Purpose of Business Process Identification Analysis Tools and Techniques to Facilitate Business Process Analysis Knowledge Management Review topics

Have you… Used a Google search? Downloaded into from the internet to you local PC? Use key words to search for content on your PC or the internet? Shared info with others via email, network drive, or collaboration tools such as IMs? Q: Who has done one of these things? (polling) If you have done any of these actions, then you are already using knowledge management. Information management is key in every organization. There are two primary ways of providing essential information: instruction and information sharing. Instruction is information that is taught. When a learning need requires instruction, training is provided. Information sharing can be done formally or informally. When a learning need is more appropriately addressed with information, then knowledge management may be the solution. Knowledge management enable employees to access the organization’s collective wisdom. For example, an employee needs to remember the correct way to process quarterly sales bonuses. The employee was previously trained on the correct process, however, she needs to view a quick cheat sheet of the steps in a document to remember them when processing the bonuses once each quarter.

Knowledge Management Management of intellectual capital and organizational knowledge Processes of creating, gathering, organizing, retrieving, and leveraging intellectual capital Improvement of organizations and the people in them Q: So what is knowledge management? A: The explicit and systematic management of intellectual capital and organizational knowledge, as well as the associated processes of creating, gathering, organizing, retrieving, and leveraging intellectual capital for the purposes of improving organizations and the people in them.

KM Concepts Building Blocks Data Information Knowledge Knowledge and information are increasingly become key assets for organizations. Q: What are the three key building blocks of knowledge management: Q: What is the difference between data and information? Data – is raw, without context, and can exist in any form, usable or not Information – data that has been given meaning Knowledge – information that when combined with understanding, enables decision making. Think of the relationship of data, information, and knowledge as a hierarchy. Data gets turned into information, which then provides knowledge on which decisions can be based.

KM Concepts (cont.) Data Information For example, data, or numbers in a spreadsheet, turns into information, which is an annual budget for the training department. This in turn becomes knowledge, as a manager can us it to analyze a drop in training enrollments for specific classes and can then take actions to identify issues and carry out strategies to change the trend.

KM Concepts (cont.) Types of Knowledge Tacit Explicit Q: What is the difference between tacit and explicit knowledge? Tacit knowledge is in one’s head – knowing how to do something based on experience Explicit knowledge includes information that has been documented or can be shared with someone Q: What is the purpose of a knowledge base? A: It is a centralized repository where organizations capture and store data to turn tacit knowledge into explicit knowledge.

Case Study Activity Brainstorm what type of info, tacit or explicit, should be captured. Indicate 3 ways that your team could gather this info. List 3 ways that you plan to formalize where the info is housed and how others can access it. Discuss how this is done in the real world. Handout the Case Study. So, you are the training manager in an organization, and you just finished a major training initiative rollout to all sales reps. As shown on your handout, this blended-learning solution included: Self-directed learning pre-work using paper-based workbooks An asynchronous webcast communication from the CEO A one-day instructor-led training class You were responsible for coordinating all logistics, and there were some unforeseen hiccups that required quick contingencies to keep the training on track. In your groups, take 15 minutes to complete your handouts. Brainstorm what type of information, either tacit or explicit, should be captured now that the project is wrapping up. Indicate three ways that your team could gather this info. List three ways that you plan to formalize where the info is housed and how others can gain access to it. Discuss ways in which real-world organization currently or historically have managed information, where the information is stored, how easy it is to find specific topics (for example, are key word searches used), and who within the organization has access to the information.

KM Elements Collaboration Expertise Communities of Practice Knowledge Networking Real-time Knowledge of Organization Depth/Scope Personalizing Information Differentiation between Info and Instruction Q: What are some of the elements of knowledge management? A: Collaboration and ability to connect individuals and groups – some organizations hold rallies as strategic reviews, systems audits, internal benchmark reports, and symposiums to have customers and suppliers share ideas. Expertise and access to experts – team mixing and job rotations help transfer knowledge across boundaries Communities of practice – a group of scientists on a LAN collaborates, posts questions, and shares notes and ideas Knowledge networking – stored knowledge must be accessible and logical to everyone – for example, listed by topic categories or key words Making information available real time Q: Examples of these things you’ve seen used?

KM Goal The effective sharing of knowledge throughout an organization for the benefit of the organization or the individual. While technology facilitates knowledge management, KM is as much about people, working relationships, and communication. There is an abundance of information available on the internet, some of it well-organized and some of it not. The information captured and made accessible needs to prepare an individual for success and prepare the organization for successful outcomes. Q: What is the goal of knowledge management? A: The effective sharing of knowledge throughout an organization for the benefit of the organization or the individual. This includes orientation information to fit culture and skills specific to socialization knowledge. KM seeks to overcome the barriers in knowledge sharing. Q: What is the role of individuals in knowledge management? A: While technology facilitates knowledge management, KM is as much about people, working relationships, and communication. For example, an org spends $1 million to implement a new database for employees to us to document department-specific processes and procedures and capture best practices and lessons learned. One year after the system implementation, an audit reveals that only 10% of departments in the org have entered any info, and even then, info entered is now outdated. If the organizational culture and employees do not buy in to a knowledge management initiative, it is not likely to succeed.

Best Practices Techniques believed to constitute a paradigm of excellence in a field What processes are key focuses of knowledge management? Creating Capturing Organizing Sharing Leveraging Q: What are best practices? A: Techniques believed to constitute a paradigm of excellence in a particular field. Best practices often use benchmarking to help orgs establish measurements and to measure improvements. Q: What are some orgs that you know are used to benchmark things like customer satisfaction? (Nordstrom, Southwest Airlines) Q: What processes are key focuses of knowledge management? Q: Which of these processes do best practices focus on? Q: What are some techniques used to capture and share best practices?

Business Process Identification Business Process Analysis Structured method of documenting business rules and functions Uncovers hidden inefficiencies Highlights strengths Focuses on increasing productivity Work Processes Process Owners Inputs and Outputs Customers and Suppliers Increasingly, orgs are realizing that the first step in almost any major project includes analyzing and defining the business processes, and then communicating those processes to employees who need to use them. A process is how people, materials, methods, machines, and the environment combine to add value to a product or service. Everything that gets done is part of the process – how the work gets done, roles and responsibilities, and resources and systems. Q: What is the purpose of business process analysis? Bullets Q: What are the elements that make up processes? Q: What is the purpose of a process map? A: A process map is a visual tool used to systematically describe actions and behaviors in a sequential flow, and presents a clear, graphic representation of all tasks and steps to carry out a particular process. You construct a flowchart to show the inputs required to start a process, the tasks required to perform the process, and the outputs at the end of the process. Q: What is an example of a business process?

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