Dynamics of Decision Making Knowledge management implementing systems and practices that increase the sharing of knowledge and information throughout an organization Development of tools, processes, systems, structures and cultures explicitly to improve the creation, sharing, and use of knowledge critical for decision making. Avoid “Silos of Excellence”

Knowledge Management Tacit knowledge Explicit knowledge information gained through experience that is difficult to express and formalize. Experience gained by being immersed in a complex environment over a long period of time. Mentoring – a method to share Tacit Knowledge. Requires knowledge sharing culture Explicit knowledge information that can be easily put into words and shared with others. Complex concepts…

Knowledge Management Intellectual Capital – Knowledge is the new wealth of organizations Peter Drucker – “knowledge is the principal raw material driving the wealth of people” Knowledge is a strategic asset, an indispensable resource, critical to the effectiveness, efficiency, and innovation driving the global economy. Knowledge assets account for 70% of U.S. and EU GDPs “Knowledge Worker” (knowledge economy)

Knowledge Management

Knowledge Management Knowledge Management is about leveraging an organizations relevant knowledge assets to improve effectiveness, efficiency and innovation Leverage: Knowledge shared realizes a potential far greater than it being hoarded (silos of excellence). Knowledge is an Organizational Multiplier Relevant: most important qualifier; knowledge that meets objectives by improving ability to produce products and services (effectiveness) Efficiency and Innovation: follows effectiveness as knowledge is continually leveraged.

Knowledge Management Purposes Facilitating: Situational understanding. Timely Common Operational Picture across the business spectrum. Decision making. Transfer and availability of expertise and experience. Enhancing organizational learning during business operations. Enhancing collaboration among personnel at different places. Speeding knowledge transfer between departments and individuals (best business practices). Avoid Silos of Excellence. Providing reach back capability to Business schools, centers of excellence, and other resources (GE Crottonville). Incorporating simulations and experiential learning into training. Helping managers become more agile and adaptive during business operations. Influencing operational procedures development. (AARs)

Effective Knowledge Transfer Facilitates better, more informed decisions Encourages insight and innovation by freer flow of ideas Improves Product/Service speed, efficiency and profitability Knowledge Transfer Elements Connection: technical and social networks that facilitate communication Social Network: Individual and Organizational Nodes connected by links that include common values, ideas, vision, etc. (Yammer/IBM) Collaboration: People at two or more locations developing knowledge for same purpose. Excellent for both tacit and explicit knowledge. Content: refers to actual information or knowledge -word-processed text, multimedia presentations (recorded as graphic, audio, or video files), databases, and spreadsheets. (Sharepoint) Context: environment within which the knowledge was created. How it is interpreted by the experience, intelligence and expertise of person receiving knowledge. (Critical Thinking) Context is essential to providing usable, relevant knowledge to decision makers.

Question? Mike has been a top salesman for 20+ years. He has developed a reputation as one who can close a deal, but has been unable to teach new trainees how to be as successful. This is called ________ knowledge. Implicit Explicit Tacit Unstated The correct answer is “C” – tacit. See previous slide.

Knowledge Management Leadership Roles Create Clarity: clarity in defining goals, understanding environment, and outlining likely outcomes for KM initiatives. Define Roles and Processes: in addition to their primary functions, employees participate in KM efforts for knowledge creation and sharing. Create Conditions for Success Clear assignments of KM roles and responsibilities are important for conflict resolution and productivity.

Knowledge Management Leadership Roles Communicate Expectations: Define objective and formal processes in developing knowledge repositories(Sharepoint) and effective dissemination and then communicate to all stakeholders. (Yammer) Employ Consistent Processes: Mandate consistent and formal processes would encourage greater participation and contribution. Participation in knowledge development and sharing new knowledge(Yammer) are the tenets of KM.

Knowledge Management Leadership Roles Establish Trust: Organizational Culture establishes the environment for trust which in turn promotes teamwork and collaboration. Openly accept disagreement. Facilitate Organizational Support: A key success factor for KM is gaining support and participation from key personnel representing all functions (cross functionalization) of the organization and top management.