Harvard Business Review on Knowledge Management Chapters 4-6 Presented by: Gabe Hazlewood Josh Hottenstein James Chen 1 Presentation to MIS 480/580: Knowledge Management Spring 2008

Agenda Chapter 4: How Do We Teach People to Learn Chapter 5: How Different Approaches to Problem Solving effect KM Chapter 6: What is the Role of Organizational Experience in KM Discussion on the role Behavior plays in KM 2

Theme of Our Discussion “What role does individual behavior have in organizational learning and what behaviors do we exhibit that inhibit effective knowledge management” At the close of this presentation you should be able to: Explain why professionals avoid learning Understand how different personalities effect the creation and use of knowledge Explain the role of experience on organizational learning Utilize best practices mitigate these concerns in organizations 3

Chapter 4: Teaching Smart People How to Learn Chapter by: Chris Argyris Presented by: Gabe Hazlewood 4

Background Issue – “…success in the marketplace increasingly depends on learning, yet most people don’t know how to learn.” – C. Argyris Problem – Most companies are not aware that learning dilemma even exists Reason – Companies misunderstand what learning is and how to bring it about 5

Mistakes Define learning too narrowly as mere “problem solving.” – Single-loop learning Thinking that getting people to learn is a matter of motivation – Double-loop learning 6

Solution Companies can learn to resolve the learning dilemma What it takes: “…make the ways managers and employees reason about their behavior a focus of organizational learning and continuous improvement programs.” – C. Argyris 7

How Professionals Avoid Learning Biggest obstacle: Themselves Efforts at learning are focused on external organizational factors – Professionals acted as enthusiastic participants Efforts at learning focused on professionals’ own performance – Feelings of guilt – Began to criticize others – Defensive reasoning 8

Defensive Reasoning Key factor: The way the professionals reasoned about their behavior and that of others Theory of action Paradox of human behavior “Theory-in-use” 9

Governing Values of Theories-in-use Four basic values – Remain in unilateral control – Maximize “winning” & minimize “losing” – Suppress negative feelings – Be as “rational” as possible Purpose of values – Avoid embarrassment or threat – Avoid feeling vulnerable or incompetent “The inevitable response to the observation that somebody is reasoning defensively is yet more defensive reasoning… well-educated professionals are especially susceptible to this.” 10

“Doom Loop” and “Doom Zoom” “…rarely experienced the embarrassment and sense of threat that comes with failure.” “…they do not appreciate being required to compete openly with each other. They feel it is somehow inhumane.” “…behind high aspirations for success is an equally high fear of failure… to feel shame and guilt when they do not meet their high standards.” “…never developed tolerance for feelings of failure or the skills to deal with it… led them to fear the fear of failure itself.” Effects: – Individual perform well, but because job was not perfect and no accolades are received, they go into a “DOOM LOOP” of despair – Don’t ease into it; ZOOOOOOM into it! 11

Learning How to Reason Problem “…even when people are genuinely committed to improving… people still remain locked in defensive reasoning.” There is reason to believe that organizations can break out of this “vicious circle.” People legitimately strive to produce their intentions, and value acting knowledgeably How? Utilize universal human tendencies to teach people how to reason in a new way Change must start at the top! “Until senior managers become aware of the ways they reason defensively, any change activity is likely to be just a fad.” Relate to real business problems 12

Final Thoughts A Company’s learning process needed to overcome organizational defenses through the same kind of “tough reasoning” underlying the effective use of ideas in: Strategy Finance Marketing Manufacturing Other management disciplines “To question someone else’s reasoning is not a sign of mistrust but a valuable opportunity for learning.” “Learning to reason productively can be emotional – even painful. But the payoff is great.” 13

Chapter 5: Putting Your Company’s Whole Brain to Work Chapter by: Dorthy Lenard and Susaan Straus Presented by: Josh Hottenstein 14

Putting Your Companies Whole Brain to Work Managers need to take into account intellectual diversity and different learning styles when developing effective learning organizations Managers must take into account: The Creative Process How We Think How We Act A Caveat Emptor Mentality 15

The Creative Process Driven by the need to innovate or fall behind Potential problems: Comfortable Clone Syndrome: Coworkers share similar interest and as a result think alike Struggle due to disagreement: Managers do not understand different thinking styles and are not able to effectively manage diverse teams Potential positives: The use of Creative abrasion: The manager is able to successfully manage diverse thinking styles to successfully innovate 16

How We Think We all have a number of Cognitive Differences the effect how we approach problem solving Some models of which include: Left Brain vs. Right Brain Myers-Briggs Type Indicator Herrmann Brain Dominance Instrument 17

Left Brain vs. Right Brain 18 The belief here is how people tend to process information that has been collected and what forms their approach to problem solving Source” technology.com/contractor_images/coloron/image_2.jpg

Myers-Briggs Type Indicator 19 I = Introvert E = Extravert S = Sensing N = Intuitive T = Think F = Feeling P = Perceiving J = Judging Personality type indicator based upon Jungian types that shows how individuals process information along 4 different dimensions, each of which influence personality decision making style Source:

Herrmann Brain Dominance Instrument 20 A. Analytical thinking Preferred activities : collecting data, analysis, understanding how things work B. Sequential thinking Preferred activities : following directions, detail oriented work C. Interpersonal thinking Preferred activities : listening to and expressing ideas, looking for personal meaning D. Imaginative thinking Preferred activities : Looking at the big picture, taking initiative, challenging assumptions Source: Wikipedia Based upon Ned Herrmann while a manager at General Electric Source: Leila Hidar

How We Act Managers need to develop teams that embrace intellectual diversity to effectively manage the creative process and the creation of knowledge To do this the author suggest the following: Understand Yourself Forget the Golden Rule Create Whole-Brained Teams Look for the Ugly Duckling Manage the Creative Process 21

How We Act Continued Understand Yourself Know your style you so you understand differences in learning and communication styles. Forget the Golden Rule Tailor the communication to the receiver instead of the sender Create Whole-Brained Teams Ensure individuals with different intellectual approaches are on your teams Look for the Ugly Duckling Spend time understanding team members and acknowledge differences Manage the Creative Process Set common team goals and make guidelines explicit so members know what to expect Depersonalize Conflict Ensure conflict is handled quickly and addressed as an attribute or behavior not interpersonally 22

Caveat Emptor Understand that the instruments are only a tool and will only look at a particular aspect of personality A particular preference is not better or worse they are just different modes of approaching a problem Individuals will act outside our preferred styles depending on the situation Only professionals should administer instruments due to how results can be utilized and copyright concerns 23

Conclusions In today's organizations multiple view points need to be taken into account and effective understanding of different problem solving methodologies can help the innovation process 24

Chapter 6: How To Make Experience Your Company’s Best Teacher Chapter by: Art Kleiner and George Roth Presented by: James Chen 25

How To Make Experience Your Company’s Best Teacher Art Kleiner George Roth 26 About the Authors

Experience is Often the Best Teacher In our personal life In corporate life  Mistakes get repeated, smart decisions do not Why?  Insight are rarely shared openly, and they are analyzed, debated, and ultimately internalized by the whole organization even less frequently  Managers have few tools with which to capture institutional experience and disseminate its lessons Then, what we should do about this? 27

Development of Learning History Definition: A learning history is a written narrative of a company’s recent set of critical episodes presented in two column How to create a Learning History: 28 Analysis and commentary by the learning historians who are trained outsiders and knowledgeable insiders Relevant events are described by the people who took part in them, were effected by them, or observed the events close-up

Learning History Example: 29

Learning History (continued) When complete, it is used as the basis for group discussions It is actually based on the ancient practice of oral histories Example for learning-history project 30

Why Learning Histories Work 1. They build trust 2. Effective at raising issues that people would like to talk about but have not had the courage to discuss openly. 3. Have proved successful at transferring knowledge from one part of a company to another 4. Help build a body of general knowledge about management. 31

Knowledge Types Explicit knowledge Knowledge that has been codified Tacit knowledge Knowledge contained in individuals minds The transfer of tacit knowledge is important in creating and maintaining a company culture, including the ethical dimension.

Tacit Knowledge Transmission The Learning of Tacit Knowledge: A Model Described by Nonaka and Takeuchi

Tacit Knowledge Transmission (Cont.) One area in which this cycle is invaluable for business is in the development of new knowledge that provides competitive advantage. Another area of business in which the cycle can come into play is the development of company culture The tacit learning model suggested by Nonaka and Takeuchi may be very useful in helping us understand how tacit learning can be directed toward more positive outcomes

Case Analysis (Focus on Strategic Decision) Kmart Once the biggest retailer Kicked a number of competitors out of business Scale, lower cost, renovation, etc. Challenged by Wal-Mart Wal-Mart adopted Kmart’s successful strategies Focus on market growth especially on suburban & small towns Lowered operational costs and prices Added good decorations to attract more customers Learning from experience huge difference in market position

Conclusions Learning histories can be an effective documentation method and could help companies or departments learn from experience gathered during previous engagement and get a better understanding of the critical choices for their project. Experience can be the best teacher 36

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Los Angeles Unified School District Example of Defensive Reasoning Critical hardware and software for the payroll system had failed numerous times Both the School District and Deloitte went back and forth laying blame on each other Resulted in unwanted media attention 38 Source: LA Times

Herrmann Brain Dominance Example Management at a large hospital was having problems developing group interaction Brought in outside consultant that administered the instrument and trained the team on brain dominance Highlighted the different learning methodologies and allowed the team to understand why different team member behaved in a particular fashion Resulted in better team work and more responsive attention to internal customers needs 39 Source: Interview Paul Hottenstein, Director at the Hospital

MBTI Example Arizona Blue Chip program utilizes MBTI as part of their leadership training Individuals take the instrument and then discuss the personalities in like and dissimilar teams Teams are then formed using dissimilar personality types to ensure diversity of thought Participants have noted they have ot work harder in these teams but administrators have seen a higher quality output as a result 40 Source: Interview Jeff Jackson, Director Blue Chip Program

Learning History Example The development and codification of Common Law traditions When suit is brought in court individuals claim that they have been harmed. In the common law tradition decisions are made in these suits and opinions written down that codify norms of business and social interactions Over time these decisions are collected form the basis of a codified tradition of common law. 41