Compiled by : Shyan Kirat Rai Knowledge Management Taming the Intangible Compiled by : Shyan Kirat Rai skrai@nasc.org.np

Agenda KM Definitions What is knowledge KM Myths SECI Model KM Tools KM Methods Roadmap to KM in an organization

What is Knowledge? Source: R. Ackoff’s “Pyramid to Wisdom” (1989, 1996) Understanding that permits knowledge to be used Organized information that provides guidance or initiates action Knowledge Collection of related data with context and perspective Information DIKW (Data, Information, Knowledge, Wisdom) model from http://www-personal.si.umich.edu/~nsharma/dikw_origin.htm Quezon City (QC) Weather in DIKW context: If you see the weather forecast for QC but don’t live there (say you’re in another country), then it has no direct connection to your life – so its just DATA If you happen to live or work in QC, then this same set of numbers becomes INFORMATION – because it informs you of what the weather is like – even if you can’t do anything about it. If you live or work in QC and can use the information as a basis to make a decision (e.g., will you bring an umbrella or shades because it will be hot?) or take action (e.g., you won’t water the plants or wash the car because it might rain, etc.), then it becomes KNOWLEDGE. WISDOM is the experience that comes with using knowledge repeatedly (e.g., you know that if the weather report says 26 – 31C, partly cloudy, then it won’t rain – so its okay to wear your new shoes to go to school or work). Data Raw / hard facts

Three entities – Data, Information & Knowledge The continuum of knowledge Abstract Wisdom Insights Experience Physical Knowledge Information Data Three entities – Data, Information & Knowledge

DIKW- Continuum

Types of Knowledge Explicit Knowledge Tacit Knowledge Knowledge that is written down – and thus, easily recorded, shared, tracked, and measured, as well as edited or improved by others. Tacit Knowledge Knowledge in your head. What you know but cannot easily share that lets you do a better job.

Knowledge Assets (KA) Explicit Tacit Paper-based Multimedia Digitally-Indexed = Media-based Written down Digitally-Active Intellectual Property © ™ (sm) Patents Tacit Individuals = People knowledge in People’s head Groups

Definition of KM Knowledge management is a discipline that promotes an integrated approach to identifying, retrieving, evaluating, and sharing an enterprise’s tacit and explicit knowledge assets to meet mission objectives. The objective is to connect those who know with those who need to know (know-why, know-what, know-who, and know-how) by leveraging knowledge transfers from one-to-many across the enterprise.

Definitions… Knowledge Management (KM). A conscious strategy to leverage the knowledge assets of an organization to help achieve the business results.

Definitions… A managed system for ensuring that The right knowledge Reaches the right people At the right time To help them make the right decisions

KM Thoughts “KM is a JOURNEY not a DESTINATION” -Warick Holder

KM Advantages In today’s knowledge economy “knowledge is the biggest capital” Knowledge is linked to performance KM helps innovation Take advantage of what others already know Avoid past mistakes Avoid redundant work Retain organizational knowledge

KM Thoughts “In the end, learning faster than our competitors is the only sustainable competitive advantage” -Arie de Geus – Shell

Knowledge Management Myths Knowledge can be managed Don’t manage, facilitate KM implementation is the goal KM is an enabler to achieve bigger goals KM means implementing a software Technology is only an enabler KM needs changing culture Can’t change culture, influence it

KM Thoughts “You can’t manage knowledge – nobody can. What you can do is to manage the environment in which knowledge can be created, discovered, captured, shared, distilled, validated, transferred, adopted, adapted and applied.” Chris Collison and Geoff Parcell, Learning to Fly: Practical Knowledge Management from Leading and Learning Organizations ”

It is not the strongest of the species that survive, Nor the most intelligent … But the ones most responsive to change - Charles Darwin

KM Enablers Technology 10 % 70 % People Process 20 % Success

Knowledge Management involves processes for Knowledge acquisition Knowledge creation Knowledge storage Knowledge sharing Knowledge application

Knowledge Sharing Connecting Collecting There are two ways to exchange knowledge. You need both, for different types of knowledge Knowledge can be exchanged through dialogue (the CONNECT route) Knowledge can be exchanged in written or recorded form (the COLLECT route) Source: http://www.slideshare.net/nickmilton/introduction-to-knowledge-management

A demand for knowledge will stimulate a supply, but not vice versa” KM Thoughts “Sharing knowledge occurs when people are genuinely interested in helping one another develop new capacities for action; it is about creating learning processes. A demand for knowledge will stimulate a supply, but not vice versa”

Barriers to KM Unclear concept/ vision “Knowledge is power “ mentality Lack of knowledge sharing processes No time allowed No knowledge sharing by executives Managers do not walk the talk Ineffective channels of knowledge distribution Lack of knowledge filters Lack of encouragement Bureaucracy

KM Thoughts -Bob Buckman Our approach to KM is far more than stick or carrot. We say, "Knowledge Sharing is your job. Do it! As a reward you may keep your job” -Bob Buckman

Some of the Knowledge Creation Tools After Action Review (AAR) Collegial Coaching Yellow Pages SWOT (Strengths - Weaknesses - Opportunities - Threats) Good Practice Knowledge Fair Exit Interview Story Telling   Experience Capitalization Mentoring Visualization

Tools Contd.. Peer Assist Briefing Brainstorming Group Facilitation (Moderation) Community of Practice Open Space Balanced Scorecard Knowledge Map Knowledge Network Lessons Learnt

SECI Model Ikujiro Nonaka and Hirotaka Takeuchi propose a model of the knowledge creating process to understand the dynamic nature of knowledge creation, and to manage such a process effectively: the SECI model.

Technology in Knowledge Management Taming the Intangible

Implementing and Maintaining KM Maintaining KMS KM Why Implement KM? Strategy for Implementing Who’s Responsible? IT’s Role in Implementing 30

Knowledge Management Systems Knowledge management systems refer to any kind of IT system that stores and retrieves knowledge, improves collaboration, locates knowledge sources, mines repositories for hidden knowledge, captures and uses knowledge, or enhances the KM process

KM Systems Tools Groupware systems & KM 2.0 The intranet and extranet Data warehousing, data mining Decision Support Systems Content management systems Document management systems Artificial intelligence tools Simulation tools Semantic networks

KM Tools Wiki RSS File Sharing

TRANSFORMATION IN GOVERNMENT Bureaucratic Citizen Centric Fragmented Integrated Authoritarian Service Oriented, Participatory Closed Transparent Intuition/ Guess Work Informed Decision Making Manual Operation Automated

Problem The technical programming and design know- how Organizational know-how based on the understanding of knowledge flows

When Knowledge adds up to nothing Charles Lucier, Chief Knowledge Officer at International management and technology consulting firm said up to 84% of all KM programs fail. A global bank spanning 70 countries abandoned their KMS before it was ever rolled out. A European manufacturing company successfully implemented a KMS, but it was rarely used. A pharmaceutical company implemented a KMS that could not be easily adapted to specific context of each work group

Failure Factor of KM Systems Inadequate support: managerial and technical, during both implementation and use. Expecting that the technology is a KM solution in itself. Failure to understand exactly what the firm needs (whether technologically or otherwise). Not understanding the specific function and limitation of each individual system.

Lack of organizational acceptance, and assuming that if you build it, they will come – lack of appropriate organizational culture. Inadequate quality measures (e.g. lack of content management). Lack of organizational/departmental/etc fit - does it make working in the organization. easier? Is a system appropriate in one area of the firm but not another? Does it actually disrupt existing processes? Lack of understanding of knowledge dynamics and the inherent difficulty in transferring tacit knowledge with IT based systems. Lack of a separate budget.

Knowledge Management Success Evidence shows that, despite the potential pitfalls and seemingly high failure rate, companies are still willing to invest in KM. Why? Because there are big benefits there for taking. The results of several surveys met: 87% of European business directors believe they could enhance their company’s competitiveness with improved KM and 76% believe Building + Sharing Knowledge is important for their company. Study of 500 firms conducted by KPMG illustrated 80% of senior executives feel that KM is strategic to their organization and 78% feel they have missed business opportunities. Hoffmann-Roche, the Swiss pharmaceutical firm, has estimated that it saves over $1 million per day due to its KM activities BP Amoco attributed $260 million in bottom-line savings to a KM program 43

Knowledge Management Success (Cont.) Energy firm Schlumberger Ltd. reported an estimated 668% ROI on a $72 million investment in KM over a period of six years Chevron Corporation estimates that it saved an initial $150 million, plus at least another $20 million annually by instituting a best practices program Teltech Communications, a firm that specializes in aiding companies to implement knowledge management programs, reports that its clients enjoy an average ROI of 12:1 for their efforts In a survey carried out by Information Week , IT executives said they considered KM a strategic initiative of high importance, and KM spend is to climb at 62% of the IT institutions surveyed Hewlett-Packard’s knowledge efforts aimed at customer service have reduced average call times by two-thirds and the cost per call has fallen by 50 percent 44

Keys to successful KM As is the case with many new practices in workplace: Getting employees on board from day one and making sure they realize exactly how KM program is to impact on their routines and bring benefits for the organization as a whole is pivotal Make sure KM becomes a fundamental aspect of the way you do business Be sure your KM implementation is less about reporting and more about sharing knowledge “Knowledge is a company asset, hidden, until the knowledge worker releases it. The key to generating the best returns from your KM Program is to implement a well-planned methodology and ensure that your organization facilitates this release of information.” -Mike Bagshaw, Development Director at Trans4mation Training Ltd,

Imagination Is more important than knowledge

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