The Knowing-Doing Gap and Organizational Success v Managerial fads and fashions v Why do organizations succeed or fail? v What is knowing – doing gap? v What are some of the managerial practices that lead to knowing – doing gap?

The Annual Management Tools and Techniques Survey Benchmarking. Compares a business' activities to those of the best companies. Core competencies. Build capabilities that customers will value and that competitors can't replicate. Customer satisfaction. Focuses on identifying and meeting customer needs. Growth strategies. Aim to lift profits by expanding revenues, not just cutting costs. Mission and vision statements. Describe what the company will become and how it will get there. Pay for performance. Ties compensation to reaching specific business goals. Reengineering. Radically redesigns business processes to improve productivity. Strategic alliances. Create business partnerships among customers, suppliers, and even competitors. Strategic planning. Develops a comprehensive program to position businesses for long-term success. Total quality management. Seeks to eliminate errors in order to reduce costs and better serve customers. Prepared by Darrell K. Rigby for Bain & Co., of which he is a director. The database includes 4,137 survey responses and 224 personal interviews with senior managers in 15 countries.

Why do organizations succeed or fail? What are the sources of competitive advantage 1- Economies of scale 2- Access to financial resources 3- Protected and regulated markets 4- Product and process technology 5- Management of human assets What are the elements of sustainable comp. Adv.? Not directly visible Difficult to understand Difficult to imitate Competitive advantage comes from being able to do something others cannot do.

What is Knowing-doing Gap? We know we Should do this We are Doing it already Using an active assessment process for hiring new employees Providing employees with frequent feedback Sharing information about your organization’s performance with everyone Using practices that ensure fast and reliable customer service Your own project?

What Is Knowledge Management?

Lessons Learned from thriving giants: If it is common sense, why can’t we do it ? l Accept change : Willingness to make your own products and services obsolete l Listen to customers : Fight against isolation and arrogance l Decentralize authority l Hire carefully : Sign up skilled people l Teach continuously : Do not skimp on training even in lean times l Foster a frugal corporate culture : Lavish perks send the wrong message to employees Because…….

Sometimes Talk Substitutes for Action v Making decisions v Making presentations v Writing reports v Planning for the future v Developing mission statements v Evaluations based on sounding smart v Increased status by talking v Business schools teach it v Consultants preach it v We believe that managers talk and others do Talking by But why?

When is organizational memory a substitute for managerial thinking? v A strong identity of who we are v A strong need to be consistent with past decisions and to show perseverance v Our strong desire to avoid ambiguity and uncertainty v Our use of implicit and untested models of behavior and performance in decision making v Our expectations about what is possible