1. Knowledge Management Strategy
Chapter 05
Knowledge Management Strategy

2. Objectives and outcomes
Overall objective:
To apply tools and models to develop knowledge management strategies
Learning outcomes:
Understand the nature of organisational knowledge;
Assess the value of organisational knowledge;
Identify key management issues of knowledge management;
Select and assess the value of information systems to knowledge management.

3. Management issues
How do we use knowledge to increase organisational efficiency and competitiveness?
How can ICT support a knowledge management strategy?
What are typical barriers to effective knowledge management?
How should knowledge management strategy be aligned with corporate strategy?

4. Introduction
Knowledge has grown as a concept since it first emerged in the 1990s.
Realization emerged that if organizations can manage the learning process better, then they can become more efficient.
Knowledge Management Strategy definition:
‘Defined and co-ordinated plan of actions to enable core business processes using knowledge management techniques.’

5. KM Strategy Process
Figure 5.1 KM Strategy Process
Source: BIM

6. Defining knowledge
Data: Discrete, objective facts (numbers, symbols, figures) without context or interpretation
Information: Data which adds value to the understanding of a subject and in context, is the basis for knowledge
Knowledge: The combination of data and information, to which is added expert opinion, skills and experience, to result in a valuable asset which can be used to aid decision making. Knowledge may be explicit and/or tacit, individual and/or collective

7. Data, Information and Knowledge
Figure 5.2 Data, Information and knowledge
Source: BIM

8. Alternative view of Data, Information & Knowledge
Figure 5.3 Alternative view of Data, Information & Knowledge
Source: Dave Snowden IBM, Gurteen Conference 2003

9. The Tacit/Explicit knowledge model
Nonaka (1995) identifies four different processes in which knowledge is created and transferred:
Tacit to Tacit through a process of socialization
Tacit to Explicit through a process of externalization
Explicit to Tacit through a process of internalization
Explicit to Explicit through a process of combination

10. Nonaka's Tacit/Explicit model
Figure 5.4 Nonaka's Tacit/Explicit model
Source: Nonaka and Takeuchi (1995)

11. Knowledge in terms of function
define knowledge by type in terms of function:
· Declarative knowledge (knowledge about)
· Procedural knowledge (know-how)
· Causal (know why)
· Conditional (know when)
· Relational (know with)
Source: (Zak, 2002)

12. Spender’s framework
Individual/explicit (conscious)
Individual/implicit (automatic)
Social/explicit (objectivified)
Social/implicit (collective)

13. Blackler’s five images of knowledge
Embrained knowledge: is dependent on conceptual skills and cognitive abilities
Embodied knowledge: is action orientated and is likely to be only partly explicit
Encultured knowledge: refers to the process of achieving shared understandings
Embedded knowledge: knowledge which resides in systemic routines
Encoded knowledge: is information conveyed by signs and symbols
Internet Article
Source: Blackler (1995)

14. Defining Knowledge Management
Royal Dutch/Shell definition taken from the BSI Guide
to Good Practice:
‘The capabilities by which communities within an organization capture the knowledge that is critical to them, constantly improve it and make it available in the most effective manner to those people who need it, so that they can exploit it creatively to add value as part of their work.’

15. European KM Framework Figure 5.5 European KM Framework
Source: Heisig & Iske (2003)

16. Knowledge Management relationships
Figure 5.6 Knowledge Management relationships
Source: Bahra (2001)

17. Knowledge Management Strategy
Three strategy imperatives:
1. A knowledge management strategy must be aligned with corporate business objectives and activities
2. The strategy must enable all elements of the knowledge processing lifecycle
3. A balance must be developed between individual and organisational capabilities according to 1 and identification of key processes in 2

18. Analysis for KM Strategy
What are the core aspects of our business?
How is the industry we operate in changing?
What are our competitors doing to differentiate themselves in the marketplace?

19. SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis:
KM SWOT
SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis:
What areas of our business benefit from applied, valued knowledge?
What areas of our business lack knowledge?
Are there opportunities to exploit knowledge?
What competitive threats are there to knowledge being lost or losing value?

20. Knowledge Audit
Definition: ‘a systematic review, typically based on questionnaires, interviews or narrative techniques of the knowledge within an organisation. Often also includes a systematic mapping of knowledge interactions and flows within and between organisations, teams and individuals.’ (European Framework)
Source: Mekhilef et al. (2003)

21. Knowledge Audit process
Figure 5.7 Knowledge Audit process

22. ASHEN model
ASHEN model focuses on what Snowden describes as Knowledge Disclosure Points. These are any events or activities that reveal knowledge through use:
Decisions
Problems resolution
Solution creation
Judgement
Learning points

23. ASHEN Categories
Artefacts
Skills
Heuristics
Experience
Natural Talent

24. Knowledge Maps
A visual representation of organisational knowledge assets, flows and relationships.
Social Network Analysis [SNA] [DK – See this]
‘the mapping and measuring of relationships and flows between people, groups, organizations, computers or other information/knowledge processing entities. The nodes in the network are the people and groups while the links show relationships or flows between the nodes. SNA provides both a visual and a mathematical analysis of human relationships’ (Krebs, 2002)

25. Kite Network Map
Figure 5.8 Kite Network Map

26. Knowledge value chain
Figure 5.11 Knowledge value chain

27. Knowledge value chain: types of knowledge
Figure 5.12 Knowledge value chain: types of knowledge

28. Mapping activities against knowledge
Figure 5.13 Mapping activities against knowledge

29. Gap analysis
Knowledge gap: what the organization must know and the what the organization knows
It was first proposed by Phillip J. Tichenor and his colleagues.
Strategic gap: What the organization must do and what the organization can do

30. Strategy selection
Codification versus Personalization
Explorer versus Exploiter
Aggressive versus Conservative
Technocratic versus Economic versus Behavioural

31. Aggressive Vs Conservative Strategy
Figure 5.14 Aggressive Vs Conservative Strategy
Source: Zak (2002)

32. Strategy options:Communities of Practice
Definition: ‘A group (often inter-disciplinary) linked by their shared interest in a subject area, the group will organically evolve over time in terms of membership and scope. The purpose will be to learn and share.’

33. Communities of Practice
How communities of practice differ from other forms of organisational structure:
Formal departments: clearly defined boundaries, permanent, structured around organisational goals
Operational units: clearly defined boundaries, permanent, structured around ongoing operations and processes
Project teams: clear boundaries, though may work across departments and operational units, limited lifespan, structured around project goals
Communities of practice: fuzzy boundaries, delineated across the organisation. Organic evolution

34. Communities of Practice
Figure 5.15 Communities of Practice

35. Competitive Intelligence
Four phases of the Competitive Intelligence cycle:
Identification of key decision makers and their intelligence needs
Collection of information
Analysis of information and upgrading it to intelligence
Dissemination of intelligence to decision makers
Source: Miller (2001)

36. Story and narrative management
Stories can be important for the following reasons:
1. They can be used as a way for a company to obtain information about its customers, their needs, and the contexts of use for their products
2. They can be a useful way to share information within a company
3. They can be used to help explain how and why products and services might be used
4. Stories about products, services, and practices can be shared by customers

37. Storytelling and narrative process
Figure 5.17 Storytelling and narrative process

38. Using Information and Communications Technologies (ICT) to enable knowledge management
ICTs cannot manage knowledge on their own
ICTs can provide access to the right mix of data and information
ICTs should enable workers to extract, create, share and transfer knowledge

39. ICT options Intranets and extranets
Expertise databases and Corporate yellow pages
Collaborative Tools
Corporate portals
Customer Relationship Management systems (CRM)
Document Management/Content management Systems
E-learning

40. Roles and competencies for KM
When assessing capabilities for knowledge
management the following capabilities need to
be considered (TFPL, 2003):
Strategic and business
Management
Intellectual and learning
Communication and interpersonal
Information management and IT

41. Chief Knowledge Officer
KM Roles
Chief Knowledge Officer
The organisational knowledge management champion, will provide the KM vision and strategy
Knowledge manager
Manager who will implement the knowledge management strategy

42. Rewards and incentives for knowledge management
Tangible rewards
Economic
Reciprocal access gained to information and knowledge
Intangible rewards
Employees will enjoy seeing the positive results of their knowledge sharing
Enhanced reputation and personal satisfaction