1. Understanding Knowledge
The Knowledge Strategy Game
Understanding Knowledge
Strategy
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Resource
Managing Knowledge
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Methods
Knowledge
SWOT
What We’ve Learned
Sharing ?
Alice in Wonderland is an allegory that suggests not only do we need to know our destination in today’s meeting (i.e., Table of Contents) but also that our clients need to know their E-Business destination.
Otherwise they will wander around in e-wonderland for a very long time.
Notice the question in the margin. This is on every slide because the number one message for today is ….. ?
Don’t be Alice!
This is our message to our clients and prospects.
Don’t let them get lost in the internet WANDERLAND.
They need an E-Business destination …. vision …. strategy otherwise they will walk for a very long time indeed.

2. Understanding Knowledge Strategy
“A company’s KM strategy should reflect its competitive strategy.” Tierney (1999) With focus on creating value for customers, turning a profit, and managing people. (HBR)
“… the most important context for guiding knowledge management is the firm’s strategy. Zack (1999) Knowledge is the fundamental basis of competition. Competing successfully on knowledge requires either aligning strategy to what the organization knows, or developing the knowledge and capabilities needed to support a desired strategy.” (CMR)

3. Understanding Knowledge Strategy
A knowledge strategy details in operational terms how to develop and apply the capabilities required to execute the business strategy
Joins financial, human and social capital as a strategic asset
Do not confuse information and knowledge
Strategy making process might be:-
Set strategic goals for the organisation e.g. using BSC
Prioritise critical knowledge ‘domains’
Identify people and connect them so that they can ‘steward’ the knowledge
Needs or depends on CoP in one form or other
Cultivate rather than manage
Subtle leadership
Can go alone but may not realise potential

4. Types of Strategy
Survival vs. Advancement (von Krogh, Roos, Slocum, 1994)
Survival – maintaining current level of success, mastering current markets and competitors
Advancement – Future success based on new markets, nonreplicability – requires knowledge creation
How do you plan/design strategy?
Formal strategy and planning – Traditional strategy sets positions, targets, measures. Alignment means “follow the leader.”
Learning and emergence – New thinking (not always in practice) shows strengths in organisation learning and preparing for conditions. Alignment means “Learn and collaborate.”

5. Strategic Drivers
Growth through share, market strength, distribution – external market focus
Forging long-term, deep relationships with customers – external focus, growing with customer success
Market Growth
Customer Intimacy
Operational Effectiveness
Profit through productivity and cost control – internal development focus
Traditional KM driver, but should not be the only one!

6. Strategic Drivers Knowledge Strategy Business Strategy Market Growth
Process Innovation Knowledge Sharing Developing Learning Culture
Business Innovation Customer Knowledge Integration or CRM Branding Knowledge
Product Innovation Knowledge Creation Intellectual Capital
Knowledge Strategy
Product Sales Time to Market Distribution Networks Pricing Strategy Patent & Product Leverage
Process streamlining Supply chain mgt Accounting & Financing
Business Strategy
Customer retention Customer product needs Revenue growth Partnering / Alliancing
Market Growth
Operational Effectiveness
Customer Intimacy

7. What Drives Knowledge Strategy?
Business Strategy
What knowledge does it take to compete?
What are your critical knowledge gaps?
Product Innovation
Can you design breakthrough products?
“Spark innovation” through a participatory culture?
Organisational Complexity
How can you adapt to speed & information overload?
Build a quick-learning organisation?
Customers and Markets
Profound customer understanding
Radically improved time to market
Knowledge leverage in the marketplace

8. Managing Knowledge Strategy
In 1997, several companies across Europe got together to try to understand how Knowledge was being exploited within companies using these different strategies to drive them. The following model was developed by that Consortium to show how organisations benefit from Knowledge leverage.
The knowledge cycle (this circular process is a slightly simplified version of the models we were looking at earlier) must focus equally on both Creating and Sharing of knowledge, not just one or the other.
This knowledge cycle exists within a context of what we describe as Enabling Conditions. These conditions are the organisational factors that either encourage or block the uptake and exploitation of knowledge.
We categorise the Enabling Conditions into five areas.
Leadership is about communicating priorities and embodying the objectives your set out for the business.
Culture is the set of codified rituals and practices of an organisation, which sets out how things happen around here. If it contradicts your aims, you'll fail.
Management Practices are the formal practices of the organisation. It is essential that certain aspects of KM change processes are actually embodied in management practices and procedures.
Systems do not just include IT systems although, they are clearly one enabler. Systems will include mechanisms for control of work as well as recognition and reward metrics.
Structures include both the formal organisational chart as well as the more informal examples such as networks to cross the organisation.
This whole process should only be undertaken if it is driven by the Business Strategy and will deliver Value. Without both push and pull factors, the effort is meaningless.

9. Four Enabling Dimensions
Knowledge
Resources
What do we know and where is it ?
Culture and
Learning
Practices
How do we get value from that know-how?
How do we participate
with this know-how?
Collaborative
Technology & Processes
How do we support this know-how?

10. Linkage to Balanced Scorecard
Financial Goals
Customer Goals
Internal Business Process Goals
Learning & Growth Goals
Outcome Measures
Performance Drivers
Business Strategy
Knowledge Strategy
Desired
Outcomes
Behaviours
The business & knowledge strategy are totally integrated
and form a skin around the organisation.
This is what defines the organisation and contains its sustainable
differentiation – the knowledge.
The circle in the middle is the balanced scorecard: the articulation
of the strategy to the organisation. It defines the chain of cause
and effect relationships that link learning and growth to desired
financial outcomes. The outcome measures define the long term
targets (% market share), they can only be measured in the future
(did we achieve the target) and do not modify the day-to-day
activities.
The performance drivers (say number of hours a month that a
marketing person spends with key customers) can be easily measured
and can be used to bring about change to the desired behaviour.
This argument assumes that there is a direct correlation between building
key customer relationships and long term market share.

11. Planning from Knowledge Perspective
Cultural Assessment …Readiness assessment
Knowledge Framework to embed Business Plan
Portfolio of Knowledge Management Projects
Champion for each project
‘Value from Knowledge’ Plan
Business steering team review and presentation
Phased Implementation

12. Knowledge Strategy Methods
Knowledge SWOT
Business + Knowledge
Strengths, Weaknesses, Opportunities, Threats
Establish or affirm current Business Strategy
Evaluate internal drivers - impacts of current knowledge by:
Resources
Practices
Culture and Learning
Technologies
Use these as basis for Strength and Weaknesses.
Evaluate external drivers – impacts on knowledge
Use these for Opportunities and Threats

13. Knowledge Strategy Methods
Strategic Scenario Planning
Create shared models of potential future conditions to guide dynamic strategy.
Why? Scenarios provide robust tools for integrating very complex business conditions applicable to strategy.
Also – people are good at remembering stories; SWOT chart points fall away quickly.
How? Team workshop approach, with broad participation. You want new ideas, dissention, “out of the box”
Strategy as “serious play”
Source? Schwartz,The Art of the Long View Ringland, Scenario Planning

14. Knowledge Strategy Methods
Strategic Scenario Planning
Developing scenarios with accompanying strategies linked to a range of potential future trends and changes.
Establish participatory scenario team (Futures’ workshop, Team Design, other workshops)
Set scope for scenarios
Generate sources for scenarios
Develop initial categories
Build mini scenarios as small groups
Group review of mini scenarios
Pull together themes and design four scenarios

15. Aligned Knowledge Management
Business strategy guides your knowledge assets
Linking knowledge requirements to:
Resources:
Making information accessible to point of need
Info usability with common categories & process
Culture:
Enabling, rewarding teams & experts for cross-sharing
Developing culture of knowledge creation
Practices:
Embedding new best practices in organization
Transparent leveraging of expert knowledge

16. Strategic Knowledge Resources
Core and complementary competencies
Organisational capabilities
Structured and unstructured information
Personal knowledge and unique skills
Customer relationships
Intellectual property
Collaborative
Technology
Infrastructure and standard systems
Groupware and applications
Web-enabled portals and Internet applications
Process management systems

17. Strategic Knowledge Resources
Practices
Business processes
Organisational routines
Embedded and specialised processes
Practice communities
“How things are done”
Culture and
Learning
Core organisational values
Personal values and leadership
Organisational environment
Hiring and enculturation
“How we see ourselves”
Individual and group skill development
Organisational learning
Style of management, work, engagement

18. Conclusions
Good strategy is dynamic and adaptable - Knowledge Strategy is ongoing as well.
Requires leadership and will – organisational change always requires focus on vision.
Traditional management may require education for integrating knowledge into business strategy.
Understand what’s worked for others, experiment, listen to your people, your culture.