Organizational Learning


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  • Organizational Learning

    1. 1. Readings 16-18 Review Shawn Loveland SIRLS Graduate Student
    2. 2. Presentation Format <ul><li>Summary presentation (quick) </li></ul><ul><ul><li>New highlights presented in each article </li></ul></ul><ul><li>Analysis of crosscutting themes </li></ul>
    3. 3. Articles <ul><li>16) Organizational Learning and Communities-of-Practice: towards a unified view of working, learning, and innovation (Brown, J) </li></ul><ul><li>17) Organizing Knowledge (Brown, J) </li></ul><ul><li>18) Capturing Value from Knowledge Assets: the new economy, markets, for know-how, and intangible assets (Teece, D) </li></ul>
    4. 4. Organizational Learning…
    5. 5. Practice Vs. Official <ul><li>Workplace practices differ from the official method. </li></ul><ul><ul><li>Compensation, education, training, and technology focus on the official way of doing the job, not the actual way it is done. </li></ul></ul><ul><ul><li>Conflict arises when the two methods are not in sync. </li></ul></ul><ul><li>Organizations over define the processes as silos or islands of activity. </li></ul><ul><ul><li>Most practices use informal-horizontal “communities of practice” to work and share knowledge. </li></ul></ul><ul><ul><li>Communities of practice attempt to bridge the abstract view and reality. </li></ul></ul>Organizational Learning…
    6. 6. The Changing Work Environment <ul><li>A company’s desire to “down skill” jobs: </li></ul><ul><ul><li>Reduced information flow to employees. </li></ul></ul><ul><ul><li>Highly structured job and process flow. </li></ul></ul><ul><li>Results in: </li></ul><ul><ul><li>More skills are needed from employees. </li></ul></ul><ul><ul><li>Overly structured job causes employees to improvise more. </li></ul></ul><ul><ul><li>Employees must bridge the gap between what is provided and what is needed. </li></ul></ul>Organizational Learning…
    7. 7. Communities Of Practice <ul><li>Evolve from, and around, unofficial practices rather than official practices within organizations. </li></ul><ul><li>Spontaneous forms of organization, that emerge and develop as forums for learning around actual practices in organizations. . </li></ul><ul><ul><li>They are critical for learning and innovation. </li></ul></ul><ul><ul><li>They adapt in order to traverse the limitations of the formal organization. </li></ul></ul>Organizational Learning…
    8. 8. Differences Between Communities Of Practice And Groups Or Teams <ul><li>Communities of practice are not created in a top-down fashion. </li></ul><ul><ul><li>Groups and teams are created top-down. </li></ul></ul><ul><li>Organizations are facilitators of communities of practice - providing support that corresponds to the actual needs of the community. </li></ul><ul><ul><li>Groups and teams abstract expectations of the organization. </li></ul></ul><ul><li>Communities need to be left to organize autonomously in terms of their formation and development if spontaneous organizational innovation and learning is to be encouraged. </li></ul><ul><ul><li>Groups and teams are formally created by the organization. </li></ul></ul>Organizational Learning…
    9. 9. Main Paper Take Away <ul><li>Organizations need to build processes on how things are done and not how they want them to be. </li></ul><ul><ul><li>Changing processes to how the organization wants them to be, must take into account how they will be done. (A.K.A. Game Theory). </li></ul></ul><ul><li>Communities of practice development must be encouraged and nurtured. </li></ul><ul><ul><li>It should not be controlled or manipulated. It is a delicate balancing act. </li></ul></ul>Organizational Learning…
    10. 10. Organizing Knowledge
    11. 11. Knowledge <ul><li>Property of individuals. </li></ul><ul><li>Organizational knowledge. </li></ul><ul><ul><li>Held collectively in communities of practice. </li></ul></ul><ul><li>Consists of: </li></ul><ul><ul><li>“Know-what”- explicit knowledge of what to do. </li></ul></ul><ul><ul><li>“Know-how” – ability to put “know-what” into practice. </li></ul></ul><ul><li>Good managers foster knowledge development just as traditional capital is fostered. </li></ul>Organizing Knowledge
    12. 12. Changes In Business <ul><li>New culture, processes, and technology are being developed to create a web of knowledge a user can participate in. </li></ul><ul><ul><li>Breaks down traditional islands of knowledge. </li></ul></ul><ul><li>Employees are developing “communities of practice.” </li></ul><ul><ul><li>Most organizations have webs of communities of practice. </li></ul></ul><ul><ul><li>Communities of practice are still imperfect because they have a limited perspective. </li></ul></ul>Organizing Knowledge
    13. 13. Improving Communities Of Practice <ul><li>Having a diverse set of communities. </li></ul><ul><ul><li>Members within a community with different beliefs, perspectives, and spanning across multiple organizations. </li></ul></ul><ul><ul><li>Multiple communities with different beliefs, perspectives, and spanning across multiple organizations. </li></ul></ul><ul><li>Understanding different communities have different standards and goals. </li></ul><ul><ul><li>Best practices of one community may not be applicable to another. </li></ul></ul>Organizing Knowledge
    14. 14. Information Flow <ul><li>Information flows differently within a community of practice than it does between them. </li></ul><ul><li>Organizations often underestimate the challenge of reusing knowledge that was developed else ware. </li></ul><ul><li>Leakiness. </li></ul><ul><ul><li>Often times information can be leaked out through one community and then back into the company through another community easier than it can be transferred from one community to another. </li></ul></ul><ul><ul><li>Causes problems protecting the company’s intellectual property. </li></ul></ul>Organizing Knowledge
    15. 15. Knowledge Management Players <ul><li>Translators: translates information between communities. </li></ul><ul><li>Knowledge brokers: facilitates the exchange of information between communities. </li></ul><ul><li>Boundary object: physical object, technology, or technique that act as a gateway between two knowledge depositories. </li></ul>Organizing Knowledge
    16. 16. Main Paper Take Away <ul><li>The value knowledge plays within an organization is often overlooked. </li></ul><ul><ul><li>Both internally and externally. </li></ul></ul><ul><li>All organizations are knowledge organizations and knowledge creation is a critical part of organizations do. </li></ul><ul><ul><li>Communities of practice plan an important role. </li></ul></ul>Organizing Knowledge
    17. 17. Capturing Value From Knowledge Assets…
    18. 18. Key Points <ul><li>Knowledge assets are created and exploited globally now more than ever before. </li></ul><ul><li>The strategic benefits of knowledge management. </li></ul><ul><ul><li>Seizing opportunities by identifying and combining complementary knowledge assets. </li></ul></ul><ul><ul><li>Recognizing and correcting strategic errors utilizing KM for better situational awareness. </li></ul></ul><ul><ul><li>Adapt to changing business conditions. </li></ul></ul>Capturing Value From Knowledge Assets…
    19. 19. First Mover Advantages <ul><li>Imbeds proprietary knowledge into the product. </li></ul><ul><ul><li>Interface and user standards. </li></ul></ul><ul><li>Customer builds a knowledge base and spends capital in the first product. </li></ul><ul><ul><li>Increases switching costs. </li></ul></ul><ul><li>High initial development costs can be recouped before the next entrant into the market. </li></ul><ul><ul><li>R&D head start. </li></ul></ul><ul><li>Understanding of the market is gained. </li></ul><ul><ul><li>Head start in creating knowledge about the market and customer. </li></ul></ul>Capturing Value From Knowledge Assets…
    20. 20. First Mover Disadvantages <ul><li>Competitors can glean knowledge. </li></ul><ul><ul><li>Learn form the first movers products. </li></ul></ul><ul><ul><li>Hire first mover knowledge employees. </li></ul></ul><ul><ul><li>Private IP becomes public IP. </li></ul></ul><ul><li>Decrease switching costs. </li></ul><ul><ul><li>Band together to create open standards. </li></ul></ul><ul><ul><li>IT and communications technologies. </li></ul></ul><ul><ul><ul><li>Allow smaller firms to become more specialized. When banded together they can complete against larger companies. </li></ul></ul></ul><ul><ul><ul><li>Reduce production and channel costs and increase efficiencies. </li></ul></ul></ul>Capturing Value From Knowledge Assets…
    21. 21. Fusion <ul><li>Today. </li></ul><ul><ul><li>The complexities of products are increasing. </li></ul></ul><ul><ul><li>New products are rarely stand-alone. </li></ul></ul><ul><li>Tomorrow. </li></ul><ul><ul><li>Design reuse is important. </li></ul></ul><ul><ul><li>IP will become even more valuable. </li></ul></ul><ul><ul><ul><li>Sold and licensed just like any other organizational capital. </li></ul></ul></ul><ul><ul><li>An integrated supply chain will be more important. </li></ul></ul><ul><ul><ul><li>Suppliers will be both suppliers and competitors. </li></ul></ul></ul><ul><ul><li>The focus will not just be on the creation on knowledge. </li></ul></ul><ul><ul><ul><li>On the deployment and use of knowledge. </li></ul></ul></ul>Capturing Value From Knowledge Assets…
    22. 22. Main Paper Take Away <ul><li>The demands of organizing knowledge are a critical but can be easily overlooked when explaining why firms exist, what they do, and how innovation occurs. </li></ul><ul><li>The essence of a firm is its ability to create, transfer, assemble, integrate, and exploit knowledge assets. </li></ul>Capturing Value From Knowledge Assets…
    23. 23. Analysis
    24. 24. Crosscutting Themes <ul><li>The rules of business are changing. Knowledge management is critical to the survival of organizations in the new information economy. </li></ul><ul><li>Knowledge is an international commodity. Barriers of transferring knowledge are being broken down. </li></ul><ul><ul><li>Knowledge is exchanged between companies more readily today than every before. </li></ul></ul><ul><ul><ul><li>Outsourcing, supply chain, licensing, sold. </li></ul></ul></ul>Analysis
    25. 25. Crosscutting Themes <ul><li>Knowledge must be managed just like any other business capital. </li></ul><ul><ul><li>Protected, used, and grown. </li></ul></ul><ul><ul><li>Becomes obsolete. </li></ul></ul><ul><ul><li>Some tend to hoard it. </li></ul></ul><ul><li>Different than traditional capital. </li></ul><ul><ul><li>Value grows with use. </li></ul></ul><ul><ul><li>Used simultaneously by different users. </li></ul></ul><ul><ul><li>Quickly transferred locally, nationally, and internationally. </li></ul></ul>Analysis
    26. 26. Crosscutting Themes <ul><li>Knowledge flow requires business culture and processes. </li></ul><ul><ul><li>If you build it, they will not come. </li></ul></ul><ul><ul><li>Information flows differently based on community and culture. </li></ul></ul><ul><ul><ul><li>Traditional hierarchy vs. Communities of practice. </li></ul></ul></ul><ul><ul><ul><li>Communities of practice A vs. Communities of practice B. </li></ul></ul></ul><ul><ul><ul><li>Internal vs. External of the company. </li></ul></ul></ul><ul><ul><ul><li>US vs. Japan. </li></ul></ul></ul>Analysis
    27. 27. Organizational Knowledge <ul><li>Organizational knowledge provides a company with a synergistic advantage that is difficult to duplicate. </li></ul><ul><ul><li>A new way to measure the value of a company. </li></ul></ul><ul><ul><li>Knowledge firms have a market premium that outweighs conventional assets and market evaluation. </li></ul></ul><ul><li>Organizational knowledge allows a company to use and reuse organization knowledge multiplying the value of the knowledge. </li></ul>Analysis
    28. 28. Communities Of Practice <ul><li>Good way to share knowledge. </li></ul><ul><li>Supports the real needs of the people doing the work and not the abstract expectations of the organization’s management. </li></ul><ul><li>Adapt quickly to changes in the work environment and needs of the participants. </li></ul><ul><li>Requires support and autonomy from the organization. </li></ul>Analysis
    29. 29. Communities Of Practice <ul><li>Beneficial to a large company because to can cut across politics, departments, company “group think”. </li></ul><ul><ul><li>However, communities of practice can be blinded by their limited perspective and “community of practice group think”. </li></ul></ul><ul><li>Can include resources outside the organization. </li></ul><ul><li>Most organizations have communities of practice that are overlapping and are independent for the official organizational structure. </li></ul>Analysis
    30. 30. Critique <ul><li>Organizational Learning… </li></ul><ul><ul><li>Readability: very poor </li></ul></ul><ul><ul><li>Value: interesting concepts, however, the value was lost because of the readability </li></ul></ul><ul><ul><li>Use of examples: below average </li></ul></ul><ul><li>Organizing Knowledge </li></ul><ul><ul><li>Readability: average </li></ul></ul><ul><ul><li>Value: Interesting perspective on the value of knowledge </li></ul></ul><ul><ul><li>Use of examples: average </li></ul></ul><ul><li>Capturing Value From Knowledge Assets… </li></ul><ul><ul><li>Readability: average </li></ul></ul><ul><ul><li>Value: Interesting perspective on knowledge, but nothing new </li></ul></ul><ul><ul><li>Use of examples: average </li></ul></ul>Analysis
    31. 31. Capturing “Shop Floor” Knowledge <ul><li>Difficulties capturing “shop floor” knowledge: </li></ul><ul><ul><li>Lower education level </li></ul></ul><ul><ul><li>Inadequate IT infrastructure </li></ul></ul><ul><ul><li>Lack of time to document tactic knowledge </li></ul></ul><ul><ul><li>Lack of a sharing forum </li></ul></ul><ul><ul><li>Poor visibility of shop floor knowledge </li></ul></ul><ul><ul><li>Lack of value an employees places on their input to process </li></ul></ul><ul><ul><li>Lack of management focus </li></ul></ul><ul><ul><li>Difference in terminology between managers and line employees </li></ul></ul>Khanna, Amit. Mitra, Debanik. Gupta, Avneesh “How shop-floor employees drive innovation at Tata Steel”, KM Review. 8.3 (July/August 2005) Analysis
    32. 32. Models Of KM Model 1 Model 2 <ul><li>Malhotra, Yogesh. “Why Knowledge Management Systems Fail? Enablers and Constraints of Knowledge Management in Human Enterprises”, American Society of Information Science and Technology, Monograph Series. (2004) </li></ul>Analysis Jazz band (product development) Car assembly line (bank teller workflow) Example Knowledge optimization and growth Downskilling Perspective Increasing returns Decreasing returns Economic returns For achieving commitment For achieving compliance Managerial command and control Horizontal Vertical Organizational structure Dynamic and improvised Static and prespecified Knowledge representation Based on trust Based on contracts Information sharing culture Self-control and creativity Control and consistency Organizational control Changing world Predefinition of outcomes Business and technology strategy Model 2 Model 1 Enables and constraints
    33. 33. Additional Information <ul><li>Organizational Learning … </li></ul><ul><li> </li></ul><ul><li>Organizing Knowledge </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>Capturing Value from Knowledge Assets… </li></ul><ul><li> </li></ul>Analysis
    34. 34. Additional Resources <ul><li>Malhotra, Yogesh. “Why Knowledge Management Systems Fail? Enablers and Constraints of Knowledge Management in Human Enterprises”, American Society of Information Science and Technology, Monograph Series. (2004) </li></ul><ul><li>Khanna, Amit. Mitra, Debanik. Gupta, Avneesh “How shop-floor employees drive innovation at Tata Steel”, KM Review. 8.3 (July/August 2005) </li></ul><ul><li>Gallivan, Michael J.; Spitler, Valerie K.; Koufaris, Marios. “Does Information Technology Training Really Matter? A Social Information Processing Analysis of Coworkers’ Influence on IT Usage in the Workplace” Journal of Management Information Systems. 22.1 (Summer 2005) </li></ul>Analysis
    35. 35. Questions