Habit 2 actively manage knowledge; from the 7 habits of effective decision makers
The 7 Habits of Highly Effective Decision Makers Habit 2: actively manage knowledge Genesis Management Consulting Limited “Improving lives through better decisions”
The underlying purpose of the series is …… about helping you to improve people’s lives by helping you to make better decisions!
The introductory slide show gave us an overview… found at The 7 habits Overview
reminding us that strategic decisions have a far-reaching impact The decision ring of influence
and summarized the 7 habits of highly effective decision makers1. get the basics right2. actively manage knowledge3. communicate visually and verbally4. prioritize ethical implications5. embrace complexity6. “think like a shrink”7. use tools and technologies
in the first habit we looked at: Where organizations can - and do - get the basics wrong How getting the basics right involves answering six key questions What actions can be taken to get it right
in the second habit we look at:the common knowledge management traps how to improve decisions through effective knowledge management.some of the behavioral challenges and some of the tools available
common knowledge-related traps more than 60%* ofrespondents categorizedknowledge managementas either “very poor” or “could do better” (* 2010 Genesis global survey)
what are the common errors? failure to deal with complexity unfocused data collection insufficient time too much reliance on financial data
common knowledge-related traps Untested assumptionsNo insights Knowledge not captured Bias and misperceptions
even our in-house IT systems can befrustrating decision information cuts across processes and functions unavailable data unusable data
so how can we be more effective?effective decision makers see knowledge management as a process to be dealt with proactively information capture insights
with two objectives: to support the decision to capture the decision making process making process • learn and improve • sense the future • re-play decision • support intuition • test assumptions • generate insights • explore options • establish the facts
knowledge management processKnowledge drivers Knowledge management Data is processed define system captures the data, to yield requirements knowledge and process insights but also …
can be facilitated by the right toolsbut also hindered by behavioral problems information capture insights behavioral the right problems tools
actively managing knowledgeinformation capture insights this slide show will consider each of the elements of behavioral active knowledge the right management problems tools
knowledge has to be improved, challenged, and increased constantly, or it vanishes
the knowledge management processthe inputs:information capture insights knowledge drivers define behavioral the information the right problems requirements tools
knowledge drivers:the elements of the decision process drivethe information requirements information requirements
example decision:should we acquire company x?Driver Example Knowledge soughtObjective Double market share By how much will our market share increase after the acquisition?Situation How will it change Who are all the market players andappraisal the competitive what will be their possible reactions dynamics of the to our takeover? market?Option What are the What are the potential combinationsgeneration potential terms of of share swaps, cash, guarantees and the deal? debt that could be offered?
3 important questions “There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we now know we don’t know. But there are also unknown unknowns. These are things we do not know we don’t know.” United States Secretary of Defence Donald Rumsfeld what knowledge do we already track down the source, have in the organization? verify and capture it. what knowledge do we know focused search: use we don’t know? hypotheses what knowledge do we not broad search: use external know we don’t know? inputs and creativity
remember from Habit 1… effective decision makers plan their information gathering ... unreliablenot enough too much … and get the balance right
effective decision makers measure the cost of obtaining information against the value of that informationimpact on credibility ofoutcome? uncertainty reduction? source?
"Theres no such thing asknowledge management;there are onlyknowledgeablepeople.” “Information only becomes knowledge in the hands of someone who knows what to do with it.” Drucker
the knowledge management processthe system:information capture insights the knowledge management system captures the behavioral data, knowledge the right and process problems tools
the knowledge management systemcaptures the data, information andknowledge all information & knowledge housed in one place: accessible relational scalable secure integrate-able
the knowledge management systemmust capture the process to learn and improve to re-play the decision to test assumptions to explore options
checking the results of a decision against its expectations shows executives what their strengths are, where they need to improve,and where theylack knowledge or information
the knowledge management processthe insights:information capture insights data is behavioral processed to the right problems produce tools insights
insight is the ability to grasp the key elements of a complex subject, person or situation Insight and wisdomContext why?independent Knowledge how? Information what? who? where? when? Data Understanding
true insight reveals the system …its is more than just an aggregation of the underlying knowledge and information only with true insight can we find the creative, disruptive solution that changes the game!
one method alone will not create insights crowdsourcing data analytics systems thinkingcreativity simulation & gamesexercises visualization
to obtain insights, engage the right braininsights come from the computers can simulate right-brain much of the left-brain activity holistic context logical simultaneous sequential synthesis… calculating … intuition intuition VERSUS AND rationality rationality
“A moment’s insight is sometimes worth a life’s experience”
the knowledge management processbehavioral problems behavioral problems
the best knowledge in the world is still subject to interpretation-bias and misperceptions (behavioral economics) recognition of your bias is not enough in itself to prevent you being influenced by them see habit 6: “think like a shrink” for more on this topic
and misperceptions appear in many forms …. overconfidenceseeking confirmatoryevidence champion bias anchoring ease of recall loss aversion sunk cost fallacy misaligned objectives group-think
“A point of view can be a dangerous luxury whensubstituted for insight and understanding.”
the knowledge management processthe right tools: the right tools
there are a multitude of tools thatcan improve the capturing andconversion of knowledgecapture generate insights manage systems think analyze visualize simplify share model simulate see habit 7: “using tools and technologies” for more on this topic
find the right tool for the task for instance … The Parmenides’ EIDOS one tool cover almost the full software suite is spectrum of requirements comprehensive. Consideo covers a wide-range of others help in a broad area areas and is excellent in systems modeling and insight generation THOUGHTstream facilitates others are more specific crowdsourcing and long- distance facilitation Laminin Solutions coordinated or broad-based KM support with Genesis in this “Lean Information” presentationhowever, tools are just tools and need to be applied with experience and intelligence Links to these tools available on the Genesis website on “The 7 Habits” page
even if the right tools are just paper,pencils and dialogue!
a simple toolthe Genesis decision room:tapping into the power of the brain a single room … …data, charts, research, presentations, web-sites, flip- charts, etc are on display……to absorb, discuss, debate, draw, challenge in free-flow with the intention of developing insights… why? rational, conscious minds have limited capacity letting knowledge sink into the unconscious and allowing it to develop its own links and patterns taps into our full mental powers further stimulation through dialogue with others will further enhance the process
habit 2: actively manage knowledge summaryinformation capture insights behavioral the right problems tools
using this slide show … a check-list …Check 1: Do you develop a knowledge management planbased on the key steps of the decision process?Check 2: Do you keep all your “knowledge” – data, your question:information, analysis, insights, conclusions and process -in one central repository? can our organizationCheck 3: Do you look for “unknown unknowns” as well improve theas the obvious “known unknowns” effectiveness ofCheck 4: Are you capitalizing on the tools, techniques our decisionand methods that could optimize your decision process? making byCheck 5: Are you really focused on reaching creative improving ourinsights that can identify innovative solutions? knowledge management?Check 6: Are you working at keeping the behavioralbiases from corrupting the decision?
through helping your organisation totake better decisions … … you will make a positive impact on peoples lives!
for more information about the 7 habits series andother decision making support….. The 7 habits of highly effective decision makers - the overview Habit 1: get the basics right Genesis web-site download all the slideshows at our web-site
Genesis Management Consulting Limited Genesis is a strategy consulting firm with a mission of “improving lives through better decisions” We do this by building individual and organizational competency through: • Decision coaching • Decision training • Decision supportThis presentation is one of a series of articles that discusses decision makingin more detail.For queries on in-house presentations or further information, please contactSimon Gifford at email@example.com visit our blog at www.genesismc.co.uk/blog Editing & graphics: M. Conidaris