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People- Focused Knowledge Management: How Effective Decision Making Leads to Corporate Success AUTHOR:  Karl Wiig PUBLISHE...
<ul><li>This book is based on the fundamental belief that in order to build a great enterprise, developing people knowledg...
The Global Economy <ul><li>Enterprises must now learn to manage knowledge-intensive work, which deals with the intellectua...
The Global Economy <ul><li>In order to survive, enterprises must change their approaches to business practices in a global...
The Global Economy <ul><li>These challenges can be addressed by following four management initiatives. These are: </li></u...
<ul><li>Enterprise performance is a result of individual actions, and an enterprise only becomes effective when it is able...
The Effective Enterprise <ul><li>In order to understand an effective enterprise better, here are the characteristics, fact...
The Effective Enterprise <ul><ul><li>Employees should be given opportunities to contribute and use their capabilities. </l...
<ul><li>People make decisions and act using different kinds of mental functions. They basically receive information about ...
The People Machine <ul><li>The personal knowledge evolution cycle has five stages: </li></ul><ul><ul><li>Tacit  subliminal...
The Mental and Structural Models <ul><li>People often imitate prior behaviors when it comes to making sense of situations,...
<ul><li>People know that to handle a situation, action is always required. The problem lies in determining actions that sh...
<ul><li>When individuals handle situations, it is to be expected that it will affect the enterprise’s behavior towards cus...
<ul><li>Knowledge is the primary driver of enterprise performance. Hence, it must be managed by facilitating and strengthe...
The New Generation Knowledge Management <ul><li>Five main perspectives: </li></ul><ul><ul><li>Societal and global perspect...
The New Generation Knowledge Management <ul><li>Six Success Factors: </li></ul><ul><ul><li>Management Philosophy and Pract...
The Management Expectations <ul><li>In today’s global business environment, people-focused knowledge management does suppo...
Knowledge Management Conclusion <ul><li>Today’s business environment is changing, and enterprises have to discover new way...
BusinessSummaries.com is a business book Summaries service.  Every week, it sends out to subscribers a 9- to 12-page summa...
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Transcript of "People-Focused Knowledge Management"

  1. 2. People- Focused Knowledge Management: How Effective Decision Making Leads to Corporate Success AUTHOR: Karl Wiig PUBLISHER: Elsevier, Inc DATE OF PUBLICATION: 2004 NUMBER OF PAGES: 346 pages
  2. 3. <ul><li>This book is based on the fundamental belief that in order to build a great enterprise, developing people knowledge is a must. </li></ul><ul><li>It presents management theories, mental models, and enterprise stories and examples surrounding several crucial premises that are all integrated with cognitive research. </li></ul><ul><li>Thus, it takes on a very comprehensive approach to providing the key to handling the company’s most important knowledge asset-- the people. </li></ul>THE BIG IDEA
  3. 4. The Global Economy <ul><li>Enterprises must now learn to manage knowledge-intensive work, which deals with the intellectual work done by high performing people. The intensity of work is actually a function of at least four factors: </li></ul><ul><ul><li>The degree of knowledge intensity is determined by the amount of knowledge needed to deliver competent work under normal conditions. </li></ul></ul><ul><ul><li>The degree of knowledge intensity is influenced by the variety of challenges that a person handles competently. </li></ul></ul><ul><ul><li>Knowledge intensity increases in high-value situations where the consequences of errors are large. </li></ul></ul><ul><ul><li>The degree of knowledge intensity is parallel to the swiftness of action. </li></ul></ul>
  4. 5. The Global Economy <ul><li>In order to survive, enterprises must change their approaches to business practices in a globalized economy. However, there are six major challenges to doing this: </li></ul><ul><ul><li>Work is becoming more complex as a result of increased demands to create and deliver better, greater complexity of management and operating practices, and increase of knowledge-intensive work. </li></ul></ul><ul><ul><li>The nature of business has changed and the competitive environment is more demanding as a result of changes caused by pressures from globalization, better informed customers, and increased dependence on intellectual capital. </li></ul></ul><ul><ul><li>New and complex management, operational, and technical approaches are introduced. </li></ul></ul><ul><ul><li>The changes in technology, business conditions, regulatory and legal requirements, practices, and demands are faster than ever before. </li></ul></ul><ul><ul><li>Workers are less satisfied with traditional employment situations, and now demand greater involvement. </li></ul></ul><ul><ul><li>The need for traditional training and education often exceed allotted time . </li></ul></ul><ul><li>These challenges can be addressed by following four management initiatives. These are: </li></ul><ul><li>The enterprise should provide a systematic and comprehensive knowledge management disseminated widely and guided by central management. </li></ul><ul><li>Pursue integrative management practices on personal, departmental, and business unit levels, with collaboration and understanding of common goals. </li></ul><ul><li>Foster a widespread mentality that capitalizes on the company’s intellectual capital and assets, operational and strategic value of human capital, and information capital. </li></ul><ul><li>Provide competitive products and establish people-focused management and organization of knowledge-related work. </li></ul>
  5. 6. The Global Economy <ul><li>These challenges can be addressed by following four management initiatives. These are: </li></ul><ul><ul><li>The enterprise should provide a systematic and comprehensive knowledge management disseminated widely and guided by central management. </li></ul></ul><ul><ul><li>Pursue integrative management practices on personal, departmental, and business unit levels, with collaboration and understanding of common goals. </li></ul></ul><ul><ul><li>Foster a widespread mentality that capitalizes on the company’s intellectual capital and assets, operational and strategic value of human capital, and information capital. </li></ul></ul><ul><ul><li>Provide competitive products and establish people-focused management and organization of knowledge-related work. </li></ul></ul>
  6. 7. <ul><li>Enterprise performance is a result of individual actions, and an enterprise only becomes effective when it is able to reach its goals and satisfy its objectives. </li></ul><ul><li>First, effective enterprises rely on extensive and profound knowledge. </li></ul><ul><li>Second, good and successful performances focus on the enterprise’s ability to handle and overcome challenges and take advantage of opportunities. </li></ul><ul><li>Third, an enterprise must be considered from both external and internal perspectives. </li></ul><ul><li>Fourth, individual actions and decisions should work together and support enterprise objectives to succeed. </li></ul><ul><li>Fifth, remember that the effectiveness of technology depends on the people. </li></ul>The Effective Enterprise
  7. 8. The Effective Enterprise <ul><li>In order to understand an effective enterprise better, here are the characteristics, factors, and behaviors that contribute to the enterprise’s success. </li></ul><ul><li>Characteristics: </li></ul><ul><ul><li>Develop a positive and nurturing philosophy, leadership, and strategy. </li></ul></ul><ul><ul><li>Utilize resources efficiently. </li></ul></ul><ul><ul><li>Focus on innovation, quality, and renewal. </li></ul></ul><ul><ul><li>Continuously motivate and engage with the people in the enterprise. </li></ul></ul><ul><li>Success Factors: </li></ul><ul><ul><li>The management philosophy and practice supports effective behavior of people and operational units. </li></ul></ul><ul><ul><li>Personal knowledge and structural IC assets must be created, renewed, and exploited. </li></ul></ul><ul><ul><li>Knowledge and other resources of the enterprise should be made available to all employees. </li></ul></ul><ul><ul><li>Employees must be energized and motivated to work for the good of the enterprise. </li></ul></ul>
  8. 9. The Effective Enterprise <ul><ul><li>Employees should be given opportunities to contribute and use their capabilities. </li></ul></ul><ul><ul><li>Employees must be provided a safe environment in which to do their work. </li></ul></ul><ul><li>Effective Behaviors: </li></ul><ul><ul><li>Adopt an ethical, safe, and amicable behavior. </li></ul></ul><ul><ul><li>Use the best and most effective approaches to conduct business. </li></ul></ul><ul><ul><li>Maintain a consistent and durable behavior. </li></ul></ul><ul><ul><li>Enable employees to become engaged in their work. </li></ul></ul><ul><ul><li>Address stakeholder concerns to show support for them. </li></ul></ul><ul><ul><li>Deliver competitive value to customers. </li></ul></ul>
  9. 10. <ul><li>People make decisions and act using different kinds of mental functions. They basically receive information about a situation and then apply knowledge to reason about them from the perspective of a certain set of objectives. This practice or thinking may be useful in the beginning, but it eventually does not cover everything. </li></ul><ul><li>First, it is important to understand that people often prefer to think, make decisions, and act in ways that are natural and convenient for them. </li></ul><ul><li>Second, organizations must realize that associations and biases govern the people’s actions. </li></ul><ul><li>Third, knowledge should not be confused with information, for the purpose of knowledge is action while information is description. </li></ul><ul><li>Fourth, mental models are the foundation of knowledge, whether it is personal or enterprise knowledge. </li></ul>The People Machine
  10. 11. The People Machine <ul><li>The personal knowledge evolution cycle has five stages: </li></ul><ul><ul><li>Tacit subliminal knowledge </li></ul></ul><ul><ul><li>Idealistic vision and paradigm knowledge </li></ul></ul><ul><ul><li>Systematic schema and reference methodology knowledge </li></ul></ul><ul><ul><li>Pragmatic decision-making and factual knowledge </li></ul></ul><ul><ul><li>Automatic routine working knowledge </li></ul></ul><ul><li>The enterprise knowledge evolution cycle also has five stages: </li></ul><ul><ul><li>Knowledge development through learning, innovation, creativity, and importation from outside. </li></ul></ul><ul><ul><li>Knowledge is acquired for use and further treatment. </li></ul></ul><ul><ul><li>Knowledge is refined to make it available and useful. </li></ul></ul><ul><ul><li>Knowledge is distributed and deployed to people, practices, technology, and procedures. </li></ul></ul><ul><ul><li>Knowledge is leveraged to become the basis for further learning and innovation. </li></ul></ul>
  11. 12. The Mental and Structural Models <ul><li>People often imitate prior behaviors when it comes to making sense of situations, implementing decisions, and monitoring results. That is why organizations strive to provide stable and comprehensive operating environments by re-enacting past practices. </li></ul><ul><li>First, organizations use a mental model preview. </li></ul><ul><li>Second, many people often use a personal reference model. </li></ul><ul><li>Third, enterprises use organizational reference models. These allow the enterprise to see the relationships and connections between stakeholders and operations. </li></ul>
  12. 13. <ul><li>People know that to handle a situation, action is always required. The problem lies in determining actions that should be implemented to effectively handle situations and produce good results. </li></ul><ul><li>This process people engage in when solving different types of problems is called situation-handling. This concept is very important as millions of people engage in it everyday. </li></ul><ul><li>First is the sensemaking and situational awareness. Second , there is the decision-making, problem solving, and action space and innovation capability. </li></ul><ul><li>Third is implementation and execution capability. </li></ul><ul><li>Finally, the monitoring and governance competence and perspectives. </li></ul>The Individual Situation-Handling
  13. 14. <ul><li>When individuals handle situations, it is to be expected that it will affect the enterprise’s behavior towards customers, products, costs, employees, and others. Thus, enterprise situation-handling is also anticipated. </li></ul><ul><li>Enterprise situation-handling has four tasks. </li></ul><ul><ul><li>First is the sensemaking and situational awareness. </li></ul></ul><ul><ul><li>Second, decision-making, problem-solving, action space, and innovation capability are also vital. </li></ul></ul><ul><ul><li>Third, implementation and the execution capability of the enterprise should be considered. </li></ul></ul><ul><ul><li>Fourth, metamonitoring and governance competence and perspectives is mandatory. </li></ul></ul>The Enterprise Situation-Handling
  14. 15. <ul><li>Knowledge is the primary driver of enterprise performance. Hence, it must be managed by facilitating and strengthening knowledge-related processes, activities, and practices. </li></ul><ul><li>This is where the pursuit of new generation knowledge management (NGKM) comes in. In order to understand it better, here are its characteristics: </li></ul><ul><ul><li>NGKM enables enterprises to pursue a broad and proactive business philosophy and management beliefs. </li></ul></ul><ul><ul><li>NGKM allows enterprises to exploit knowledge-focused business strategies and practices. </li></ul></ul><ul><ul><li>NGKM practitioners develop knowledge and intellectual capital stewardship mentality. </li></ul></ul><ul><ul><li>NGKM practices are systemic, self-sustaining, and self-renewing. </li></ul></ul><ul><ul><li>NGKM practitioners adopt a systems perspective of enterprise and environment. </li></ul></ul><ul><ul><li>NGKM allows for vigilant application of state-of-the-art KM practices and infrastructure capabilities. </li></ul></ul>The New Generation Knowledge Management
  15. 16. The New Generation Knowledge Management <ul><li>Five main perspectives: </li></ul><ul><ul><li>Societal and global perspectives focus on building knowledge-related capabilities. </li></ul></ul><ul><ul><li>Strategic perspectives focus on creating and expanding relationships with stakeholders. </li></ul></ul><ul><ul><li>Tactical perspectives focus on exploiting knowledge processes. </li></ul></ul><ul><ul><li>Operational perspectives focus on creating and fostering general KM practices. </li></ul></ul><ul><ul><li>Knowledge implementation, manipulation, and application perspectives focus on manipulating and applying knowledge. </li></ul></ul><ul><li>Deliberate and Systematic Knowledge Management </li></ul><ul><ul><li>Foster knowledge-supportive culture. </li></ul></ul><ul><ul><li>Provide shared understanding. </li></ul></ul><ul><ul><li>Focus the knowledge management practice to align with enterprise direction. </li></ul></ul><ul><ul><li>Practice accelerated learning. </li></ul></ul>
  16. 17. The New Generation Knowledge Management <ul><li>Six Success Factors: </li></ul><ul><ul><li>Management Philosophy and Practice </li></ul></ul><ul><ul><li>Deliberate and Systematic Knowledge Management </li></ul></ul><ul><ul><li>Knowledge and Resources </li></ul></ul><ul><ul><li>Opportunities </li></ul></ul><ul><ul><li>Permission </li></ul></ul><ul><ul><li>Motivation </li></ul></ul>
  17. 18. The Management Expectations <ul><li>In today’s global business environment, people-focused knowledge management does support global excellence. Therefore, enterprises should expect several things when it implements the new generation knowledge management. </li></ul><ul><li>For one, the business environment is under pressure due to the increased requirements for better knowledge. </li></ul><ul><li>Another is that effective knowledge behavior is vital, and thus, success relies on it. </li></ul><ul><li>Now, modern enterprises should adopt integrating practices to ensure that internal operations are developed and conducted in harmony. The objective by which is to provide the capabilities and practices that enable the enterprise to effectively implement strategy and directions to achieve success. </li></ul><ul><li>Integrative management is not easily achieved for it requires practice in operations and management practices, incentives, and education with extensive communication. </li></ul>
  18. 19. Knowledge Management Conclusion <ul><li>Today’s business environment is changing, and enterprises have to discover new ways to survive and stay on top of the competition. The key to being a success in the global arena is to develop good knowledge management. </li></ul><ul><li>People act effectively and efficiently when they understand situations, and when they are treated right, productivity increases. </li></ul><ul><li>Therefore, enterprises must also remember that employees look at their leaders as role models whose behavior must reflect the enterprise’s philosophies. </li></ul><ul><li>As each business and enterprise is required to change and adapt to the needs of our times, it is important to remember that the best business approach is a people-focused knowledge management. </li></ul>
  19. 20. BusinessSummaries.com is a business book Summaries service. Every week, it sends out to subscribers a 9- to 12-page summary of a best-selling business book chosen from among the hundreds of books printed out in the United States. For more information, please go to http://www.bizsum.com. ABOUT BUSINESSSUMMARIES

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