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Where does KM stand in the world these days?

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Presentation by Steve Denning to SIKM Leaders Community on March 21, 2017

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Where does KM stand in the world these days?

  1. 1. Where does KM stand in the world these days? March 21, 2017 SIKM Steve Denning steve#@stevedenning.com
  2. 2. A disclaimer: • I haven’t worked in KM since 2001 • I may not know what I am talking about • I am here to listen and learn
  3. 3. 1996: A knowledge management program was launched 1996-2000: KM at the World Bank 2000: The World Bank was benchmarked as a leading knowledge organization
  4. 4. 1996-2000: KM in the World Bank • Knowledge sharing became a major organizational strategy • 100+ communities of practice emerged • Clients became members of the communities. • Knowledge connections worked better than knowledge collections. • At the time, KM was highly energizing:  featured in the World Development Report 1998.  featured in the World Bank mission statement of 1998. • After I left the World Bank in 2000, KM became a backwater in the bureaucracy. • Yet even today, there are ‘sleeper cells’ of ‘true believers.” Problem: the KM vision was at odds with the bureaucracy.
  5. 5. 2000-2006: The World Bank was not alone All the celebrated KM programs became bureaucracies • IBM • Ernst & Young • Accenture • Deloitte • World Bank
  6. 6. 2006 SIKM talk: ‘The 13 Myths of KM’ Including the following “myths”: • ‘KM will transform the business landscape’ • ‘Knowledge is the only competitive advantage.’ • ‘KM succeeded and no one knows it.’ www.stevedenning.com/slides/sikm-mythsofkm.pdf These were ‘alternative facts.’
  7. 7. 1990s ‘Knowledge is the only competitive advantage.’ 1990s: Knowledge is a competitive advantage Peter Drucker ‘Post-capitalist Society’ (1993)
  8. 8. 1990s ‘Knowledge is the only competitive advantage.’ 2007 Knowledge is a commodity 2007: Knowledge is a commodity Peter Drucker ‘Post-capitalist Society’ (1993) Apple gets rid of its R&D department and makes the iPhone from scratch in just 18 months
  9. 9. 1990s ‘Knowledge is the only competitive advantage.’ 2007 Knowledge is a commodity 2010 ‘Innovation is the only competitive advantage.’ 2010: Knowledge became a commodity Peter Drucker ‘Post-capitalist Society’ (1993) Apple gets rid of its R&D department and makes the iPhone from scratch in just 18 months
  10. 10. 2011: My SIKM talk: Why does management kill KM? • Knowledge management • Lean manufacturing • Marketing • Innovation It’s not just KM: Bureaucracy kills everything creative My SIKM 2011 talk: https://www.slideshare.net/SIKM/why-km-programs-fail
  11. 11. 2011: Attention shifting from KM to M and I 2010 ‘Innovation is the only competitive advantage.’ How do you systematically innovate?
  12. 12. 2011: Attention shifted from KM to M and I 2010 ‘Innovation is the only competitive advantage.’ Bureaucracy is very bad at innovation “Traditional, MBA-style thinking dictates that you build up a sustainable competitive advantage over rivals and then close the fortress and defend it with boiling oil and flaming arrows.” Eric Schmidt & Jonathan Rosenberg, How Google Works
  13. 13. 2015: Tenth anniversary of SIKM • KM is still around (other ideas have faded) • KM is a stable profession but it doesn’t grow much. • Most people don’t know anything about KM. • Recommendations:  ‘Don’t start by rolling out a KM program.’  ‘Help people share their knowledge.’  ‘Develop KM processes and tools.’  ‘Clarify goals, incentives and requirements.’  ‘Lead by example’ Stan Garfield, ‘Is KM on life support?’ ,
  14. 14. 2015: Tenth anniversary of SIKM • ‘KM programs’ still exist. • People have titles with ‘KM’ in them. • People discuss: where should ‘the KM function’ be? • SIKM goes on holding talks. • But KM is no longer at the cutting edge . • The C-suite pays little attention to KM. • What implications does all this have? Steve Denning: input to SIKM, 2015
  15. 15. 2015: How to fix KM To fix KM, we have to fix M. We need management that can systematically innovate Steve Denning, 2015
  16. 16. 2015: Attention must shift from KM to M and I 2010 ‘Innovation is the only competitive advantage.’ For innovation, we need a radically different kind of management!
  17. 17. What is Agile? Agile is now spreading rapidly to all parts, and all kinds, of organizations— big firms and small, software and hardware, technology or manufacturing, pharmaceuticals, health, telecommunications, aircraft and automobiles
  18. 18. What is Agile? What exactly is Agile?
  19. 19. What is Agile?
  20. 20. More than 70 different Agile practices. Even the Agile Manifesto (2001) is a cognitive stretch: • four values • twelve principles What is Agile?
  21. 21. Agile is … …mindset The most important thing What is Agile?
  22. 22. Agile isn’t something you can write down and put in an operational manual What is Agile?
  23. 23. Agile is a different way of understanding and acting in the world What is Agile?
  24. 24. Why Agile? Let’s start with why
  25. 25. • Globalization • Deregulation • Knowledge work • The Internet The world changed Let’s start with why
  26. 26. • Globalization • Deregulation • Knowledge work • The Internet Greater competition Faster pace Digitalization of everything The customer is the boss The world changed Let’s start with why
  27. 27. • Globalization • Deregulation • Knowledge work • The Internet Greater competition Faster pace Digitization of everything The customer is the boss Let’s start with why The world changed
  28. 28. From (20th Century): deliver quality goods and services at a reasonable price to (21st Century): provide instant, frictionless, intimate value at scale. Achieving this goal lies beyond the performance capability of an internally- focused bureaucracy. Innovation is needed to deal with the new business challenge Let’s start with why
  29. 29. “They are dying so fast!” Big old bureaucracies won’t survive Change or die! Let’s start with why
  30. 30. Innovation is the needed response to a (hidden) crisis Let’s start with why
  31. 31. Innovation requires a different mindset not a technology not a process not a methodology not a system not a platform not big data not an organizational structure Let’s start with why
  32. 32. Now agile methodologies… “are a radical alternative to command-and-control-style management.” The Big Idea Embracing Agile Darrell K. Rigby, Jeff Sutherland, Hirotaka Takeuchi
  33. 33. Without an innovation mindset, no benefits flow. With an innovation mindset, benefits flow, no matter what the processes are. Innovation is more than a set of processes Let’s start with why
  34. 34. The three laws of the Innovation mindset 1.The law of the small team 2.The law of the customer 3.The law of the network The three laws of the Agile mindset
  35. 35. The three laws of Innovation 1.The law of the small team 2.The law of the customer 3.The law of the network The three laws of the Agile mindset
  36. 36. 1. The Law of the Small Team Agile practitioners share a mindset that any significant work should in principle be done in: • small autonomous cross-functional teams • working in short cycles • on relatively small tasks and • getting continuous feedback from the ultimate customer or end user. It’s “small everything.” The three laws of the Agile mindset: the law of the small team
  37. 37. In the 20th Century, teams often were teams in name only The three laws of the Agile mindset: the law of the small team
  38. 38. Agile teams deliver disciplined efficient performance at scale Agile generates high-performance teams on a consistent basis. It’s “small everything.” You fight complexity with simplicity. The three laws of the Agile mindset: the law of the small team
  39. 39. The three laws of Agile 1.The law of the small team 2.The law of the customer 3.The law of the network The three laws of the Agile mindset: the law of the customer
  40. 40. The first principle of the Agile Manifesto “1. Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” The three laws of the Agile mindset: the law of the customer
  41. 41. Innovation requires a different goal The purpose of a firm is to make money for its shareholders The only valid purpose of a firm is to create a customer “The dumbest idea in the world” – Jack Welch Peter Drucker 1954 Goal Goal Pre-Copernican Post-Copernican The three laws of the Agile mindset: the law of the customer
  42. 42. Earth The Copernican Revolution in astronomy Sun The three laws of the Agile mindset: the law of the customer
  43. 43. Earth Sun Earth The Copernican Revolution in astronomy Sun The three laws of the Agile mindset: the law of the customer
  44. 44. Firm The Copernican Revolution in management Customer The three laws of the Agile mindset: the law of the customer
  45. 45. Firm Customer Firm The Copernican Revolution in management Customer The three laws of the Agile mindset: the law of the customer
  46. 46. Agile goal is different Different goal leads to • Different structure of work • Different way of coordinating work • Different values • Different way of communicating Unless the goal is right, nothing works The three laws of the Agile mindset: the law of the customer
  47. 47. The three laws of Agile 1.The law of the customer 2.The law of the small team 3.The law of the network The three laws of the Agile mindset: the law of the network
  48. 48. The Law of the Network Early on, it was assumed that if the teams were innovative, then the organization would be “innovative” It turned out not to be the case. The three laws of the Agile mindset: the law of the network
  49. 49. The Law of the Network Agile practitioners view the organization as • a fluid and transparent network of players • that are collaborating • towards a common goal of delighting customers. The three laws of the Agile mindset: the law of the network
  50. 50. We do see “KM-like groups” in Agile
  51. 51. Open Source software resembles KM • Traditional management hoards knowledge. • Agile firms don’t want to build software and then find that the industry goes in a different direction and that becomes the standard • They encourage staff to draw on and contribute to Open Source software • As Open Source grows, there are (potentially) KM-like jobs in Open Source software
  52. 52. The three laws of the Agile mindset 1.The law of the small team 2.The law of the customer 3.The law of the network The three laws of the Agile mindset
  53. 53. My forthcoming book Coming February 2018 More on the three laws of Agile: Send me an email if you would like to review advance chapters: steve@stevedenning.com
  54. 54. Options for KM (A caricature of) Stan’s plan (2015) • Accept bureaucracy as a fact of life • Work within it as best we can, keeping our heads down, • Look for tactical wins, waiting for better days. Steve’s plan (2017) • Reject bureaucracy as a fact of life • Help transform the organization, which is inevitable anyway • Embrace the three rules of innovation • If the organization won’t change, go somewhere that will.
  55. 55. “Where does KM stand in the world these days?” Coming February 2018 March 21, 2017 SIKM Steve Denning steve#@stevedenning.com

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