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Knowledge Management Strategies

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Kimiz Dalkir

Published in: Leadership & Management

Knowledge Management Strategies

  1. 1. KM STRATEGY and MEASUREMENTS CHAPTER 9 Kimiz Dalkir 2005
  2. 2. KM STRATEGY & MEASUREMENTS KM Cycles (Zack, Bukowitz) KM Model (Nonaka – Takeuchi) KM Capture & Codify KM Sharing KM Application •Learning Organization •Organization Culture •Organization Maturity KM Tools KM Team KM Teaching Group - Universitas TELKOM 05/12/2013 2 KM Strategy The Business Goals THE FUTURE of KM KM AUDIT KM understanding in the organization
  3. 3. KM STRATEGY & METRICS Discuss two things ; A ‘perfect’ KM strategy that is linked to the overall business objectives of the organization A good metrics (measurement) framework to monitor progress toward those organizational goals Importance of KM Strategy Provides the building blocks Used to achieve organizational learning & continuous improvement Thru the avoidance of wasting time repeating mistakes & make everyone aware of new & better ways of thinking & doinag KM Teaching Group - Universitas TELKOM 05/12/2013 3
  4. 4. KM STRATEGY & METRICS Two objectives of KM are innovation and reuse Innovation (& creativity) Generation of new knowledge or new linkages between existing knowledge Involves lateral thinking such as seeing an analogy in a completely different context. Reuse is seen as dull, routine, and unproductive work. In fact, reuse forms the basis for organizational learning and should be viewed more as a dissemination of innovation. KM Teaching Group - Universitas TELKOM 05/12/2013 4
  5. 5. KM Teaching Group - Universitas TELKOM 05/12/2013 5 Masjid Agung Pekanbaru Riau, April 2013
  6. 6. ORGANIZATIONAL MEMORY Organizational learning and knowledge management are heavily dependent on organizational memory Emphasizes “the support of the human user by providing, maintaining, and distributing relevant information and knowledge” While organizational memory depends on the individual memories of organization members, the rules, procedures, beliefs, and cultures are preserved over time through socialization and control KM Teaching Group - Universitas TELKOM 05/12/2013 6
  7. 7. ORGANIZATIONAL MEMORY Organizational memory should not be a passive information system, but must be an intelligent assistant to the user Abecker et al. (1999) created a model to show how organizational memory assists knowledge-management activities. Short term knowledge efforts should concentrate on short term knowledge preservation, facilitated through best practice data bases, lessons-learned archives, or expert systems. In long-term efforts, organizational memory should support knowledge creation and organizational learning KM Teaching Group - Universitas TELKOM 05/12/2013 7
  8. 8. ORGANIZATIONAL MEMORY KM Teaching Group - Universitas TELKOM 05/12/2013 8 http://www.ou.edu/deptcomm/dodjcc/groups/02b1/02b1litreview.htm
  9. 9. ORGANIZATIONAL MEMORY Organizations keep forgetting what they have done in the past and why they have done it. Building organizational memory systems generally failed because Required additional documentation effort with no clear short-term benefit, Did not provide an effective index or structure to the mass of information collected in the system Organizational memory extends and amplifies this asset by capturing, organizing, disseminating, and reusing the knowledge created by its employees KM Teaching Group - Universitas TELKOM 05/12/2013 9
  10. 10. ORGANIZATIONAL MEMORY These organizations have a difficulty to learn, owing to an inability to represent critical aspects of what they know  Organization stupidity or corporate amnesia (Sutton – 2003) Organizational learning and the accumulation of knowledge will be a source of immediate health as well as longterms survival Organizational memory must play a key role in KM strategy KM Teaching Group - Universitas TELKOM 05/12/2013 10
  11. 11. ORGANIZATIONAL MEMORY Current notions of organizational memory Assume a repository of artifacts. Focus on preserving, organizing, indexing, and retrieving only the formal knowledge as it is stored in documents and databases Formal knowledge sometimes is sufficient, but often knowledge worker face with the problems with no clear definition or the ever changing problems Formal documents are not rich enough to support knowledge work Organizational memory consists only formal knowledge is bare and lifeless KM Teaching Group - Universitas TELKOM 05/12/2013 11
  12. 12. ORGANIZATIONAL MEMORY An organizational memory system (like human memory) should therefore have the capacity to recall whatever is relevant and salient to the moment The volumes of corporate knowledge accessible online will increase, which will make it even more difficult to pinpoint those particular items relevant to users KM strategy should address the cultural and technical factors that influence effective organizational memory management Cultural barriers Technical barriers KM Teaching Group - Universitas TELKOM 05/12/2013 12
  13. 13. ORGANIZATIONAL MEMORY Cultural barriers A cultural emphasis on artifacts and results to the exclusion of process. Resistance to knowledge capture because of the effort required, the fear of litigation, and the fear of loss of job security. Resistance to knowledge reuse because of the effort required, and the low likelihood of finding relevant knowledge. KM Teaching Group - Universitas TELKOM 05/12/2013 13
  14. 14. ORGANIZATIONAL MEMORY Technical barriers How to make the knowledge capture process easy or even transparent. How to make retrieval and reuse easy or even transparent. How to ensure the relevance and intelligibility (i.e., through sufficient context) of retrieved knowledge KM Teaching Group - Universitas TELKOM 05/12/2013 14
  15. 15. ORGANIZATIONAL MEMORY The challenge is to design an organizational memory system that offers sufficient short-term payoffs to knowledge workers who will use the system, both to capture knowledge as they are creating it and to look for and reuse existing knowledge, as well as a system that is compatible with the long-term, sustainable KM strategic objectives of the organization KM Teaching Group - Universitas TELKOM 05/12/2013 15
  16. 16. KM Teaching Group - Universitas TELKOM 05/12/2013 16 Masjid Agung Pekanbaru Riau, April 2013
  17. 17. KM DRIVERS Retirement of key personnel The unrecorded event-specific, organization-specific and time-specific ‘how’ of know-how that characterizes any organization's ability to perform - walks out of the front door on a regular basis The need for innovation to compete in dynamic, challenging business environment The need for internal efficiencies in order to reduce costs & efforts KM Teaching Group - Universitas TELKOM 05/12/2013 17
  18. 18. FRAMEWORK External structure initiatives  acquire knowledge from outside sources such as customers, sharing knowledge to others Internal structure initiatives  create knowledge-sharing culture, capture individual tacit knowledge, create revenue from existing knowledge, store, spread, reuse Competence initiatives  setup careers based on KM, create knowledge transfer environment (Sveiby – 2001) KM Teaching Group - Universitas TELKOM 05/12/2013 18
  19. 19. FRAMEWORK Three sources of intangible assets (Lev – 2001) ; Discovery (new thing, new way, new method, new tools) Organizational practices Human resources competencies Read p. 249. What is the topic of Monsanto example? A good KM strategy should identify : The key needs and issues within the organization Provide a framework for addressing these issues KM Teaching Group - Universitas TELKOM 05/12/2013 19
  20. 20. KM STRATEGIES The resources and skills required to develop a KM strategy depend on The size and complexity of the organizational unit The depth of information gathering and analysis. The ideal mix of skills on the KM strategy team would be KM expert  to access to people who are knowledgeable about the organization KM advocate  who will “sell” the strategy to the senior member of management who mandated the strategy development The differences of KM expert VS KM advocate??? KM Teaching Group - Universitas TELKOM 05/12/2013 20
  21. 21. KM STRATEGIES A KM strategy is an approach to define objectives & operational strategy with specialized KM principles and approaches (Srikantajah and Koenig, 2000). Identifying how the organization can best leverage its knowledge resources. What tools required KM strategies answer : Which KM approaches, will bring the most value to the organization? How can the organization prioritize alternatives when any one or several of the alternatives are appealing and resources are limited KM Teaching Group - Universitas TELKOM 05/12/2013 21
  22. 22. KM STRATEGIES A KM strategy is used to define an action to overcome gap Defining organization current state and the desired business objectives  gap analysis What is the components that KM strategy needs to possess? Open and read p. 251-252 The road map typically represents a three- to five-year strategy with clear milestones or targets to be achieved throughout that time (what do you think???) KM Teaching Group - Universitas TELKOM 05/12/2013 22
  23. 23. KM STRATEGIES Current state of the organization assessed using Information gathering from a variety of sources or key documents (e.g., annual report) Interviewing key stakeholders (e.g., senior managers, human resources, information technology, and major business unit managers) How about desired business objectives? …………………………. …………………………. …………………………. KM Teaching Group - Universitas TELKOM 05/12/2013 23
  24. 24. KM STRATEGY ROADMAP Address the questions of ; How to manage knowledge for the benefit of the business? How to manage explicit & tacit knowledge priorities? How the processes, people, products, services, organizational memory, relationships, & knowledge assets be identified as high priority knowledge levers to focus on? What is the clear or direct link between KM levers & business objectives? What are some quick wins (early relatively inexpensive KM successes)? How will KM capability be sustained over the long term (e.g., defined KM roles)? KM Teaching Group - Universitas TELKOM 05/12/2013 24
  25. 25. KM STRATEGY ROADMAP One key component of a sustainable KM program is the efficient and effective management of organizational memory Other key components are ; KM roles and responsibility (KM team) Framework to evaluate KM initiatives success KM Teaching Group - Universitas TELKOM 05/12/2013 25
  26. 26. KM Teaching Group - Universitas TELKOM 05/12/2013 26 Masjid Agung Pekanbaru Riau, April 2013
  27. 27. KM  Management of knowledge resources and processes with an objective to improve competitive advantages and organizational performance Performance measurement is crucial in KM as it serves as the foundation that enables an organization to evaluate, control, and improve its knowledge processes. Measuring knowledge as an intangible capital will be difficult 05 Desember 2013 KM Teaching Group - MBTI 2012 27 KM MEASUREMENT
  28. 28. The measurement system must meet the requirement ; Management  set goals and objectives for managing assets Assessment of monetary dollar value — to know the actual influence of these efforts on company value 05 Desember 2013 KM Teaching Group - MBTI 2012 28 MEASUREMENT CHALLENGE
  29. 29. Professor Baruch Lev’s method for assessing assets Find quantitative dollar results (the actual annual earnings of a company, deduct the customary yield on physical assets of that industry, and the result is the contribution of the intangible assets). Still, not satisfying the need to measure the knowledge In spite of sophisticated financial reports, it is often difficult to determine the real value of a company in terms of the total sum of its assets (tangible and intangible) 05 Desember 2013 KM Teaching Group - MBTI 2012 29 MEASUREMENT CHALLENGE
  30. 30. Professor Baruch Lev’s method for assessing assets Coca Cola. Discounting the extensive value of the sugar, water, bottling facilities, and distribution system, The company’s value lies in the formula to make Coke and in the brand awareness the company has established. 05 Desember 2013 KM Teaching Group - MBTI 2012 30 MEASUREMENT CHALLENGE
  31. 31. 05 Desember 2013 KM Teaching Group - MBTI 2012 31 MEASUREMENT CHALLENGE Use knowledge Review knowledge Create knowledge Capture knowledge Sharing knowledge Store knowledge Knowledge audit

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