1. Knowledge management in a global knowledge-based firm Dr. Robin Teigland Stockholm School of Economics September 2007 robin.teigland@hhs.se

2. A world of increasing knowledge flows…. Growth Time Output of information and knowledge Human absorptive capacity Cohen, WM och Levinthal, D A, Absorptive Capacity: A new Perspective on Learning and Innovation, Working paper, Carnegie Mellon University and University of Pennsylvania, October 1989

3. … that is increasingly connected. Nodes are individuals and colors represent organization s Casper & Murray 2002

6. From a multi-domestic company to a successful global firm Multi-domestic Global Integrated Sub7 HQ Sub10 Sub9 Sub8 Sub13 Sub11 Sub3 Sub5 Sub4 Sub1 Sub2 Sub6 Sub14 Sub14

7. Aligning operations increases success Global strategy Competence Management Motivation Management Knowledge Management

11. The knowledge management challenge The majority of a company’s valuable knowledge is tacit and resists being articulated

16. Avoid creating information junkyards Building knowledge repositories Information junkyards or Empty libraries

19. Creating centers of excellence COE HQ

20. San Francisco Stockholm London Brussels Helsinki Madrid Copenhagen Improving knowledge transfer through job rotation Rotated from Stockholm

21. Where do individuals go for help in solving problems? Co-located colleagues Intranet Non-electronic documents Internal electronic networks Contacts in other offices Firm boundary External electronic networks Internet Non-electronic documents Other contacts

22. Knowledge networking through communities of practice Connecting people so that they collaborate, share ideas, and create knowledge

25. CPs are not teams or personal networks McDermott 2001 -Obligation -Job requirement -Value -Commitment - Friendship Glue -Planned -Actively discovered -Serendipitously discovered Value Creation -Organize tasks -Meetings -Informal communications -One-on-one Activity -Assigned -Defined boundary -Mostly volunteers -Permeable boundary -Friends & acquaintances -No boundary Members -Accomplish goal -Solve problems -Share info. & ideas -Expand knowledge -Share information -Friendship Purpose Team Community of Practice Personal Network

26. Communities are the grease in the KM wheel C reating knowledge E mbedding knowledge D isseminating knowledge O rganizing knowledge C C O D E KM

28. Communities can have a different primary purpose Helping Best-practice Innovation Knowledge stewarding

29. Community membership and roles Coordinator Peripheral Core Group Active

30. Two extreme communities of practice Face-to-face Virtual

31. Communities cross all boundaries Company Suppliers Customers Competitors

32. Don’t forget to support informal external networks at the individual level! Organization Electronic communities Partners Customers and suppliers Previous work and school colleagues External Large portion of new ideas and formal collaboration relationships come from personal external contacts

33. Encourage an open innovation attitude Not all the smart people work for us. We need to work with smart people inside and outside the company. The smart people in our field work for us. If you create the most and the best ideas in the industry, you will win. If you make the best use of internal and external ideas, you will win. Closed attitude Open attitude Chesborough 2003

41. …and difficult to achieve. Gupta & Govindarajan 2000 Number of subsidiaries providing and receiving knowledge and skills

43. Two departments within the same firm Department 1 Department 2 Higher degree of learning & knowledge sharing Poorer degree of learning & knowledge sharing

44. Unawareness and power games Icon programmers – Stockholm Surprise!! Bottleneck 

45. Islands of competence despite intensive KM efforts San Francisco Stockholm London Brussels Helsinki Madrid Copenhagen Icon programmers – Worldwide

46.