The document discusses the shift from industrial to knowledge-based organizational models. It provides examples of how knowledge-based organizations operate with more flexible policies, transparency, decentralized decision-making, and emphasis on systems thinking compared to rule-based industrial models. It also discusses the costs of poor knowledge management for organizations and defines knowledge management as the creation, sharing, and leveraging of knowledge to improve organizational performance. Finally, it provides a knowledge diagnostic model and KM process improvement model.

1. Knowledge
Opportunity Costs
Barbara Krell
Enterprising HR

2. Changing organizational models
 Industrialized  Knowledge Based
 Bureaucratic  Policies and guidelines rather
 Management by control and than rules
rule based decisions  Management by facilitation and
 Limited access and input to enabling employee
information empowerment
 Centralized decision making  Transparency and flow of
information
 Maximize efficiencies at unit
level  Input and feedback for
decision making
 Holistic systems thinking
approach
Barb Krell www.enterprisinghr.ca

3. Knowledge At Work
 “Knowledge is a fluid mix of framed experiences, values,
contextual information, and expert insight that provides a
framework for evaluating and incorporating new experiences and
information. It originates and is applied in the minds of
knowers. In organizations, it often becomes embedded not only
in documents or repositories but also in organizational routines,
processes, practices and norms.”
 (Working Knowledge, Davenport and Prusak)
Barb Krell www.enterprisinghr.ca

4. Cost of Poor Knowledge
 Cost of Rework due to Errors
 Cost of Duplication of Efforts
 Cost of Poor Decisions
 Cost of Missed Opportunities
There is a penalty for ignorance. We are paying through the nose.
W. Edwards Deming
Barb Krell www.enterprisinghr.ca

5.  Butler Group reports up to 10% of staff costs
are lost, because employees can't find the right
information to do their jobs.
 http://www.networkworld.com/news/2006/102006-search-cuts-productivity.html
Barb Krell www.enterprisinghr.ca

6. Knowledge Management Is…
 Communicating across disciplines
 An integrated set of systematic processes by which
knowledge needed for an organization to succeed is
created, captured, shared, renewed, and leveraged.
Barb Krell www.enterprisinghr.ca

7. Using what we know…
KM means using the ideas and experiences of
employees, customers and suppliers to improve
the organization’s performance
Knowledge Management The Change Agenda

Michael Skapinker, Management Editor, Financial Times
Barb Krell www.enterprisinghr.ca

8. Leveraging of Knowledge
Organizational Learning
Application of new shared knowledge to
increase capability of the organization
Knowledge Management
Strategies to turn intellectual capital to
explicit knowledge in a form that can be
shared and capitalized on. Organizational Growth
Intellectual Capital
Knowledge assets of organization –
resides at an individual level (human
capital), in tools and processes (structural
capital) and in social networks (relational
capital).
Barb Krell www.enterprisinghr.ca

9. Knowledge in Process
What knowledge is critical to the business?
How do we measure and reward the development and use of
knowledge?
What industry standards do we benchmark against?
How does the use of technology enhance the decision-making
process?
Barb Krell www.enterprisinghr.ca

10. Knowledge Diagnostic
Impact
Issue
Analysis
Why?
Identify Core Strategic
Measures of
Processes Priorities
Success
For Each Core Process Identify
Knowledge Determine Key
Capital Knowledge
Elements and
Enablers
Assumptions Knowledge
Flow
Focus for
Improvement
© Mindwealth 2006 Barb Krell www.enterprisinghr.ca

11. Request for Negotiate terms Deliver product/service Close project Evaluate and Assess
service/support engagement impact
IC Assessment
Knowledge Relationships – Experience of Centre Expertise of consultant Feedback forms Follow-up with client
Capital networks of member to who is delivering completed at Informal, ongoing
relationships negotiate the service end of interaction with
which realistic terms Expertise of Centre staff program/ stakeholders
individuals and draw on to manage the consulting
brings to their appropriate engagement Client accepting
association resources final report
with the centre Staff interaction and “IP” of the centre in
informal defined processes
Centre’s reputation networks and resource
and branding materials/templates
Knowledge Website Funding agreements Org assessment process Feedback forms in Survey Monkey
Flow enablers Maximizer Contract agreements Shared drive of templates database Success stories,
(Supporting Reports of prior Print resource materials Final report presentations by
Tools/ engagements Billings and clients of
Processes/ Consultant database collection successful
Structures Contracts for training outcomes
Barb Krell www.enterprisinghr.ca

12. KM Process Improvement
Model Information
Acquisition Individual
Learning
People
Establish a shared vision
Knowledge Build a guiding coalition
Sharing & Communicate Group and
Integration Build community through formal Community
and informal networks Learning
Technology
Problem & Process Design and implement KM
Opportunity Develop strategy – prioritize –
Detection infrastructure
focus resources Generate Leverage existing systems
opportunity and manage risks
Facilitate short-term wins
Knowledge in
Use
Barb Krell www.enterprisinghr.ca

13. Questions?

14. Barb Krell
bkrell@enterprisinghr.ca