Knowledge Management Strategies

KM STRATEGY and MEASUREMENTS
CHAPTER 9
Kimiz Dalkir
2005

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
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KM
Strategy
The Business Goals
THE FUTURE of KM
KM AUDIT
KM understanding in the organization

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
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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.
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Masjid Agung Pekanbaru Riau, April 2013

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
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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
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http://www.ou.edu/deptcomm/dodjcc/groups/02b1/02b1litreview.htm

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
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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
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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
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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
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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.
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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
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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
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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
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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)
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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
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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???
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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
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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???)
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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?
………………………….
………………………….
………………………….
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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)?
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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
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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
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KM Teaching Group - MBTI 2012
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KM MEASUREMENT

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
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MEASUREMENT CHALLENGE

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)
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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.
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Use knowledge
Review knowledge
Create knowledge
Capture knowledge
Sharing knowledge
Store knowledge
Knowledge audit

Knowledge Management Strategies

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