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 05/12/2013 2

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


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.



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



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



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



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


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



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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Riau, April 2013

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


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)


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 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 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 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 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 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 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




Riau, April 2013

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

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


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)



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.





Use knowledge

Review knowledge

Create knowledge

Capture knowledge

Sharing knowledge

Store knowledge

Knowledge audit

knowledge management strategies

Leadership & Management

organizational memory

system organizational

knowledge management

existing knowledge

knowledge creation

strategy metrics

strategy measurements

short term knowledge