a brief introduction to knowledge management

A Brief Introduction to …

Knowledge Management

Cambriano Energy, Good Strat Blog, Iniciativa Consulting & Martyn Jones Europecambriano.es

[email protected]

Telephone: +34 618 471 465

[email protected]

http://www.cambairano.es/

mailto:[email protected]

Theme: An Introduction to … Knowledge Management

Objective: Gain a high-level understanding of KM

Topics: KM People, Process and Technology

Authors: Martyn Jones & M-C Portillo. IniciativaConsulting. Cambriano Enrgy. Open Knowledge Methodology.

Duration: Approx. 45 minutes

Agenda

[email protected]

Copyright © 1992-2000 Iniciativa Org, S.L.

KM Quotes

“Knowledge management is all there is in our company. We live and die on our intellectual property…acquiring knowledge quickly…moving it around the company very quickly…it’s all about knowledge transfer...starting with the customer.”

Lew PlattHP

The Performance Group Consortium

May 1997

[email protected]

What is Knowledge

Management?

[email protected]


Ideas About Knowledge Management – 1/4

Helping

– to manage complexity, change, speed and know-how

in increasingly informal, ambiguous and

opportunistic business environments

Helping

– business to really know what their know-how is

Helping

– to improve the quality of decision making through

the supply of adequate, appropriate and timely

information and knowledge

[email protected]

[email protected]


Helping

– to drive continuous improvements in quality and

innovation

Helping

– to formulate new best principles and best practices

Helping

– to achieve greater business intensity, intimacy,

complicity and agility

[email protected]


Helping

– to create a culture of sharing and collaboration

Helping

– to promote the creation and management of

Structured Intellectual Capital

Helping

– employees locate skills and experience

[email protected]


Helping

– business to identify ways to encourage employees to

share know-how

Helping

– business to assess states of readiness in terms of

technology, culture, economics and politics

Helping

– to exploit knowledge and to connect people

[email protected]

Human Capital

– the capabilities of the individuals required to provide

solutions to customers

Structural Capital

– capabilities of the organization to meet market

requirements

Customer Capital

– value of an organization’s relationships with the

people with whom it does business

Language of KM – 1/3

[email protected]


Customer Intimacy

– increasing customer knowledge

Customer Intensity

– sharing know-how with the customer

Agility

– rapid learning and intellectual capital reuse

Intellectual Capital

– know-how

[email protected]


Knowledge Based Products

– unique value propositions based on associated

knowledge content

Innovation

– creating new information and know-how

Process and Product Quality

– sharing information and know-how related to work

practices, processes and quality innovations

[email protected]

KM: Business Imperatives

Industrial - making & moving Information - transactional

natural resources based people based

things know how = ideas

measure cost & quality measure time & quality

currency = $, €, cost currency = innovation

capitalistic economy network economy

CSF = low cost producer CSF = fast learning organisation

centralized & controlled decentralized & shared

linear & predictable chaotic & complex

change slow change exponential

economy of scale economy of integration

bottom line = cost bottom line = speed & quality

[email protected]

KM: Decisions, Decisions

• focus on the core business

• outsource non-core activities

• Understand buy and build options

• focus on asset life cycle

• focus on portfolios

• partner & collaborate

• and be more profitable now!

[email protected]

Competing with KM

[email protected]

Competition from within the industry

Rivalry

Suppliers Buyers

Replacements

Potential entrants

Threat ofreplacements

Bargainingpower

Bargainingpower

Bargainingpower

Sources: Michael Porter;Martyn R Jonesand others

Competitive Forces and KMDesign by Iniciativa Consulting

Government


Rivalry

Suppliers Buyers

Replacements

Potential entrants


Bargainingpower

Bargainingpower

Bargainingpower


Competition from within the industry:

When, where, how, why and with what to compete.

Conditioning factors in the making and breaking of alliances.


Government


Rivalry

Suppliers Buyers

Replacements

Potential entrants


Bargainingpower

Bargainingpower

Bargainingpower



Government

Buyers:

Marketing and Sales intelligence and know-how.

Matching needs with products, services and value propositions.

Customer intimacy and intensity.


Rivalry

Suppliers Buyers

Replacements

Potential entrants


Bargainingpower

Bargainingpower

Bargainingpower


Suppliers: Supply chain management and associated information management allows customers to have a much clearer relationship with suppliers.


Government


Rivalry

Suppliers Buyers

Replacements

Potential entrants


Bargainingpower

Bargainingpower

Bargainingpower



Government

Potential Entrants:

IM and KM that uses external market information can help businesses to anticipate possible and probable market incursion.


Rivalry

Suppliers Buyers

Replacements

Potential entrants


Bargainingpower

Bargainingpower

Bargainingpower


Replacements:

Replacement products and services … difficult to pick up on the business radar.

KM in the form of a Digital Network facilitates awareness


Government



Rivalry

Suppliers Buyers

Replacements

Potential entrants


Bargainingpower

Bargainingpower

Bargainingpower


Government

Strategy and KM

[email protected]

Strategy

Skills Shared Values

Structure Systems Staff Style

Source: McKinsey & Co.

Elements of Strategy and KMDesign by Iniciativa Consulting

Strategy



Strategy: The major objectives of an organization and the policies and strategies that govern the acquisition, use and disposition of resources to achieve those objectives depends on information and knowledge

Source: McKinsey & Co.;Martyn R Jonesand others



Strategy



Shared Values: common assumptions about what the business is trying to achieve, how it should go about itswork, how people should deal with each other, and how issues that arise ought to be tackled. Clearly, the sharing of values depends on information and knowledge



Strategy



Skills: Skills can be defined as the competencies the organization needs in its people in order to perform required activities to the desiredstandard. Information and knowledge are important ingredients here. Source: McKinsey & Co.;Martyn R Jones

and others


Strategy



Structure: Structure is concerned with how the business breaks down its activities into distinct elements and how these elements are coordinated.KM and IM are critical to success in this area.



Strategy



Systems: The systems used by the business should reflect the aims of accountability, professionalism and constancy of purpose. KM is key in ensuring the permanent alignment of people, systems and business needs.



Strategy



Staff: Ensuring that business has the right people with the right capabilities available to address business needs and the needs of people. KM plays a role in providing staff with know-how and the business with solutions.




Strategy



Style: Style is the philosophy, values and shared beliefs adopted by people in their use and abuse of power. KM can be used to ensure that corporate and personal styles are consistent and coherent.



Strategy

Skills Shared

Values


Source: McKinsey & Co

Tactics and KM

[email protected]

Tactics and KM: Ten Myths I

• Myth 1: KM should be used to deliver best products and services to the marketplace

KM should be used to support the formulation, implementationand execution of business strategies

KM should be used to provide customers with what they want in the way that a business wants to meet those needs

• Myth 2: KM based accelerated innovation guaranteescommercial success

KM might be used to create a better mousetrap but cannot ensurethe commercial success of a better mousetrap

• Myth 3: Only the Knowledgeable SurviveAn extremely elitist and mistaken view of the role of KM

Being knowledgable facilitates an ability to “walk the talk”

Experience ensures that business can “walk the walk”

[email protected]

Tactics and KM: Ten Myths II

• Myth 4: Knowledge drives decision support like no otherKnowledge drives nothing without the intervention of one or more humans who can add value to information

• Myth 5: KM lets business lead change

You can theoretically lead a horse to water, but you cannot make

it drink – especially if you don’t have a horse

• Myth 6: KM lets business predict the future by using thepast as a guide

The same circumstances occurring at different times will notguarantee consistent outcomes

There are no new birds in last years nests – Miguel de Cervantes

[email protected]

Tactics and KM: Ten Myths III

• Myth 7: Knowledge brings quality to products and services

Not intrinsically true – adequate, appropriate and timelyinformation can also b used to achieve the same thing

• Myth 8: Documentation Management is not KMA document is one of the most important forms used for know-how transfer therefore the management of the media is consistentwith the management of know-how

• Myth 9: KM is the evolution of Data WarehousingA rumor spread by opposing bands of 1990’s TechnologyStrategists and 1960’s Systems Thinkers

• Myth 10: KM is only for Knowledge Intensive BusinessesKM is like power management and electricity – no business shouldbe without it

[email protected]


[email protected]

Financial Non-Financial

Tan

gib

leIn

tan

gib

le

• Increased sales win rates

• Increased utilization

• Reduced communications costs

• Marketing best practices

• Logistics savings

• Know-how for competitive advantage and faster time to market

• Return on pre-sales investment

• Faster staff induction

• Consistent quality

• Reduced churning

• Greater customer intensity

• Closer alignment of elementsof strategy

• Quality of worklife

• Increased market visibility

• Retention of know-how

• Faster innovation

• Increased visibility of innovation

KM: Accruable Benefits

[email protected]

Human


Structured Intellectual

Capital

KM: What Is Intellectual Capital

High-value knowledge

Market

Value

Intellectual

CapitalFinancial

Capital

[email protected]

Structured

Intellectual

Capital

Human

Intellectual

Capital

KM: Human and Structured Intellectual Capital

[email protected]

Tacit Knowledge

• Personal, context-specific knowledge

• Resides in an individual

• Relies on experiences, hunches and insights

Explicit Knowledge

• Formal, documented knowledge

• Can be conveyed from one person to another through documents, images and other deliberate communication mediums

KM: There Are Two Types Of Knowledge

[email protected]

Interpretation – Identifying scenarios and series of events

Prediction - Inferring likely consequences of given situations

Diagnosis - Inferring system malfunctions from observables

Design - Configuring processes subject to constraints

Planning - Designing actions

Monitoring - Comparing observations to plan vulnerabilities

Debugging – Identifying and describing improvements

Repair - Executing a plan to administer a prescribed remedy

Instruction - Diagnosing, understanding and improving processbehavior

Control - Interpreting, predicting, improving and monitoring process behavior

KM: Various Uses of Knowledge

[email protected]

From Knowledge Spiral To

Structured Intellectual Capital

[email protected]

Tacit Knowledge Explicit Knowledge

from

to

Externalization

CombinationInternalization

Socialisation

The Knowledge Spiral Builds Intellectual Capital

Tacit Knowledge

Explicit

Knowledge

[email protected]

The KM Team Focus

Focus on knowledge flow and content that is of most value for

the business

Align with values, vision, strategies and competitive forces

Develop processes for contribution, use and revitalization

Establish security standards and practices

Create roles and responsibilities

Establish measures of content and technical quality

Don’t forget: a technology environment alone

will not enable Knowledge Management

[email protected]

Top consultants who

actively share their

knowledge dramatically

increase their value.

Leveraging other people's

knowledge, experience and

deliverables to increase our

quality and efficiency is

desired behavior.

Innovation is highly valued

when both successes and

failures are sharedTime spent increasing the knowledge and confidence

of other consultants is a

highly valued activity

Knowledge Sharing Values

[email protected]

The Iniciativa OpenKnowledgeCommon Interest Community Process

Onboarding Planning Learning Sessions Apply Lessons Learned

Meeting to

describe CoPprocess and roles

Identify CoPs and

Leads

Establish Planning

session dates for each CoP

Conference call with

each CoP lead and SMEs

Identify CoP

objectives and initial topics

Identify potential participants

Invite participants

Exchange knowledge,

experiences, tools and templates

Capture knowledge

opportunities for skill development

Indentify topics and logistics for next session

Integrate learning and

experience of others into project work

Develop collateral;

combine new knowledge with existing

methodologies

Provide access to

documented knowledge

via technology

Reflect and learn

•CoPs - Communication of Communities of Practice; their goals, meeting schedules and

topics

•Highlight and share successes, lessons learned and business results

Practice/Program

LeadersCoP Leads

SMEsKnowledge

Facilitators

CoP Lead

SMEs

Knowledge

Facilitators

CoP Participants

SMEs

Knowledge Factilitators

CoP Participants

Key Roles:

Ongoing:

[email protected]

Knowledge Processes & Structured Intellectual Capital

Tacit Explicit

Practice

Principles

Process

Gathering

Process

SIC

Synthesis

and Create

Repository

Process

Business

Process

IndividualsCommunities

Common Interests

Structured IC

Types of

Vision

Common

Interest

Process

Mentoring

Process

[email protected]

Outcome: Create a sense of community

Outcome: Pervasive knowledge sharing

Create the Foundation

On-going Learning and Communication

Outcome: Design systemic environment

Build & Launch the Environment

Permeate the Environment

KM

Snapshots

Communities

Of Practice

Knowledge Sharing Forums

Knowledge

Technology

The Knowledge Spiral: Continuous Knowledge Sharing and Learning

Accelerating Knowledge Management

[email protected]

1. Exchange

ideas

2. Exchange tools /

templates

3. Integrate into

other documents

and media

4. Apply in practice

6. Share with

community

5. Reflect and

learn

What is the Knowledge Spiral?

[email protected]

1. Exchange IdeasLearning CommunitiesProject SnapshotsWho to call?

2. Capture Ideas, Insights, Lessons Learned

Capture/DocumentUse tools/templatesClassification/categories

3. Make Available/ DistributeIntegrate into other documentsSend Notifications

4. Apply in PracticeFind answers to business issuesReflect and Revise

Publish

Access

Capture

Learn

Tools

Profiling

Collaborative Environment

Electronic Communication

Tools

Object/Document Management

Authoring/Publishing

Abstracting

Categorization


Tools

Intelligent Agents

Broadcasting & Narrowcasting

Searching Engines


Tools

Browsing/Navigational

Intelligent Agents

Search Engines

Tracking Tools

Security

Collaborative Environment

IT must enable the Knowledge Spiral

[email protected]

Harmonization and KM

[email protected]

KM: Questions Of Harmonization

• People are at the centre; not technology; not process

people-as-ends versus money-as-ends

• Middle Management filled the knowledge sharing role between business strategies and high-technical operational activities

who knows best how to do this?

now that we know, can we do it again in the future?

• Soft issues - culture & leadershipare really the hard (difficult) issues. Hard issues - technology & measurement are soft (easy) issues

[email protected]


• Do we solve complex problems approximately or simplified problems exactly?

• Learning faster and better than your competitor is the only sustainable competitive advantage

• Honesty, Trust, Humility and Open Conversation between people is essential and unavoidable if success is really required

• “Business at the speed of need” and “Time to think” are absolutely essential – Iniciativa Consulting

[email protected]


• Positive Attitude

• Behavior & Skills

• Positive Value & Culture

Systems

• Value Relationships

• Strong Work Ethos

• Reward system aligned

with value system

• Better Decisions

• Personal & Team Qualities

– honesty

– trust

– humility

– open conversation

• Objective knowledge

• Subjective knowledge

• Knowledge of

evolutionary consequences

• Legacy builder

[email protected]

Harmonising People, Technology & Process

TECHNOLOGY

knowledge tools forinformation sharing

PROCESSES

integrated life cycleprocesses focused on E&P asset & modeldriven learning

PEOPLE

multi-disciplinary teams / groups working together to solve common business problems in non-competitive areas

[email protected]

Second

Iteration

Pilot

Analyze

Design Construct

Test

ImplementReview

Scope

KM: Typically Iteration Critical

First

Iteration

[email protected]

KM: Knowledge and Wisdom

I never waste memory on

things that can easily be

stored and retrieved from

elsewhere.

Albert Einstein

Knowledge is of two kinds. We

know a subject ourselves, or we

know where we can find

information upon it.

Samuel Johnson

[email protected]

KM Value Platform

Human

Capital

Customer

Capital

Structural

Capital

The merging of three types

of capital, along with KM,

creates the desired

outcome … an organization

so aligned and balanced

as to create the best

possible value.

Financial

Capital

[email protected]

Market to Book RatioCustomer Capital

Measures Human Capital

Measures

Structural Capital Measures

Turnover rate

New Product sales(%total)

Employee attitude

Database replacement

costs

Working Capital

Customer retention

Brand Equity

Customer

Satisfaction

Ratio of sales to

admin. costs

Business Intellectual Capital

[email protected]


Creating the KM Foundation

Knowledge MappingA process to identify knowledge and

skills needed to sell or deliver a solution

KnowledgeSnapshots

Common Interest

Communities

Knowledge Mapping

Knowledge Snapshots

A process by which

approaches, insights, and deliverables are captured from the experience of individuals and teams

Common Interest CommunitiesA process for people to connect with other people to acquire, exchange and build knowledge

[email protected]

The Iniciativa

IM Pyramid

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA

The Iniciativa IM PyramidCopyright © 2000 Iniciativa Org, S.L.

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


Data: We all know what data is. One or more of a series of symbols that possibly signify something or other to someone or something at some moment in time.

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


Information: The result of putting data into context. Knowledge Management is highly dependent on adequate, appropriate and timely information.

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


Knowledge: The result of interpreting and understanding information. Business understanding and representation of know-how.

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


Uncover: Before a business can understand the importance of its knowledge based information it has to “discover” it.

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


Understand: In order to be able to identify opportunities for the reuse of information it is necessary to understand what that information represents.


[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


Understand: In order to be able to identify opportunities for the reuse of information it is necessary to understand what that information represents.


Use: In order to add value to the KM process it is necessary to apply information and know-how in a way that benefits the business.

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


Structure: Providing constancy of purpose in structuring information makes it easier to understand the content of reusable information.

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA



Content: information must convey usable levels of content –sufficient enough to be significant and small enough to be usable

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA



Content: information must convey usable levels of content –sufficient enough to be significant and small enough to be usable

Context: Information must be related to contexts in which it has been created, context can ascertained when information is uncovered.

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


Strategic: Knowledge and information are used to formulate and drive strategic thinking and planning.

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


Strategic: Knowledge and information are used to formulate and drive strategy thinking and planning.

Tactical: Information Management plays a key role in the process of tactical decision making

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


Strategic: Knowledge and information are used to formulate and drive strategy thinking and planning.

Tactical: Information Management plays a key role in the process of tactical decision making

Operational: Decision making has become all pervasive and IM ensures that operational decision makers have the support needed.

[email protected]

UNCOVER

UNDERSTAND

USE

KNOWLEDGE

INFORMATION

DATA


[email protected]

Ongoing

Understanding

[email protected]

Continued development of organizational

capability

Implementionand integration

of SIC processes

Evolving organization and

technology infrastructure

Infrastructure

Managing

Results

Oriented

Knowledge

Building and Deploying The KM Environment

[email protected]

KM: Business Benefits and Features

Better

Control

Lower

Risk

Improved

Profitability

• Leverage from a base of successful

tools and approaches

• More predictable results

• Less dependent on single individuals

• Ability to more easily achieve business results

• Efficient process design, delivery

end execution

• Opportunity to value price

[email protected]

KM: Roles in the Transition to a Learning Organization

• Embrace the process

• Leverage ‘learnings’ from past snapshots

• Encourage employees to share and leverage knowledge from others

• Recognize and reward desired behaviors

• Actively share, leverage and document knowledge

• Become a Knowledge Master

KM Snapshots

Mentoring Process

Role Model

[email protected]

KM: The Knowledge Elaboration Environment

Domain

Experts

Info

Experts

IT

Experts

Knowledge “Creation”

and Organizational

Effectiveness

Knowledge

Organization

Enlightenment

Knowledge

Infrastructure

Process Efficiency

Source: Chun Wei Choo

Information Management for the

Intelligent Organization

[email protected]

Knowledge Management Technology OrientationSource: Microsoft Corporation

• Knowledge Services: Centralized management, seamless delivery and tracking of a company's knowledge assets – including Structured Intellectual Capital

• Collaboration—Sharing Tacit Knowledge Across Time and Distance: The integrated collaborative capabilities of Microsoft Office and Microsoft Exchange Server allow users to innovate together within their familiar productivity tools.

• Content Management—Capture and Manage Explicit Experience: Content-management technologies allow people to capture, codify, and organize experiences and ideas in central repositories that enable seamless, intuitive access to an entire organization.

• Analysis—Turning Business Data into Knowledge: Being able to quickly spot trends in financial and line of business data allows decision-makers to plan better strategies.

• Search and Deliver—Bringing Knowledge to Teams and Communities: Building teams and communities across a dispersed organization is possible with portals built on personalized, cross-enterprise search and delivery technologies.

• Tracking & Workflow—Capture and Enforce Best Practices:Tracking services allow companies to identify best practices by measuring successes, while workflow tools enable the creation of process-based applications to ensure that the practices are followed and measured.

[email protected]

KM: Creative Confluence and Collaboration

Data Compression

Techniques

Proliferation of cheap,

powerful computers

Improved data

communication

Knowledge workers in

the information age

Emergence of the

Network Economy

Emergence of multi-

media entertainment

DIGITAL NETWORK

Collapsing Telco charges

[email protected]

Summary

[email protected]

Summary

Knowledge Management is an excellent opportunity to:• manage a greater number of options and opportunities

• manage larger amounts of information

• enable greater sophistication in aligning business processes with the needs of the business

Knowledge Management drives a more subtle and pervasive management of business information

Knowledge Management highlights:• the waste and misuse of talent, invention and know-how, and

• proposes tangible and effective solutions

Knowledge Management helps create an environment of communication, cooperation and collaboration that other management initiatives have failed to provide

[email protected]

Summary

• Business depends on the correct management of assets

• Information and know-how assets are managed by KM

• KM relies on Knowledge Spirals

• Knowledge Spirals depend on People

• People work Communities of Practice and share information in Communities of Interest

• People create, communicate, collaborate and innovate with other People

• Communication and collaboration can be facilitated by Information Technology

• KM is People Driven, Process Focused and frequently technology based

[email protected]

Summary

• Want to know more about Knowledge Management, LearningSpirals, Communities of Practice?

• Thinking of using Knowledge Management?

• Planning to purchase hardware, software and services for yourKM project?

• Started a KM project and don’t know what to do next?

SEE A SPECIALIST!

Martyn Jones, Iniciativa Consulting

http://www.martynjones.eu

[email protected]

http://www.martynjones.eu/

Thank you for your attention

Cambriano Energy

http://www.cambriano.es

Good Strat Blog

http://www.goodstrat.com

Martyn Jones, Iniciativa Consulting

http://www.martynjones.eu

[email protected]

http://www.cambriano.es/

http://www.goodstrat.com/

http://www.martynjones.eu/

A Brief Introduction to …

Knowledge Management

Cambriano Energy, Good Strat Blog, Iniciativa Consulting & Martyn Jones Europecambriano.es

Telephone: +34 618 471 465

[email protected]

http://www.cambairano.es/