Tuesday, 31 March 2009

Knowledge base view in action!

Mellon Financial Corporation (MFC) (www.mellon.com) manages their knowledge in the workplace through many different methods. MFC tries to create, capture, share and use knowledge effectively. MFC uses many different methods for capturing knowledge. Having access to important knowledge only when a busy manager has time to share it, or losing access to it completely when that person leaves the company, are good reasons to capture knowledge before it is lost to the firm. MFC uses one or more of the following technologies, knowledge repositories (data warehouses and mines), just-in-time (JIT) systems, neural systems, data-mining tools, contact software, enterprise resource planning (ERP)-based systems and corporate intranets.
MFCs knowledge-based repositories and data-mining tools are used extensively and are a source of codified knowledge. This is true whether it is the process of backing up data through automated data storage mechanisms (ADSM), or the process of storing tapes at the off sight data mine. This storage of information and knowledge is there to enhance the employees’ efforts. The JIT-systems and neural systems that MFC has are another source of codified knowledge. These systems may go as far as calling a person at home to tell of a situation that requires intervention. These systems have built in knowledge of situations that have occurred in past experiences that will cause problems. They strive to prevent such problems from happening through prevention techniques. The contact software combined with the automatic features of ERP-based systems enable employees to codify their knowledge into contact lists that in turn can be used to make marketing plans for the future. This data are easily accessible for employees to research potential customers for future plans. The ERP systems enable separate areas to coordinate their efforts for maximization of strategic planning.
MFCs intranet is probably the most widely used source of knowledge sharing of its array of KM tools. Virtually every functional area has a specific drive to store their documentation of events for their distribution. Virtually all of MFCs employees have access to this data and can research any application or project that they would need to. This procedure requires frequent written documentation of any changes to the software that are made. Both internal and external auditors check to ensure compliance by annual audits of this procedure. So any authorized KM employee can see that knowledge codification is not only encouraged but it is a requirement for a knowledge worker position with MFC. MFC also promotes the personalization of knowledge strategy. Managers help to create a culture that supports their teams in successfully creating and sharing knowledge. Creating a supportive culture for the employee to perform in does promote creating and sharing knowledge.
Typically there are at least four items that MFC encourages managers to use for the development of personalized knowledge sharing. First is to lead the way by creating and sharing knowledge through open work groups or teams. Next requires the support and development of collaborative relationships. Third, creating a sense of responsibility for knowledge among team members. Finally, promoting the sharing of knowledge with team members as well as other teams. The key elements that are important include nurturing and harnessing workgroups and teams anywhere knowledge is put into action throughout the organization.
Usually project team members rely on one another for day-to-day information and support. Team members should be open and willing to share their knowledge and reward systems should reflect this culture of sharing. Team members know they are in charge of getting results within their work group. Together the items of open, interdependent, collaborative and responsible teams help MFCs personalization of knowledge work for the organization. MFCs managers are also encouraged to empower their knowledge workers to make decisions. Empowering knowledge workers to make decisions are essential to MFCs organizational success. When managers empower someone to make a decision that does not mean the person will use that power in an indiscriminate and careless manner. Without the proper employee empowerment, however, the individual will be extremely hesitant to make independent decisions. So it is the job of MFCs managers to encourage the employees to use their knowledge to make the decisions necessary for MFCs success.
In essence, strategic knowledge management at MFC is a process that requires continual support and care. The process that MFC has in place tends to capture both the codified and personalized knowledge base. One must remember that organizations are at risk of losing their competitive advantage furnished by their knowledge workers’ expertise, if the organization does not manage their knowledge carefully. MFC strives to keep their competitive edge forged by their knowledge workers.
Smith, A.D. 2004 "Knowledge management strategies: a multi-case study"- Emerald

Knowledge management at Schlumberger Oilfield Services (SLB)

Voicing his position in 1997 concerning KM, chief executive officer D.E. Baird stated “We must become experts in capturing knowledge, integrating and preserving it and then making what has been learned quickly and easily available to anyone who will be involved in the next business decision” (Schlumberger Oilfield Services, 2003, p. 4). We must first define what Schlumberger Oilfield Services (SLB) (www.slb.com) believes KM to be. Based on a combination of inspection of the corporate Web site, intranets, and from the personal interviews, SLB believes that the focus of KM is improving organizational capability. Also, in order to succeed, an organization must create a new working environment where knowledge and experience can easily be shared. In such an environment, individuals were able to apply their collective knowledge to make optimal decisions in real time. The biggest challenge was to create/nurture a knowledge-sharing culture – one in which people share their knowledge and learn from others as a matter of course. Many knowledge workers at SLB saw the solution to this challenge as the right thing to do.
The key issues revolved around people, processes, technology and content. According to KM workers at SLB, the key words in KM are connecting and collaborate. To achieve attractive bottom-line results, the organization must align people to the business, making them feel that what they do every day contributes to the business goals, rather than being passive readers of annual or quarterly results. Each person must understand how he/she does contribute to the overall goals of the organization. It is essential that people have the information they need to do their jobs. This practice covers a variety of IT-related issues: finding data, best practices and lessons learned, news, accessible help desks, business policies, process and procedures, e-learning, links to information in the extended enterprise of partners, suppliers, customers, and universities.
Strong and vital communities enable people to mentor each other, collaborate and work together on virtual teams, without necessarily being co-located. What they felt was needed were processes, technologies and a culture that encourages people to form and nurture links to interest groups, to have discussion forums, to assist each other, and to influence the strategy of the organization. These technologies include chat groups, shared calendars, threaded discussions, whiteboards, collaboration workspaces, and instant-messaging services, to name a few. The people and processes support involved community leaders, known as knowledge champions in SLB. To enable strong communities of practice to be formed, the organization must connect people to people. To form communities, people must be able to find each other in order to connect and form “spider webs” of communication. It is almost universally accepted that a corporate “people finder” was a must, with its basic contact information on the people in the organization (contact e-mail, phone, and address), but also job, expertise and interests. Again, this connection included the processes and encouragement to make people feel comfortable about publishing their expertise, about asking for and giving help. A primary focus of KM work is finding effective ways to connect groups of people. In essence, it is beneficial for businesses to be able to have its employees to be able to connect and collaborate with each other in an effective manner.
Some of the more significant benefits associated with KM at SLB were best-business practice solutions and published lessons learned from previous work projects. A best-business practice may be defined as a validated procedure for performing a task, including the environment to which the standard applies. It is a recipe that details the best way to accomplish a task and/or solve a problem. Lessons learned are narrative accounts of actual experiences providing an analysis of what happened, what was expected to happen, an understanding of why there were differences, and what was learned. This can highlight positive and/or negative experiences, reinforce standard procedures, or demonstrate the use of best practices. In SLB, lessons learned are often written up as part of an overall case history.
In general, companies want to be recognized in the global marketplace as innovative, leading-edge organizations so that they can raise capital, recruit the best people, and expand their opportunities. They are aware of the potential of the Internet and IT to transform their businesses. Many have also come to the conclusion that an effective KM capability is essential to meeting their goals. SLB designs and implements KM solutions that maximize the ability of its customers to apply the collective knowledge of their people to achieve key business goals and take full advantage of the value of their intellectual capital.

Smith, A. D. 2004. Knowledge management strategies: a multi-case study -Emerald

Challenges in managing organisational knowledge

Failure to align knowledge management efforts with the organisation's strategic objectives
Successful knowledge management programs often begin by addressing a critical business problem facing the company. However, many firms fail to align their knowledge efforts with their most pressing business issues. When this occurs, significant time and effort is spent on projects that have minimal impact, while key needs are not addressed or are completely overlooked. For example, a manufacturing company started a number of knowledge-related initiatives, but failed to align these efforts with their most critical business objective: the integration of a newly acquired subsidiary. Unfamiliar with the expertise and skills within the recently purchased company, the manufacturer lost an important contract that it should have easily won had it used the combined knowledge of both firms. Hence, a major opportunity was lost because the firm's knowledge management efforts were not aligned with the organisation's strategic goals. (IBM case study).
http://www-935.ibm.com/services/in/index.wss/multipage/igs/ibvstudy/x1022263

IT infrastructure at E&Y

SUPPORTING IT
Structure vs. Infrastructure
The supporting technology can be looked at through a simple question:
Does the technology provide adequate support for the KM needs at E&Y UK?
Each knowledge need can be mapped to supporting technology, and this can help identify areas whether good support is provided (such as the delivery of the service through PowerPacks and Engagement Team databases) and areas where no tools seem to be in place (such as project evaluation). In looking at whether the technology is adequate, some participants may take the view that it seems to be lagging behind the needs of the company and in particular the risk of proliferation of knowledge sources. Much effort seems to be on-going to simplify the technology. Participants may point towards:
• The “user friendly” nature of the PowerPacks
• The knowledge catalog
• Community Home Spaces
It is interesting to point out that many of the changes and on-going technical improvements described in the case are not concerned so much with the infrastructure per se, but rather seem to focus on find better ways to structure knowledge and its retrieval. Suitable infrastructures seem to be in place, but the structure of the knowledge repositories needs to be improved.
Technology and Tacit Knowledge
A more traditional MIS answer to identifying suitable IT support would be to use a tool such as Edwards et al.’s formality/routine map (1995). A short debate about whether it is applicable in the case of KM rather than information management is interesting. Some participants may argue that knowledge (whether tacit or explicit) is informal, and that its management is a non-routine activity. The case is, however, not so clear cut, and clearly indicates a degree of routine management of the knowledge. This could also take the debate back a step about what knowledge, and knowledge management, actually are. It has been suggested that two different IT strategies emerged to support KM depending on the competitive strategy of the organization (Hansen et al. 1999). While some organizations rely on a codification strategy that seeks to make knowledge independent of individuals, others rely on a personalization strategy that emphasize the channeling of individual expertise to the right place at the right time. Strategies based on codification are often heavily supported by database technology whereas personalization strategies are often only moderately supported by technology with a greater emphasis on building relationships.
Smith, A. D. 2004. Knowledge management strategies: a multi-case study _ Emerald

Saturday, 28 March 2009

The role of IT within KMS

There is debate as to whether information technology inhibits or facilitates knowledge creation and use. (Cole, 1998) states that capturing knowledge in a KMS inhibits learning and results in the same knowledge being applied to different situations even when it might not be appropriate. Supporters of this view suggest that IT plays a limited role in knowledge creation because they are only helpful if an individual knows what he is looking for (Powell, 1998). In this way little knowledge creation can occur. (Malhotra, 1998) argue that the mechanistic and rigid nature of IT-based KM is incapable of keeping pace with dynamic needs of knowledge creation. (Malhotra, 1998). For example the management of a European headquartered company commissioned a high profile KM team comprised of nine management staff to implement an organization wide KM initiative (Storey and Barnett, 2000). The initiative encompassed a series of plans such as creating informative web pages of the management and all business units, organizing staff into communities of practice and identifying internal knowledge champions.
As time passed, however, the team found out that the web site and intranet development were divided between the IT and media departments. These two departments had different agendas and held conflicting views as to how the IT systems should be developed. Meanwhile, external market conditions deteriorated and prompted the company to implement a major organizational restructuring exercise. The KM initiative faded and became lost in the turbulence.

Reference:

Malhotra, Y. Role of Organizational Control in IT Enabled Knowledge Creation: From
Knowledge Restraint to Knowledge Enabler,” working paper, Katz Graduate School of
Business, University of Pittsburgh, 1996.

Storey, J., Barnett, E. (2000), "Knowledge management initiatives: learning from failure", Journal of Knowledge Management, Vol. 4 No.2, pp.145-56.

Cole, R.E., "Introduction," California Management Review, Vol. 45, no. 3, Spring 1998,
pp. 15-21.

Powell, W., "Learning from Collaboration: Knowledge and Networks in the
Biotechnology and Pharmaceutical Industries," California Management Review, Vol. 40,
no. 3, 1998, pp. 228-240.

Wednesday, 4 March 2009

Competency Development Framework for AFL

AFL need to grow its ability to develop innovations to meet any customer need or respond to any competitive advance. AFL must rely on its employees’ ability to understand the needs of a changing marketplace and then combine that understanding with their knowledge of how to design and produce garments and services for delivery to its customers. Effective use of tacit knowledge and relationships and the company’s ability to manage them better than the competitors will determine AFL’s success.

AFL will need to develop and implement a "competency development framework"which will consider the needs of its garment technicians, as well as other employees in order to carry out their job more effectively and also to reduce the time it takes for new employees to perform as productive employees.

AFL’s competencies: A clear linkage between competence development activities and the company’s strategic and tactical needs;
A strong motivation among the employees to engage in their own competence development;
And a clear and strong strategic and financial ROI on the investments it makes.Staff of AFL must be organized into an integrated framework for employee competence development.

The AFL’s “employee competence development framework” could be built upon the concept of ‘plan-allocate-implement-feedback’. A balance between encouraging employees to learn and develop new knowledge and dedication to their personal lives must be created.In order to take advantage of the link between employee competence development and the company’s strategic and tactical goals management can begin to allocate resources to develop corporate universities provide tuition reimbursement programs and encourage employees to take full advantage of them. AFL employees will need to begin to take evening and weekend courses. Online training schemes during work also can be increased. AFL’s management will need to reward these competency development efforts by paying bonuses for attaining certifications and degrees.

In order to aim at restoring the balance between work competency development and personal life, a new set of objectives can be created for AFL. Creation of competence savings account into which employees could pay part of their salary from AFL and promising to match the employee’s contribution is an effective attribute to competency development framework.For employees with only minimum education 15 or more years of experience or aged 45 and over AFL could match the contribution at a ratio of for example 3:1. Therefore at some point in the future funded by his or her competence account money the employee could take time off.

Methods for employee savings towards their sabbatical could be used as an interesting development. Employees will want to identify ways of best spending their competence account money and there a website where employees are able to develop and manage their own competence growth plan could be created for employees. Employees can be helped this way to determine their career path and the specific competencies needed to achieve their goal. The website will contain the tools and links employees need to implement their competence development plans. These include the rules and regulations governing the program/framework. It also includes links to several universities and training organizations that have created special programs for AFL employees. A calendar of when these programs are offered at AFL and internal job postings for employees’ competence account information (for example account value) and the tools necessary to manage that account.

Reference:
http://www.scandia.com/

Reducing time to competence

Many organisational initiatives such as efficiency, core competency advancement, actualization of customer-centric products and services, and limitation of the fixed costs of doing business can help to achieve a sustainable competitive advantage within the marketplace. Knowledge management is a targeted expertise designed to impact productivity and innovation in thoughtful ways.

(Sarvary) suggest that KM represents a new technology that is changing the competitive landscape of contemporary business. (Sarvary, 1999).For example in supply side economies of scale KM is used to create added value to customers by appreciably increasing product quality.
While in demand side economies of scale KM is used to increase product quality. (Ofek & Sarvary, 2001). Therefore, the effective management of knowledge has the capacity to deeply impact the way a firm does business from the minor details of daily operations to the strategic decision-making processes.

One of the prime reasons for adaptation of knowledge management by organizations is the loss of “corporate memory” due to downsizing. i.e. when employee leaves the organization, the corporate knowledge leaves as well. This has been identified as one of the problems faced by AFL in which garment technicians leave the organization and with the arrival of new comers the business in faced with the problem of training them so as to learn their job roles and techniques which are crucial in such a delicate industry (fabrics).

Lubit (2001) argues that tacit knowledge is often difficult to disseminate to others in the context of the workplace, but it is also invaluable to circulate because it is a unique asset that is very hard to copy by other firms. Hence, it can be logically understood that tacit knowledge can form the basis for competitive advantage, but to do so it must become obvious in the real world and utilized to achieve the strategic agenda of the organization (Lubit, 2001).

Ideally, a firm can better manage its intellectual capital base by uncovering the tacit knowledge of its employees and turning that into explicit knowledge, available to others. (Erickson & Rothberg, 2000).

Knowledge acquisition:There exits 3 generation of staff at Albion fabrics. The new comers, present or older employees and the retired employees. The knowledge created and gained by individual members of staff e.g. all garment technicians at AFL are kept by the employees when they leave the organisation.

Knowledge conversion:This creates the problem we can name as “loss of corporate memory”, ie when the employee leaves he/she takes all tacit knowledge with him/her which is kept in their mind. This is the knowledge that employees are not conscious of, rooted in action, procedures, commitment, values and emotions etc. The problem is that there is not any mechanism for AFL employees to share this type of knowledge with the rest. The new employees can learn from knowledge capital of the present ones and the present employees from that of more senior (in terms of experience) or retired employees. There should be opportunities in place for employees to take advantage of such a cycle of knowledge transfer.

Knowledge application:The application of knowledge and sharing of experiences between generation of garment technicians and designers does not have a structured mechanism. New employees need to have updates on how to function better and fit in within routines and job processes of AFL. The only appropriate mechanism in place for new comers is to spend a day at the factories and observe work procedures without much brainstorming between teams.

Knowledge protection:AFL would need to have a mechanism for protection of its shared knowledge between previous, retired employees and the newcomers and at such there is no evidence of knowledge protection and this is mostly due to the fact that the value of knowledge in particular tacit is not truly appreciated by AFL.

Objective: Reduce time to competence from 6 months to 3 months:In order to improve the loss of corporate memory due to for example staff leaving, retirement or redundancy the objective of this corporation should be to transform the “time to competence” from 6 months to 3 months.

It is imperative that new employees would take advantage of the knowledge and experience of the present or older employees as well as enhancing their new skills and knowledge by learning from employees whom have retired and are no longer working within AFL. The objectives are to implement methods of sharing the knowledge between different generations of employees within this organisation AFL.

Incentives for the retired employees to be brought back to the organisation should be put in place, retired employees need to feel a sense of belonging to the organisation even after they have left, they need to feel valued for contributing to organisational progress and receive recognition for contributions and achievement they have made in order to gain competitive advantage for AFL.

Story telling, Cops, interviews, mentor and teacher techniques:

(Kleiner, A. and Roth, 1997) have given insight about the use of stories for sharing experiences and disseminating lessons learned is well-known knowledge management practices. These can vary from unstructured stories to structured narrative techniques specifically intended to build organizational learning such as learning histories. As for metaphors and analogies (Nonaka, I and Takeuchi, H,1995) argue that are also used to share concepts. Metaphors combine ideas into expressive imagery, while analogies are useful in helping us form new ideas by comparing them with familiar ones.

The use of personal or team web blog for employees of AFL means that individuals or groups can express their ideas and reflect on their experiences. Management can use employee blogs or micro-blogs as a tool to assess employee’s contribution to knowledge sharing or personal contribution in relation to organizational performance. Also management can reward employee’s contribution to web blogs through the performance related pay schemes etc.

Another method of enaging retired and senior employees to share their knowledge is by using podcasts instead of desktop videoconferencing and multimedia computing to transmit sound and video as well as text to enable knowledge transfer between different generations of employees. New generation of employees and present ones as well as all managers can use smart phones to listen or watch the recordings of description of jobs and tips and techniques through use of podcasts. Then the recorded discussion or interviews with retired employees or senior staff on the podcasts can be placed on the business intranet for all employees to download. This means that employees will feel more engaged and informed about events.

Reference:

Ofek, E. & Sarvary, M. (2001). Leveraging the customer base: Creating competitive advantage through knowledge management. Management Science, 47 (11), 1441-1456.

Lubit, R. (2001). Tacit knowledge and knowledge management: The keys to sustainable competitive advantage. Organizational Dynamics, 29 (3), 164-178.5.

Kleiner, A. and Roth, G. How to make experience your company's best teacher. Harvard Business Review 75, 5 (Sept.–Oct. 1997).7.

Nonaka, I. and Takeuchi, H. The Knowledge-Creating Company. Oxford University Press, 1995.