ESSENTIALS of Knowledge Management.Essentials Series phần 3 docx

Knowledge Management Principles Apply in Varying Degrees Every successful business operation, from the corner deli to the topFortune 500 companies, uses Knowledge Management to some degr

Reality Check

Although Knowledge Management has a lot to offer, like any otherbusiness optimization process, it is by no means a panacea The majorchallenges in the KM field are outlined here and discussed in detail inChapter 8

Knowledge Management Principles Apply in

Varying Degrees

Every successful business operation, from the corner deli to the topFortune 500 companies, uses Knowledge Management to some degree,even if only in an unsophisticated, ad hoc way However, the work thatsome companies engage in is so dependent on individual talent, such asmusical or graphical artistry, that the only practical way to capture therelevant knowledge is through a lengthy personal apprenticeship

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• What is the likely return on investment (ROI) of ing a viable KM program? The means of calculating ROI and the economics of Knowledge Management, from consulting fees to investment in new management structures to

implement-employee training, are discussed in Chapter 7.

• What is a reasonable approach to implementing Knowledge Management in the organization? Chapter 8 describes a practical implementation plan, including details on the likely challenges and roadblocks that readers may encounter

along the way.

Readers who are convinced that Knowledge Management principles have the potential increase their company’s competitiveness in the marketplace are encouraged to explore the resources listed in the Further Reading section

T I P S & TE C H N I Q U E S ( C O N T I N U E D )

Other work can be defined to the point that virtually anyone with

a modicum of training can fill a vacancy anywhere in the company Forexample, since McDonald’s hires workers with a wide range of abilitiesand experiences, its training program leaves virtually no room for vari-ation in process Even seemingly insignificant tasks, such as the method

in which are fries salted (from the back to the front of the deep fryerrack), are fully defined, leaving little room for misinterpretation of theintended process

Some work, such as high-end special sound or graphics effects for

a movie, is unique to the point that it can be considered magic—it’s aspecial, mysterious, or inexplicable quality, talent, or skill Tasks involvingtacit and, to a lesser degree, implicit knowledge are often consideredmagic Salting french fries, in contrast, is a technology based on manufac-turing techniques, process optimization, and use of explicit knowledge.Most tasks fit somewhere in the continuum between magic andtechnology and within the boundaries set by the characteristics of puretechnology and pure magic, as shown in Exhibit 1.6 For example, thetasks associated with salting french fries at McDonald’s (represented bythe containers of french fries) can all be considered at the extreme tech-nology end of the spectrum There is a specific process defied for thetasks, and anyone following the process will turn out an acceptableproduct At McDonald’s, training typically includes having employeeswatch short training videos—a form of explicit knowledge—distrib-uted by the corporate offices

In contrast, the ability of a musician to create a one-of-a-kind media experience is considered more toward the magic end of the spec-trum, represented in Exhibit 1.6 by the musical notes The art of makingmusic typically is associated with years of training, and the results may not

multi-be replicable by other artists or even by the same artist at a later time

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Knowledge Management Isn’t Perfect—Yet

In most organizations, Knowledge Management is a work-in-progress,with some subtle and some obvious imperfections For example, thetransfer of data, information, and knowledge from person to person,person to computer system, or one generation of employees to the next

is an imperfect process that rarely occurs smoothly and always involvesloss of information Loss of information happens when recording stan-dards shift, when a longer-lasting storage medium requires transfer ofinformation, when data must be migrated between storage locations ortranslated from one form of representation to another, and when thecomputer hardware used to interpret the data becomes obsolete

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E X H I B I T 1 6

Few Low High High Variable/High Prototype Low Variable Capability Small High Unknown Emotive Art High Low High/Variable Unknown/Variable

Low High Single Event

TECHNOLOGY MAGIC

CHARACTERISTIC

Significant Legal Issues Exist

Knowledge Management deals with the ownership and manipulation

of intellectual property, from copyrighted materials, trademarks, patents,and patent applications to trade secrets A patent portfolio can add sig-nificant value to a company However, in many instances, intellectualproperty instruments are useful primarily in defending a court case.What’s more, the time lag between applying for patent protection andreceiving a patent may be years Given the time pressure to bring prod-ucts and services to market, the time and expense of patenting a process

or device may make it more feasible for the company simply to keepthe information as a trade secret

However, relying on trade secrets is associated with a risk of employeesleaving with proprietary knowledge, even with nondisclosure and non-compete agreements in place Trade secrets also don’t contribute to thevaluation of the company to the degree that patents do, since a com-peting company may file a patent application, potentially barring thecompany from using its trade secrets Some companies are attempting toavoid the intellectual property courts altogether by publishing theirfindings early to prevent the competition from patenting the product orservice This KM approach is especially attractive in the software industry,where virtually any program can be reverse-engineered and replicated

in a matter of weeks to months

Extensive Training and Retraining

May Be Required

A significant investment in employee and management training may berequired if a KM program is to succeed Knowledge Managementworks best when employees and management willingly and regularlycontribute to the pool of corporate knowledge However, willingness

O v e r v i e w

without training in process and the use of the technology for storingand retrieving corporate knowledge typically results in costly errors andinefficiency Most companies with successful KM programs haveemployee and management training programs in place For example, acustomer service representative who deals with customers via the tele-phone has to know how to access the list of frequently asked questions(FAQs) on specific topics and how to enter new questions into the system

so that the questions and their answers can be made available to otherscustomer service reps

Overhead Can Be Considerable

Administrative and employee overhead associated with KnowledgeManagement can cut into efficiency and effectiveness, especially whenthe typical transaction is very brief Customers may resent being askedpersonal questions when they place orders, for example Saving andsubmitting customer questions for management to review and include

in the store of FAQs in the corporate web site takes time At issue iswhether the expected return on investment in the time spent creating

a bank of FAQs or other information makes economic sense

Knowledge Management Is in Flux

Changes in the KM industry, including abuse of the Knowledge ment vocabulary and concepts by vendors and consultants, obfuscateswhat would otherwise be simple comparisons of products and services.For example, many database companies and reengineering consultantsbecame KM companies overnight by simply modifying copy in theirsales brochures Companies intent on implementing a KM programhave to wade through the unsubstantiated claims from vendors, many

Manage-of which are made with jargon that serves only to obscure simple (andless expensive) concepts

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Knowledge Management Takes Time

Realistic implementation times for developing a workable KM systemrange from a few months to years, depending on the complexity of theprocesses that must be analyzed, the size of the company, the number ofemployees, and the managers involved Even in the most technologicallychallenging KM implementation, the pace of corporate cultural change,not the availability of resources or technology, is the rate-limiting step

Investment Requirements Can Be Significant

Establishing and maintaining a KM program can be an expensiveproposition A KM system for customer support is an ongoing invest-ment, not a one-time expense Consider that as soon as the sales repsstop adding questions and answers to the bank of FAQs, the value of the

KM system drops precipitously Eventually, the point will be reachedwhen the time spent searching through the FAQs might not be worththe time or effort of the customer support staff

Corporate Legacy Must Be Acknowledged

In designing a KM system, it’s generally easier to start from scratch Itisn’t surprising that the dream of most knowledge officers is to have anew venture built from scorched earth with no history and no legacydata However, the reality is that most KM programs are implemented

in existing companies with established processes for handling orders,deciding on best practices, and dealing with customer support issues Assuch, these processes and attitudes will have to be folded into the new

KM process In other words, the KM program should complement theexisting business and strengthen existing processes—not turn the com-pany inside out, resulting in processes optimized for KnowledgeManagement, and no employees to execute them

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E S S E N T I A L S o f K n o w l e d g e M a n a g e m e n t

Whether Knowledge Management makes sense for a particularbusiness application depends on the business, the corporate culture, andbudgetary limitations The following chapters are designed to help thereader make this determination and to assess the impact of KnowledgeManagement from the perspectives of cost, effect on quality of service,impact on corporate culture, and how to measure results, and how tobest capture and manage knowledge The book also offers a variety oftactics and strategies that the reader can use to ensure success

Summar y

To compete successfully in today’s economy, organizations have to treatthe knowledge that contributes to their core competencies just as theywould any other strategic, irreplaceable asset Knowledge Management

is fundamentally about managing intellectual assets in a way that vides the company with a competitive advantage Although KnowledgeManagement has a lot to offer, implementing a KM program isn’t assimple as purchasing a shrink-wrapped package of software A successful

pro-KM implementation requires long-term commitment from senior ment; leadership that is attentive to the corporate culture; committed,trained employees and managers; and the appropriate use of informationtechnology

manage-Where is the knowledge we have lost in information?

Where is the wisdom we have lost in knowledge?

—T.S Elliot, “The Rock”

TE AM

FL Y

Team-Fly®

After reading this chapter you will be able to

•Appreciate the application of Knowledge Management inlarge organizations

•Appreciate the implications of embracing KnowledgeManagement as an organizational theme

•Understand the responsibilities of knowledge leaders,including the chief knowledge officer (CKO)

•Appreciate how a Knowledge Management initiative is primarily one of corporate culture change

•Recognize the exposure to risk associated with a

Knowledge Management initiative

This chapter continues with the exploration of Knowledge

Manage-ment (KM) that began with the more general issues introduced inChapter 1 and moves to examine the specific implications of how

a KM program affects the day-to-day operation of a knowledge-drivenorganization The chapter explores the characteristics of organizationsthat embrace KM principles from the perspective of corporate manage-ment To illustrate some of these characteristics, let’s return to Mary andthe Medical Multimedia Corporation

C H A P T E R 2

Knowledge Organizations

From What to How

When Mary accepts the full-time position with Medical Multimedia asthe person in charge of managing its intellectual assets, she doesn’t fullyappreciate the magnitude and nature of the task before her Dealingwith the images and sounds produced by the company is straightforwardenough It’s clear to virtually everyone why it’s important to better managethe company’s visible, tangible assets, since they are created, repackaged,and eventually sold at a profit Thanks to Mary’s organizational, processoptimization, and communications skills, she is able to understand andthen improve on the ad hoc system of multimedia management.Since everyone in the organization has clear roles regarding theirrelationship to the production and handling of multimedia assets, no one

feels personally threatened by explaining to Mary what they do to add

value to sound and graphics assets that are incorporated into productssold by the company For example, before Mary’s initiative, each groupwithin the company dealt separately with how to best label and filemultimedia assets so that they can be used and located without ambi-guity The programmers are concerned with the physical location of thefiles and the name of the associated project; artists are concerned withversion and creation tool information; while those in the legal depart-ment are concerned with license restrictions and expiration dates Prior

to Mary’s intervention, each group used its own ad hoc system based ondifferent technology and a unique process Artists used a database packagethat ships with their Macintosh computers; the programmers use a pro-prietary database of their own design on PCs; and the legal group uses

a spreadsheet running on a PC; and so on

When Mary introduces a shrink-wrapped database product anddefines a structure that reflects the needs of everyone in the company,there is some resistance to change because it means everyone will have

to learn a new system However, virtually everyone acknowledges the

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need to integrate multimedia management in the workflow for thecommon good In fact, management and many employees are surprised

to discover the parallels in needs and practices in the programming, art,marketing, and legal groups With the help of the in-house technicianand support from the chief executive officer (CEO), Mary is able toconfigure a database application and establish a process that addresseseveryone’s needs

Mary’s perception of the cohesiveness of the organization changeswhen she shifts her focus from reengineering the handling of multime-dia to managing the intellectual capital of the company The first thingthat she notices is that there is an entrenched, corporate-wide practice

of sharing information only within informal, job-specific cliques Forexample, the programmers communicate regularly among themselves,tend to go to lunch together, some socialize outside of work, and allkeep the discussion of their relative productivity and responsibilities tothemselves Similarly, the artists generally don’t interact with employees

in other departments unless they are meeting on specific projects thatrequire the coordination of artwork deliverables

Mary is painfully aware that the cooperation she initially enjoyed

from employees regarding what they do doesn’t extend to the details of exactly how they do it, especially from employees with the most spe-

cialized knowledge For example, when Mary interviews the chiefgraphic artist, Jane, regarding exactly how she archives the images thatshe and others in her group creates, Jane begrudgingly maps out theprocess detailed in Exhibit 2.1 In the process that Jane outlines, shetakes her images and any associated sounds and indexes them using acontrolled vocabulary culled from a textbook—in which all imagesrelated to the heart are referred to as “cardiac,” for example She thenassigns the indexed multimedia a version number that reflects the gen-eration of the content The multimedia, now indexed and tagged with

K n o w l e d g e O r g a n i z a t i o n s

version information, is stored in a database according to rules that definethe logical placement of new multimedia in the database managementsystem that is maintained by the in-house computer technician.When pressed about the details of indexing, Jane initially claims to use

a book of standard index terms, with a throughput of about 20 images perhour However, when Mary asks her to explain why she wasn’t using acomputer-based lookup tool to provide the controlled vocabularyterms, Jane admits to using a government-sponsored web site to accessindexing terms By Mary’s estimates, using the electronic vocabulary tool,Jane should be able to index and archive over 60 images per hour instead

of the 20 that she claims Apparently Jane intentionally hid her use of theweb at the index stage of archiving to protect her slack time Whetherbecause of embarrassment or a perceived threat from the new KM proj-ect, Jane gives notice the next day.Within two weeks, Jane is off to theMidwest—outside of the 250-mile radius defined in her noncompeteagreement with Medical Multimedia Company—to start her owngraphics company

Jane’s departure comes at a critical time for Medical Multimedia.Since the CEO can’t afford to lose any more employees, he emphasizes

Tagged Media

Archiving Rules

Store in Database Prepared Sounds & Images

Indexed Multimedia

Shared Archive Database