Centralized “market and hierarchy”

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Scenario 2 can primarily be found in organizations that had an established separate organizational unit before that used to be responsible for “information and docu- mentation”, “internal documentation”, “document management”, “market research” or “information brokering”. In this scenario, the KM initiative is prima- rily designed as a centralized approach that develops the concepts, tools, instru- ments and knowledge products and services that are then applied decentrally in the business units. The knowledge itself is not centralized, but responsibility for the implementation and evaluation of a KM initiative, as well as for the organized knowledge transfer supported by codified knowledge and fostered networks and communities is attributed solely or at least primarily to a separate KM unit.

Table D-2 describes this scenario. Main goal is to establish a contact unit that coordinates and surveys the handling of knowledge in the organization, identifies knowledge gaps and suggests knowledge strategies which are approved by senior management and then implemented throughout the organization. This clearly iden- tifiable “heart of knowledge management” quickly raises awareness about KM in the organization. There is a danger that the perspective on KM is reduced to a ser- vice function and not a holistic one where the improvement of the handling of knowledge is everybody’s business in an organization. The substantial support by senior management can be used to lower organizational barriers to effective knowl-

10. See also chapter 14 - “Systems” on page 524 and the results of related empirical studies discussed there (e.g., Bullinger et al. 1997).

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edge sharing and redesign knowledge-intensive business processes with KM in mind. Specific KM roles are established throughout the organizations. Examples are knowledge partners and coordinators that are the linking pins between the cen- tral KM unit and the business units. Authors in the business units are assigned a publisher in the central KM unit that helps them to externalize, organize and link their knowledge.

From a process-oriented perspective, the main focus is on the design of a knowl- edge management process (development of knowledge goals and strategies, imple- mentation and evaluation/controlling) and of knowledge service processes.

TABLE D-2. Characterizing scenario 2: centralized “market and hierarchy”

attribute characterization strategy

metaphor market and hierarchy

goals make knowledge an organizational asset that is consequently and consistently administered; raise awareness of the importance of a systematic knowledge management; (re-)create or (re-)design organi- zational processes and structures around knowledge management;

lower organizational barriers due to competition between organiza- tional units by introducing market transactions for knowledge exchange

goal setting/strategy top-down goal setting; knowledge goals are related to business strat- egy

management support relatively high organizational position of the separate unit; clear backing of KM strategy/vision by senior management

organization

scope organization-wide

structural organiza- tion

stable, permanent separate organizational unit that has been around for some time

knowledge transfer and exchange

through knowledge services, planned personnel training and educa- tion as well as organized learning; via formal roles

roles knowledge manager, knowledge broker, knowledge (base) adminis- trator, author/publisher, knowledge partner and coordinator

process focus knowledge management process, design of knowledge service pro- cesses, e.g., submission process, search process, knowledge push process

organizational culture

law-and-order and (preferred) market model of exchange of ideas

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The separate organizational unit in this view is the process owner of specific decentral knowledge processes. Examples are a submission process involving authors and subject matter specialists) and processes that offer knowledge services which can be used by the business units.

These knowledge services can also be used as vehicles to encourage a “market- oriented knowledge culture”. This aims at the development of a kind of (imperfect) market for knowledge products and services throughout the organization. Business units get accustomed to view knowledge as a resource for which they have to pay the separate organizational unit and, in the long run, other business units providing knowledge products or services for them. In most cases, however, organizations are still far from having established this type of culture and the law-and-order model relying on the hierarchy and the definition of roles as the primary formal medium to organize the exchange of knowledge prevails11.

The existence of an organizational unit that can be identified as a predecessor of a KM unit is one of the most important enablers for this scenario. Moreover, the

KMS

ICT infrastructure comprehensive KMS solutions, managed centrally; the emphasis is on integrative technologies combined with support for locating experts, initiation and support of communication between knowledge seekers and providers

KMS functions administration, knowledge search and presentation, acquisition, pub- lication, organization, communication, CBT and tele-learning

economics

funding initially central budget; later creation of an internal knowledge mar- ket; selling of KM services

measuring success intellectual capital approach assessing the impact of KM initiative to business goals; balanced scorecards; measures for quality, use of and user satisfaction with KMS and KM services

aspects of implementation

getting started institutionalize a separate organizational unit; develop a KM strategy enabler there is a large body of explicit knowledge in documents or highly

mobile knowledge workers who have to be coordinated

critical tasks sophisticated reward system to help to overcome organizational bar- riers for knowledge sharing, such as power structures, “families” or

“knowledge islands” which exchange knowledge within, but not between; access policies are important

11. See section 6.4 - “Organizational culture” on page 221.

TABLE D-2. Characterizing scenario 2: centralized “market and hierarchy”

attribute characterization

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existence of large volumes of documents and/or of highly mobile employees work- ing on projects whose competencies have to be recombined regularly is certainly encouraging a central coordinating unit.

Funding is frequently provided by a central budget assigned to the separate KM unit. Later on, this unit will more and more try to sell its services to its “custom- ers”, primarily the business units, but in certain cases (e.g., professional services companies) also external customers might be willing to pay for KM services (e.g., reports, consulting and knowledge brokering services, access to knowledge bases).

From an ICT point of view the centralized approach is in most cases supported by integration, discovery and publication services (cluster 1 in Figure D-5). The second important ICT pillar might be a coordinated data base of employees’ skills (yellow pages) that is used to broker information about who has what competencies and is motivated to work on what kinds of assignments. The separate organiza- tional unit develops an organizational and ICT infrastructure that aids the synchro- nous and/or asynchronous knowledge communication which can be direct between employees and/or mediated by documented knowledge elements, as person-to-per- son communication and/or communication in collectives of employees, particu- larly networks and communities. Consequently, the ICT support focuses primarily on knowledge mapping technologies, directory services, taxonomies, ontologies and a central knowledge repository. Additionally, discovery and publication ser- vices are primarily targeted to support the navigation and management of the large knowledge bases that regularly have to be managed in this scenario.

Due to the centralized nature of the scenario, a variety of types of knowledge is focused which is bound to individuals or treated as an object (cluster 2). The emphasis is on the one hand on electronically accessible, secured, explicit, formal, approved and institutionalized knowledge that is more abstract, general and decontextualized. The approach combines organization-internal and organization- external knowledge as the separate KM unit acts as an important and highly visible linking pin to external knowledge sources. On the other hand, unsecured and indi- vidual knowledge is focused as the second emphasis of the separate KM unit is to coordinate people with matching competencies (cluster 3).

In terms of KM roles the emphasis is on the explicit side with roles supporting transparency of knowledge as an object and bound to individuals, documentation, publication, standardization, organization and transfer of knowledge (cluster 4). A CKO or knowledge manager heads the separate unit and keeps in contact with knowledge partners and stakeholders from the business units and from outside the organization. Like already discussed in scenario 1, the KM initiative primarily tar- gets the formal organizational structure—teams and work groups—and to a much lesser extent informal forms of collectives such as networks and communities.

Subject matter specialists, knowledge administrators, authors and knowledge base administrators all aid knowledge communication between knowledge work- ers, support the externalization of knowledge throughout the organization.

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FIGURE D-5. Scenario 2: Centralized “market and hierarchy”

Organizational environment Strategic

level

Design level

Operational manage- ment level

ICT infrastructure, KM tools & systems KM roles

I II III

I

II

III

Chief Knowledge Officer/

knowledge manager knowledge partner/

stakeholder

knowledge base administrator

author

knowledge administrator mentor

coach

community manager

boundary

spanner knowledge

broker coordinator for

KM

subject matter specialist

knowledge

sponsor knowledge

skeptic network &

community team work group

knowledge worker/

participant/member of:

Knowledge

specific, particular, contextualized

abstract, general, decontextua- lized

tacit explicit

informal, unapproved

formal, approved, institutionalized

individual collective

unsecured secured

(electronically) inaccessible

(electronically) accessible organiza-

tion- external

organization- internal

object social system individual

2 Identification

Individual knowledge

Knowledge in use

Results

Validation

Application

Sharing Inter-subjective knowledge Institutionalization

Storing

Institutionalized knowledge

Intellectual access Physical access

Representation Feed-back

Accum ulating Developing

Recording Researching

Individual learning

Repackaging Reproduction

Dis sem

ina tion Communication

Internal communication

Knowledge products

&

services

9 8

5 3

7

6 3

1

Organizational learning cycle Verification 10

Linking

4

Org.

Learning Personal

valuation Classification

(knowledge push)

Selling Analyzing

Deletion Archiving Forgetting

Formal approval

Operational level

Creation Personal

valuation

Inter-personal valuation

Knowledge sources

Org. information Meta-information

2 Identification

Organization Collaboration

Community

knowledge Transactive

memory

Decisions

Types of knowledge management of

people & processes management of

ICT infrastructure management of knowledge

structures topics& management of

other interventions design of knowledge

structure & topics:

-

knowledge structures - taxonomies - ontologies

types of knowledge -

design of ICT resources:

- KMS architecture - functions of knowledge management tools &

systems

- deployment of KMS

design of other inter- ventions:

- architecture - recruitment of experts - therapeutic interven- tions

identification of knowledge gaps, definition of core competencies and strategic knowledge assets, development of knowledge (management) goals and strategies, evaluation of goal achievement organizational design:

- knowledge processes &

activities, knowl.-inten- sive business processes - roles&responsibilities - networks&communities

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They provide an electronically accessible, coordinated collection of knowledge elements that are linked with experts and networks as well as participants who value and comment them. Knowledge brokers are appointed within the separate KM unit to perform knowledge services for the business units.

On the operational level, the primary focus is on the phases preceding and fol- lowing the organizational learning cycle: the handling of knowledge sources (clus- ter 5) and knowledge products and services. Additionally, the emphasis is on insti- tutionalized knowledge and on the application of knowledge (cluster 6).

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