TU-E3020 Knowledge management in practice / fall term Developing knowledge and competence management in organizations / Eerikki Mäki

Transcription

1 TU-E3020 Knowledge management in practice / fall term 2016 Developing knowledge and competence management in organizations / Eerikki Mäki

2 Questions about the course arrangements? Difficulties in finding articles? Difficulties in finding a group? Difficulties in finding a case? Any other concerns..

3 Learning journal #2 Suppose that you need to convince your boss that your organization needs to develop some aspects of knowledge and competence management in your company/organization (you may think your current job, or job from past). So, write a letter* to your boss and explain what needs to be improved. What are your arguments and how you justify them? Use at least two references listed in the lecture slides. Possible references: Wong K. (2005) Critical success factors for implementing knowledge management in small and medium enterprises, Industrial Management & Data Systems, Vol. 105 Iss: 3, pp Huysman M. & de Wit D. (2004) Practices of managing knowledge sharing: towards a second wave of knowledge management Knowledge and process management, Volume 11, Issue 2, pp Ipe M. (2003) Knowledge Sharing on Organizations: A Conceptual Framework. Human Resource Development Review, vol. 2 (4), Rubenstein-Montanoa, B., Liebowitza J., Buchwaltera J., McCawa D., Newmanb B. & Rebeckb K. (2001). A systems thinking framework for knowledge management. Decision Support Systems, Vol. 31 (1), Swan J., Newell S., Scarbrough H., Hislop D. (1999) Knowledge Management and Innovation: Networks and Networking. Journal of Knowledge Management, vol. 3 (4), *that is your learning journal, not need to be actually send to your boss

4 Lecture outline Intellectual capita What is meant by these? 1 st wave 2 nd wave Exploration of knowledge Exploitation of knowledge Human capital Structural capital Relationship capital KCM development efforts Recognizing needs External Internal How do KCM projects differ from other OD projects Analysis KCM challenges Tips Critical view on KCM

5 Exploration and exploitation of knowledge Source: Mäki E. (2008) Exploring and exploiting knowledge: Research on knowledge processes in knowledge-intensive organizations Doctoral Thesis. Espoo: Helsinki University of Technology.

6 Exploring and exploiting knowledge (Bhatt 2002) Nature of interaction (i.e. between people) Independent Interdependent Non-routine and non-specifiable Individual expertise Collaboration, informal coordination, and knowledge sharing Focus on exploration Nature of tasks Routine and specifiable Individual discretion (within the specified limit) Formal procedure, techniques, and rules Focus on exploitation Source: Bhatt G. (2002) Management strategies for individual and organizational knowledge. Journal of Knowledge Management, Vol. 6 (1),

7 Exploring and exploiting knowledge (modified from Krogh von et al. 2001) e.g. sharing of best practices, knowledge sharing across functional units Knowledge process Transferring knowledge Creating knowledge e.g. new knowledge based on existing knowledge Knowledge domain Existing knowledge New knowledge Leveraging strategy Acquiring strategy Expanding strategy Developing strategy e.g. from external sources Exploiting Exploring e.g. totally new knowledge, products and services Source: Krogh von G., Nonaka I. & Aben M. (2001) Making the most of your company s knowledge: A strategic framework. Long Range Planning, Vol. 34,

8 Exploration and exploitation strategies Exploration Creating new knowledge Emphasis on tacit knowledge Tolerate experimentation and failure More risks, better revenues Competitive advantage from entering first to the markets Unique solutions in different situations (e.g. in consulting industry) Ensuring internal and external opportunities to exchange and combine knowledge Knowledge serendipities Face-to-face communication Exploitation Utilizing and reusing existing knowledge Emphasis on explicit knowledge Create routines and processes Less risks, moderate revenues Competitive advantage from economics of scale Similar solutions in different situations (e.g. in consulting industry) Ensure the availability of codified knowledge within an organization Right knowledge on the right place at the right time Use of technology 8

9 Community networking model, Cognitive network model (Swan et al. 1999) Community networking model Similarities with exploration and personalization strategy Cognitive network model Similarities with exploitation and codification strategy Source: Swan J., Newell S., Scarbrough H., Hislop D. (1999) Knowledge Management and Innovation: Networks and Networking. Journal of Knowledge Management, vol. 3 (4),

10 Community networking model Knowledge for innovation is socially constructed and based on experience A lot of knowledge is in tacit form and it is shared and made sense through active networking within and between occupational groups and teams Gains from KM include exploration through the sharing and synthesis of knowledge among different social groups and communities The primary function of KM is to encourage knowledge sharing through networking The critical success factor is trust and collaboration The dominant metaphors are the human community and the kaleidoscope (creative interactions producing new knowledge in sometimes unpredictable ways) 10

11 Cognitive network model Knowledge for innovation is equal to objectively defined concepts and facts Knowledge can be codified and transferred through networks: information systems have a crucial role Gains from KM include exploitation through the recycling of existing knowledge The primary function of KM is to codify, capture and transfer knowledge through networks The critical success factor is technology The dominant metaphors are the human memory and the jigsaw (fitting pieces of knowledge together to produce a bigger picture in predictable ways) 11

12 1 st and 2 nd waves of knowledge management Source: Huysman M. & de Wit D. (2004) Practices of managing knowledge sharing: towards a second wave of knowledge management Knowledge and process management, Volume 11, Issue 2, pp

13 1 st and 2 nd waves of knowledge management Source: Huysman M. & de Wit D. (2004) Practices of managing knowledge sharing: towards a second wave of knowledge management Knowledge and process management, Volume 11, Issue 2, pp

14 Intellectual capital = Often mentioned in literature, targets of research & development Employees education Number of employees Patents Organizational processes (e.g. recruitment, production, supply-chain, training, etc.) Employees work experience HUMAN CAPITAL STRUCTURAL CAPITAL The structure of the organization Employees health & motivation Management systems Skills and competencies of employees RELATIONSHIP CAPITAL Information and communication technologies Professional networks Partners Brand Customers Note: the list of content examples of different capitals is not all-inclusive Source: TU-C3021 Managing knowledge and knowledge-intensive organizations (5 cr), periods III-IV, spring term 2016 Knowledge intensive organizations & Intangible assets/capital / Eerikki Mäki

15 What kinds of problems KCM projects aim to solve? Problems are often ill-defined Intended objectives are hard to define (=> how to measure or evaluate what have been achieved?) Path to solution is not clear (=> how to find it?) Outcomes are hard to foresee or predict (=> how to convince the decision maker?) These are all typical features of many OD (organizational development) efforts Scientist/practitioner working with these kinds of problems must be skilled and knowledgeable about the subject/phenomenon If you are interested, you may look at the article Holmström, J., Ketokivi, M., & Hameri, A. (2009). Bridging practice and theory: A design science approach. Decision Sciences, 40(1),

16 So, where to focus? KM Enablers Knowledge creation processes KM intermediate outcome Organizational performance Culture - Collaboration - Trust - Learning Structure - Centralization - Formalization People -T-shaped skills Information technology - IT support - Socialization - Externalization - Combination - Internalization - Organizational creativity - Organizational performance Source: Heeseok Lee & Byounggu Choi (2003) Knowledge Management Enablers, Processes, and Organizational Performance: An Integrative View and Empirical Examination, Journal of Management Information Systems, 20:1, See also: Rubenstein-Montanoa, B., Liebowitza J., Buchwaltera J., McCawa D., Newmanb B. & Rebeckb K. (2001). A systems thinking framework for knowledge management. Decision Support Systems, Vol. 31 (1), 5-16.

17 A framework of (organizational) knowledge processes (Mäki 2008) How can input information and knowledge be acquired? Does it involve knowledge creation or reuse of existing knowledge? What are the intended outcomes? Acquiring information and knowledge -defining information and knowledge needs -locating information and knowledge -accessing information and knowledge -transferring information and knowledge from available sources Exploiting and exploring information and knowledge -reusing and creating knowledge -skills and competencies to interpret and absorb acquired information and knowledge, and utilize knowledge Knowledge outcomes Knowledge to the internal and external customers Storing information and knowledge -people -databases and documents -organizational routines

18 How to study enablers? Why not use the model by Ipe? Internal factors: Power Reciprocity External factors: Relationship with recipient Rewards for sharing Tacit & explicit knowledge Value of knowledge Nature of knowledge Formal interactions Informal opportunities Motivation to share Knowledge sharing Opportunities to share Culture of work environment

19 Size of an organization Large organizations tend to: Be more formal Have more standardized operations Have more recourses Have potential to excessive pool of social capital Have variety of skills and knowledge Smaller organizations Sharing of information and knowledge is easy May lack competences to develop KCM May lack resources to develop KCM Organizational knowledge processes may vary May be limited in skills and knowledge Flexible and fast to change May be dependent on key individuals Bill Gore the late founder of the company, found through trial and error that 150 employees per plant was most ideal. We found again and again that things get clumsy at a hundred and fifty,

20 Typical KM challenges Source: Kalkan V. (2008) An overall view of knowledge management challenges for global business. Business Process Management Journal, Vol. 14 (3),

21 Critical success factors for SMEs In order of importance: 1. Management & leadership and support 2. Culture 3. Strategy and purpose 4. Resources 5. Processes and activities 6. Training and education 7. Human resource management 8. Information technology 9. Motivational aids 10. Organizational infrastructure 11. Measurement Sources: Wong K. (2005) Critical success factors for implementing knowledge management in small and medium enterprises, Industrial Management & Data Systems, Vol. 105 Iss: 3, pp Wong K. & Aspinwall E. (2005) An empirical study of the important factors for knowledge-management adoption in the SME sector, Journal of Knowledge Management, Vol. 9 Iss 3 pp

22 Can anything go wrong? Error I: Not Developing a Working Definition of Knowledge Error 2: Emphasizing Knowledge Stock to the Detriment of Knowledge Flow Error 3: Viewing Knowledge as Existing Predominantly Outside the Heads of Individuals Error 4: Not Understanding that a Fundamental Intermediate Purpose of Managing Knowledge Is to Create Shared Context Error 5: Paying Little Heed to the Role and Importance of Tacit Knowledge Error 6: Disentangling Knowledge from Its Uses Error 7: Downplaying Thinking and Reasoning Error 8: Focusing on the Past and the Present and Not the Future Error 9: Failing to Recognize the Importance of Experimentation Error 10: Substituting Technological Contact for Human Interface Error 11: Seeking to Develop Direct Measures of Knowledge Source: Fahey L & Prusak L (1998) The Eleven Deadliest Sins of Knowledge Management. California Management Review. Vol. 40 Issue 3, p

23 Contest between 3 teams Right side of the class: Propose arguments favoring exploration in KCM Left side of the class: Propose arguments favoring exploitation in KCM Middle of the class (teacher) He has his own arguments Rules: Discuss in small groups 5-10 minutes and then start giving your arguments. Winner: team being most productive and convincing Prize: on the table

24 Rewards and incentives on knowledge management: what do you think?

25 Critical view on knowledge management New Taylorism? Emperor s new clothes?

26 Learning journal #2 Suppose that you need to convince your boss that your organization needs to develop some aspects of knowledge and competence management in your company/organization (you may think your current job, or job from past). So, write a letter* to your boss and explain what needs to be improved. What are your arguments and how you justify them? Use at least two references listed in the lecture slides. Possible references: Wong K. (2005) Critical success factors for implementing knowledge management in small and medium enterprises, Industrial Management & Data Systems, Vol. 105 Iss: 3, pp Huysman M. & de Wit D. (2004) Practices of managing knowledge sharing: towards a second wave of knowledge management Knowledge and process management, Volume 11, Issue 2, pp Ipe M. (2003) Knowledge Sharing on Organizations: A Conceptual Framework. Human Resource Development Review, vol. 2 (4), Rubenstein-Montanoa, B., Liebowitza J., Buchwaltera J., McCawa D., Newmanb B. & Rebeckb K. (2001). A systems thinking framework for knowledge management. Decision Support Systems, Vol. 31 (1), Swan J., Newell S., Scarbrough H., Hislop D. (1999) Knowledge Management and Innovation: Networks and Networking. Journal of Knowledge Management, vol. 3 (4), *that is your learning journal, not need to be actually send to your boss

27 References used for the presentation Baskerville R. & Dulipovici A. (2006) The theoretical foundations of knowledge management. Knowledge Management Research & Practice, Vol. 4 (2), Bhatt G. (2002) Management strategies for individual and organizational knowledge. Journal of Knowledge Management, Vol. 6 (1), Donate, M. J., & Sánchez de Pablo, J. D. (2015). The role of knowledge-oriented leadership in knowledge management practices and innovation. Journal of Business Research, 68(2), Dunford R., (2000) Key challenges in the search for the effective management of knowledge in management consulting firms. Journal of Knowledge Management, Vol. 4 Iss 4 pp Fahey L & Prusak L (1998) The Eleven Deadliest Sins of Knowledge Management. California Management Review. Vol. 40 Issue 3, p Fischer, G., Ostwald, J. (2001) Knowledge management: Problems, promises, realities, and challenges. IEEE Intelligent Systems and Their Applications 16 (1), pp Gupta A., Smith K. & Shalley C. (2006) The Interplay Between Exploration and Exploitation. Academy of Management Journal, Vol. 49 (4), Haas, M. R., & Hansen, M. T. (2005). When using knowledge can hurt performance: The value of organizational capabilities in a management consulting company. Strategic Management Journal, 26(1), Heeseok Lee & Byounggu Choi (2003) Knowledge Management Enablers, Processes, and Organizational Performance: An Integrative View and Empirical Examination, Journal of Management Information Systems, 20:1, Holmström, J., Ketokivi, M., & Hameri, A. (2009). Bridging practice and theory: A design science approach. Decision Sciences, 40(1),

28 References used for the presentation Huysman M. & de Wit D. (2004) Practices of managing knowledge sharing: towards a second wave of knowledge management Knowledge and process management, Volume 11, Issue 2, pp Ipe M. (2003) Knowledge Sharing on Organizations: A Conceptual Framework. Human Resource Development Review, vol. 2 (4), Kalkan V. (2008) An overall view of knowledge management challenges for global business. Business Process Management Journal, Vol. 14 (3), Krogh von G., Nonaka I. & Aben M. (2001) Making the most of your company s knowledge: A strategic framework. Long Range Planning, Vol. 34, Mäki E. (2008) Exploring and exploiting knowledge: Research on knowledge processes in knowledge-intensive organizations Doctoral Thesis. Espoo: Helsinki University of Technology. Mårtensson M. (2000) A Critical Review of Knowledge Management as a Management Tool. Journal of Knowledge Management, vol. 4 (3), Oshri I., Pan S. & Newell S. (2005) Trade-offs between knowledge exploitation and exploration activities. Knowledge Management Research & Practice, Vol. 3 (1), Rubenstein-Montanoa, B., Liebowitza J., Buchwaltera J., McCawa D., Newmanb B. & Rebeckb K. (2001). A systems thinking framework for knowledge management. Decision Support Systems, Vol. 31 (1), Swan J., Newell S., Scarbrough H., Hislop D. (1999) Knowledge Management and Innovation: Networks and Networking. Journal of Knowledge Management, vol. 3 (4), Wong K. (2005) Critical success factors for implementing knowledge management in small and medium enterprises, Industrial Management & Data Systems, Vol. 105 Iss: 3, pp Wong K. & Aspinwall E. (2004) Characterizing knowledge management in the small business environment, Journal of Knowledge Management, Vol. 8 (3), pp