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What is Knowledge Management?</A>
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Knowledge management is the <B><I>explicit</I></B> and <B><I>systematic</I></B> management of <B><I>vital knowledge</I></B> and its associated <B><I>processes</I></B> of creating, gathering, organizing, diffusion, use and exploitation. It requires turning personal knowledge into corporate knowledge than can be widely shared throughout an organization and appropriately applied.</P>
Our research shows that companies adopt two broad thrusts in applying knowledge management:</P>
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<LI>Sharing existing knowledge better - making implicit knowledge more explicit and putting in place mechanisms to move it more rapidly to where it is needed;
<LI>Innovation - making the transition from ideas to commercialization more effective. </LI></OL>
Knowledge management programmes typically have one or more of the following activities:</P>
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<LI>Appointment of a knowledge leader - to promote the agenda, develop a framework
<LI>Creation of knowledge teams - people from all disciplines to develop the methods and skills
<LI>Development of knowledge bases - best practices, expertise directories, market intelligence etc.
<LI>Enterprise intranet portal - a 'one-stop-shop' that gives access to explicit knowledge as well as connections to experts
<LI>Knowledge centers - focal points for knowledge skills and facilitating knowledge flow
<LI>Knowledge sharing mechanisms - such as facilitated events that encourage greater sharing of knowledge than would normally take place
<LI>Intellectual asset management - methods to identify and account for intellectual capital. </LI></UL>
<A class=title3p2 name=eg>Examples of Success</A>
Our cases database has over 100 examples of organizations that have achieved significant benefits through knowledge management. Here are just a few examples:</P>
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<LI>BP - by introducing virtual teamworking using videconferencing have speeded up the solution of critical operation problems
<LI>Hoffman La Roche - through its Right First Time programme has reduced the cost and time to achieve regulatory approvals for new drugs.
<LI>Dow Chemical - by focusing on the active management of its patent portfolio have generated over $125 million in revenues from licensing and other ways of exploiting their intangible assets.
<LI>Texas Instruments - by sharing best practice between its semiconductor fabrication plants saved the equivalent of investing in a new plant.
<LI>Skandia Assurance - by developing new measures of intellectual capital and goaling their managers on increasing its value have grown revenues much faster than their industry average.
<LI>Hewlett-Packard - by sharing expertise already in the company, but not known to their development teams, now bring new products to market much faster than before. </LI></UL>
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<A class=title3p2 name=CSF>Guidelines for Success</A>
Our research has identified a number of recurring success factors:</P>
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<LI>A knowledge leader or champion - someone who actively drives the knowledge agenda forward, creates enthusiasm and commitment
<LI>Top management support - a CEO who recognizes the value of knowledge and who actively supports the knowledge team in its work
<LI>A clear value proposition - identification of the link between knowledge and the bottom line business benefit; new measures of performance and appropriate rewards.
<LI>A compelling vision and architecture - frameworks that drive the agenda forward
<LI>Creation of a culture that supports innovation, learning and knowledge sharing. This is usually supported by appropriate reward mechanisms.
<LI>A technical infrastructure that supports knowledge work - from simple knowledge support tools to Intranets and ultimately more sophisticated groupware and decision support. Simulation, data mining and good document management also have a role.
<LI>Systematic knowledge processes, supported by specialists in information management (librarians) but with close partnership between users and providers of information. </LI></UL>
Usually, the knowledge agenda develops through a process of evaluation from pilot projects that are used to build capabilities and derive learning for subsequent applications.</P>
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<A class=title3p2 name=issues>Issues and Challenges</A>
The biggest challenge reported by those practitioners we have met, is that of changing the culture from "knowledge is power" to "knowledge sharing is power". Other common obstacles are:</P>
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<LI>Finding time - with so many initiatives vying for attention, it is easy to sideline more challenging issues like knowledge management. However, those organisations that have committed resources and have knowledge champions have achieved outcomes that far surpass the level of inputs
<LI>Introversion - afraid to learn from outsiders or expose internal operations to customers
<LI>Too focused on detailed process - rather than the big picture and the more chaotic process of knowledge creation
<LI>Treating it as one-off project or quick-win - knowledge management is a commitment to the long-term: the organization’s future prosperity.
<LI>Individual disciplines and 'turf wars' - knowledge management goes beyond the remit of any single function or discipline. All functions must collaborate.
<LI>Organizational recognition and reward systems usually do not sufficiently recognize knowledge contributions. They are linked to traditional financial measures. </LI></UL>
None of these challenges are insurmountable. Implementing successful knowledge management requires a systematic change and project management approach. However, it is more than just a project. Over time knowledge management changes the way that people work so that thier indiviudal knowledge is more effectively harnessed for the benefit of all.
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