Knowledge
&
Change Management
Shift of Business Focus
Core Tangible Tangible and Intangible
Product Product Product
Shift of Business Focus
The motto
Our motto is to delight you
If you are satisfied, tell others. If not kindly tell us
basic
The way ahead
Many existing approaches, processes and infrastructures
are obsolete for future networked enterprises
We have to change the wheels!
Knowledge Management:
The first Encounter
What is Knowledge?
Types of Knowledge
What is KM?
Why KM?
What is Knowledge?
• Knowledge is neither data nor information, though it is
related to both
• Knowledge is a fluid mix of framed experience, values,
contextual information, and expert insight that provides a
framework for evaluating and incorporating new
experiences and information.
• It originates and is applied in the minds of knower. In
organizations, it often becomes embedded not only in
documents or repositories but also in organizational
routines, processes, practices and norms
Knowledge
As a form of capital, must be
exchangeable among persons, and
must be able to grow
1. Information that is contextual, relevant
and actionable
2. Knowledge is INFORMATION IN ACTION
3. Higher than data and information
Types of Knowledge
Tacit Knowledge
Contextual
Mental Processes
Difficult to Transfer
Tangible
Explicit Systematic
Knowledge Ease of Transfer
Tacit Knowledge
• Subjective, cognitive, experiential learning
• Hard to document
• Hard to transfer / teach / learn
• Involves a lot of human interpretation
Tacit Knowledge – Cntd.
With tacit knowledge, people are not often aware of the knowledge they possess
or how it can be valuable to others. Tacit knowledge is considered more valuable
because it provides context for people, places, ideas, and experiences. Effective
transfer of tacit knowledge generally requires extensive personal contact and trust.
"We know more than we can tell." Tacit knowledge consists often of habits and
culture that we do not recognize in ourselves. In the field of knowledge
management the concept of tacit knowledge refers to a knowledge which is only
known by an individual and that is difficult to communicate to the rest of an
organization. Knowledge that is easy to communicate is called explicit knowledge.
The process of transforming tacit knowledge into explicit knowledge is known as
codification or articulation.
Explicit Knowledge
• Objective, rational, technical
• Easily documented
• Easily transferred / taught / learned
Explicit knowledge is knowledge that has been or can be articulated, codified, and
stored in certain media. It can be readily transmitted to others. The information
contained in encyclopedias (including wikipedia) are good examples of explicit
knowledge.
What is KM?
Knowledge Management has been referred to
as efforts to capture, store, and deploy
knowledge using a combination of information
technology and business processes.
Knowledge management is a discipline that promotes an integrated approach to
identifying, managing and sharing all of an enterprise’s information needs. These
information assets may include databases, documents, policies and procedures
as well as previously unarticulated expertise and experience resident in individual
workers.”
KM focuses on:
– people who create and use knowledge.
– processes and technologies by which knowledge is
created, maintained and accessed.
– artifacts in which knowledge is stored (manuals,
databases, intranets, books, heads).
Requires a major transformation in organizational culture to create a
desire to share
Purposes of KM
• Maintain, preserve and improve our distinctive competency
• Translate tacit knowledge to organizational knowledge
• Make knowledge available to all
• Create a learning Culture
• Promote culture of sharing knowledge
• Create an application of knowledge delivery
• Go for higher and broader levels of knowledge competency
• Identify appropriate knowledge
• Create appropriate systems
• Create measures for knowledge
• Link Knowledge Management to Idea Management
• Develop output measurements
How to develop Knowledge?
Cyclic Model of KM
Capture
Knowledge
Create Refine
Knowledge
Knowledge
Store
Disseminate Knowledge
Knowledge
Manage
Knowledge
"Knowledge Asset Management" that identifies some of the
specific business factors, including:
– Marketplaces are increasingly competitive and the rate of innovation is rising.
– Reductions in staffing create a need to replace informal knowledge with formal
methods.
– Competitive pressures reduce the size of the work force that holds valuable
business knowledge.
– The amount of time available to experience and acquire knowledge has
diminished.
– Early retirements and increasing mobility of the work force lead to loss of
knowledge.
– There is a need to manage increasing complexity as small operating
companies are trans-national sourcing operations.
– Changes in strategic direction may result in the loss of knowledge in a specific
area
The role of IT in Knowledge
Management
We are in a knowledge-base
society!
• Most of our work is information based
• Organizations compete on the basis of
knowledge
• Products and services available in the
society are increasingly complex
• Life-long learning is inevitable needed
Why KM in knowledge-base
business economy?
• Foster innovation
– By encouraging the free flow of ideas
• Improve customer service
– By streamlining response time
• Boost revenues
– By getting products and services to market faster
• Enhance employee retention rates
– By recognizing the value of employees’ knowledge and rewarding them for it
• Streamline operations and reduce costs
– By eliminating redundant or unnecessary processes
The role of IT in KM
• Information technology, by itself is not KM
• However,
– KM is often facilitated by IT
– IT provides solutions to KM
– IT is a tool to increase the “efficiency” and “capability” of KM
IT, as a facilitator of KM
• facilitates document management, data storage, access of
information, the dissemination, exchange and sharing of
ideas
Creating
more values
via IT;
Knowledge
Enhancing efficiency!
Higher productivity!
In summary
The Role of Knowledge
The creation, diffusion and use of knowledge
have become the vital ingredient in economic
growth and change. The innovation-driven
economy builds upon these processes.
Redefining Business Innovation
The creative process through
which additional economic
value is extracted from the
stock of knowledge
Paradoxes of Knowledge
Using knowledge does not consume it but it
does get obsolete.
• Transferring knowledge does not lose it but
market mechanisms allow ownership.
• Knowledge is abundant, but the ability to use it
is scarce.
• Producing knowledge resists organisation.
• Much of it walks out the door at the end of the
day.
Entrepreneurial Knowledge
• Know-what
• Know-why
• Know-how
• Know-who
• Know-when
• Know-where
The Challenge of Knowledge
Management
Not only of how to develop new knowledge, BUT
• how to locate and acquire others’ knowledge
• how to diffuse knowledge in your organisation
• how to recognize knowledge interconnections
• how to embody knowledge in products
• how to get access to the learning experiences of
customers
Crucial Concepts for
Knowledge Management
Information = Knowledge
• Knowledge exists in intelligent systems
Critical Concepts for KM
What’s to Manage?
• Organisational information
• Organisational knowledge
• Individual knowledge
The KM Journey - the Fivefold
Way
Establish effective information capture and
management systems & processes
• Identify/map organisational & individual knowledge
capabilities – your knowledge asset register
• Codify knowledge where possible, but don’t discard
non-codifiable (tacit) components
• Nourish a culture that supports and rewards
knowledge sharing
• Promote individual knowledge development
Beyond
Change
Change
Management
Integrated Planning
A rapid change- for what?
• A news reporter sitting on a railway track
• Question was asked to him why is he sitting like this.
• He replied that he would like to report the derail and claim the pride that
his is the first news channel flashing the news of this derail.
• Morel – Social Vs Functional
What is change Management?
• A common definition used for change management is a set
of processes that is employed to ensure that significant
changes are implemented in an orderly, controlled and
systematic fashion to effect organizational change.
• One of the goals of change management is with regards to
the human aspects of overcoming resistance to change in
order for organizational members to buy into change and
achieve the organization's goal of an orderly and effective
transformation.
Knowledge Management
• Definitions
• Do you really need KM?
• Do you need a CKO?
• What’s the strategy?
• Types of knowledge management systems
• Organizational changes to expect
• KM software tools
Goal of Change Management
The goal of change management is to “ensure that
standardized methods and procedures are used for
efficient and prompt handling of Changes, in order to
minimize the impact of change-related incidents upon
Product \ Service quality and, consequently, improve the
day-to-day operations of the organization”
39
Knowledge Management
The move from an industrially-based
economy to a knowledge or information-
based one in the 21st Century demands a
top-notch knowledge management system
to secure a competitive edge and a capacity
for learning.
Knowledge Management
• The new source of wealth is knowledge, and
not labor, land, or financial capital. It is the
intangible, intellectual assets that must be
managed.
• The key challenge of the knowledge-based
economy is to foster innovation.
The Knowledge Economy
For several decades the world's best-known
forecasters of societal change have
predicted the emergence of a new economy
in which brainpower, not machine power, is
the critical resource. But the future has
already turned into the present, and the era
of knowledge has arrived.
--"The Learning Organization," Economist Intelligence
Unit
The Knowledge Economy
The knowledge economy rests on three
pillars:
• The role that knowledge plays in
transactions: it is what is being bought and
sold; both the raw material and the finished
goods
• The concurrent rise in importance of
knowledge assets, which transform and add
value to knowledge products
• The emergence of ways to manage these
materials and assets, or KM
Two Kinds of Knowledge
Knowledge is intangible, dynamic, and
difficult to measure, but without it no
organization can survive.
• Tacit: or unarticulated knowledge is more
personal, experiential, context specific, and
hard to formalize; is difficult to communicate
or share with others; and is generally in the
heads of individuals and teams.
• Explicit: explicit knowledge can easily be
written down and codified.
Definitions
• Designing and installing techniques and
processes to create, protect, and use
known knowledge.
• Designing and creating environments and
activities to discover and release
knowledge that is not known, or tacit
knowledge.
• Articulating the purpose and nature of
managing knowledge as a resource and
embodying it in other initiatives and
programs.
Do You Really Need KM?
• Competitive success will be based on how
strategically intellectual capital is managed
• Capturing the knowledge residing in the
minds of employees so that it can be
easily shared across the enterprise
• Leveraging organizational knowledge is
emerging as the solution to an increasingly
fragmented and globally-dispersed
workplace
Do You Really Need KM?
• Instead of constantly reengineering and
downsizing: talented people are assets to be
developed for a global 21st Century
• If you are interested in the Knowledge Grid
• The reuse of knowledge saves work, reduces
communications costs, and allows a
company to take on more projects.
Does a KM System Need a
Chief Knowledge Officer?
• Economic realities and and competitive
edge factors play a large role
• Only if your organization is serious about
implementing a knowledge management
program
What’s the Strategy?
There are two very different knowledge
management strategies:
• Codification Strategy
• Personalization Strategy
Knowledge Management Types
• Competency Management
• Knowledge Sharing
• Competitive Knowledge Management
The Successful Managing of
Knowledge
Focus on five tasks:
• Generating knowledge
• Accessing knowledge
• Representing and embedding knowledge
• Facilitating knowledge
• Transferring knowledge
• It is a process of instilling the culture and
helping the people in it find ways to share
and utilize their collective knowledge.
Knowledge Management
Enablers
• Leadership
• Knowledge champions, such as CKOs
• Culture
• Access
• Technology
• Learning Culture
More on the Importance of
Corporate Culture
• Changing the culture is imperative.
• To create a climate in which employees
volunteer their creativity and expertise,
managers need to look beyond the traditional
tools at their disposal: finding ways to build
trust and develop fair process.
• That means getting the gatekeepers to
facilitate the flow of information rather than
hoard it.
• And offering rewards and incentives
The Technological Divide
• Generating organizational knowledge
invariably means converting the tacit
knowledge of the individual into explicit
knowledge accessible by all. Information
technology is most effective when it
enables this social process.
• Companies must think through their
technological systems.
• Technology such as Intranets and
advanced collaborative software have
made Knowledge Management possible.
Organizational Changes
• Lines between departments and operating
divisions blur
• Knowledge management even completely
collapses boundaries
• A knowledge management system cannot
work through hierarchies
• Individual and team learning process must
become the true driver of organizational
learning
Organizational Knowledge:
Why Is It Important?
• Knowledge can be embedded in processes,
products, systems, and controls
• Knowledge can be accessed as it is needed
from sources inside or outside the firm
• It is versatile and can be transferred
formally, through training, or informally, by
way of workplace socialization
• It is the essence of the competitive edge!
Why KM? What’s the Big
Deal?
• By instituting a learning organization (KM-
intensive), there is an increase in employee
satisfaction due to greater personal
development and empowerment.
• Keep your employees longer and thereby,
reduce the loss of intellectual capital from
people leaving the company.
• Save money by not reinventing the wheel for
each new project
Why KM? What’s the Big
Deal?
• Reduce costs by decreasing and achieving
economies of scale in obtaining information
from external providers.
• Increase productivity by making knowledge
available more quickly and easily.
• Provides workers with a more democratic
place to work by allowing everyone access to
knowledge.
Why KM? What’s the Big Deal?
• Learning Faster With KM
• Learning fast to stay competitive
• KM software and technological
infrastructures allow for global access to
an organization’s knowledge, at a
keystroke
Successful KM Programs
• Information is widely disseminated throughout
the organization. Wherever it is needed, it is
accessible.
• Accessible at a fast rate of speed.
• Virtual communities of practice share what is
known in a global fashion, independent of time
zones and other geographic limitations.
• Business without boundaries broad, often
virtual in nature.
• Collaboration to support continuous innovation
and new knowledge creation.
Symptoms of KM Diffusion
Challenges
• No internal learning communities
• Lack of psychological safety
• Lack of workplace trust
• Arrogance of people who believe they
know everything, so why try?
• Lack of communication within an
organization made evident by reinventing
the same wheel
• Negativity and unrealistic expectations
KM and Future Scenarios
• Where are we going? What are we here
for?
• People need awareness of the whole: in
what direction is the organization going?
• To have a goal to reach in the future can
provide great incentive for a KM initiative.
• Effective leveraging lies within an
organization’s capacity for rethinking and
recreating. Scenario thinking can help to us
to see the blind spots, and help us to create
the future we want.
Sustainability of a KM
Endeavor
There are three fundamental processes
that sustain profound changes such as the
introduction of a KM system:
• developing networks of committed people
• improving business results
• enhancing personal results
For achieve sustainability, there must be a
focus on learning and learning how to
harness the learning capabilities that lead
to innovation.
Sustainability of a KM
Endeavor
• For significant change to lead to
sustainability, hierarchical control must be
put aside.
• The emergence and development of
informal networks must be supported so
that people can share their tacit knowledge
and help one another.
• Managers need to surrender control.
• And mental models need to be examined.
Knowledge Management?
• The essence of knowledge management is
understanding and valuing intangible assets
over tangible.
• Understanding that human and intellectual
capital are the greatest resources
• Managing the skills and competencies that
lie within an organization, and allowing
them to blossom
• Allowing people to be the best that they can
be; optimizing performance.
Managing Organizational Change
Why is it Important to Adapt to
Change?
• Individuals, teams, or organizations that
do not adapt to change in timely ways are
unlikely to survive.
Adapting to Change
• Individuals, teams and organizations
that recognize the inevitability of
change, learn to adapt to it, and
attempt to manage it, will be the
most successful.
What is Change?
• Coping process of moving from a
unsatisfactory present state to a desired
state
Reacting to Change
• Unplanned
• “Fire fighting”
Planned Change
• Results from
deliberate attempts
by managers to
improve
organizational
operations
Unfreeze
Change
Three Phases of
Planned Change Refreeze
Unfreezing
• Help people accept
that change is
needed because
the existing
situation is not
adequate
Changing
• Involves
rearranging of
current work norms
and relationships
to meet new needs
Refreezing
• Reinforces the
changes made so
that the new ways
of behaving
become stabilized
Managing the Planned Change
Process
• Improving the organization’s ability to cope
with unplanned changes that are thrust
upon it
• Modifying employee’s attitudes and
behaviors to make them more effective
contributors to the organization’s goals
Steps in the Planned Change
Process
Recognize the need
for change
Diagnose and
plan change
Manage the
transition
Measure results
Maintain change
Initiating the Planned Change
Process
• Recognize the need for change
• Diagnose and plan change
• Formulate Goals
• Determine stakeholders’ needs
• Examine driving and restraining forces
Force-Field Analysis
• Process of analyzing the forces that drive
change and the forces that restrain it
Driving Forces
• Factors that push
toward the new,
more desirable
status quo
Restraining Forces
• Factors that exert
pressure to
continue past
behaviors or to
resist new actions
Force-Field Analysis Model
Restraining Forces
Quasi-
Stationary
Equilibrium
Driving Forces
Managing the Planned Change
Process
• Consider contingencies to determine the
best interventions
• Manage the transition
• Measure results
• Maintain change
Targets for Organizational Change
• Strategy – Develop new visions, missions,
strategic plans
• Structure – Add a new department or
division, or consolidate two existing ones
• People – Replace a person or change
knowledge, skills, attitudes, or behaviors
• Technology – upgrade a data processing
system
• Management –Encourage participation by
those involved in solution of problems
Reasons for Resistance to
Change
• Selective Perception • Resentment Toward
• Lack of Information the Initiator
• Fear of the Unknown • Sub-Optimization
• Habit • Structural Stability
Overcoming Resistance to
Change
• Education and Communication
• Participation and Involvement
• Facilitation and Support
• Negotiation and Agreement
• Manipulation and Co-optation
• Coercion
• Promote Positive Attitudes Toward Change
Leading Organizational Change
• Establish a Sense of Urgency
• Form a Powerful Guiding Coalition
• Develop a Compelling Vision and Strategy
• Communicate Widely
• Empower Others to Act on the Vision
• Generate Short-term Wins
• Consolidate Gains and Create Greater
Change
• Institutionalize Changes in the Organizational
Culture
