Kamis, 28 Januari 2016

Knowledge Management Strategy & The Value of KM

The KM Strategy provides the basic building blocks used to achieve organizational learning and continuous improvement so as to not waste time repeating mistakes and so that everyone is aware of new and better ways of thinking and doing. 
Sveiby (2001) developed a framework for categorizing the different types of KM initiatives. He uses three categories:
External structure initiatives (e.g., gain knowledge from customers, offer customers additional knowledge).
Internal structure initiatives (e.g., build a knowledge-sharing culture, create new-revenues from existing knowledge, capture the individual’s tacit knowledge, store it, spread it and reuse it and measure knowledge-creating processes and intangible assets produced).
Competence initiatives (e.g., create careers based on KM, create microenvironments for knowledge transfer, and learn from simulations and pilot projects).

Sveiby (2001) developed a framework for categorizing the different types of KM initiatives. He uses three categories:
External structure initiatives (e.g., gain knowledge from customers, offer customers additional knowledge).
Internal structure initiatives (e.g., build a knowledge-sharing culture, create new-revenues from existing knowledge, capture the individual’s tacit knowledge, store it, spread it and reuse it and measure knowledge-creating processes and intangible assets produced).
Competence initiatives (e.g., create careers based on KM, create microenvironments for knowledge transfer, and learn from simulations and pilot projects).

Introduction to KM Strategy
A number of different types of business needs may trigger the need for KM :
1.Imminent retirement of key personnel
2.Need for innovation to compete in dynamic, challenging business environment
3.Need for internal efficiencies in order to reduce cost and effort (e.g. time to market a new product)


Knowledge Audit
A knowledge audit service identifies the core information and knowledge needs and uses in an organization. It also identifies gaps, duplications, and flows and how they contribute to business goals.

A knowledge inventory (sometimes called an information audit or a knowledge map) is a practical way of coming to grips with “knowing what you know.” This inventory is usually performed by applying the principles of information resources management (IRM)

A knowledge audit can produce the following types of results:
Identification of core knowledge assets and flows – who creates, who uses.
Identification of gaps in information and knowledge needed to manage the business effectively.
Areas of information policy and ownership that need improving.
Opportunities to reduce information-handling costs.
Opportunities to improve coordination and access to commonly needed information/
A clearer understanding of the contribution of knowledge to business results.

Knowledge Gap
The difference between the organization’s existing and desired KM state is analyzed in terms of enablers and barriers to successful KM implementation.

A good gap analysis should address the following points (Zack, 1999; Skyrme, 2001):
1.What are the major differences between the current and desired KM states of the organization?
2.List barriers to KM implementation
3.List KM leverage points or enablers
4.Identify opportunities to collaborate with other business initiatives
5.Conduct a risk analysis
6.Are there redundancies within the organization?
7.Are there knowledge silos?
8.How does the organization rank with respect to others within the industry?











The result will be a KM strategy document that can be used as road map to implement short-term KM initiatives within the organization (those with the highest scores on feasibility, cost-benefit, and priority) as well as a longer-term KM strategy that will describe some of the longer, more complex initiatives. 
The KM Strategy  Road Map
 The final recommended strategy would typically cover a three to five year period, outlining the key priorities for each year. The road map addresses issues such as:
1.How will the organization manage its knowledge better for the benefits of the business?
2.Content (management of explicit knowledge) and community (management of  tacit knowledge) priorities.
3.Identification of process, people, products, services, organizational memory, relationships, knowledge assets as high priority knowledge levers to focus on.
4.What is the clear or direct link between KM levers and business objectives?
5.What are some quick win?
6.How will KM capability be sustained over the long term?

Balancing Innovation and Organizational Structure

A balance between innovation and organizational structure should be the desired outcome of a good KM strategy.
If the organization is too fluid, there will be no solid connection of knowledge work to business goals, and it will be difficult to have clear accountability.
If the balance shifts too much in favor of institutionalization, however the organization risks becoming too formal, which can stifle innovation and the open communication necessary for creative work to take place

Types of Knowledge Assets Produced
Edvisson and Malone (1997) propose that knowledge assets can be laced in one of these categories:
1.Human capital, or all the brainpower that “leaves at 5 PM.”
2.Structural capital, or all the brainpower that “stays after 5 PM” (policies, procedures, training courses, patents, etc).
3.Customer capital, or all the corporate relationships with customers and prospects.

Introduction to The Value of KM
There are typically three main categories of stakeholders:
1.Program funders (primarily in financial measures)
2.Managers (mostly interested in how the KM tools and processes are working and how much they are being used by their staff)
3.Employees/participants (more concerned with practical and operational issues such as how does this improve my everyday life at work)

For stable organizations, there are at least four possible points at which assessment can occur (adapted from APQC, 2001) :
1.Preplanning
2.Start-Up
3.Pilot project
4.Growth and expansion

 KM Return on Investment (ROI) and Metrics
The Skandia Intellectual Capital model is called the Skandia Navigator (Wall, Kirk, and Martin, 2004). Four key dimensions of business form the core of this model:
1.Financial focus, represented in monetary terms
2.Customer focus, a financial and nonfinancial measure of the value of customer capital
3.Process focus, addressing the effective use of technology within the organization
4.Renewal and development focus, which attempts to capture the innovative capabilities of the organization.

The KM measurement process will therefore consist of the following major steps:
1.Define the business objective(s) addressed by the KM initiative or project.
2.Define are the stakeholders and determine what they need to know.
3.Determine which measurement framework(s) is best to align KM measures with the business objectives.
4.Modify the framework(s) based on measurements are needed.
5.Decide on a data collection and analysis strategy.
6.Get management to sign off on the measurement strategy.
7.Implement measures and present the results in a form that is most appropriate for each stakeholder.

The Benchmarking Method
Benchmarking is a fairly straightforward KM metric that often represents a good starting point.
There are two general types of benchmarking:
Internal benchmarking, which involves comparisons against other units within the same organization or a comparison of a single unit over different time periods; and
External benchmarking, which involves a comparison with other companies.

Spendolini (1992) further describes four different types of benchmarking :
Industry group measurements
This involves the measurement of various facets of one operation compared to similar measurements from other companies.

Best Practice studies
These are studies and lists of what works best. These are useful to benchmarking research, but they are not useful as metric.

Spendolini (1992) further describes four different types of benchmarking :
Cooperative benchmarking
This involves the measurement of key production functions of input, outputs and outcomes with the aim of improving them.
Competitive benchmarking
This is the study and measurement of a competitor without their cooperation for the purposes of process or product quality improvement.

The Balanced Scorecard Method

The balanced scorecard method (BSC) is a measurement and management system that enables organizations to clarify their vision and strategy and to translate them into action.
It provides feedback on both the internal business processes and external outcomes in order to continuously improve strategic performance and results.






The House of Quality Method
The house of quality method was developed to show the connections between true quality, quality characteristics, and process characteristics.
This was done using the Fishbone Diagram, with true quality in the heads and quality and process characteristics in the bones.
This technique is also referred to as quality function deployment (QFD; Mazur, 1993) as it links the needs of the customer with marketing, design, development, engineering, manufacturing, and service functions.

Some popular house of quality metrics used for KM projects include:
1.The expense of reinventing solutions per year (or rework)
2.The information/knowledge seeking time spent on average employee
3.Number of ideas that were implemented from the suggestion box per year
4.The percent of employees who are aware of what KM exists within their organization

Tiwana (2000) recommends using indicators and other useful parameters from the Skandia Intellectual Capital annual report instrument as house of quality outcomes in order to analyze KM effectiveness. These indicators include:
1. Competence development expenses ($ per employee),
2.Employee satisfaction,
3.Time spent on systematic packaging of know-how for future reuse when a project has been completed,
4.Training expenses per employee,
5.Information-gathering expenses per existing customer,
6. Total number of patents held,



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