Knowledge Management

Introduction

Knowledge Management: Case Study on Ernst & Young (E&Y) and Cap Gemini

(CG).

Group B members

Pelumi Alli Oluwafemi Akinwande Basudev Wagle

Systematic approaches to help information and knowledge emerge and flow to the right people at the right time to

create value.

Knowledge Management

Source: American Productivity & Quality Center (2002)

1. What cultural problems do you identify in relation to the implementation of KM strategy

in the two companies?

ArtifactsStories/legendsRituals/ceremoniesOrganisational languagePhysical structure/decor

Shared ValuesConscious (e.g. teamwork, innovation)Evaluate what is good or bad, right or wrong

Shared AssumptionsUnconscious, taken-for-granted perceptions or beliefsMental models of ideals

Invisible

Visible

Source: Based on Information in E.H. Schein, Organisational Culture and leadership: A Dynamic View (San Francisco: Jossey-Bass, 1985)

Elements of Organisational Culture

Organisational languageCommunication, how employees address

themselves, describe various terms, choice of words, expressions (McShane et al, 2008).

CG has a technological background, while E&Y has an accounting background.

Example: “customers” and “clients” “KWeb” and “Galaxy/ Planets”

Organisation StructureE&Y divided the organisation into four

centres (i.e. CBI, CBT, CBK ,CTE.), while CG had a linear structure.Separation of duty.Use of Internal & External Knowledge.

E&Y focuses its KM on the individuals (teamwork), while CG looked majorly at the technological platform.

8

Easier to replicate

Leads to competency

ExplicitExplicit

TacitTacitHarder to articulate

Harder to transfer

Harder to steal

Highercompetitive advantage

Contributes to efficiency

Easier to document and share

20%

80%

Source: American Productivity & Quality Center (2002)

Knowledge Management StructureMechanistic vs. Organic Structure (Burns et al,

1961)E&Y – mechanistic, whereby the KM was

centralised and highly structured.Central decision making & authority (leadership)Filtering and disseminating

CG- organic, whereby the KM was decentralised and less rigid structureDispersed power & authority around the organisationKM was uploaded at each planetEmpowerment

2. What are the key success factors in Ernst & Young’s knowledge management strategy?

How would you ‘export’ them to Cap Gemini?

Knowledge management strategy can be defined as a decision / action applied in implementing knowledge management frameworks.

The frameworks include:- Technological platform of the KWeb;- CoP: Employees of same expertise and

location share information and exchange knowledge;

- Teamwork.

Knowledge Management Strategy

Key Success Factors in Ernst & YoungSeparation of the consultancy arm from the

knowledge management arm of the organisation;

CBK the bedrock of knowledge

management of the organisation

(filter the knowledge gotten)

Creation of various centres (with

separate duties and

responsibilities).

CBK recognised the need for exchange of knowledge

internally and externally.

Key Success Factors in Ernst & Young

Teamwork:• The use of forums;• Other social / technology platforms.

Exporting KM Key Success factors to Cap Gemini

Source: Based on Information in Ashok Jashapara, Knowledge Management an Integrated Approach (2011).

Unfreezing: The first part of the change process, where by the change process produces a disequilibrium between the driving and restraining forces.

Refreezing: The latter part of the change process in which systems and conditions are introduced that reinforce and maintain the desired behaviors.

Lewin’s Force Field Analysis Model

Driving forces

Driving forces

Driving forces

Restraining forces

Restraining forces

Restraining forces

Current Conditions

Desired Conditions

Before change

After Change

Source: Based on Information in Mcshane & Glinow, Organizational Behavior .

Unfreezing

Refreezing

Freezed

Exporting KM Key Success factors to Cap Gemini

• According to Lewin’s force field analysis model, effective change occurs by unfreezing the current situation, moving to a desired condition, and then refreezing the system so it remains in the desired state.

• Unfreezing occurs when the driving forces are stronger than restraining forces.

• Driving forces must increase enough to motivate change.

3. What advise would you give Alberto Almansa regarding Centre for Business Knowledge (CBK)? Would you renew the

contract or would you go without?

Merger Strategy

Description Works best when

Assimilation Acquired company embraces acquiring firm’s practice.

Acquired firm has a weak practice or platform

De-strategise

Acquired firm impose their practice and strategy on unwilling acquires firm

Rarely works-may be necessary only when acquired firm does not work but employees don’t realise it

IntegrationCombining the two or more practice or strategy into a new composite one

Existing practice or strategy are strong and can be improved

SeparationMerging companies remain distinct entities with minimal exchange of practice and strategy

Firms operate successfully in different ways, requiring different practice and strategy

Source: Based on ideas in McShane and Von Glinow. 2008 “Organisational Behavior”. 4th Edition, McGraw-Hill Irwin

Merger Strategy

KGalaxy

KWeb

Galaxy

Integration Strategy

Reduces:IT maintenanceOperational costHuman Resources

35 + 7 = 42

< 35

People+Technology

Identification of problem and

strength

Dismissal of potentially redundant effort and encouragement of innovation

Source: Ashok Jashapara, 2011

ConclusionOrganisational Culture

Change Management

Integration Merger Strategy

THANK YOU!