People-Focused KM: Effective Decision-Making Leads to ... · People-Focused KM 2004/ 18 Copyright © 2004 Knowledge Research Institute, Inc. Personal Work Becomes More Complex 1.
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People-Focused KM 2004/ 1 Copyright © 2004 Knowledge Research Institute, Inc.
People-Focused KM:Effective Decision-MakingLeads to Enterprise Success
2004
Karl M. WiigKnowledge Research Institute, Inc.
Arlington, TX 76016-3517phone: (817) 572-6254 fax: (817) 478-1048
e-mail: kmwiig@krii.com –– website: www.krii.com
People-Focused KM 2004/ 2 Copyright © 2004 Knowledge Research Institute, Inc.
♦ The Early Focus:Strengthen Operations by Improving Knowledge
and Its Availability with IT and LO♦ The Emerging Focus:
Make the Enterprise More Competitive fromStrategic Perspectives by Creating and Utilizing
Knowledge and Personal Understanding
“To Survive and Prosper You Need toInnovate Faster Than Your Competitors
– It is Not Enough to Learn Faster!”
KMKM’’s Role Is Changings Role Is Changing
People-Focused KM 2004/ 3 Copyright © 2004 Knowledge Research Institute, Inc.
Enterprise SuccessEnterprise Success
Effective Decision-Making /Effective Decision-Making /Problem-Solving and ExecutionProblem-Solving and Execution
Continual IC DevelopmentContinual IC Development
People-Focused KMPeople-Focused KM
People-Focused KM 2004/ 4 Copyright © 2004 Knowledge Research Institute, Inc.
Relevant Intellectual Capital AreasRelevant Intellectual Capital Areas
Knowledge to Perform Daily Work Executing Work Tasks How to Shape Daily Work to Support
Enterprise Intent Understanding of Which IC Assets Are
Important to Develop for Support of: Enterprise Goals Personal Goals
Understanding of How Personal Goals AreSupported by Enterprise Success
People-Focused KM 2004/ 5 Copyright © 2004 Knowledge Research Institute, Inc.
Enterprise Success:Enterprise Success:–– A Very Tall Order IndeedA Very Tall Order Indeed! ! ––
♦ Peoples’ actions create enterprise behavior♦ People act according to what they feel, know,
and understand about the target situation• Feel - Culture and mentality
• Know - Knowledge to decide and act• Situation understanding - Knowledge and information
♦ People pursue what they understand to be“best”
People-Focused KM 2004/ 6 Copyright © 2004 Knowledge Research Institute, Inc.
Effective Decision-MakingEffective Decision-Makingand Problem-Solvingand Problem-Solving
♦ Seeks to execute enterprise intent♦ Leads to action options that are feasible
and implementable♦ Seeks to execute enterprise intent♦ Seeks to execute enterprise intent
Effective decision-making/problem-solving:
People-Focused KM 2004/ 7 Copyright © 2004 Knowledge Research Institute, Inc.
Enterprise Behavior andEnterprise Behavior andPerformance Result fromPerformance Result from
Individual Individual VoluntaryVoluntary Actions Actions
♦ Voluntary actions cannot be “managed” –only “influenced” to be consistently effective♦ The enterprise is a networked social system
whose culture shapes personal behaviors♦ The enterprise is “complex system” that in
theory and fact cannot be “controlled”
Remember:
People-Focused KM 2004/ 8 Copyright © 2004 Knowledge Research Institute, Inc.
People-Focused KMPeople-Focused KM
Systematic and Deliberate KMSystematic and Deliberate KM
Requires that UnderlyingRequires that Underlying
Knowledge-Related MechanismsKnowledge-Related Mechanisms
Are Understood and AddressedAre Understood and Addressed
People-Focused KM 2004/ 9 Copyright © 2004 Knowledge Research Institute, Inc.
People-FocusedPeople-Focused KM Features: KM Features:· Intellectual Capital Stewardship Mentality ProvidesLong-Term Viability Secured by Short-Term Survival· Part of Integrative Management and “Living the Job”· Self-Sustaining & Self-Renewing Systemic KM Practices· System Perspective of Enterprise and Environment· Adaptive & Complex – Not Static and Mechanistic· State-of-the-Art KM Methods – Vigilantly Applied· Bottom-Up “Demand Pull” – Not “Supply Push”· People-Centric Knowledge View – Not Technology-Based· Advanced Infrastructure Capabilities – Used Everywhere
People-Focused KM 2004/ 10 Copyright © 2004 Knowledge Research Institute, Inc.
We Need to Change OurWe Need to Change OurUnderstanding!Understanding!
In the past we misunderstood how peoplehandle situations and make decisions.
We believed that decision making is rationaland mostly conscious deliberations.
These misconceptions misled, and still mislead,development of many KM-related practiceswith results that can be quite disappointing.
People-Focused KM 2004/ 11 Copyright © 2004 Knowledge Research Institute, Inc.
Seven Common KM MisunderstandingsSeven Common KM MisunderstandingsWe Must Remember That:
People RememberStories and Concepts
People Tend to PursueRole Model Behaviors
People's DecisionsAre Nonconscious
Stress Impairs Retrievalfrom Long-Term Memory
People Have DifferentCognitive Styles
Complex Work RequiresMore Knowledge than a Single
Person Normally Possesses
Information andKnowledge Are
Fundamentally Different
Excessive Focus on InformationLeads to Inappropriate
Knowledge Management
Resulting Misconceptions
IgnoringPrimary Modes of
Cognitive ProcessesLeads to Ineffective
Preparation andSupport
InappropriateSupport of People's
Capabilities andNatural Behaviors Impairs Work and
Managementand Operating
Practices
People-Focused KM 2004/ 12 Copyright © 2004 Knowledge Research Institute, Inc.
Adapted from Bechara et alia, Science 28 Feb, 1997 When Needed, New Situation-Specific
Mental Reference Models
Are Created by Conceptual Blending
Most Decisions Are NonconsciousMost Decisions Are Nonconsciousand Result from Activating Mental Reference Models!
Decision
Situation ReasoningStrategies
Facts-Objectives
Options fordecision
andinnovation
Representationof futureoutcomes
Covert activation ofbiases related to
previous emotional[or meaningful]experiences ofcomparablesituations
Reference ModelLibrary
Personal MentalModels of
Wellknown Cases
People-Focused KM 2004/ 13 Copyright © 2004 Knowledge Research Institute, Inc.
Mental Reference ModelsMental Reference Models
“Give me an example I can adapt to fit my problem!”People Imitate Prior Behaviors and
Organizations Reenact Past PracticesPeople making decisions, to the largest extent possible,
rely on past experiencesPeople and organizations adapt and execute
reference models to imitate prior successes andavoid prior failures
They build large libraries of reference behaviorpatterns
People-Focused KM 2004/ 14 Copyright © 2004 Knowledge Research Institute, Inc.
Ongoing Situation
Information Information Information
NewNew New
Situation Handling Requires KnowledgeSituation Handling Requires Knowledge
Copyright © 2003 Knowledge Research Institute,Inc.
Initial
Situation
Situational
Awareness
Sensemaking
Information
Action Spaceand Innovation
Decision-Making/
Problem-SolvingUnderstanding
of
Situation ExecutionCapability
Implementation
Decision
Monitoring
Governance Competence
CorrectiveAdjustment
CorrectiveAdjustment
Feedback FeedbackFeedback
KnowledgeMental Reference Models – Concepts – Understandings – Judgments – Principles – Facts
Effective
Action
Actions
to Change
Situation
Actions
to Change
Situation
People-Focused KM 2004/ 15 Copyright © 2004 Knowledge Research Institute, Inc.
ConsolidatedEnterpriseBehavior
InnumerableNano Actions
Marketand
StakeholderResponse
RealizedPerformance
CostsService QualityProduct Quality
Customer Supportetc.
Effectsof
Actions
Effectsof
Actions
Micro"Action"
Micro"Action"
Micro"Action"
Micro"Action"
Individual Actions Lead to Enterprise BehaviorIndividual Actions Lead to Enterprise Behavior
R&D-Marketing
Engineering
Manufacturing
Delivery & Start-Up
People-Focused KM 2004/ 16 Copyright © 2004 Knowledge Research Institute, Inc.
We Must Make Our PeopleWe Must Make Our PeopleUnderstand and AgreeUnderstand and Agree
the Enterprisethe Enterprise’’s Business Strategy,s Business Strategy,Its Direction, and IntentsIts Direction, and Intents
“We must communicate our strategy andintents effectively”
1. First to the Initial Target Group2. Later to Everybody
Strategy is decided by Upper Managementbut mostly implemented by Rank and File
People-Focused KM 2004/ 17 Copyright © 2004 Knowledge Research Institute, Inc.
Micro Managing Does Not Always Work!Micro Managing Does Not Always Work!
Delegation of authority is mandatory for detailedimplementation of desired actions.
Effective implementation relies uponimprovisation and innovation.
Changes will occur and situations in the field willinvariably differ from expectations.
People need requisite knowledge and resources.They must be prepared to accept responsibility!
People-Focused KM 2004/ 18 Copyright © 2004 Knowledge Research Institute, Inc.
Personal Work Becomes More ComplexPersonal Work Becomes More Complex
1. Routine tasks
(simple,
repetitive, and
well understood)
2. Logical or less
common
variations
(transformations)
of
Routine Situations
3. Complex, yet
expected
extensions of
routines
integrated with
external factors
4. Unexpected
challenges
(conditions),
but with a mix
of routines and
external factors
6. Unusual
challenges
outside
job scope
5. Totally
unexpected
situations and
non-routine
challenges,
yet within the
larger job scope
RequiredKnowledge
Can BeExplicated
(Some Can BeAutomated)
Workers NeedAdditionalKnowledge
ConsiderableNew Knowledge
Is Required
Past
Work
Future
Work
Some AbstractKnowledgeIs Needed
Frequency of
Occurrences
Complexity
of Work
Candidates
for
Intelligent
Automation
Potentials for
Delivering Work
Requiring
Greater Knowledge
People-Focused KM 2004/ 19 Copyright © 2004 Knowledge Research Institute, Inc.
Make
Sense
Decide &
InnovateExecute
Monitor
Apply KnowledgePersonal Operations
Level
Effective Actions Are Needed at All LevelsEffective Actions Are Needed at All Levels
Make
Sense
Decide &
InnovateExecute
Monitor
Apply KnowledgeDepartment Tactics
Level
Make
Sense
Decide &
InnovateExecute
Monitor
Apply Knowledge Division Business Plan
Level
Make
Sense
Decide &
InnovateExecute
Monitor
Apply Knowledge Enterprise Strategy
Level
People-Focused KM 2004/ 20 Copyright © 2004 Knowledge Research Institute, Inc.
Personal IC DevelopmentPersonal IC Development
Personal IC Development Has Two Areas:1. Directive Component is top-down:
People need only to follow directions2. Participative Component is bottom-up:
People need to understand how best tobuild their own IC assets
For success - people need to understandenterprise direction and their own roles
People-Focused KM 2004/ 21 Copyright © 2004 Knowledge Research Institute, Inc.
Crucial KM Focus AreasCrucial KM Focus Areas
• People-Focused Management Philosophy• Knowledge Management Expertise
• Integrative Management• Intangible Asset Management Mentality
• Critical Success Factors• Knowledge-Focused Business Diagnostics
People-Focused KM 2004/ 22 Copyright © 2004 Knowledge Research Institute, Inc.
Intangible Asset Management MentalityIntangible Asset Management Mentality–– Knowledge-Leveraging Mentality Knowledge-Leveraging Mentality ––Knowledge-Leveraging Mentality Consists of
Knowledge- and Performance-CentricPerspectives and Attitudes
that Promote Effective and CompetitiveActions and Behaviors
of Individuals and Enterprise
Corporate Culture Is Driven by theKnowledge-Leveraging Mentality
People-Focused KM 2004/ 23 Copyright © 2004 Knowledge Research Institute, Inc.
KLM FocusKLM FocusCompetitive enterprise and personal performance
result from conscientious application ofsuperior intellectual capital (IC)
Superior IC is built through constant innovationand wise investments and trade-offs
High performance depends on effective practices,arrangement of work, organizational structureand systems and procedures
Widespread Knowledge-LeveragingMentality is cornerstone for ‘doing business
differently’
People-Focused KM 2004/ 24 Copyright © 2004 Knowledge Research Institute, Inc.
Important KM Development PrioritiesImportant KM Development Priorities1. Make KM part of Integrative Management2. Focus KM more on People – Less on IT3. Make KM Promote Innovation and Strengthen
Consistency of Routine Operations4. Increase Understanding of Knowledge-Related
Processes - Personal - Organizational - Societal5. Strengthen IT for KM Infrastructure and
Intelligent Operational Support6. Compile Repositories of Effective KM
Approaches and Related Best Practices
People-Focused KM 2004/ 25 Copyright © 2004 Knowledge Research Institute, Inc.
“A Focus on Cost-Cutting and EfficiencyHas Helped Many Organizations Weather
the Downturn, But This Approach WillUltimately Render Them Obsolete.
Only the Constant Pursuit of InnovationCan Ensure Long-Term Success.”
DF Muzyka, FT Sep 17, 2004
Knowledge Management Is theInnovation Enabler by Providing the
Driving Intellectual Capital Resources!
KM and Innovation Are KeyKM and Innovation Are Key
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