Chun Wei Choo Faculty of Information Studies, University of Toronto http://choo.fis.utoronto.ca Knowledge Management and The Knowing Organization
Dec 21, 2015
Chun Wei Choo
Faculty of Information Studies, University of Toronto
http://choo.fis.utoronto.ca
Knowledge Management andThe Knowing Organization
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
2
2 Views of Knowledge in Organizations
Knowledge as Resource
Knowledge resides in physical objects
Meaning is as represented in the object
Acquiring knowledge = finding right knowledge objects
Knowledge as Process
Knowledge resides in people’s minds
Meaning is constructed through thoughts, actions, feelings
Creating knowledge = creating ways of knowing and doing
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
3
The Knowing Organization
SENSEMAKING
KNOWLEDGE CREATION
DECISION MAKING
From In
formatio
n to K
nowledge
From In
tention to
Actio
n
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
4
Our Learning Agenda
What is knowledge in organizations?
How do organizations create knowledge?
What is knowledge management?
How can an organization better manage the knowledge it has?
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
5
Categories of Organizational Knowledge
Tacit knowledge
Explicit knowledge
Cultural knowledge
Knowledge that has been codified or made tangible, and can therefore be easily communicated or diffused.
Explicit knowledge may be object-based or rule-based.
The implicit knowledge used by organizational members to perform their work and to make sense of their worlds.
Tacit knowledge is hard to verbalize because it is expressed through action-based skills and cannot be reduced to rules and recipes.
The shared assumptions and beliefs about an organization’s goals, capabilities, customers, and competitors.
These beliefs are used to assign value and significance to new information and knowledge.
The more tightly integrated the three forms of knowledge,
the more unique the organizational advantage.
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
6
Knowledge Conversion (Nonaka and Takeuchi 1995)
Explicit
Explicit
Tacit
Tacit
Watching it, then doing it
Doing it, then describing it Finding it, then combining it
Using it, then believing it
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
7
Knowledge Conversion Case(Nonaka and Takeuchi 1995)
Explicit
Explicit
Tacit
Tacit
How to make tasty bread?
What is “twisting stretch”? How to design a viable product?
What can Matsushita do?
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
8
What is KM?
Values
Strategy
Roles
Structures
Process
Practice
Tools
Platforms
Knowledge Management
is a framework
for designing an organization’s
goals, structures, and processes
so that the organization
can use what it knows
to learn and to create value
for its customers and community.
Knowledge Creation
Knowledge Sharing
Knowledge Utilization
Tacit Knowledge
Explicit Knowledge
Cultural Knowledge
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
9
KM
Framework Knowledge Creation
Knowledge Sharing
Knowledge Use
Values
Strategy
Roles
Structures
Process
Practice
Tools
Platforms
• Why is knowledge IMPORTANT to us?
• What KNOWLEDGE do we have and need?
• What is our CULTURE?
• Who will LEAD?
• Who will IMPLEMENT?
• How do we ORGANIZE?
• How will we SHARE knowledge?
• How will we put knowledge to USE?
• How will we CREATE new knowledge?
• How can IT help?
• How do we MANAGE INFORMATION?
• How do we improve COMMUNICATIONS?
Tacit Knowledge
Explicit Knowledge
Cultural Knowledge
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
10
Values & Strategy: Knowledge to Value
Add Value(Knowledge about Customers)
Create New Value(Knowledge about Market)
Reduce Costs(Knowledge about Processes)
Reduce Uncertainty(Knowledge about Environment)
4 basic ways to leverage knowledge and information to create organizational value.Most organizations combine all 4 approaches.
(Marchand and Rayport 2000)
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
11
Values & Strategy (2)
Cost Reduction
Reuse Knowledge,Lessons Learned
Speed
Reuse of KM Know-how
Rebranding &Differentiation
Improved Qualityof Knowledge
Chevron HPConsulting
Siemens WorldBank
XeroxIBM
GlobalServices
BuckmanLabs
++
++ ++
++
++Innovation
++
++
++ ++ ++ ++
++
++
++
++
++
++
++
++
++++
APQC (2000)
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
12
KM Results
• In 1998, BP “brought $260M to the bottom line - documented savings attributed to KM - plus $400M more likely but not yet booked”
• Buckman Labs increased its new-product sales by 50%• Dow Chemical Co saved $40M a year in the re-use of
patents• Ford Motor Co saved more than $600M in the past 3
years• HP reduced its cost per call by 50%• Rank Xerox reduced its dispatches by15%• Roche sends out its products for FDA approval 6 months
earlier
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
13
Roles & Structures
LEARNING
“I am responsible for learning”
MentorsCoaches
SHARING
“Our knowledge grows when it
flows”
Functional TeamsCommunities
Boundary Spanners
LEADING
“The organization benefits from our
knowledge”
ChampionsEvangelists
Steering CommitteesRoles
Structures
Beliefs
Behaviours
Individual Team Organization
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
14
Process & Practice: Knowledge Creating Cycle
• Identify, extract knowledge from primary sources
project files, proposals, presentations, email, interviews
• Edit, refine “raw knowledge” into “processed knowledge”
best practices, lessons learned, case studies
• Organize processed knowledge and making it accessible
create a structure for classifying knowledge
• Packaging, publishing, disseminating knowledge
paper, online, Intranet, pathfinders, knowledge portals
• Manage the whole cycle, design the information architecture
architecture for organizing, publishing, navigating information
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
15
Process & Practice: Structured KM Process
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
16
KM Example: Eureka
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
17
KM Example: Eureka
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
18
Eureka Screen
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
19
KM Example: Eureka
Eureka Status
• Fully deployed in France (1995), Canada (1996)
• Officially deployed in US (1998)
• 15,000 customer service technicians are active users
• More than 15,000 tips in database
• 10% reduction in service time and parts used
• Fewer long/broken calls
• Increased customer satisfaction
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
20
KM Framework
(Eureka) Knowledge Creation
Knowledge Sharing
Knowledge Use
Values
Strategy
Roles
Structures
Process
Practice
Tools
Platforms
• “Each technician should carry knowledge of 20,000 colleagues into every service call”
• “We take pride in solving hard problems” “We want to talk about our solutions”
• Community of Practice: “Eureka built on something technicians did naturally” “They share because they trust it will be reciprocal”
• Authors, Validators, Editors, Evangelists
• Tip authoring, voting, validation, codification
• Peer recognition
• “Eureka is a way of creating a conversation among 25,000 people”
• Laptops, standalone application
• Tips knowledge base, search engine
• Data-mining the Eureka database
Tacit Knowledge
Explicit Knowledge
Cultural Knowledge
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
21
KM
Framework Knowledge Creation
Knowledge Sharing
Knowledge Use
Values
Strategy
Roles
Structures
Process
Practice
Tools
Platforms
• Understand how knowledge creates value for the organization
• Link knowledge sharing/use to organizational values
• Define roles and responsibilities for
leadership, coordination, implementation
• Develop group/team structures that promote
knowledge sharing and learning
• Deliberately structure a process to identify, codify, and disseminate knowledge
• Encourage knowledge sharing and learning to occur naturally as part of work practice
• Select tools that support tacit, explicit, and cultural knowledge
• Build platforms that integrate knowledge creation, sharing, and use
Tacit Knowledge
Explicit Knowledge
Cultural Knowledge
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
22
Sensemaking
SENSEMAKING
Beliefs
Enactments Interpretations
Belief: Customer service is importantBest way is to “follow the manual”Build expert system to support “directive repair.”
Enactment: Accompany technicians on their service calls
Interpretation: Technicians solve tough, undocumented problemsNew knowledge is valuable, should be shared“The community IS the expert system.”
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
23
Knowledge Creation
KNOWLEDGE CREATING
Culturalknowledge
Tacitknowledge
Explicitknowledge
Tacit: Insights and intuitions of technicians, validators
Explicit: Tips and pending tips in knowledge base
Cultural: Technicians form a natural community of practiceNorms of peer recognition, trust, cooperation
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
24
Decision Making
DECISION MAKING
Premises
Routines Rules
Premises: Cost reduction; control; consistency
Rules: Technicians should use centrally produced documentation
Routines: Eureka first in France, Canada as “experiments”Deployment in US needed approval from Worldwide Customer Service
© C
W C
hoo F
IS U
niv
ers
ity o
f Toro
nto
25
SENSEMAKING
Beliefs
Enactments Interpretations
Eureka asOrganizational
Innovation
Risk, UncertaintyKNOWLEDGE CREATING
Culturalknowledge
Tacitknowledge
Explicitknowledge
DECISION MAKING
Premises
Routines Rules
The Knowing Organization
Apply inOther Areas
Knowledge from France, Canada exp.
The Community isthe Expert System
The Community isthe Expert System
How do technicians do their work in practice?