KNOWLEDGE AUDIT Jay Liebowitz R.W. Deutsch Distinguished Professor of Information Systems, UMBC; ([email protected])

KNOWLEDGE AUDIT

Jay Liebowitz

R.W. Deutsch Distinguished

Professor of Information Systems, UMBC; ([email protected])

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What Do You Hope to Learn?

Further background on KM processes and the role of the CKO in the organization

Knowledge management methodology Knowledge audit process Practical advice about knowledge audits

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Knowledge Management Process

Developing new knowledge Securing new and existing knowledge Distributing knowledge Combining available knowledge Important element -- Connectivity

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“What is a CKO?” (Earl and Scott, Sloan Mgt. Review, Winter 1999) Studied 20 CKOs in

North America and Europe

Usually appointed by the CEO (gut feeling)

Primary task is to articulate a KM program

CKOs spend a lot of time “walking around the organization”

CKOs are conceptual designers

Concentrate on tapping tacit knowledge

Self-starter; not single career-track people

Highly motivated (driven) Most have small staffs

(3-12 persons) High level sponsorship

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A SMART Methodology for Knowledge Management (Liebowitz et al., UMBC)

S=Strategize M=Model A=Act R=Revise T=Transfer

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Operational/Implementation Steps for the Knowledge Leveraging Model

Conceptualize and Strategize: Define Problem (why are we doing this; what should be the

end result?) Assess Cultural Readiness, Technology Needs & Resources Conduct a Knowledge Audit (Knowledge Gap Analysis) Analyze and Develop an Overall KM Strategic Plan (Should

Relate to the Center’s Strategic Plan; Define Leadership Role, KM Implementation Infrastructure, and Technology Needs)

Knowledge Acquisition: Identify and Apply Methods to Capture Expertise (e.g.,

structured/unstructured interviews, verbal walkthroughs, observation, simulation, questionnaires, etc.)

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Knowledge Codification/Storage/Organization: Develop a Knowledge Taxonomy for Standardization Represent and Convert the Acquired Knowledge into rules, cases, best/worst

practices, lessons learned, etc. Encode the Knowledge into Software Test and Refine the Knowledge Base

Knowledge Distribution: Release the KM System to the User Community Evaluate the KM System

Knowledge Use and Application: Perform On-going Use and Maintenance Create New Knowledge

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Enabling Mechanisms for Creating a Learning/SharingEnvironment: Create an Organizational Culture that Supports the Value of Sharing Knowledge (e.g.,

trust; the ability to communicate clearly and with enough bandwidth to transfermeaning; a common context or language; a reason or goal for sharing; the space tothink and reflect; the ability to interact with others in a nonpurposeful way; theautonomy to share; awareness that knowledge may be local; a flexible organizationalstructure that supports knowledge sharing; the infrastructure to support knowledgeand information sharing [David Coleman, Collaborative Strategies Inc.]

Strengthen and Create Communities of Practice (part of increased knowledge sharing)

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Knowledge Audit(ONLINX Research Inc.)

A knowledge audit is a review of the firm’s knowledge assets and associated knowledge management systems

A systematic and dispassionate review of the adequacy and integrity of important organizational assets and systems

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Knowledge Audit (Dataware, Liebowitz) In order to solve the targeted problem,

what knowledge do we have, what knowledge is missing, who needs this knowledge, and how will we use the knowledge?

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Knowledge Audit (Seeley, Warner-Lambert) What information exists in my organization, and where is it

located? What expertise resides in my organization--who knows

what? What relevant expertise resides outside my organization,

where does this expertise exist, and how do I gain access to it?

What are the best sources of relevant internal and external information and knowledge?

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Value of a Knowledge Audit(Peter Smith, ONLINX Research Inc.) Demonstrates exactly where value is being created through

human and structural capital Highlights where leverage can best be applied through improved

knowledge sharing and organizational learning Helps prioritize projects for improving knowledge management

practice Demonstrates firm capabilities to shareholders and other

stakeholders Is a key component to strategic planning for any knowledge-based

enterprise Is a key adjunct to due diligence and business planning in

mergers, acquisitions, strategic alliances, venture capital, and new company formation

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Why Audit?

Looking for knowledge-based opportunities in the markets?

Is your focus knowledge flows, stores, and sinks in the organization?

Is the audit to check compliance with SOPs? Are you searching for ways to leverage internal

processes using knowledge? Will you focus on knowledge objects or are you

interested in cultural barriers?

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Why Audit? (cont.) Is the audit strictly for gathering baseline data

(descriptive) or is there a prescriptive element? Is the audit part of a larger BPR project? Does the mandate include all stakeholders,

suppliers, customers, stockholders, etc.? Where does the learning take place that generates

the knowledge? How fast is the learning? What are the key leverage points in the learning

process?

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Top 5 Reasons for Implementing a KM Solution (Delphi Group)

Organizing corporate K (63%) New ways to share tacit K (39%) Support for research and K generation

(31%) New ways to share explicit K (29%) “Smart” tools to aid DM (26%)

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Knowledge Reuse Provides for the capture and reapplication of knowledge

artifacts (episodes in memory, stories, relationships, experiences, rules of thumb, and other forms of knowledge acquired by individuals or groups)

Relies as much on the use of negative experiences, flawed reasoning, or wrong answers as on correct results

Failure and Lessons Learned in Information Technology Management: An International Journal (Jay Liebowitz, Editor-in-Chief; Publisher: Cognizant Communications Corp., NY; [email protected])

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Information Audits (TFPL) Identify the information needs of the

organization, the business units, and individuals

Identify the information created and assess its value

Identify the expertise and knowledge assets Identify the information gaps Review the current use of external and internal

information sources

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Information Audits (TFPL) (cont.)

Map information flows and bottlenecks within those flows

Develop a knowledge map of the organization indicating appropriate connections and collections

These tasks will enable the design of content maps for intranets, knowledge management strategies, and information strategies

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Knowledge Management at Monsanto Co. Developed a Knowledge Management Architecture

(KMA) -- Director of Knowledge Management Includes a learning map that identifies questions

answered and resulting decisions made Information map that specifies the kind of information

that users need Knowledge map that explains what users do with

specific information (conversion of information to insight or knowledge)

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Audit (TFPL)

Independent team Mix of interviews, questionnaires, discussion

groups, and focus groups Number of people in “central” positions are

interviewed Detailed questionnaire to all staff Do post-audits periodically

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Perform a “knowledge audit” first! If you’re a manufacturer, you inventory your physical assets before you change your manufacturing plans and processes. Should we do less with knowledge resources? Consider such factors as:

What information do people need to do their jobs? What is the function of the information? Who holds that knowledge now? Who needs it? When? How can that information be made substantially more effective? What connection should you make between documents and

“work flow”? Do you really want “document management” tied to work flow,

processes, and “business process reengineering”? What precisely, is the nature of knowledge resources?

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Teltech’s Audit Process

Begins at the top, identifying the client’s key decision making areas and tasks, and drills down to evaluate the types, level, and location of info and K required to support those decisions

Gap analysis identifies information/K weak areas

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Teltech’s (cont.)

Teltech’s knowledge audit takes 3-4 weeks at one location with 200-600 employees

Assesses knowledge-related behavior (e.g., how receptive is a client’s culture to accessing information electronically?)

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Knowledge Audits & Related Projects (Liebowitz et al., UMBC)

BRI/PAC core competency process at the Social Security Administration (2 surveys, follow-up interviews)

Knowledge management strategy for the FCC Knowledge mapping for ASID Web-based expert system for HCFA Agent-based system for the Navy Other work at our Lab for KM

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Knowledge Organization Invest in education and training of the firm’s human

capital Develop knowledge repositories for preserving, sharing,

and distributing K Provide incentives to encourage employees and

management to contribute to the organization’s knowledge repositories and use this knowledge

Consider evaluating annually each member of the firm on the quality and quantity of knowledge contributed to the firm’s knowledge bases as well as the organizational knowledge used by that firm member

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Knowledge Organization (cont.) Develop methodologies for managing and structuring

the knowledge in the knowledge repositories Provide an infrastructure of individuals whose main job

is to manage the creation, development, and maintenance of knowledge repositories

Place the Chief Knowledge Officer (CKO) in either a staff position directly under the CEO or in a line position equivalent to a VP

Adapt to the changing competitive environment by forming project teams based on the employee knowledge profiles

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CGIAR KM Survey Results

Most Centers don’t measure the value of the IC

People are the most important knowledge carriers

Most of the Centers’ strategic goals don’t include KM explicitly

KM objective: facilitate the re-use & consolidation of K

Sharing of K: intranets, documentation--Center level

Unit-level: intranets, cross-functional teams, training

Creation of K: lessons learned analysis

Storing K: manuals and handbooks

“Some” understanding and support for KM

Mixed reaction on motivating and rewarding for KM

No formal Webmaster function in most Centers

Email & videoconferencing: intranet to support KM

No tracking of new K generation