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Warmoes & Associates - Knowledge Solutions

Nederlands On Knowledge Education Consultancy Client Stories Steven Warmoes Networks

Frequently Asked Questions on Knowledge Management

Why do you need Knowledge Management? 
What is the Return on Investment?

It's not enough to state that "brains are our most strategic resource" to justify Knowledge Management. KM must continuously be a key enabler of the goals of an organisation, ex.

bulletMission Critical Questions.
For a company who's business consists of High Tech projects, the most important question was: "Have we already done this before? Who worked on it? Can we improve the quality and efficiency of our proposals?"
bulletSupport Strategic Change Programs
ex. ensure collaboration at a Merger or Acquisition
ex. improve customer satisfaction
ex. get the employees in a new factory operational in 50% it used to take
bulletImprove Business Processes
ex. 80% of the questions of a client must be answered in 30 seconds
ex. reduce down time of production installation
ex. Reduce difference in calculated and actual cost of a design by 50%

It is only in such a framework that costs and returns can be calculated, and hence the profitability.

Our management focus is on cost savings. Can Knowledge Management help?

Companies have a lot of hidden overhead cost in communications and knowledge work:

bulletpeople spend more than 1/2 hour or more a day on e-mails. How high is the percentage of useless messages? 
bulletpeople spend time on telephone and in corridor chats to find "obvious" information 
bulletpeople waste time searching important messages or documents in their overcrowded "inbox" or chaotic public folders
bulletpeople waste time in classifying files in an individual file system, when there is no well managed collective document management

Moreover, "spontaneous" knowledge investments do not yield enough:

bulletinformal meetings produce good ideas, but they don't get shared let alone put into action
bulletpeople go unknowingly to the same or similar seminars, but don't exchange their insight to make proposals that can benefit the business.
bulletpeople reinvent the wheel, because they don't know who already knows

Of what organisational dysfunctions are these symptoms?
Knowledge Management makes the information and knowledge flows visible, more efficient and more effective.
KM makes the hidden costs of informal knowledge work more visible and hence manageable. 
Or from the opposite perspective: not managing knowledge is like stopping the PC-help desk. The explicit costs may not appear anymore on the budget, but a lot of hidden "help yourself in the chaos" costs are made.

Last but not least, let's learn from downsizing exercises in the late eighties and early nineties. The linear lay off's caused a lot of loss of core competency. This in turn caused a lot of costs, ex. in increased downtime of production installations... 
On the other hand, a smart move back to core activities with the most knowledgeable and committed employees strengthen and rejuvenate an organisation. Not only does this reduce costs, but it nurtures the strength for the next stage of expansion. This requires a knowledge assessment of employees, teams and (informal) communities.

What are typical responsibilities of the function "Knowledge management"?

The function "Knowledge Management" mainly enables:

bulletthe creation and support of Communities of Practice as the human foundation of KM
bulletBusiness Process Owners and Line Managers to manage the operational knowledge needed in their processes and departments such as documents and training.
bulletTop Management to have an explicit Vision, Goals and Scorecard for Mission Critical Knowledge and Core Competences.  
bulletthe Knowledge and Collaboration infrastructure including Groupware (with E-mail) and Intranet (with Portal's and Content Management Systems).

In this way, KM coordinates strongly with other functions that support KM such as Training and Education, Internal Communication, ICT, Quality Management, Organisational Development...

Do you need a distinct Knowledge Manager?

In any case, the function of knowledge management is mandatory. 

Typically the Knowledge Manager (or CKO - Chief Knowledge Officer) is a staff function to the General Manager or COO.

But satisfactory results also exist when the function is added to a function that already supports Knowledge Management "avant la lettre", such as Human Resources  or Quality Management.

Is Knowledge Management new?

Things like writing books, training and education have been around for a long time and witness a concern for Knowledge Management "avant la lettre". As a discipline, it adds the following vital new aspects:

bulletCommunities of Practice (CoP's) are an essential organisational form to improve the ability of an organisation to change, learn and grow. They complement the hierarchy, which is the organisation of authorities, and business processes that offer high quality products and services. 
bulletNew applications of Information and Communication Technology, such as Intranets and mobile communication.  This allows people that are separated in time and space to collaborate on knowledge intensive problems, such as the troubleshooting of a complex machine:
A technician has a technical problem he cannot solve
He finds on the Intranet who is an expert that could help, and that is available
He calls the expert on his mobile phone.
The technician shows the machine via a webcamera. 
They note their measurements, observations and findings in a chat dialogue. 
They consult the technical manuals on the Intranet.
Once they have solved the problem, they store their case on the Intranet, so that this experience can be reused.
Later, the CoP examines the different cases and propose corrective measures to prevent such problems.
bulletLook with new eyes. Separated disciplines, such as HRM, ICT, and Quality Management are now integrated to obtain important business goals.

How to start with Knowledge Management?

KM has much to do with reusing existing knowledge, and connecting the right people to improve the knowledge creation capacity in Communities of Practice (CoP's).

Is it not logical to apply the principles of KM on the introduction of KM itself? So, typical first steps are:

bulletCreate a CoP where the practice is KM. The members are typically persons that have spontaneous energy for KM issues in the various disciplines. (See also: What are typical responsibilities of the function "Knowledge Management"?
bulletHave a Sponsor in Top Management.
bulletAppoint a Knowledge Manager (see also Do you need a distinct Knowledge Manager?)
bulletIdentify Critical Business Issues where KM can make a substantial contribution
(see also Why do you need Knowledge Management? What is the Return on Investment?)
bulletIdentify Quick Wins.
bulletIdentify existing Good KM Practices "avant la lettre", and inform the people that can use them for their business objectives. Document these practices on the Intranet of the KM CoP.
bulletMake investment proposals such as the appointment of a Knowledge Manager, stimulate other communities, improve ICT infrastructure...

Last but not least, you gain a lot by integrating the experience of setting up Knowledge Management elsewhere. To coach Knowledge Communities of Practice and Knowledge Managers is the core service of Warmoes & Associates.

What is the difference between Knowledge Management, Organisational Learning and Competence Management?

There should not be any difference in practice. They are a different side of the same coin. The distinction is merely historical because the discipline originated in different communities in the late 80's, begin 90's.

bulletOrganisational Learning started from human learning with elements as team learning, vision creation and mental modeling. 
bulletKnowledge Management got a lot of energy from the ICT oportunities
bulletCompetence Management focused a lot on the inventory of skills and attitudes, and the instruments for recrutement, selection and training.

Today, Knowledge Management is the the most used term.

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Last modified: april 18, 2008