The document discusses key measurement challenges for knowledge management (KM) strategies. It notes that while measuring knowledge as an intangible asset is difficult, establishing a measurement system is crucial for KM to evaluate, control, and improve knowledge processes. However, current quantitative methods only assess monetary value and do not fully capture knowledge. The document thus explores alternative qualitative and quantitative metrics that can better measure KM initiatives and their impact on organizational performance.
2. KM STRATEGY & MEASUREMENTS
KM Cycles (Zack, Bukowitz)
KM Model (Nonaka – Takeuchi)
KM Capture & Codify
KM Sharing
KM Application
•Learning Organization
•Organization Culture
•Organization Maturity
KM Tools
KM Team
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KM Strategy
The Business Goals
THE FUTURE of KM
KM AUDIT
KM understanding in the organization
3. KM STRATEGY & METRICS
Discuss two things ;
KM strategy that is linked to the overall business objectives
Measurement framework to monitor progress toward those organizational goals
Bnefit of KM strategy
Provides the building blocks to guide the process
Help achieving organizational learning & continuous improvement
Avoidance of wasting time from repeating mistakes
Everyone aware of new & better ways of thinking & doinag
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4. KM STRATEGY & METRICS
Two objectives of KM are innovation and reuse
Innovation (& creativity)
•Generation of new knowledge or new linkages between existing knowledge
•Involves lateral thinking such as seeing an analogy in a completely different context.
Reuse forms the basis for organizational learning and should be viewed more as a dissemination of innovation.
•Though seen as dull, routine, and unproductive work. In fact, reuse
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5. KM Teaching Group - Universitas TELKOM
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Masjid Agung Pekanbaru Riau, April 2013
6. ORGANIZATIONAL MEMORY
The accumulated body of data, information, and knowledge created in the course of an individual organization’s existence.
It has two repositories:
An organization's archives, including its electronic data bases;
Individuals’ memories.
Having value for re-use, consist of information services such as libraries, records management and archival management.
Organizations must have effective retrieval systems and good memory recall among the individuals.
Organizational memory’s veracity is invariably compromised by the inherent limitations of human memory.
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7. ORGANIZATIONAL MEMORY
Organizational learning and knowledge management depend on organizational memory
Support the user by providing, maintaining, and distributing relevant information and knowledge
Organizational memory depends on the individual memories of the members,
where the rules, procedures, beliefs, and cultures are preserved over time through socialization and control
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8. ORGANIZATIONAL MEMORY
Organizational memory should not be passive, but must serve as an intelligent assistant for user.
Short term knowledge efforts should concentrate on short term knowledge preservation, facilitated through best practice data bases, lessons-learned archives, or expert systems.
In long-term efforts, organizational memory should support knowledge creation and organizational learning
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9. ORGANIZATIONAL MEMORY
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http://www.ou.edu/deptcomm/dodjcc/groups/02b1/02b1litreview.htm
10. ORGANIZATIONAL MEMORY
Organizations keep forgetting what they have done in the past and why they have done it.
Building organizational memory systems failed because:
Required additional documentation effort with no clear short-term benefit,
Did not provide an effective index or structure to the mass of information collected in the system
Organizational memory enrich this asset by capturing, organizing, disseminating, and reusing the knowledge created by its employees
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11. ORGANIZATIONAL MEMORY
Organization stupidity or corporate amnesia (Sutton – 2003)
organizations which have difficulty to learn, because of their inability to represent critical aspects of what they know
Organizational learning and the accumulation of knowledge will be a source of immediate health as well as long terms survival
Organizational memory must play a key role in KM strategy
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12. ORGANIZATIONAL MEMORY
Current notions of organizational memory
Assume a repository of artifacts (document, file).
Focus on preserving, organizing, indexing, and retrieving only the formal knowledge as it is stored in documents and databases
Formal knowledge sometimes is sufficient, but often knowledge worker face many problems with no clear definition or the ever changing problems
Formal documents are not rich enough to support knowledge related problems
Organizational memory consists only formal knowledge which is bare and lifeless
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13. ORGANIZATIONAL MEMORY
An organizational memory system (like human memory) should have the capacity to recall whatever is relevant to the need/problems
The volumes of corporate knowledge accessible online will increase, which will make it even more difficult to pinpoint those particular items relevant to users
KM strategy should address the cultural and technical factors that influence effective organizational memory management
Cultural barriers
Technical barriers
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14. ORGANIZATIONAL MEMORY
Cultural barriers
A cultural which put too much emphasis on artifacts and results to the exclusion of process.
Resistance to knowledge capture because of the effort required, the fear of litigation, and the fear of loss of job security.
Resistance to knowledge reuse because of the effort required, and the low likelihood of finding relevant knowledge.
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15. ORGANIZATIONAL MEMORY
Technical barriers
How to make the knowledge capture process easy or even transparent.
How to make retrieval and reuse easy or even transparent.
How to ensure the relevance and intelligibility (i.e., through sufficient context) of retrieved knowledge
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16. ORGANIZATIONAL MEMORY
The challenge is to design an organizational memory system that offers sufficient short-term payoffs to knowledge workers who will use the system,
both to capture knowledge as they are creating it and to look for and reuse existing knowledge,
as well as a system that is compatible with the long-term, sustainable KM strategic objectives of the organization
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17. KM Teaching Group - Universitas TELKOM
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Masjid Agung Pekanbaru Riau, April 2013
18. KM DRIVERS
Retirement of key personnel
The unrecorded event-specific, organization-specific and time-specific ‘how’ of know-how that characterizes any organization's ability to perform - walks out of the front door on a regular basis
The need for innovation to compete in dynamic, challenging business environment
The need for internal efficiencies in order to reduce costs & efforts
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www.strengthsalchemy.com
19. FRAMEWORK
External structure initiatives
Acquire knowledge from outside sources such as customers, sharing knowledge to others, experts, …….
Internal structure initiatives
Create knowledge-sharing culture, capture individual tacit knowledge, create revenue from existing knowledge, store, spread, reuse
Competence initiatives
Setup careers based on KM, create knowledge transfer environment
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20. FRAMEWORK
Three sources of intangible assets (Lev – 2001) ;
Discovery (new thing, new way, new method, new tools)
Organizational practices
Human resources competencies
A good KM strategy should identify :
The key needs and issues within the organization
Provide a framework for addressing these issues
Read p. 249. What is the topic of Monsanto example?
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21. KM STRATEGIES
The resources and skills required to develop a KM strategy depend on
The size and complexity of the organizational unit
The depth of information gathering and analysis.
The ideal mix of skills on the KM strategy team would be
KM expert to access to people who are knowledgeable about the organization
KM advocate who will “sell” the strategy to the senior member of management who mandated the strategy development
The differences of KM expert VS KM advocate???
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22. KM STRATEGIES
A KM strategy is an approach to define objectives & operational strategy with specialized KM principles and approaches (Srikantajah and Koenig, 2000).
Identifying how the organization can best leverage its knowledge resources.
What tools required
KM strategies answer :
Which KM approaches, will bring the most value to the organization?
How can the organization prioritize alternatives when any one or several of the alternatives are appealing and resources are limited
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23. KM STRATEGIES
A KM strategy is used to define an action to overcome gap
Defining organization current state and the desired business objectives gap analysis
What is the components that KM strategy needs to possess? Open and read p. 251-252
The road map typically represents a three- to five-year strategy with clear milestones or targets to be achieved throughout that time (what do you think???)
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24. KM STRATEGIES
Current state of the organization assessed using
Information gathering from a variety of sources or key documents (e.g., annual report)
Interviewing key stakeholders (e.g., senior managers, human resources, information technology, and major business unit managers)
How about desired business objectives?
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25. KM STRATEGY ROADMAP
Address the questions of ;
How to manage knowledge for the benefit of the business?
How to manage explicit & tacit knowledge priorities?
How the processes, people, products, services, organizational memory, relationships, & knowledge assets be identified as high priority knowledge levers to focus on?
What is the clear or direct link between KM levers & business objectives?
What are some quick wins (early relatively inexpensive KM successes)?
How will KM capability be sustained over the long term (e.g., defined KM roles)?
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26. KM STRATEGY ROADMAP
One key component of a sustainable KM program is the efficient and effective management of organizational memory
Other key components are ;
KM roles and responsibility (KM team)
Framework to evaluate KM initiatives success
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27. KM Teaching Group - Universitas TELKOM
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Masjid Agung Pekanbaru Riau, April 2013
28. KM Management of knowledge resources and processes with an objective to improve competitive advantages and organizational performance
Performance measurement is crucial in KM as it serves as the foundation that enables an organization to evaluate, control, and improve its knowledge processes.
Measuring knowledge as an intangible capital will be difficult
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KM MEASUREMENT
29. The measurement system must meet the requirement ;
Management set goals and objectives for managing assets
Assessment of monetary dollar value — to know the actual influence of these efforts on company value
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MEASUREMENT CHALLENGE
30. Professor Baruch Lev’s method for assessing assets
Find quantitative dollar results (the actual annual earnings of a company, deduct the customary yield on physical assets of that industry, and the result is the contribution of the intangible assets).
Still, not satisfying the need to measure the knowledge
In spite of sophisticated financial reports, it is often difficult to determine the real value of a company in terms of the total sum of its assets (tangible and intangible)
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MEASUREMENT CHALLENGE
31. Professor Baruch Lev’s method for assessing assets
Coca Cola.
Discounting the extensive value of the sugar, water, bottling facilities, and distribution system,
The company’s value lies in the formula to make Coke and in the brand awareness the company has established.
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MEASUREMENT CHALLENGE
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MEASUREMENT CHALLENGE
Use knowledge
Review knowledge
Create knowledge
Capture knowledge
Sharing knowledge
Store knowledge
Knowledge audit