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EFFECTIVE KNOWLEDGE WORK
Answers to the Management Challenge of the 21st Century
          by Klaus North & Stefan Gueldenberg




EFFECTIVE KNOWLEDGE WORK
Three reasons to engage in effective knowlege work

 Reason no 1:
 Knowledge workers need to know : What is
    the value of my work ?

               Value added
           ___________________

          Total costs of workplace




  EFFECTIVE KNOWLEDGE WORK           Klaus North & Stefan Gueldenberg
Reason no 2: Organisations need to develop 2nd order competitive
advantages (Wüthrich et al., 2007):
      Employess who enjoy freedom,
      are passionate about thier work and
      put their intelligence to use for the organisation




     EFFECTIVE KNOWLEDGE WORK                              Klaus North & Stefan Gueldenberg
Reason no 3: Regions need to attract talent

       Stimulating jobs and Plenty of activities, e.g. arts, restaurants, shows
                            potential for lateral moves
       Plenty of activities, e.g. arts, restaurants, shows
                       International, multiethnic character system
                                   Closeness of family, friends / value

              Closeness of family, friends / value system
                        High overall purchasing power
                             Opportunities to get away from the city, e.g. access to
                                           outdoors, other large cities
   Opportunities to get away from the city, e.g. access
                         to outdoors, other large cities
                                                Security
                                         Ambience, warmth of people


                                Ambience, warmth of people
                            Quality of social/public systems
                                                   Health of the economy

                                        Health of the economy
                                            Quality of education climate
                                                          Pleassant

                                                 Pleassant climate
                                          City on a human scale
                                                            Cleanliness

                                                          Cleanliness
                                                                                       0   10    20    30    40     50    60    70     80      90 100
                                                                                                Score (based on attributes most often cited)
   Source: Montreal Knowledge City Advisory Committee(2003)

    EFFECTIVE KNOWLEDGE WORK                                                                            Klaus North & Stefan Gueldenberg
„Human Capital Leading Indicators“ are
      closely correlated to local prosperity
If a region can score well in all four indicators , it means that region
    is likely to be a wealthy, prosperous and socially cohesive one:

1) the number of complex jobs in a region or city;
2) the number of jobs available for young people and the ease with
   which young people can find employment,
3) the ability to get the unemployed back to work (thereby avoiding
   high levels of longterm unemployment),
4) The intensity of investment in research and development and the
   volume of local patent applications, a proxy for the
   “innovativeness” of the region.
  Source: Lisbon Council policy brief : Ederer/Schuller/Wilms: How Europe´s Regions
  and cities can drive growth and foster social inclusion.
High correlation of „Human Captial leading indicators“
with GDP per Capita




       Lisbon Council policy brief : Ederer/Schuller/Wilms: How Europe´s Regions
        and cities can drive growth and foster social inclusion.
The organizational perspective
"Increasingly, the ability of organizations to
  survive will come to depend on their
  "comparative advantage" in making the
  knowledge worker more productive.

  The ability to attract and hold the best of the
  knowledge workers is the first and most
  fundamental precondition" (Peter F. Drucker
  1999).
 EFFECTIVE KNOWLEDGE WORK        Klaus North & Stefan Gueldenberg
Change unproductive behaviours –
      „the daily madness“
…Knowledge workers spend 15-30% of their working time with actively
  searching for information, of which about 50% is considered to be
  successful

...2,1 hours per day are lost by interruptions and diverting attention in
    a multitasking environment (Basex 2006).

...27 subjects reacted to 40% of the e-mails within 4 seconds. They
    needed 15 minutes to resume their tasks. (Iqbal & Horwitz 2007)

…57% of all work tasks are not terminated (Gonzales & Mark 2004).




  EFFECTIVE KNOWLEDGE WORK                      Klaus North & Stefan Gueldenberg
The economic crisis is
                                     also a leadership crisis
                                 Towards a divorce between firms and people

          %
        80
                                                                                                                            The interest of
        70                                                                                                               companies is usually
                                                                                                                        opposed to the interest
        60                                                                                                                 of its employees

        50

        40

        30
                                                                                                                        The interest of companies
        20                                                                                                                usually runs parallel to
                                                                                                                              the interest of its
        10                                                                                                                       employees
                                                                              1999

                                                                                     2000

                                                                                            2001

                                                                                                   2002



                                                                                                                 2004
                                                                1996

                                                                       1997




                                                                                                          2003
                  1985

                          1987

                                  1989

                                          1991

                                                  1993

                                                         1995




        (enquiry carried out in population of France)




© 2010 Stefan Güldenberg
                                                                                       9                          Source: de Vulpian (2005), S. 26
Improvement potential 1: Leadership
   to support professional motives
• What makes you feel professionally satisfied?
• What makes you feel proud of your work?
• What keeps you motivated to go to work
  every day?
• What inspires you?
• What gives your work meaning and purpose?
• What do you want others to say about your
  professional skills and your career?
 EFFECTIVE KNOWLEDGE WORK      Klaus North & Stefan Gueldenberg
Improvement potential 2. Knowledge
   workers have to manage themselves
From individual expertise to joint value
  creation: knowledge workers have to learn to
  collaborate!
Improvement potential 3: …continuous
   learning but equally continuous teachning




                          Source: GEO 5/2009 : Gute Ärzte, schlechte Ärzte, S. 118 ff :
Surgery Team at Hospital in Scuol (GR, Switzerland) mentally walk through their roles before starting an operation
Knowledge work in manufacturing:
                       The Daimler Production Learning System (PLS)

                                 for training, standardization and processs improvement

          Abbildung des Fachbereichs                                                                Kompetenzen




          Tätigkeiten pro Arbeitsplatz                                                                 Lexikon




                         Arbeitsschritte als Netzbilder       Standardarbeitsblätter   Qualifizierungsmatrix




©Prof. Dr. Klaus North                                    Produktive Wissensarbeit                                13
    13
Improvement potential 4: spaces to
  experiment and innovate…….




                      Quelle: http://www.greatplacetowork.com
Improvement potential 5:
 Learn to cope with the information overload




   EFFECTIVE KNOWLEDGE WORK      Klaus North & Stefan Gueldenberg
Improvement potential 6:
              „Healthy thinking“
What causes stress ?
1. Contradictory work goals
2. Disparity between tasks and resources
3. Disparity between tasks and learning
4. Disparity between individual and professional
  goals and expectations
5. Conflict between professional and personal
  life
 EFFECTIVE KNOWLEDGE WORK      Klaus North & Stefan Gueldenberg
"We know now that the source of wealth is
    something specifically human: knowledge.
 If we apply knowledge to tasks we already
    know how to do, we call it 'productivity'.
If we apply knowledge to tasks that are new and
    different we call it 'innovation'."
Only knowledge allows us to achieve these two
    goals.
Source: Drucker 1992 p23

 EFFECTIVE KNOWLEDGE WORK      Klaus North & Stefan Gueldenberg

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Talks@Cogneon: Klaus North

  • 1. EFFECTIVE KNOWLEDGE WORK Answers to the Management Challenge of the 21st Century by Klaus North & Stefan Gueldenberg EFFECTIVE KNOWLEDGE WORK
  • 2. Three reasons to engage in effective knowlege work Reason no 1: Knowledge workers need to know : What is the value of my work ? Value added ___________________ Total costs of workplace EFFECTIVE KNOWLEDGE WORK Klaus North & Stefan Gueldenberg
  • 3. Reason no 2: Organisations need to develop 2nd order competitive advantages (Wüthrich et al., 2007): Employess who enjoy freedom, are passionate about thier work and put their intelligence to use for the organisation EFFECTIVE KNOWLEDGE WORK Klaus North & Stefan Gueldenberg
  • 4. Reason no 3: Regions need to attract talent Stimulating jobs and Plenty of activities, e.g. arts, restaurants, shows potential for lateral moves Plenty of activities, e.g. arts, restaurants, shows International, multiethnic character system Closeness of family, friends / value Closeness of family, friends / value system High overall purchasing power Opportunities to get away from the city, e.g. access to outdoors, other large cities Opportunities to get away from the city, e.g. access to outdoors, other large cities Security Ambience, warmth of people Ambience, warmth of people Quality of social/public systems Health of the economy Health of the economy Quality of education climate Pleassant Pleassant climate City on a human scale Cleanliness Cleanliness 0 10 20 30 40 50 60 70 80 90 100 Score (based on attributes most often cited) Source: Montreal Knowledge City Advisory Committee(2003) EFFECTIVE KNOWLEDGE WORK Klaus North & Stefan Gueldenberg
  • 5. „Human Capital Leading Indicators“ are closely correlated to local prosperity If a region can score well in all four indicators , it means that region is likely to be a wealthy, prosperous and socially cohesive one: 1) the number of complex jobs in a region or city; 2) the number of jobs available for young people and the ease with which young people can find employment, 3) the ability to get the unemployed back to work (thereby avoiding high levels of longterm unemployment), 4) The intensity of investment in research and development and the volume of local patent applications, a proxy for the “innovativeness” of the region. Source: Lisbon Council policy brief : Ederer/Schuller/Wilms: How Europe´s Regions and cities can drive growth and foster social inclusion.
  • 6. High correlation of „Human Captial leading indicators“ with GDP per Capita Lisbon Council policy brief : Ederer/Schuller/Wilms: How Europe´s Regions and cities can drive growth and foster social inclusion.
  • 7. The organizational perspective "Increasingly, the ability of organizations to survive will come to depend on their "comparative advantage" in making the knowledge worker more productive. The ability to attract and hold the best of the knowledge workers is the first and most fundamental precondition" (Peter F. Drucker 1999). EFFECTIVE KNOWLEDGE WORK Klaus North & Stefan Gueldenberg
  • 8. Change unproductive behaviours – „the daily madness“ …Knowledge workers spend 15-30% of their working time with actively searching for information, of which about 50% is considered to be successful ...2,1 hours per day are lost by interruptions and diverting attention in a multitasking environment (Basex 2006). ...27 subjects reacted to 40% of the e-mails within 4 seconds. They needed 15 minutes to resume their tasks. (Iqbal & Horwitz 2007) …57% of all work tasks are not terminated (Gonzales & Mark 2004). EFFECTIVE KNOWLEDGE WORK Klaus North & Stefan Gueldenberg
  • 9. The economic crisis is also a leadership crisis Towards a divorce between firms and people % 80 The interest of 70 companies is usually opposed to the interest 60 of its employees 50 40 30 The interest of companies 20 usually runs parallel to the interest of its 10 employees 1999 2000 2001 2002 2004 1996 1997 2003 1985 1987 1989 1991 1993 1995 (enquiry carried out in population of France) © 2010 Stefan Güldenberg 9 Source: de Vulpian (2005), S. 26
  • 10. Improvement potential 1: Leadership to support professional motives • What makes you feel professionally satisfied? • What makes you feel proud of your work? • What keeps you motivated to go to work every day? • What inspires you? • What gives your work meaning and purpose? • What do you want others to say about your professional skills and your career? EFFECTIVE KNOWLEDGE WORK Klaus North & Stefan Gueldenberg
  • 11. Improvement potential 2. Knowledge workers have to manage themselves From individual expertise to joint value creation: knowledge workers have to learn to collaborate!
  • 12. Improvement potential 3: …continuous learning but equally continuous teachning Source: GEO 5/2009 : Gute Ärzte, schlechte Ärzte, S. 118 ff : Surgery Team at Hospital in Scuol (GR, Switzerland) mentally walk through their roles before starting an operation
  • 13. Knowledge work in manufacturing: The Daimler Production Learning System (PLS) for training, standardization and processs improvement Abbildung des Fachbereichs Kompetenzen Tätigkeiten pro Arbeitsplatz Lexikon Arbeitsschritte als Netzbilder Standardarbeitsblätter Qualifizierungsmatrix ©Prof. Dr. Klaus North Produktive Wissensarbeit 13 13
  • 14. Improvement potential 4: spaces to experiment and innovate……. Quelle: http://www.greatplacetowork.com
  • 15. Improvement potential 5: Learn to cope with the information overload EFFECTIVE KNOWLEDGE WORK Klaus North & Stefan Gueldenberg
  • 16. Improvement potential 6: „Healthy thinking“ What causes stress ? 1. Contradictory work goals 2. Disparity between tasks and resources 3. Disparity between tasks and learning 4. Disparity between individual and professional goals and expectations 5. Conflict between professional and personal life EFFECTIVE KNOWLEDGE WORK Klaus North & Stefan Gueldenberg
  • 17. "We know now that the source of wealth is something specifically human: knowledge. If we apply knowledge to tasks we already know how to do, we call it 'productivity'. If we apply knowledge to tasks that are new and different we call it 'innovation'." Only knowledge allows us to achieve these two goals. Source: Drucker 1992 p23 EFFECTIVE KNOWLEDGE WORK Klaus North & Stefan Gueldenberg