Posted by Rupert Whitehead on March 20, 1998 at 12:16:43:

I have been looking into knowledge management within a consultancy, in particular on behalf of the data warehousing group. My background is in Cognitive Science and Philosophy. The following is a suggested framework for a potentially saleable knowledge management service to clients, though if the suggestions were followed it is recommended that these are first tried internally. It is a first attempt at isolating some of the areas in which an IT consultancy could add value. It is hoped that it will stimulate discussion, and glaring ommissions will be brought to light. Because knowledge management is such a broad term the following might include more or less than you might want. Please reply with any suggestions or criticisms that you might have.

Proposed Knowledge Management:

Defining Knowledge management

Knowledge management as the process of acquiring, developing, storing and disseminating the asset, knowledge, within organisations and to clients and customers. Knowledge is the essential raw material for any decision making activity and comes in a number of forms. These can vary from the information held on a database to the ‘know how’ and understanding of an employee. As the organisation develops, the technologies it uses and the personnel and structures within it also change. This alters the flow of knowledge and the balance of what is the most effective knowledge management strategy. Knowledge management is therefore an ongoing process that constantly needs re evaluation.

Defining the need for knowledge management

Knowledge management is essential to any decision support. For any useful, informed decision to be made, the right information must be delivered to the right people at the right time. Information and speed are the cornerstones of strategy and decision support. It is only with proactive knowledge management that they can be achieved.

Preventing the presentation of timely information to the right people are a number of factors. These can include poor understanding of the technology, poor technology in place, inefficient information storage and retrieval, poor methodological documentation and poor business structure. This list is far from exhaustive.

Although an ‘unconscious’ knowledge management strategy is usually adopted by companies, which is adequate for the organisation’s current survival, the lack of appropriate, timely information does not deliver a competitive edge. With the value of knowledge and information given high publicity by the media, it is likely that active knowledge management within an organisation will become the norm, rather than the exception. The costs of not making efficient use of the knowledge resources within a company will therefore increasingly be decisive in the marketplace. Poor decisions are made due to lack of information to the right people at the right time. The organisation lacks responsiveness to its competitors, and work within an organisation is often duplicated because of communication breakdowns. All these causes lead to a relatively low efficiency and a failure to live up to the organisation’s potential. Those who choose to make their knowledge management explicit will attain greater efficiency than those who still subscribe to the historical inertia model. Those organisations that do not adapt, will increasingly place their survival in question.

What value would you place on the right information reaching the right people at the right time? If you need to know the current extent to which knowledge is managed in your organisation here is a check list of four questions:

i) Does it cause a loss in efficiency when an expert leaves, as they take their knowledge with them?
ii) Does the right kind of information reach you or are you faced with an information overload for some things and a ‘famine’ for others?
iii) If you measured the speed and efficiency with which knowledge can get from any point to any other could it be improved?
iv) How long would it take for an effective idea from a junior manager to reach senior management?

If you improve your management of knowledge there is a corresponding increase in efficiency. If this occurs the organisation can

i) Create informed proactive strategies
ii) Gain the best response to the market based on timely accurate information
iii) Reduce time wasted in duplicating tasks and reinventing the wheel
iv) Reduce project delivery time as best practices are already documented
v) Create a better atmosphere within which to work as employees feel that their knowledge input is valued. This also reduces staff turnover.
vi) Achieve greater profitability

The proposed approach:

In developing a clear knowledge management strategy a modular approach would be adopted, that allows experts in the appropriate areas to evaluate the status quo and offer and/or implement recommendations. Although knowledge management is a very vague term that is often dismissed as it sounds like something that has always been done, the way in which it has been done implicitly in the past, rather than explicitly, has led to poor knowledge management decisions. By taking a modular approach the client is able to select the area or areas in which their knowledge management needs to be improved the most, giving them flexibility.

Suggested knowledge management modules are

1. Knowledge auditing
2. Data Warehousing
3. Groupware
4. Business Consultancy and Practicology
5. Networking
6. Information storage

1.Knowledge auditing

This assesses potential knowledge stores. It is the first part of any knowledge management strategy. By discovering what knowledge is possessed, it is then possible to find the most effective method of storage and dissemination. It can then be used as the basis for evaluating the extent to which change needs to be introduced to the organisation.

2.Data Warehousing:

A data warehouse is a vast store of information. It potentially allows optimal On Line Analytical Processing (OLAP), with the best blend of scalability, performance, manageability and business flexibility. Because data warehousing is a process rather than a one off deliverable, it is also important to evaluate whether the data warehouse is being used in the most effective way, or if it needs to be redesigned to better reflect business needs. Data warehousing should be the focal point of any knowledge management strategy. It is from the presentation and use of the business data contained within the data warehouse that business decisions are made. It is the discovery (possibly using data mining tools), presentation and dissemination of appropriate information that characterises doing data warehousing rather than merely possessing a data warehouse.

Data warehousing ensures that the data warehouse as a decision support tool is being used to maximise business advantage.

3.Groupware

Internal communications are often inefficient, in some cases providing too much information and at others too little. Optimally deploying products such as Lotus Notes can reduce, this inefficiency. It is a common misconception that using Groupware is synonymous with having a good knowledge management strategy. This is not the case. For this aspect of knowledge management to be classed as effective the technology must not only be in place, but also needs to be used in an appropriate way that will deliver maximum business benefit.

This module would include recommendations on how to both improve and restrict information flow, so that the right information was reaching the right people at the right time. Possible expansions of the system so that maximum appropriate functionality is achieved, can also be offered.

4. Business Consultancy and Practicology

It is axiomatic for the newest and most competitive companies that it does not matter where the valuable information or ideas come from, as long as they are acted upon. This business vision is often lost within organisations as they expand to a point where it is no longer possible to know most of the organisation and functions get increasingly specialised. In an attempt to regain the benefits of knowledge movement and the transfer of ideas, many organisations have adopted more effective, flatter structures, which can bring their own knowledge management problems. Those organisations that retain a hierarchical workplace will need either to alter the structure of their organisations, or find an alternative method of allowing the transfer of ideas if they are to retain a competitive edge. If they fail to do this they will not be able to take advantage of many of the valuable knowledge resources that are trapped within an organisation.

By examining the current structures within a company, answers can be found to questions such as ‘is the current taxonomy that the business is based upon the most efficient?’ and ‘is there adequate communication between these structures?’. This allows a corresponding ‘unblocking’ in knowledge flow and counteracts ‘knowledge hoarding’. Other broad areas such as the merits and relative use of different forms of communication within an organisation, can also be evaluated. The increased knowledge movement within an organisation creates a meritocracy that encourages staff retention, while building a more holistic organisation.

Practicology is the term used within ECsoft to encapsulate the way in which the methodology and best practices of an organisation or group are recorded. Part of the business consultancy evaluation might examine the effectiveness of the current Practicology . The company would then be able to recommend methods for putting into place a best Practicology. This would save time and effort for processes that are repeated. It would also diminish the blow felt by the loss of knowledge in any area that comes with the departure of skilled employees. This would be achieved as their skills and ‘know how’ would be documented, saving time on retraining and reinventing the wheel in the future.

5. Networking

An environment that is networked in a poor way, will lead to inefficient communication, possible lost data, and greater system faults with correspondingly lost business.

6.Information storage

It is important to ensure that information is stored in the most efficient format.

Much of the above is already being marketed in its own niche, but using the 'knowledge management' brand might help create possibilities in other areas. I have not gone into any depth on the content of the proposed modules, as the descriptions are intended as a starting point for discussion, and details can be filled in at a later date. The aim has been to turn knowledge management into something that is concrete and practical, particularly with an IT slant.
yours,
Rupert

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Follow Ups:

• KREF an alternative KM taxonomy Denham 07:05:49 3/25/98 (1)
  • Re: KREF an alternative KM taxonomy Sri Sridharan 05:22:20 5/06/98 (0)
• Re: Creating a total knowledge management solution from a business perspective Rupert Whitehead 12:26:54 3/24/98 (10)
  • Add to the concept and debate Tom Sudman 20:09:24 3/24/98 (1)
    • Knowledge and technology Sri Sridharan 05:45:32 5/06/98 (0)
  • Hand waving Denham 17:43:13 3/24/98 (7)
    • Re: Hand waving Rupert Whitehead 07:03:25 3/26/98 (5)
      • Your questions Denham 10:47:52 3/26/98 (4)
        • Re: attitudes to providing KM services Jay Reay 22:15:39 3/26/98 (3)
          • Re: attitudes to providing KM services Rupert Whitehead 11:01:20 3/31/98 (2)
            • Re: desert island bookshelf Jay Reay 07:24:18 4/01/98 (1)
              • Re: desert island bookshelf Rupert Whitehead 11:03:59 4/17/98 (0)
    • Formatting lost Denham 17:48:30 3/24/98 (0)
• Re: There's no Full Monty for KM! Jay Reay 23:18:09 3/21/98 (3)
  • Re: There's no Full Monty for KM! Martyn R Jones 04:43:30 3/28/98 (1)
    • Re: Full Monty and the Emperor's Clothes! Jay Reay 15:06:16 3/28/98 (0)
  • Re: Criticism is Welcome, However... Editor[at]Brint.com 09:47:11 3/24/98 (0)
• TKM Denham 14:20:56 3/20/98 (0)

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