denotes premium content | May 19 2013 Feature
posted 1 Mar 1999 in Volume 2 Issue 6
Navigating the organisational
journey
In
'Implementing Knowledge Management: Lessons Learned' (Volume 1, Issue 4), Bill
Ives & Adam Gersting provided an overview of best practices in implementing
knowledge management solutions. These best practices, related to strategy,
process, people and technology were taken from the creation of knowledge
management solutions for their clients and themselves. In this follow-on
article, they focus on the map route of strategies for executives leading
organisational change. The summit is knowledge management success.
Executive commitment,
sponsorship and leadership are critical factors for knowledge management
initiatives to succeed. Moving towards a knowledge sharing environment is
primarily a cultural change and business executives must actively sponsor and
guide the organisation's journey towards a knowledge sharing environment. In
order to move from a simplistic information environment to a sophisticated
knowledge sharing environment, critical steps must be taken to provide
navigation towards the future, while enabling this advance and building a sense
of ownership over time
Considerations around the four organisational change areas are shown in
the figure below and are detailed in turn in the following sections.
Actively setting the course and
keeping the organisation on track towards a knowledge sharing environment
Set the
target
Executives must play a very active role in controlling the direction of
cultural change arising from knowledge initiatives, initially by defining the
course and direction for the initiative. By working to define a clear vision for
knowledge management, executives will set and keep their organisations on track
Executives at
one major U.S. steel company for example, realised that their organisation
was gathering knowledge in different plants and offices using different
processes, and various technologies with varying results. Through recognising
the opportunity to improve information and knowledge sharing, a strategy
was developed to provide future direction on knowledge roles, processes,
information to be captured and shared, as well as new technology approaches to enable
this sharing. Similarly, executives at a major automobile company realised the
need to share decades worth of experience and insights in the heads of engineers
in order to remain competitive in the global market. Repeating mistakes
or resolving problems was too costly, and greatly impacted time to
market. Additionally, a core of the engineering force was nearing retirement, and
their knowledge would soon disappear with them. In order to provide a
clear understanding of knowledge sharing efforts throughout the engineering area,
a vision for knowledge management was developed: 'Bringing our Knowledge together:
An environment in which information and knowledge insights are shared,
synthesised and leveraged, enabling us to be more effective.'
Define desired
outcomes
In addition to defining the vision for knowledge management initiatives
and developing plans to reach that vision, it is important to define the desired
outcomes or capabilities to be achieved once the vision is realised; what will
we be able to do when this happens? It is important to define and communicate
the business value to be achieved once vision is realised. For example, Texas
Instruments launched a best practice knowledge sharing initiative with the goal
of reducing cycle time and improving delivery dates for its wafer fabrication
production. It achieved this goal and realised more than $1billion in additional
capacity (O'Dell and Grayson, 1998). One common way to communicate the desired
outcomes of knowledge management initiatives is through scenarios, focusing on
how individuals within different business roles will work in the future
environment. These scenarios are:
' ...stories about the way the world
might turn out tomorrow, stories that can help us recognise and adapt to
changing aspects of our present environment...Scenario planning is about making
choices today, with an understanding of how they might turn out.' (Schwartz,
1991)
Defining
desired outcomes using scenario tools provides different projections of the
future environment towards which knowledge management programmes can
navigate.
Another
way of defining and communicating outcomes is through simulations of the
projected business environment. For example, a major health insurance
organisation created new roles to support knowledge sharing around best
practices, and refined the roles of all key functions within the claims
processing and provider service areas to include knowledge sharing. Simulations
of the new way of working in the knowledge sharing environment were created so
individuals could directly experience the vision and the desired
outcomes.
Manage scope and pace
Management of the scope and pace of
overall knowledge efforts begins with the pilot project. It is often important
for the initial knowledge project to focus on a small, high-impact area before
expanding to a larger business unit. Key users involved in the initial pilot
effort must achieve several key success factors. First, they must provide
guidance on the processes to be automated and the content to be leveraged.
Automation of bad processes, or sharing of less important information and
knowledge is counterproductive. Secondly, pilot users must help capture and
refine the valuable anecdotes and success stories which arise from the overall
change effort. This is critical in building buy-in and developing momentum
throughout the organisation. Thirdly, pilot users must be positioned as the
experienced ' champions' as the knowledge management initiative expands
throughout the business unit. These committed pilot users will be able to
influence and guide others, lead by example and serve as catalysts to build and
sustain a knowledge-based organisation.
Leadership
Being at the front of
the organisation as it makes its journey
Top executives as role
models
It is not enough for executives to set the direction and make sure the
organisation is headed that way. Executives cannot 'push' others in the
organisation to change ('A man convinced against his will... is of his own
opinion still.' - Samuel Butler). Executives must be at the front of the change,
motivating others to follow by setting an example. Within the Andersen
Consulting environment for example, partners are expected to share their
knowledge just as new hires are. When others see senior partners taking the time
and effort to participate actively in knowledge sharing by posting as well as
answering questions within discussion databases(or sharing documents or
practices they have found beneficial) the message is relayed that knowledge
sharing is critical. Executives must use the knowledge contributed by others,
and more importantly make this known. Posting a comment that the document
someone else shared was very helpful provides incentives for employees to share
their own knowledge and encourage others to follow. Organising reward and
recognition processes to celebrate knowledge sharing achievements are also
powerful motivators for human performance. Some of the motivating strategies
that our knowledge champions have implemented are:
i.Recognising employees who post the
greatest number of contributions
ii.Capturing our best knowledge
capital in thought leadership databases
iii.Recognising employees for their
contributions, including employee contributions to our knowledge centre in our
performance appraisal processes.
In summary, executives must
demonstrate leadership in their behaviour. Consistency in action is a powerful
way of helping to steer an organisation forward. As in any large-scale change
initiative, if executives do not change there is little incentive for employees
to follow.
Provide the support and funding
In addition to providing leadership
through sharing of knowledge, executives must lead the efforts by securing
support of others. In a highly competitive global economy it is no longer
sufficient to have a single executive accountable for a fundamental change
initiative. Developing a sponsorship strategy that aligns agreement to the
change journey strategy, objectives, initiatives, expected value, success
measures, risks and constraints are critical outcomes to ensure support and
buy-in from key stakeholders. With diverse global knowledge management client
delivery experiences, we have developed a robust knowledge management strategy
in which sponsorship goals and expectations are integrated throughout.
By
developing these strategies, and continuing to focus on strengthening
executive sponsorship, top executives will more likely become evangelists, spreading
the word on the value of knowledge sharing, and nurturing continued growth.
For example, Ken Dorr, chairman and CEO of Chevron has linked knowledge sharing
to organisational strategy and has been an untiring supporter of it: 'Every day
that a better idea gets unused is a lost opportunity. We have to share more, and
we have to share faster.' (O'Dell and Grayson, 1998). Chevron has realised more
than $650 million in benefits as a result of this dedication to knowledge
sharing.
Another way of supporting the initiative is to ensure that time -
and more directly, money - are available to make the knowledge sharing
initiative successful. The sharing of knowledge cannot be seen as something 'extra' that
employees are asked to do above and beyond their 'normal' responsibilities. Employee
job descriptions and expectations must be modified to include the sharing
of knowledge as a part of their job, or the investment will not be made.
According to Davenport and Prusak (1998): 'If a company's most influential employees are
the very ones who are too busy to a attend knowledge fair or forum, then the
knowledge market is not working well.' Executive support will be required to
ensure that employees have the time, that the company's knowledge sharing market
is working well.
Enablement
Providing the overall environment
to enable the success of change within the organisation.
Provide the Right
Technologies
Although developing a knowledge sharing organisation primarily involves
a cultural change, collaborative support technologies must also be in place to
successfully enable that change. In order to make the most of these
technologies, one must determine which technologies should be integrated to
support the knowledge sharing processes. The assessment of the available
technology should be two-pronged. First, look at the knowledge sharing vision or
processes that have been defined, and identify which technologies are necessary
to enable these processes. Then, review the technologies that are available in
the market today that could be integrated into a knowledge sharing environment.
You also need to determine if the types of processes these technologies offer
can provide value to the organisation. In other words, identify technologies to
support your requirements, and review the technologies to see if leveraging them
should be a requirement.
Knowledge management systems no longer just involve threaded discussion
and document posting, but real-time collaboration, integration of document
management technologies, powerful search engines and agent technologies. As the
amount of information and knowledge captured in knowledge systems continues to
grow, agent profiling and knowledge mapping tools should be considered for the
knowledge environment. These tools will be very important in getting the right
information to the right people at the right time, resulting in sharing of best
practices and improved decision-making.
Define
Expectations
As with any new change, expectations of knowledge sharing should be
documented and distributed to all employees involved in the knowledge management
initiative. Expectations should be developed for all the roles involved in the
solution, contribution, consumption and management of the systems and content.
In most cases a majority of employees will be both contributors and consumers of
knowledge. Roles and responsibilities for Knowledge Base Integrators (who manage
the structure of knowledge systems), and Knowledge Integrators (who handle the
content within systems) should be well defined. Through communicating
expectations, and ensuring that incentives or rewards are in place to motivate
employees to perform successfully in the knowledge environment, sharing and
leveraging the information, insights and experiences of others will take place
implicitly.
Integrate Knowledge Management with other learning initiatives
Just as
the sharing of knowledge should not be positioned as an activity in addition to
or outside of one's primary job, knowledge management should not be addressed
independently from other learning initiatives. For example, a large number of
core Andersen Consulting schools - whether they are focused on technology or
process or strategy - involve gathering key information from our knowledge
system, and posting back new material. This instills (starting in first year
employees) the importance and benefit of leveraging our internal knowledge
sharing environment. It also illustrates that using and sharing knowledge is
part of our job, not an activity in addition to our job.
Ownership
Develop a sense of
ownership in the knowledge environment
Manage Communications
Frequent communication
on knowledge management plans, value and results is essential. Periodic
newsletters, describing plans and the value they provide, timing and
expectations, and then descriptions of new content or systems changes, help to
increase the awareness and understanding of the initiative. Communication should
be two way, modelling the knowledge capture concept. Processes should be set up
to actively solicit and gather feedback on any aspect of the initiative. It is
not enough to just gather feedback; it must be analysed, responded to and acted
upon, as appropriate. Users must know that the solution is theirs, that their
comments and insights will shape the environment going forward, that positive
perception and ownership of the environment will be taken on collectively, and
not selectively. This sense of ownership is very important if the environment is
to continue to evolve to support changing knowledge needs.
Involvement
If active involvement of
key individuals can be gained, then ownership will follow. This begins with
soliciting and positioning key users to work on the initial knowledge management
effort. Feedback from users is a valuable way to build involvement.
Additionally, subject matter experts will need to be positioned as owners of
certain areas of the knowledge systems, responsible for ensuring that the
questions of others are addressed in the best way possible. One way in which
these subject matter experts can help to build involvement is to contact others
who they believe might be able to answer posted questions, and ask them to
respond using the system. This frequently happens in our firm. The subject
matter experts will also be in a position to broadly recognise valuable
knowledge contributors within their areas. Executives must remember that
incentives must be in place to encourage and reward knowledge sharing
activities, or solicitations will fall upon deaf ears. It is through high levels
of two-way communication, as well as continually soliciting and promoting a
sharing environment that a sense of ownership in the environment will be
established.
Summary
This article focuses on change
strategies for executives leading knowledge management initiatives. The impact
of senior executives'' influence in an organisation undertaking a knowledge
management strategy determines its success or failure. Argyris and Schon (1978)
suggest that an organisation is, at its root, a cognitive enterprise. It learns
and develops knowledge, and it also learns whether sharing this knowledge is
valued and supported. In addition, organisational researchers have shown that
organisations develop shared frames of reference, recall of past events, as well
as the creation of stories and myths, and vicarious learning and unlearning
(Dunbar et al, 1982; Hedberg, 1981; Huff, 1983; Jelinek, 1979; Lyles, 1988).
Every large-scale change programme competes with old paradigms, mental models,
and memories that may support or inhibit a knowledge management culture.
Organisations
undertaking this type of change need to ensure they have moved beyond rhetoric,
and that executives and leaders of the enterprise are not only 'walking the
talk,' but are also passionate about the future. Perhaps the most important
factor for organisations to consider in embarking on a knowledge management
cultural change is that the core values of the executives personify trust and
respect, encourage risk taking, appreciate diversity and share naturally.
Without leadership by example, organisations have an uncanny way of becoming
disillusioned quickly, and hence carefully designed change journeys that
navigate and sustain change are required to support executives. In some cases
executives will need individual coaching strategies to help them move forward.
Organisations that apply change strategies such as we have outlined will
increase their likelihood of success. For those that don't, failure will come
quickly. The winners will survive - and more importantly, achieve renewal and
growth.
References
Argyris C, and Schon D., (1978). Organisational learning: A theory of
action perspective, Reading, Mass: Addison Wesley.
Davenport, T., & Prusak, L. (1998)
Working knowledge: How organisations manage what they know. Harvard Business
School Press, Boston, MA
Dunbar, R.L., Dutton, J.M. ad Torbert, W.R. (1982). 'Crossing mother:
Ideological constraints on organisational improvements.' Journal of Management
Studies, 19, 1 91-108.
Hedberg, B. (1981). 'How organisations learn and unlearn.' In Nystrom,
P. C. and Starbuck, W. (Eds), Handbook of Organisational Design, Oxford: Oxford
University Press.
Huff, A. S. (1983). 'Industry influence on strategy reformulation.'
Strategic Management Journal, 4, 3, 119-31.
Jelinek, M. (1979) Institutionalising
innovation: A study of organisational learning systems, New York:
Praeger.
Lyles, M. A. (1988). 'Learning amongst joint venture sophisticated firms,' Management
International Review, 28, 85-98.
O'Dell, C., & Grayson, J. (1998)
If only we know what we know: Identification and transfer of internal best
practices. California Management Review, 40, 3, 154-174.
Schwartz, P. (1991) The art of the
long view, Doubleday Currency, New York
Adam
Gersting is a manager within Andersen Consulting's Technology Practice, Cindy Gordon and Bill Ives are associate partners within the
Change Management practice.
