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Feature

posted 1 Apr 1999 in Volume 2 Issue 7

Exploring Knowledge Frontiers:
From information to innovation


Knowledge management must be more than just a glorified filing cabinet to lead to innovation. Knowledge is the essential link between information and innovation; capturing knowledge lies in the relationships forged from new connections. In this article, Patterson Shafer brings together the thoughts of knowledge management professionals who recently spoke at a benchmarking presentation in the IBM Watson research Centre, New York.

What is your definition of knowledge management? All too often, it is defined as something like 'capturing, categorising and re-using the knowledge assets of the organisation.' The emphasis is on increasing efficiencies and reducing redundancy by reusing work products such as reports, proposals and presentations. And the organisation's Knowledge Management system becomes nothing more than a glorified filing cabinet, enabled though powerful, 'intelligent' search capability.

Many organisations are unwilling to devote the personnel or financial resources to evaluate these 'knowledge assets'. The result is potential replication of worst practices, or at best, mediocre practices. The solution lies in the realisation that Knowledge Management is not about technology. It's about people, culture, and the ability to distinguish between good and bad, the relevant and the irrelevant. Developing a culture of knowledge creation and sharing will have a far bigger impact than throwing technology at a problem.

This article is about the advancements that leading knowledge organisations have made, based on the realisation that understanding and nurturing human behaviour is the key to growing competitive advantage. The information in this article is based upon our work with these organisations, and IBM's generous benchmarking of their Knowledge Management technologies and practices.

Diverging approaches

David Snowden is Director of Knowledge and Differentiation at IBM. He has described two schools of thought around Knowledge Management: The first is a mechanistic view characterised by bringing all the knowledge to the surface (the filing cabinet/search engine approach). A purely technological approach leaves the motivation to share and leverage knowledge assets unaddressed.

The other is the biological view characterised by managing the ecology or knowledge culture of an organisation. Far less energy is expended, at far less expense. Technology addresses neither the incentives, nor the attitudes that promote a 'knowledge organisation'. Success lies in creating the culture for sharing, and then enabling with technology.

Case study: culture triumphs over technology

Like many organisations responding to modern competitive and regulatory pressures, a municipal water company was looking to increase efficiencies and reduce costs. Its management invited in some highly-paid consultants, who observed that the field engineers spent a good thirty minutes each morning conversing at the supply depot before heading out to the field. So the decision was made to abolish the depot, outfit the engineers with PDA's and cell phones, and have them go directly to their first assignments. Armed with technology, the managers expected databases filled with field data, and the cell phone to serve as an information lifeline. A new knowledge management system was developed - but not in the form expected.IBM's David Snowden set about to observe field engineers responsible for maintaining the municipal water system. After gaining their acceptance (getting his hands dirty) he came to learn about who they were and what they did.

Having lost their morning rendezvous, the engineers started gathering at lunchtime - always in the same pub. Some came early in the day, others later. But they all came to the same place. David shared this curious observation with the pub owner, only after slowly gaining his confidence (and friendship). The patron presented a substantial, well-worn diary. In it were the daily notes of each of the engineers. For example: '3/mar - The valve at Bond Street was leaking badly - replaced packing - should last a month before more serious repairs needed.' Or, '6/mar - Found a new way to crack the heads off the pressure valves using the #4 wrench.'

And so the collective knowledge was aggregated and passed from engineer to engineer; A mixture of notes, observations, demonstrations and stories became totally out of reach of the technology designed to capture it!

New ways to look at knowledge
Knowledge Continuum


Knowledge can be viewed as procedural (explicit) and natural (tacit). Explicit knowledge lends itself well to codification. This can include step-by-step instructions, or processes that are easily captured. Explicit knowledge is generally tied to organisational structures and repetitive or linear systems as found in product-oriented or manufacturing environments. Tacit knowledge, represented on the vertical axis in Figure 1 is not easily codified, and is more likely the province of a co-dependent community (a bunch of consultants). Knowledge workers share information intimately because they recognise the benefit to the group. While many systems try to capture and replicate tacit knowledge by translating it into codified information (analog to digital) and allowing technology-based access (through user navigation, search or push approaches), they often fall far short. The outcome is usually a 'community of competence', an organisation of semi-experts performing sub-optimal work.


Figure 1


The exception is the task force. A task force is pre-meditated co-dependence. Individuals are directed towards a specific, urgent task. Each individual's success rests with the outcome of the group effort. Motivation is high. And this may be a key to successful knowledge management.

Tacit - explicit - tacit:
Something lost in translation


Why do technology-based systems fail when information is less easily codified? Too much of the nuance can get lost when we digitise. When we try to reconstitute an experience, we need to add back the context, nuance and emotion that represent most of our face-to-face communication. Through filtering information into the virtual dimension, technology takes out the tacit colour and tone which supports and gives meaning to that information. What is left barely describes the concept.

This leads to the conclusion that some knowledge should be stored in the form of audio or video, capturing the subtleties of the original communication. Or, taken to the extreme, knowledge systems should provide the intimacy or 'social proxy' of a face-to-face encounter.

Technology approaches
Where Technology Falls Short


The goal, according to John Richards of IBM's Thomas J. Watson Research Center, is to make technology disappear, to move the paradigm from people, process and technology to people process and relationships (see Figure 2). Technology strips away our cultural peripheral vision. Up till now, we had 'conversational' tools (such as chat rooms) that didn't support conversation. Some of IBM's current research is experimenting with ways to represent social proxy, and enable persistent conversations. An application called 'Babble' is attempting to re-establish some of the realities of face-to-face conversation, including:


Figure 2


 * Social and work talk
 * Opportunistic interactions
 * Group awareness
 * Conversation genres
 * Socially shaped behaviour
 * Private offices

The interface

Babble's interface is designed to support small work groups of up to 24 people. The simulated interface at the right shows three 'navigational' boxes at the top of the page shown in figure 3. The coloured circles on the left indicate who's around, and where they are (at their desk, at home, on the road etc.) The tree on the right portrays the topic or 'discussion room' hierarchy. And, the 'cookie' in the middle shows social proximity.


Figure 3

If members are on-line, and in the room you're in, their 'avatars' are in the grey area. If individuals are actively engaged, they are clustered around the centre. If they haven't participated recently, or if they're active in another application, they drift from the centre. If members are on-line, but in another room, their avatar moves to outside the gray area of the cookie.

The threaded discussions, displayed in the text box at the bottom of the interface, are searchable by text, time and date. Additional features, such as context combined with greeking of text, allow users to spot patterns in their discussions. Generalisations can be made regarding the most productive time of day, or the amount of time spent 'on-subject' vs. 'off-subject'.

Boundaries

Another concept John Richards explored was that of the 'boundaries of cognition'. Our nervous systems are attuned to boundaries. We have limited resources. With all the sensory information we receive, it is only the change in information that alerts us. How can we exploit this phenomenon? We've all seen websites and applications that flag new content - or even entire areas marked 'what's new'. More advanced databases signal change through e-mail notification and pushed alerts that notify users of change that is relevant to their work.

Another technique that leverages our ability to notice change is animated or kinetic text. Although this paper-based article can't demonstrate kinetic text, readers can refer to Carnegie Mellon University's site: http://www.cmu.edu/cfa/design/kdg/kt/index.html
and MIT's site: http://acg.media.mit.edu/projects/kinetext/
for examples. Duke University's Instructional Technologies Web site also has information on kinetic text. The address is
http://aaswebsv.aas.duke.edu/focus/it/visual/text.htm


Enabling knowledge management
Investment in Knowledge Management


David Snowden has indicated that IBM devotes approximately 5% of revenues to Knowledge Management; no small amount. That figure represents the systems (design, hardware, software and direct support) and their use (allocation of professional's time spent using the system). Why must the commitment be so great?

Key enablers

What are the factors that need to be addressed to make knowledge management work? Design impacts the usability of the system, and includes elements of speed, ease of use and the layout graphical user interface. Features include technologies such as Babble's indication of social proxy, and push mechanisms such as web-based alerts, voice-mail and e-mail notification. Structure describes the information architecture, including strategies for capture, codification, archiving and distribution. But most of all, it's about culture. It must be in the organisation's nature to share information?

Examples

One Big 5 consultancy implemented a Knowledge Management system and reported early use statistics of 13%. Only after supporting a cultural transformation, through incentives, training, and a top down mandate, did use gradually climb to 68%.

After speaking with the research and development group of a pharmaceutical company, we found that scientists were rewarded for hoarding knowledge. Their recognition came in the form of being published, or receiving patents; sharing information was an anathema. They have not yet resolved this impediment, but they know they have lost substantial revenues by keeping break-through information away from their marketing department.

Cultural Change

How do you break down these cultural barriers? Knowledge Management at IBM Global Services is achieved through a partnership with Human Resources. Evaluations and performance reviews incorporate a measure of contribution to, and use of the Intellectual Capital Management asset pool. Individuals' are evaluated at every level, from their performance on specific projects, to their contribution to the organisation as a whole.

Innovation in knowledge management
The Human Factor


Earlier in this article, we claimed that Knowledge Management is not about technology. While technology certainly is an enabler, knowledge leaders are going beyond the electronic filing cabinet solution, and placing practice experts in the information value chain (See figures 4 & 5).


Figure 4

This allows information and practices to be evaluated before they are replicated. At the very least, organisations should dedicate resources to a structure that weeds out sub-optimal work products. Only those documents and processes that represent the organisation's best thinking should be available for distribution. This is what separates knowledge management from knowledge sharing.


Figure 5

Not invented here

Many organisations are extending Knowledge Management beyond their walls. Their Business Intelligence systems capture information from information subscriptions such as Hoovers, from their employees in the field, from their customers, from their competitors' Web sites, even from their employees who worked for their competitors. In Europe, Juran Institute 1 established a blind benchmarking club for the oil and gas industry. Competitors would submit production quality and throughput data to a blind database to measure their 'best practices' against that of their entire industry.

Counter Intuitive

Should Knowledge Management systems even try to capture everything in bits and bytes? Or would the system be more productive by bringing communities together FACE-TO-FACE?

What happens to those promises of reduced travel costs, more time at the workstation, increased productivity? Let s look back at the success criteria of any Knowledge Management effort. If cost-cutting is the goal, then promoting face-to-face collaboration works contrary to plan.

If more strategic efforts such as competitive advantage, improved customer service or replication of best practices are the primary goals, then the organisation must decide whether the benefits of increased face-to-face communications and knowledge transfer outweigh the costs.

One service company is looking beyond best practices to develop world-class services and methodologies. This strategy includes:

a). Looking outside the organisation for benchmarks and best practices

b). Pursuit of better-than-best solutions

c). Bringing people face-to-face, in addition to connecting them with technology.

The organisation solicits all forms of intellectual assets (speeches, presentations, proposals, reports, etc.) and quickly evaluates them for further consideration. Strict metrics are then applied to determine whether or not an idea or document is elevated to a status of "worthy of improvement" .

The best ideas are then floated to experts both within and outside the organisation. These can include consultants, academics, customers and others who can bring a broader perspective to the issues. Only after a rigorous process of review and improvement is a document, idea or methodology labelled as "world-class" and worthy of distribution across the organisation.

Conclusions

To contribute value, Knowledge Management systems must go beyond merely capturing information for eventual distribution. Advances in technology can facilitate and enable improving the quality and effectiveness of knowledge assets. But true advances come only with a substantial commitment of human resources. This commitment is represented in the form of content evaluation and improvement, in terms of evaluation, reward and recognition, and in terms of placing the value of culture and interaction above the technologies that are designed to support them.

Acknowledgments

This report is a summary of a one-day Knowledge Management presentation sponsored by Ark Group of London, and hosted and presented by KM professionals at IBM's Watson Research Centre. Our presenters included:

*  Ko-Yang Wang - IBM Global Services. Principal - Knowledge Management and Asset Reuse
*  John Thomas. Manager, Knowledge Socialisation
*  David Snowden. Director of Knowledge and Differentiation
*  John Richards. Thomas J. Watson Research Center

Patterson Shafer is Senior Vice President of e-business at Bell and Partners. He can be contacted at:
pshafer@bellandpartners.com


1 Juran Institute, founded by Dr. Joseph Juran, is a pioneer in managing for quality. Their work includes strategic planning and helping organisations measure their performance against world class benchmarking metrics and standards."

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