a specially commissioned report a practical guide to knowledge management...
TRANSCRIPT
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A SPECIALLY COMMISSIONED REPORT
A PRACTICAL GUIDE TO KNOWLEDGEMANAGEMENT
Sue Brelade and Chris Harman
T H O R O G O O D
P R O F E S S I O N A L
I N S I G H T S
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T H O R O G O O D
P R O F E S S I O N A L
I N S I G H T S
A SPECIALLY COMMISSIONED REPORT
A PRACTICAL GUIDE TO
KNOWLEDGE MANAGEMENT
Sue Brelade and Chris Harman
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THOROGOOD PROFESSIONAL INSIGHTS
Acknowledgements
The authors would like to thank Kate Le Marechal for her assistance with this
Report.
They would also like to thank David Cowan, Juliet Butterworth and Sean Mcllveen
for contributing case studies and Andrew Docherty, Dr Peter Roberts and Robin
Williams for their helpful discussions on knowledge management.
They are also indebted to a number of managers and staff in various organi-
sations who shared their knowledge and experience freely.
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The authors
Sue Brelade BA (Hons), MA, Dip.Mgt, FCIPD, AIL, works as a human resources
consultant. She has gained wide-ranging experience in the practical applica-
tion of training and development and HR, working in industry sectors as diverse
as central and local government, contracting, media, travel, financial services
and with trade bodies. She has worked within the UK and across Europe where
her multilingual skills have been invaluable. Bringing a combination of practical
and academic skills to the design and delivery of human resources solutions has
given her a reputation for understanding and meeting business needs. She is
the author of a number of published articles in professional journals, and co-
author of ‘101 Tips for Trainers’, ‘Practical Training Strategies for the Future’ and
‘Knowledge Management and the Role of HR’.
Christopher Harman BA (Hons), MA, FCIPD, has considerable experience
working at a senior and strategic level within organisations. Currently working
as an HR Director with local government and previously as a consultant and
within the television industry, he has extensive experience of professional HR
and strategic management. With a keen interest and involvement in training,
his work in the field of management development has gained national recog-
nition. He has served on national committees and has been a professional adviser
on HR issues for a major employers’ organisation. He is also the author of various
reports and published articles and is co-author of ‘Practical Training Strategies
for the Future’ and ‘Knowledge Management and the Role of HR’.
Sue Brelade provides a consultancy service to business and can be contacted
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Contents
INTRODUCTION 1
KNOWLEDGE MANAGEMENT MAP 3
1 INTRODUCTION TO KNOWLEDGE MANAGEMENT 4
Introduction .................................................................................................5
Definitions of knowledge management ....................................................5
The language of knowledge management ...............................................8
Drivers for knowledge management ......................................................12
Knowledge management activities .........................................................15
2 KNOWLEDGE MANAGEMENT – THE SYSTEMS DIMENSION 16
Introduction ...............................................................................................17
Technical perspectives on knowledge management .............................18
The Internet, ‘intranets’ and the World Wide Web ..............................21
Virtual communications and virtual relationships ................................25
3 KNOWLEDGE MANAGEMENT – THE PEOPLE DIMENSION 30
Introduction ...............................................................................................31
People management policies and practices
in the knowledge environment ................................................................31
Motivating and rewarding knowledge workers ...................................32
Recruitment, retention and succession planning
in a knowledge environment ...................................................................36
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Impact of knowledge management on the role of managers ..............39
Training and development in a knowledge environment .....................42
Team working in a knowledge environment .........................................43
4 KNOWLEDGE MANAGEMENT – THEORGANISATIONAL DIMENSION 47
Introduction ...............................................................................................48
The cultural challenge of effective knowledge management ...............48
New organisational forms in the knowledge economy ........................55
Identifying knowledge resources – knowledge audits .........................58
Transferring knowledge – A ‘merger’ case study .................................60
5 CONCLUSION 63Lessons from the growth in knowledge management .........................64
Political and regulatory perspectives on knowledge
management and the knowledge economy ...........................................66
Preparing for the future in the knowledge driven economy ...............68
APPENDICES 70
1 Case studies ...........................................................................................71
2 Summary checklist: Introduction to knowledge management ....... 86
3 Summary checklist: Knowledge management
– the systems dimension ..................................................................... 87
4 Summary checklist: Knowledge management
– the people dimension ........................................................................ 88
5 Summary checklist: Knowledge management
– the organisational dimension .......................................................... 90
6 References ............................................................................................ 92
7 Further reading .....................................................................................94
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Introduction
Knowledge management is not a new concept. Managing knowledge, using it
to do things better, more effectively, more aesthetically, or just differently has
been a continuing feature of human societies and human culture. Organisations,
in both the public and private sector, have always managed knowledge in one
shape or another.
What is new is the development of a separate discipline called ‘knowledge manage-
ment’. The development of recognised techniques and recognised approaches
for effectively managing the knowledge resources of an organisation. The purpose
of this Report is to introduce the reader to the central ideas and concepts of this
discipline.
What gives this urgency is the growth of the knowledge economy. An economy
based on developments in information and communications technology and on
the ways of working growing-up around the Internet, intranets and the World
Wide Web.
Success in this new economy, whether in the provision of goods and services
or the delivery of public services, will be dependent on obtaining maximum added
value from the knowledge resources available to an organisation. Hence, the impor-
tance of knowledge management.
Within knowledge management there is a continuing debate about the nature
of knowledge. Some experts view knowledge as an object. Something that can
be managed directly, traded and shared like any other commodity. In this view,
knowledge shares many of the qualities of information. Other experts see knowl-
edge as the product of a complex interaction between human beings and
information. In their view it cannot be managed directly but only through the
management of people and the complex web of systems and processes which
surround them. In this Report we have tried to steer a pragmatic course between
these different views of knowledge.
There is no single definition of knowledge management. For the convenience
of the reader, in Chapter 1 of this Report we provide a working definition of
knowledge management together with an explanation of the key concepts. In
practice, organisations involved in knowledge management generally arrive at
their own definitions relevant to their own context.
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In the subsequent chapters we consider the technological, people and organi-
sational issues involved in knowledge management. Finally we consider some
of the wider issues within the knowledge economy and the key lessons to be learnt
from the development of knowledge management practices. In the appendix are
case studies, summaries of key points from the first four sections and a guide to
printed and Web based resources for those wishing to pursue the subject further.
Sue Brelade and Chris Harman
INTRODUCTION
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Knowledge management map
KNOWLEDGE MANAGEMENT MAP
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Corporatememory
Rewardingknowledge
Access toknowledge
Knowledgeassets
Organisationallearning
Tacit knowledgeArtificialintelligence
Knowledgemapping
Trust andrelationships
Peoplemanagementpolicies andpractices
Virtual worldE-commerce and e-world
Creatingknowledge
Creativity andinnovation
Data storage and retrieval
Customers,consumers,citizens
New ways ofworking
Management in aknowledgeenvironment
Communicationstechnology
Commercialimperatives
Structures andculture
Knowledgeworkers
Collaborativeworking
Knowledgeeconomy
Knowledge andorganisations
Knowledge and people
Knowledgetechnology
Relevance ofknowledge
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Chapter 1Introduction to knowledgemanagement
Introduction
Definitions of knowledge management
The language of knowledge management
Drivers for knowledge management
Knowledge management activities
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Chapter 1Introduction to knowledgemanagement
Introduction
In this chapter we will introduce the key concepts and terminology of knowl-
edge management. We will look at defining knowledge management and provide
a working definition and we will look at the drivers for knowledge management,
both within the public and private sectors, and typical knowledge management
activities.
Definitions of knowledge management
In each of the organisations we have studied, knowledge management is given
a different definition. The language used to define knowledge management shows
a high degree of contextualisation and relevance to the particular business sector.
In one particular organisation, it was defined as the process of transferring knowl-
edge from one place to another, thereby solving a problem effectively and quickly.
In another it was seen as being a systematic approach to enabling people to access
and use relevant information and as the ability to distinguish the ‘wood from
the trees’. Another organisation described it as ‘the sharing of information amongst
the community that makes up the organisation’. In a large utilities group it was
seen as the process of ‘linking the right people to the right information at the
right time’. Much emphasis was also placed on the relevance of the information
and the fact that relevance changed and was context and need dependent.
Common to the various definitions were the two dimensions of people and infor-
mation. Knowledge management lies in the relationship of these two dimensions,
mediated by systems and processes. It is generally seen as an holistic approach
which recognises the inter-dependency for the organisational effectiveness of
people, the technology they use and the systems and process within which they
use it. Later on in this Report we will also consider the importance of an organ-
isation’s culture to this relationship.
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A model of knowledge
In one organisation we looked at, the first stage in a corporate knowledge manage-
ment initiative was to bring together various managers into a ‘knowledge
management forum’. The model for knowledge adopted through this ‘workshop’
process is reproduced below.
Figure 1.1: A model of knowledge
The different stages of this hierarchy can be described by the analogy of someone
learning to ski. The ‘data’ stage would be buying the skis, the ‘information’ stage
would be using a book on skiing as an aid to learning how to ski, the ‘knowl-
edge’ stage would be being able to ski – actually having the experience of skiing.
Finally the ‘wisdom’ stage would be realising that you don’t ski ‘off piste’ in bad
weather.
Another view on the relationship between knowledge, information, data and
wisdom is that data has no context. When it is put into context it becomes infor-
mation. When the links between different pieces of information are formed and
the patterns apprehended it becomes knowledge, when the underlying princi-
ples behinds those patterns are understood it is wisdom.
In the organisations we spoke to, a common view about knowledge manage-
ment was that it was not an end in itself but a means to an end. Similarly, it was
thought that knowledge alone has no power, in that it requires human decision
Experience
Learning
Organise
What is knowledge?
Wisdom
Knowledge
Information
Data
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and action to acquire power. However, there was an interesting divergence
between two underlying approaches to knowledge management. In one view
the role of knowledge management was seen as nurturing the process of knowl-
edge creation. The other view was that it was the process of managing and
measuring knowledge. In the former approach, knowledge is seen as an emergent
characteristic, in the latter it is seen as an object.
This divergence may reflect an underlying distinction between two ‘types’ of
organisation. The first ‘type’ are those involved in developing new products and
ideas for the market. For these organisations fostering innovation and creativity
are key drivers for knowledge management. The second ‘type’ are those more
established organisations that have a wealth of accumulated knowledge and intel-
lectual capital. For these organisations the issue is first to know what knowledge
resources they have and then to leverage maximum value from them.
In looking at various organisations, it quickly becomes apparent that knowl-
edge management is as much about culture and behaviour as it is about
technology and processes. Whether the culture of the organisation is one that
values knowledge resources, whether it values people and their ‘know how’ and
whether it has an approach to management that fosters innovation, creativity
and collaboration. We would suggest that it is unlikely that one would find effec-
tive knowledge management in a macho, ‘hire and fire’ type culture. The cultural
aspects of knowledge management are dealt with in more depth in Chapter 4
of this Report.
The link with culture means that any working definition of knowledge manage-
ment needs to be drawn more widely than simply people, information, systems
and processes. The working definition we have adopted for knowledge manage-
ment is as follows:
‘Knowledge management is the acquisition and use of resources to create
an environment in which information is accessible to individuals and in which
individuals acquire, share and use that information to develop their own knowl-
edge and are encouraged and enabled to apply their knowledge for the benefit
of the organisation.’ (1)
When we talk of resources in this definition, we include physical resources (such
as IT systems), financial resources, ‘intellectual’ resources and people. Creating
the environment in this definition is not just the right physical or technical environ-
ment but also the right working environment, the right culture. In this case the
‘right’ culture is one that encourages and enables individuals to want to use their
knowledge for the benefit of the organisation. In our experience, it is surprising
the number of organisations that assume that because they pay people, those
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people will use their knowledge for the benefit of the organisation. Paying people
is a contractual relationship and only buys what is contracted for. True creativity
and innovation require the will on the part of the individual to give more than
can be bought with a contract. This is something we will consider further in
Chapter 3.
The language of knowledge management
Where specific knowledge management projects are put in place, a common
starting point is to spend time with managers, at the outset, clarifying the
‘language’ of knowledge management. This is based on the idea that with a shared
language it is possible to achieve a shared understanding and a shared value
set – essential elements in any successful project.
With a developing discipline, such as knowledge management, the ‘jargon’ is
likely to change and develop as understanding grows. Similarly, as a relatively
new discipline with many theoretical issues to resolve, what is meant by some
of the terminology is not always clear, even to experienced practitioners. Because
of this the approach of pooling understanding and agreeing ‘in-house’ working
definitions of the main concepts has much to recommend it.
The guide below is provided to introduce the reader to the main concepts and
the associated language within this evolving discipline.
The main concepts and the associated language of knowledge management
Corporate memory – the cumulative experiences within an organisation, often
embodied in long serving members of staff, particular processes and systems,
archives and also in the cultural ‘ways of doing things’. Corporate memory, when
effectively harnessed and integrated, can bring past experiences and lessons
learnt to bear on current issues and problem solving. Effective use of corpo-
rate memory is also seen in avoiding making the same mistakes twice. On the
negative side, failing to recognise a changed situation where a previously unsuc-
cessful approach may now work can indicate an overly dominant corporate
memory that stifles creativity and innovation. It is interesting to note that manage-
ment trends such as ‘down-sizing’ and the high levels of early retirement have
a negative impact on corporate memory and, by extension, effective knowledge
management.
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Data-mining – the process of investigating or interrogating large databases
(including ‘data warehouses’) to find relevant information. With the vastly
increased capacity for online storage, finding relevant data (i.e. information) is
becoming an increasingly difficult and skilled task.
Explicit knowledge – used to refer to codified information (knowledge) that
can be shared, communicated and transferred from one place to another in
systematic or structured ways (for example in a written document). The explicit
knowledge in an organisation includes the contents of databases, operating proce-
dures, documented processes etc. (‘explicit knowledge’ is often contrasted with
‘tacit knowledge’, defined on page 11).
Information economics – the study of the tangible value of information to an
organisation. Particularly relevant in the concept of ‘knowledge brokering’ to deter-
mine the appropriate cost for acquiring information or value to trade information.
Intellectual asset management – covering management of intellectual property,
patents, copyright etc.
Knowledge analysis– a knowledge analysis is commonly used to describe a detailed
analysis of the strengths and weakness of a ‘knowledge source’. An example would
be an analysis of the use of an intranet in knowledge management.
Knowledge audit – the process of identifying what knowledge the organisa-
tion already possesses and where it could be found, together with the knowledge
the organisation needs but does not yet have. A knowledge audit covers the
skills and knowledge of people as well as the entire intellectual assets of an organ-
isation including documented systems and processes as well as intellectual
property such as copyrights and patents.
Knowledge brokering – based on the idea that ‘knowledge’ is a commodity
and that the knowledge economy is a new market where knowledge can be traded.
As in any marketplace, middlemen connect buyers and sellers. The classic example
of a knowledge broker is the consultancy which may not itself have the knowl-
edge you require but can introduce you to someone who does.
Knowledge capture – the process of identifying and recording knowledge. This
can include ‘exit interviews’ with departing members of staff as well as detailed
analysis of particular jobs or processes to identify the knowledge being applied.
Knowledge engineer – traditionally used to refer to a person involved in expert
systems development. It is, however, increasingly being used to refer to those
involved in developing systems and processes within organisations that are
designed to capture and utilise knowledge resources.
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Knowledge mapping – this involves identifying where knowledge exists (usually
inside an organisation but it can include external sources) and producing a guide
to locate it – whether a simple directory listing or a more sophisticated Web
page with hyperlinks to databases, archives etc. The idea is that the knowledge
map can be used to navigate through the knowledge resources and find the
relevant knowledge or source of knowledge.
Knowledge needs analysis – this phrase is used to describe the process of identi-
fying the knowledge requirements to deliver a particular objective and the ‘gap’
with what currently exists.
Knowledge organisation – this phrase is used in various ways. It can refer to
an organisation whose primary assets and/or products are intellectual, or an
organisation that has mastered the art of leveraging value from its knowledge,
or simply an organisation that values knowledge.
Knowledge planning – knowledge planning generally encompasses an analysis
of future requirements in terms of systems, people and technology. It will also
involve planning for the ‘retirement’ and replacement of those resources.
Knowledge preservation – used to refer to capturing and archiving knowl-
edge and systematic processes for ensuring knowledge is not lost.
Knowledge requirements – the ‘know how’ – people, information, systems and
the infrastructure that an organisation needs to deliver its objectives.
Knowledge technology – this is often used to refer to IT systems (particularly
expert and ‘artificial intelligence’ applications). However, it can equally be used
to describe the printing press and the quill pen.
Knowledge transfer – for some practitioners this is viewed from the tactical
perspective of converting knowledge into working solutions. For others, it is
seen as the ability to literally move knowledge from one place to another (whether
a physical place such as an office block or a mental place such as a person’s mind).
In a merger or acquisition where people may be leaving, their knowledge needs
to be captured and transferred to the new organisation.
Knowledge worker – someone whose basic ‘tools of the trade’ are their knowl-
edge and experience. Traditionally associated with high paid individuals, either
employees, contractors or consultants. Sometimes used to refer to people who
work with information. In the knowledge economy most employees are
becoming knowledge workers.
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Tacit knowledge – this involves an assumption in knowledge management that
there is personal and context specific knowledge that is not explicit. Examples
include the knowledge embedded in people’s experiences and linked to their
own beliefs and perspective. Part of the aim of many knowledge management
initiatives is to make the tacit knowledge of individuals explicit, by bringing it
into the public domain. This is considered further on page 11.
Tacit knowledge
There is considerable discussion within the field of knowledge management
about ‘tacit knowledge’. Some practitioners see it as being impossible (by defini-
tion) to bring into the public domain. Other practitioners see bringing tacit
knowledge into the public domain as central to knowledge management and
have developed various techniques for doing so. These techniques tend to centre
on working with individuals and groups (using structured interviews, focus
groups, job and task analysis and recording of activities) with the aim of making
explicit the knowledge that individuals are applying in their work or to their
particular functions. Within the world of artificial intelligence, much research
has gone into identifying how judgements and decisions are made by individ-
uals to try to develop similar processes in expert systems.
A particular difficulty with ‘codifying’ tacit knowledge arises where the knowl-
edge is closely linked to the human state – our particular experiences, emotions
and thought processes. This is seen in areas where success depends upon inter-
personal skills and relationships – most of us do not deal with relationships
following a set of codified ‘rules’ or procedures. In areas where relationship
management is central to business success this poses particular challenges for
knowledge management.
For example, within call centre environments, relationship management has
focused on ensuring that those dealing with calls have detailed information avail-
able to them about their customers. This involves the use of Computer Telephony
Integration (CTI) which brings up on screen corporate knowledge about the
customer. On the World Wide Web, relationship management has focused on
collecting information on ‘surfer’ habits through various means including
‘cookies’ (packets of information stored on the ‘surfers’ computer by web sites
they visit). This enables ‘banner’ advertising (adverts that ‘pop-up’ on screen as
you browse the Web) to be tailored to the customers interests. In both cases, CTI
and on the Web, the intention is to tailor the service to the customer, making it
both efficient and more effective in generating sales. Both approaches would fit
under the heading of ‘relationship management’. However, real relationships are
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not based purely on the exchange of information. Knowing about a person is
not the same as knowing the person. In a call centre environment it is notice-
able that some staff are able to build a relationship with customers whilst others,
with the same information available, are not. The difference lies in the tacit knowl-
edge and understanding embedded in the interpersonal skills of the staff member.
Drivers for knowledge management
In a large part, the drivers for knowledge management are similar to most drivers
for change within the commercial and public sectors. The need for commercial
organisations to obtain competitive advantage and the need for public sector
organisations to deliver more with less. Knowledge management is seen as
meeting these requirements through the ability to leverage a unique asset – the
knowledge base within the organisation.
The development of the ‘knowledge economy’ has also created drivers for effec-
tive knowledge management. This can be seen in the increasing number of
organisations whose product and services are intellectually based. These include
newer industries in the technology sector as well as more established sectors
such as public service, media, financial services and similar. In these organisa-
tions, being able to effectively deploy the intellectual resources of the organisation
is not only central to business success, it is often the essence of the business.
There are further drivers for knowledge management that have their origins
in the development of the ‘knowledge economy’. For the public sector, the devel-
opment of this new economy has created a new level of expectation from the
public. This is seen in one of our case studies where the concern of the organ-
isation is not just about effective and efficient service delivery. As a public body
it is pursuing knowledge management as part of achieving social policy objec-
tives. These include; achieving increased social inclusiveness, facilitating the
involvement of service users in service development and strengthening local
democratic processes. It is important to note that for a public body, the ‘knowl-
edge base’ to be leveraged in the desire for improvements is not confined to
the employees of the organisation but encompasses citizens generally.
For commercial organisations, the development of the ‘knowledge economy’ has
followed an equalisation of access to information and techniques. These are no
longer the preserve of the large organisations, or those who can afford the expen-
sive consultancies. Total Quality Management, business process re–engineering,
workflow and activity management and similar disciplines are widespread and
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understood. Against this background, high levels of operating efficiency become
the norm rather than an exception. This perception has led some organisations
to see knowledge management as a new way of achieving differentiation from
their competitors. From this perspective it offers an opportunity to gain
maximum advantage from the knowledge base already present within organi-
sations and to separate out the ‘best’ organisations from those that are merely
‘good’.
The Government White Paper ‘Our Competitive Future: Building the Knowledge
Driven Economy’ (2) identifies the following as drivers within the knowledge
economy:
• Competition from low cost economies
• Increasing innovation in products, processes and services
• Electronic commerce radically changing the way business meets
customer demands
• Science and knowledge underpinning the new technologies.
The White Paper also maintains that knowledge, skills and creativity are ‘the
distinctive assets in a knowledge driven economy’ and essential in order for the
UK to have a competitive edge within a global marketplace. The two roles of
business according to the White Paper are to:
• ‘Encourage and support all their employees continually to develop their
skills and qualifications.’
• ‘Identify, capture and market the knowledge base that drives all products
and services.’
In practice, we found the drivers for knowledge management included a combi-
nation of internal and external factors. Amongst those identified were:
• Increasing efficiency and productivity
• Reducing the risk and costs of ‘getting things wrong’ and avoiding
‘re-inventing the wheel’
• Addressing increasingly complex issues (particularly environmental
ones)
• Responding to globalisation
• Mergers creating the need to share knowledge more broadly
• Greater access to R & D
• The need to reduce product development time.
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One of the organisations that we spoke to, which operates in the highly compet-
itive field of managed services, had clearly identified the role of knowledge
management as a means to:
• Differentiate their company within a highly competitive marketplace
• Maintain the company’s position at the forefront of managed services
• Facilitate an increasingly global approach to management.
In the various organisations that we looked at, the value of knowledge manage-
ment as a response to externally and strategically driven issues was clearly
articulated. However, practical knowledge management projects were more often
specified in terms of internally relevant issues.
Particular objectives included:
• Capturing, organising and verifying specific information and histor-
ical data
• Reducing the time delay before new recruits became productive
• Integrating and making accessible diverse sources of information e.g.
archives held departmentally and corporately, individuals ‘working files’
and personal records, quality assurance documentation
• Developing an intranet that gave access to useful information
• Developing a systematic process of ‘de-briefing’ outgoing employees
to ensure key knowledge was identified and captured
• Identifying what was needed in order to acquire and record new knowl-
edge in a readily accessible form
• Taking action to find and preserve existing knowledge (implicit and
explicit) in a readily accessible form
• Developing methods of effectively sharing and exploiting company
knowledge.
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Figure 1.2: The drivers for knowledge management
Knowledge management activities
In response to the drivers identified above, organisations both in the public and
private sector are engaged in a range of knowledge management activities,
although few have a written knowledge management strategy. Typical activi-
ties include:
• Auditing knowledge ‘assets’ and identifying knowledge gaps
• Revising personnel policies and practices
• Investing in information and communications technology (ICT) and
developing knowledge based ICT strategies
• Developing new ways of encouraging innovation and creativity amongst
employees
• Developing new approaches to team working and redefining the
management role
• Changing organisational structures.
These areas are dealt with in more detail in the remaining chapters of this Report.
Customer and citizen
expectation
Globalisation
Technology
Competition
NEED FORKNOWLEDGE
MANAGEMENT
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Chapter 2Knowledge management – thesystems dimension
Introduction
Technical perspectives on knowledge management
The Internet, ‘intranets’ and the World Wide Web
Virtual communications and virtual relationships
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Chapter 2Knowledge management – the systems dimension
Introduction
In this chapter we will look at the technical and IT related aspects of knowledge
management, the direction technology is taking and its current and likely future
impact on organisational practices.
Figure 2.1: Knowledge management systems
Computer telephonyintegration
Business analysis
and decision support
Internet
Extranet
Intranet
Search engines/
data-mining
Work tracking and work-flowmanagement
Computer telephonyintegration
Groupware
Business analysis
and decision support
Internet
Extranet
Intranet
Search engines/
data-mining
Work tracking and work-flowmanagement
KNOWLEDGE MANAGEMENT
17THOROGOOD PROFESSIONAL INSIGHTS
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Technical perspectives on knowledge management
As a result of strategic information systems being seen to be critical, many organ-
isations have, since the 1980s, been investing heavily in information technology.
Alongside that investment, organisations have developed IT strategies. The focus
of many of the early IT strategies was to regulate user behaviour, ensure common
standards and compatibility between different applications and different
technologies, facilitate corporate databases and, with the advent of e-mail, corpo-
rate communication systems.
This investment in new technologies has not necessarily led to improved organ-
isational performance or business success. Paul Strassman (1), has argued that:
‘There is no relationship between computer expenditure and company
performance. The key factor in maximising the return on investments
in new information technology is the effective use of information as it
relates to the performance of the particular organisation.’
This shift from a technical focus on what the technology can do, to a focus on
what people can do with the information it makes accessible, is at the heart of
the systems dimension of knowledge management.
The shift in focus means looking at the technology from the perspective of its
ability to facilitate individual access to information and knowledge, to enable
the sharing of ideas and experience, to facilitate communication and to remove
barriers to creativity and innovation.
In the organisations we looked at, the key drivers in technological development
were to give people access to the information they need, when they needed it and
to provide them with the applications to use that information and to share it. It
was the interaction between the information delivered through the technology
and the experience and knowledge of the individuals that was seen as creating
an environment of innovation.
Technology was seen as providing the solution to the storage of information
and codified knowledge. It was also seen as providing efficient search and retrieval
facilities, as well as being an effective communications tool. Technology was also
being used to remove the traditional barriers to collaborative work created by
geographic location.
The technologies of the 1980’s were essentially systematic and ‘linear’, designed
around data storage and retrieval. These still have their place in the form of data
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warehouses and databases. However, the newer technologies are flexible, non-
linear and designed to reflect and support the innovative and creative capacity
of individuals.
Figure 2.2: Technologies
Typical applications being used as part of knowledge management in the organ-
isations we looked at included:
‘Groupware’ – software that supports groups of people engaged in a common
task or goal was being used to allow people to collaborate on projects irrespec-
tive of geographical location. Typical groupware products provide a calendar,
scheduling, web navigational tools and e-mail, as well as information sharing
functions and messaging.
‘Computer Telephony Integration’ (CTI) – being used to enable staff
responding to a customer telephone call to immediately access the organisa-
tion’s stored information about that customer, allowing a more tailored
response. Being able to access customer profiles means that the member of staff
taking the call can better understand what the customer values and what the
customer needs. Likewise, having access to the right customer information quickly
can ensure that complaints or concerns are solved rapidly. Having access to the
relevant information also means that the member of staff can anticipate
customer requirements as well as analyse any particular buying trends. For the
salesperson, being able to bring up on screen the relevant information also meant
1980s
SystematicLinear
2001
FlexibleNon-Linear
THEN
SystematicLinear
NOW
FlexibleNon-linear
TECHNOLOGIES
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increased opportunity to ‘up-sell’ and ‘cross-sell’ any new product or services.
Using technology in this way utilises the stored knowledge of the organisation,
to impact on the bottom line and on the levels of customer service.
‘Work-tracking and work-flow management software’ – allowing organisa-
tions to improve the management of projects and tasks, providing instant feedback
on progress, generating monitoring statistics and ensuring that the correct steps
in particular processes were being followed. Tools for analysing business data
allowing trends to be quickly identified and informing business decisions.
A more complex area is product development where knowledge management
was identified by one of the organisations we looked at as the primary mover
in reducing product development times. This is an area that can add signifi-
cant value to the business as a whole, ensuring that products are improved or
new ones are created before that of the competition. The technology involved
in this can include the communications technology to build teams on a global
basis, work tracking applications to keep projects on time, the business intelli-
gence and analysis software to feed into the product design process and the
Computer Aided Design and manufacturing capability to deliver the product.
If a company isn’t managing its knowledge effectively they will find it difficult
to keep up with the changes in requirements of customers and the expectations
of customers. One of the main things that businesses can be assured of is that
change is constant and that they need to continually improve their systems and
their people in order to be competitive. In the knowledge economy, employees
need easy and quick access to the right information and they also need the
technology that will support their innovation and creativity.
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The Internet, ‘intranets’ and the World Wide Web
The Internet and the World Wide Web
The Internet and the World Wide Web have developed at a rapid pace into a
major means and resource for gathering and exchanging information. Within
the UK, 91% of employees now work in businesses that are connected to the
Internet, 62% of UK businesses have a web presence and 45% of UK house-
holds are on-line with 47% of UK adults being regular internet users.
Within many organisations ‘internal’ versions of the Internet (‘intranets’) are being
put in place. These allow the same, browser based, navigation between ‘pages’
as on the World Wide Web. Some organisations are also developing ‘extranets’
– essentially an intranet that encompasses groups and individuals outside the
organisation (for example, suppliers, customers, community groups etc.).
The development and the popularity of Web based technology has created
an opportunity for different approaches to collaborative working and the sharing
of knowledge and expertise – what can be referred to as ‘knowledge creation
and diffusion infrastructures’. It also enables organisations to create a platform
for interactive working and a ‘knowledge repository’ accessible from anywhere
in the world at a relatively low cost. In essence the Internet can act as a platform
for collaborative knowledge management without regard to geographical
restrictions.
An example of this, from one organisation, was a Web based project manage-
ment site. It was being used to manage a research project with a virtual team
comprising members of different organisations from across the UK and
Europe. The secure site was hosted by the ‘project sponsor’ organisation, who
also directly employed the project manager. The members of the virtual team
could feed in results, interim reports and project data onto the site. All the
members of the team could access the data. In addition, as part of the financial
control systems for the project, the financial control data entered onto the site
by the partners in the project would automatically update the financial systems
of the project sponsor.
A non-commercial example of using the Web to draw a large number of people
into a collaborative network is the Search for Extra Terrestrial Intelligence (SETI)
screensaver. This can be downloaded from the Internet and, when the users
computer is idle, will receive, analyse and return SETI data.
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The development of secure areas on the Web, accessible by members of virtual
teams, provides a structured, low cost, workspace. Providing remote access over
the Web to internal systems and databases extends the functionality of team
members when geographically distant.
Equally useful for effective knowledge management is allowing access to the Web
for employees from their workplace. It puts at their fingertips a considerable repos-
itory of information and knowledge, although the ‘unstructured’ nature of the
Web can make locating information a difficult and time-consuming task. Even
the best of the current publicly available ‘search engines’ will often return as much
relevant as irrelevant data, particularly if the search criteria are loosely set. In
one of our case studies it was noted that a primary limitation in the development
of a public access community information system was the current limitations of
search engines. To resolve this problem, further development of ‘intelligent agents’,
software that effectively scans the Web searching for the information that you
require within the parameters you set, offers the most promising solution.
Intranets
Intranets, the ‘in-house’ version of the World Wide Web based on Internet
technology, create a common corporate communications and information sharing
system. They can be used on a ‘push’ basis – where information is presented to
employees – and on a ‘pull’ basis – where employees seek out and retrieve infor-
mation for themselves.
‘Push’ technology is used when it is important that certain material is presented
to employees at their workstation. It ensures that no other function takes place
until all the information is correctly accessed. Examples of the types of infor-
mation that we found being ‘pushed’ to workstations included:
• Price changes to products
• New products or product updates
• System alterations
• Key briefing information and corporate announcements
• Tests for employees to complete so that new knowledge acquisition
can be established (this example was in a financial services organisa-
tion. The regulatory requirements meant that the organisation had to
ensure levels of competency amongst staff involved in selling finan-
cial products. As part of that the intranet allowed tests to be distributed
to workstations and the results sent back to the administrator who could
then collate the results to provide the necessary ‘evidence of compe-
tence’ to the regulatory authorities.)
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• Health and Safety Workstation Assessments (this example required
individuals to complete a workstation assessment, again with the results
being sent back centrally to be collated).
‘Pull’ technology however, allows the employee to decide when to pull down
information from the intranet that they wish to view. To provide a seamless experi-
ence between viewing Web pages on the World Wide Web and viewing
information on an in-house intranet, access is usually via a standard Internet
browser.
Figure 2.3: Intranet content
Organisations that we looked at were also including:
• Agendas and minutes of senior management meetings
• Agendas, minutes and reports for project meetings
• Information being sent to staff for consultation
• Special events
• Areas for staff to publish their own information
• Union information
• Announcements
Health and safety information
Information on departments
Customer information
Supplier lists
Training
Company newsletters
Staff details (eg telephone extensions and photographs)
Company policy/staff handbook
Minutes of meetings
TYPICAL
INFORMATION
THAT CAN BE
ACCESSED ON
AN INTRANET
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• Online job application forms and job vacancies
• Interactive staff surveys.
The perceived benefit, by employees, of using an intranet will be a large deter-
minant of its success. In the organisations we considered, these benefits were
variously summarised as:
• Greater feeling of involvement and participation in the life of the organ-
isation
• Feeling of being valued through sharing and receiving feedback on
work
• Ability to identify resources and relevant skills, especially when
putting together new teams for a project
• A feeling that the information being received was authoritative and
accurate – rather than receiving messages second or third hand they
could receive them directly from the Chief Executive or other senior
managers
• Ability to access information relevant for their jobs, with consider-
able time saving on hunting through files
• Able to make better decisions based on a fuller picture and an under-
standing of the organisations’ strategic direction
• Fewer surprises when changes were being made as they were always
signposted on the intranet, for example in the minutes of management
meetings
• A stronger ‘community’ feel.
The main limitation to the information to be placed on intranets is the resource
needed to maintain it and keep it up-to-date. This in turn reflects the level of
commitment to the intranet and the extent that it becomes part of the fabric of
organisational life. As one manager commented:
‘It’s only been fully in place for a year, but its difficult to imagine going
back to before we had it. It’s the first port of call if you want a report or
piece of information. It’s the first place you look if there are changes
going on and you want to know what’s happening.’
In this organisation, each department had trained users who were responsible
for updating departmental information on the intranet. In another organisation
that we looked at, the personnel system was accessible through the intranet.
Access was controlled through passwords but all staff could use the intranet
2 KNOWLEDGE MANAGEMENT – THE SYSTEMS DIMENSION
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to update their personal information, enter training records, apply for leave,
fill in sickness forms and similar. This functionality helped to integrate the intranet
into organisational life whilst at the same time ensuring that the personnel
database was being kept more up-to-date than it had been previously, with less
administrative burden on the personnel department. It also enabled managers
to access accurate personnel information and statistics directly for decision
making and planning purposes as part of the knowledge management process.
Virtual communications and virtual relationships
Probably the most significant impact for individuals of new technology has been
the advent of e-mail. In many organisations it has become an integral part of
the communications process, both within the organisation and between the organ-
isation and the external world. For knowledge management it is one of the key
components in the sharing of information and ideas. Although not always recog-
nised, the information contained in e-mails is also a considerable knowledge
asset that needs to be managed – a task that many organisations have not yet
mastered, with unclear guidelines on what sort of e-mails need to be archived
and stored, which can just be deleted and so forth. Sometimes this can have
serious consequences, the authors know of one example where a court case had
to be settled to the detriment of the organisation, on the production of an e-
mail which the plaintiffs possessed but which had not been retained by the
originator within the organisation.
As a communications tool, e-mail cannot be managed in a hierarchical fashion.
It is an open and difficult to regulate communications medium. Just as it can be
used to communicate productively for the benefit of the organisation, it can also
be used negatively. It can be used to help build the knowledge base of an organ-
isation; it can also be used to send valuable information to any destination inside
or outside the organisation. Most organisations would probably be surprised
to find out how much of what they would consider ‘their’ information is being
shared by their staff (as attachments to e-mails) with people outside of the organ-
isation. Often this is fellow professionals helping each other through professional
networks which, as a reciprocal arrangement, can work to the benefit of the
organisation. Sometimes it is less benign.
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Whilst e-mail enhances the ability of people to consult widely on a document
or report, this can have negative impacts in a traditionally managed organisa-
tion. The problem arises when there is a culture of ‘if you can consult with
someone, you must consult’. In these situations, a report that might have involved
one or two people suddenly finds inputs coming from many people. Whilst the
end product may be better, the time it takes to produce is not increased despite
the technology. An important paradigm that many organisations involved in
knowledge management have recognised is that new technology is often more
effective if combined with new ways of doing things, rather than when seen as
a way of improving old ways of doing things.
Improved communications technology, increased speed and increased complexity
do not of themselves produce better management of knowledge. Whilst the
technology can encourage and facilitate knowledge management, an organi-
sation that has never generated innovation and creativity within its staff is unlikely
to do so simply because of the introduction of technology. It is the management
of the human dimension and the creation of the right culture that will make the
difference. The authors are mindful of an organisation that decided to embark
on a knowledge management project. It looked into the matter and decided that
effective knowledge management was an ‘archives and records’ issue. It
decided that the way forward was electronic record management, a project to
be led by the records manager. Whilst a commendable start, it is a narrow perspec-
tive reflecting more the culture of the organisation than the real potential of
knowledge management. This is not the only example of an organisation running
the risk of making the ‘chief knowledge officer’ into a ‘chief librarian’ and knowl-
edge management into information management.
Where the communications and collaborative working technology is being used
effectively, organisations have been able to develop cross-functional and global
teams, harnessing and directing a range of talents, abilities and knowledge
towards tasks they need carried out. The use of virtual teams, whose meeting
place is in cyberspace and who communicate through e-mail and similar appli-
cations, allows teams of fluctuating size to be quickly formed and disbanded as
needed. Additional team members can quickly be brought on board and others
can leave as they move to other projects.
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Figure 2.4: Communication and collaboration
However, studies in cognitive sciences (3) suggest that although different
perspectives on a problem develop a deeper understanding of it, too much knowl-
edge and information can lead individuals to experience a ‘cognitive overload’
which reduces effectiveness. This is a common complaint of knowledge workers
– that the volume of information induces a form of mental ‘paralysis’, stifling rather
that facilitating innovation and creativity. For knowledge management this
indicates the importance of effective search and navigation tools when accessing
information, knowledge filtering processes and the importance of effective design
for the user interface between individuals and knowledge sources (e.g. data stores).
Dependent upon the security access levels required the fact that virtual team
interaction takes place in cyberspace means that it can be made accessible to
non-team members. Other members of the organisation can link in to the work
of virtual teams through accessing ‘threaded’ discussions in cyberspace and other
team communications. This can allow people outside the team to keep abreast
of what the team is doing, make a contribution if they feel it will help and join
the team if asked. Never before have organisations had the opportunity to bring
such a diverse range of knowledge experience and understanding to bear on
any particular issue or problem.
In-house/physicallocation specific team
In-house physicalcross-functional team
Virtual national specific and/orcross-functional teams
Virtual global and/or cross-funtional teams
COMMUNICATION ANDCOLLABORATION
In-house/physicallocation specific team
In-house physicalcross-functional team
Virtual national specific and/orcross-functional teams
Virtual global and/or cross-funtional teams
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There is a danger with the development of this type of approach that, although
results are delivered, the knowledge gained in the process is lost. This is because
it is fragmented and contained, not in files at the head office, but in the individual
computers and logs of the virtual team members, which could be scattered across
the globe. This presents a knowledge management challenge – of turning the
scattered, diverse knowledge of their knowledge workers, who are working in
a virtual team, into a well structured ‘knowledge repository’.
Spek and Spijkervet (4) identify three basic activities necessary to achieve this:
1. Creating knowledge
2. Securing and combining knowledge
3. Distributing and retrieving knowledge.
In this type of model for virtual team working, the ‘creation of knowledge’ is
seen as arising from the process of developing ideas or solutions, feedback being
received from other members of the team or externally and the feedback leading
to the development of revised or new ideas and solutions.
‘Securing and combining knowledge’ is seen as the process of storing and
indexing knowledge and ensuring that all team members can share (that is access)
the stored knowledge, understand it and integrate it with their own knowledge.
The storing and indexing needs to be a dynamic process to allow for updating,
modifications and amendments to the contents of the knowledge repository.
‘Distributing knowledge’ needs open, flexible, and reactive communication
channels. It is seen as an essential part of virtual team working to fuel the ‘learning
process’ inherent in developing new ideas and creative solutions. Retrieving
knowledge once stored on the collaborative systems is essential if the ‘knowl-
edge repository’ idea of the shared cyber-workspace is to have any value.
However, the dynamic nature of the environment is seen as requiring sophis-
ticated search tools rather than simple ‘key word’ searches – covering both
context and content. This is an area identified in our case studies as one where
weaknesses exist. As one manager commented:
‘The corporate systems are well organised and documented. That’s where
the resources go. But if you look at the information held electronically
by individuals, nine times out of ten it’s pretty haphazard. Navigating
it is more about psychology than systems – you need to know how they
think.’
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The technology that organisations are employing are technologies that provide
flexibility to the business and provide customers with a quick customised solution.
In a knowledge management environment it is important to capture experiences
and ideas in a central deposit and also to provide information that is person-
alised to customers and to staff. This is done through content management
technology, which provides individuals with the ability to manage documents
as well as the content of those documents and it also allows searches across
web sites and files and databases. Other areas that could facilitate knowledge
flow within an organisation identified by Microsoft (5) included the digital
dashboard, which managers could use daily to log important information for
that day and the use of a wireless network so that users could access up-to-date
information on laptops, personal phones and mobile phones.
The basic role of technology in knowledge management can be briefly summ-
arised, in functional terms, into the areas of:
• Facilitating communication
• Enabling collaboration
• Collecting information
• Storing information
• Analysing information
• Disseminating information
• Updating information.
It is however important to note that knowledge is not just contained in an organ-
isation’s database systems. It is also contained in e-mails and memos with
suppliers, customers and competitors. Most importantly, it is contained in the
minds of individuals. It is the management of individuals to maximise the benefits
of that knowledge that we shall consider in the next chapter.
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Chapter 3Knowledge management – the people dimension
Introduction
People management policies and practices
in the knowledge environment
Motivating and rewarding knowledge workers
Recruitment, retention and succession planning
in a knowledge environment
Impact of knowledge management on the role of managers
Training and development in a knowledge environment
Team working in a knowledge environment
T H O R O G O O D
P R O F E S S I O N A L
I N S I G H T S
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Chapter 3Knowledge management – the people dimension
Introduction
In this chapter, we will consider the challenges that knowledge management creates
for how organisations approach people management, the areas of recruiting,
rewarding, managing and developing knowledge and knowledge workers. We
will also identify the challenges facing the managerial role in the knowledge
economy and consider new paradigms for defining managerial effectiveness.
People management policies and practices in the knowledge environment
An emphasis on knowledge, skills and creativity and on the capturing and sharing
of information, are all issues that impact upon how people are managed. In many
organisations responsibility for these activities is often focused within a
specialist HR or personnel department. Over the past few years there has been
an increasing interest from personnel specialists in the area of knowledge manage-
ment and the contribution they can make both individually and as a profession.
This has been reflected in the conferences and publications of the Chartered
Institute of Personnel and Development. For personnel specialists there are partic-
ular hurdles to overcome to make a contribution. Knowledge management is
itself a multi-disciplinary area and it is necessary for personnel specialists to
work with other disciplines, often having to develop new skills and understanding
(particularly in the area of technology). Personnel specialists also have the conflict
inherent in reconciling seeing people as a cost to be controlled and as an asset
to be developed.
31THOROGOOD PROFESSIONAL INSIGHTS
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A key role for personnel specialists is to help bridge the gap between what people
know – the information and expertise they have available to them – and what
they do. In the knowledge economy, it is what people do with their knowledge
that is the driver for competitive advantage rather than the investment in infor-
mation systems, intranets, and electronic communications. Effective knowledge
management is not possible in an environment where people are disen-
chanted, de-motivated and demoralised.
Figure 3.1: Bridging the gap
Motivating and rewarding knowledge workers
The first and most obvious area of involvement for personnel specialists is in
the area of reward management. Reward management is a broader concept than
just managing the pay system. Rewards can take many forms other than cash
and reward management will deal with the formal and informal ‘recognition’
that employees receive, the types of behaviours that the organisation reinforces
and the types of behaviour that lead to promotion and progression. An
example of a non-pay reward that reinforces knowledge management would
be recognising and thanking staff who maintain good content on a company
intranet. Putting a feature in an in-house magazine could do this.
To begin looking at reward management from a knowledge management perspec-
tive means asking the question ‘do we recognise and reward people for sharing
their knowledge, for acquiring new knowledge and for sharing information?’
Too often, in organisations, what is actually rewarded is hoarding knowledge
and information. Where this occurs it is less likely to be a problem with the individ-
uals as such, and far more likely to be an issue with the reward system and the
culture that it reinforces.
What peopleknow
What peopledoPeople management policies and practices
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If the organisational preference is for an individual, performance related pay
approach, the pay element of the reward system will need to be designed with
care if the intention is to simultaneously encourage the sharing of information
and expertise – the two do not sit happily together. If a ‘performance pay’ approach
is the ‘culturally’ preferred medium for financial reward, then to reinforce good
knowledge management practices it will need to include input as well as output
measures (i.e. reward for how people/teams do things as well as what they do).
This will mean assessment of achievements against knowledge management
objectives such as:
• The extent to which the individual/team has acquired new skills and
knowledge
• Whether or not the individual/team has undertaken new projects or
taken on board new responsibilities
• The development activities undertaken by the team/team members
(either inside or outside work, training based or activity based)
• The contribution of individuals to team working/commitment of the
team to its own team development
• The contribution of individuals/of the team to the development of
another employee (e.g. mentoring or coaching)/induction of new team
members
• The generation of new ideas and improvements (in their own areas
of work and more widely) by the team/individuals.
These can be combined with generally defined ‘areas of competence’ in good
knowledge management, for the purpose of assessing performance of either
individuals or teams (or both).
The requirements of retaining knowledge workers within their field of expertise
may also present a challenge to traditional ‘pay hierarchies’ and it may be neces-
sary to develop different routes for pay progression that do not require people
to leave their area of expertise and move into ‘management’. This approach is
increasingly common in newer organisations but can be difficult for older, more
established, organisations where the way to climb the career ladder is to move
from technical specialisms into management. Similarly, traditional incremental
pay systems, that reward ‘length of service’ rather than contribution to the organ-
isation or particular expertise and skills, may prove counter productive in retaining
and motivating knowledge workers.
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Within one of the organisations that we looked at, although fairly traditional,
positive steps had been taken to motivate and retain knowledge workers through
a reward strategy incorporating:
• Developing ‘recognition’ systems to publicise achievements
• Establishing two promotion routes – one technical for those who wished
to stay in their area of technical expertise, the other a route for technical
people wishing to enter management
• Merit pay (based on judgements about performance, potential and value
to the business)
• Support for attending and presenting at conferences and taking further
qualifications
• Flexible working
• Secondments externally.
In another, less traditional, organisation the pay system was determined on an
individual basis so that anyone could increase their pay dependent on the contri-
bution they made. This pay system also encouraged the sharing of ideas through
merit awards that involved judgement on an individual’s ability to work with
others. A profit sharing scheme was operating whereby 25-30% of all pre-tax
profits were distributed to staff. This particular organisation had also developed
a form of ownership that gave all the employees a stake in the company through
a share owning Employee Benefit Trust (EBT). The EBT provided additional profit
sharing to staff with more than three years service.
In developing a reward strategy that supports effective knowledge management,
it is important that it is both acceptable and relevant to knowledge workers.
Achieving maximum acceptability in a knowledge environment means devel-
oping the strategy in consultation with those it is intended to reward. This view
is reflected in ACAS guidance on developing pay systems (1). It also means
weighing up the expectations of knowledge workers and recognising the different
‘time horizons’ of different forms of reward. For example praise for a job well
done, bonuses and similar have a short time horizon. Pensions, promotions and
development that opens up future career opportunities all have a longer time
horizon. It is likely that within a knowledge environment a mixture of the short-
term and long-term rewards will be necessary. This will give immediate impact
and deliver immediate satisfaction to knowledge workers, whilst also seeking
to build longer-term commitment to the organisation.
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A very good pension scheme still remains an effective ‘locking in’ device despite
the perceived job mobility of knowledge workers but by itself it will not guarantee
commitment in a very flexible and changing market. Neither will it promote
innovation and creativity and the short-term ‘burst of energy’ needed to produce
new ideas and new ways of doing things. There is an increasing recognition
that if the central element (and, after the paybill, often the most expensive element)
of a reward strategy is saying to employees ‘wait until you retire and you will
be looked after’ then some people will do precisely that!
Designing the non-pay elements of the reward system has involved organisa-
tions in reviewing how people are managed on a day-to-day basis as well as
developing formal and informal schemes for recognising people’s ideas and
contribution. Examples of non-pay elements of the reward system in organi-
sations that support knowledge management include:
• Annual awards of various sorts often supported by trophies, cash
payments and internal publicity. Examples include an annual training
award for the person who had done most to apply their learning within
the workplace, an award for the best technical paper of the year
published externally, awards for innovation and introducing new ideas
to the company
• Regular features in in-house magazines on the work of particular
individuals or teams
• ‘Lifestyle’ rewards for performance, designed to appeal to knowledge
workers – such as the opportunity to fly a light aircraft, balloon trips
etc.
• Internal recognition for external achievements, including cash rewards
for articles published, support (e.g. time off) for involvement in social
projects and recognition in the workplace of the development benefit
of such activities
• Ensuring internal reports at all levels are always in the name of the
main author rather than director or senior manager and that they
acknowledge other contributors
• Giving recognition through involving as many staff as possible in project
presentations and policy meetings and identifying and publishing the
names of ‘lead officers’ in different areas of work. A practical example
of this approach, from one organisation, was a ‘policy forum’. With
scheduled meetings over the year it allowed a large number of staff to
come together over a lunch-time to hear presentations on policy issues
from outside speakers as well as from the CEO and directors.
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Recruitment, retention and succession planning in a knowledge environment
When recruitment, retention and succession planning are viewed from a knowl-
edge management perspective, the approach becomes less about ‘filling jobs’
and more about filling knowledge gaps – either current or anticipated.
Looked at this way, it is immediately apparent that knowledge gaps do not have
to be met through filling ‘job slots’ with people. Whilst recruitment may be a
solution, other solutions will include implementing new systems and processes,
purchasing new technology and contracting in specialist skills (or contracting
out a function). In a knowledge environment, recruitment, retention and succes-
sion planning are not simply personnel issues but strategic issues incorporating
decisions on the shape and form of the future organisation and the use of
technology. For example, succession planning traditionally deals with known
events such as future retirements of individuals and seeks to ensure a replace-
ment is ‘trained up’ to be ready. In a knowledge environment, succession planning
needs to incorporate the retirement not just of people but of technology and appli-
cations running on the technology. Similarly retention has traditionally been viewed
as keeping people within the organisation and reducing staff turnover. In a knowl-
edge environment what one is seeking to retain is the knowledge – this can mean
effectively capturing the knowledge of people who are leaving as well as
maintaining databases and archives. However, the separation that exists in many
organisations between personnel departments and IT departments does not lend
itself to this more holistic approach of focusing on the knowledge rather than
the resource.
Recruitment
Indicative of organisations involved in knowledge management is an increas-
ingly flexible approach to recruitment. As one of the directors we spoke to
commented ‘it is more important to recruit good people you come across than
to wait for vacancies to arise’. This person’s experience was that jobs quickly
grew up around talented people and that their contribution to the organisation
justified their appointment within the first year.
There are challenges, in this way of thinking, to the traditional approaches to
recruitment favoured (for many good reasons) by personnel departments. Tradi-
tional systems tend to be based around the idea of a job and a ‘job slot’ to be
filled. They are not focused on the contribution that individuals may make. A
difficulty for personnel specialists involved in knowledge management will be
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to balance a more flexible approach with the statutory framework that tradi-
tional systems have been developed to deal with. The idea of a ‘job slot’ is, after
all, not something invented by personnel specialists but rather something deeply
embedded in the thinking of many employees, trades unions and also in employ-
ment legislation. The idea of a detailed job description, of a rigidly defined ‘job
slot’ to which a person is recruited, does not lend itself to effective knowledge
management – or to the development of that individual.
A more flexible approach to recruitment does not necessarily mean a less rigorous
approach. There is however a particular danger for effective knowledge
management in the use of sophisticated selection procedures – for example
personality and aptitude testing. The danger is that the ‘norms’ used (particu-
larly if internally generated) may be designed to obtain cultural fit. In doing this
they can easily exclude more creative and innovative individuals and discourage
diversity – to the detriment of effective knowledge management which seeks
to encourage precisely these factors. More important than cultural fit is the ability
of candidates to be effective in different cultures, especially as the current culture
may be destined (or overdue) for change. As one senior manager of a large
American multi-national in the technology sector commented:
‘Our organisation was founded by cowboys, now we only appoint people
in suits and complain about the lack of entrepreneurial spirit.’
Retention
In looking at the retention of knowledge, it was apparent that many organisa-
tions are adjusting their approach to retention to take into account the needs
and aspirations of knowledge workers. In part this involves changes to the reward
system discussed above. However it also involves taking account of the higher
expectations and higher perceptions of self and economic worth of knowledge
workers. In this context, a retention strategy cannot just be financially based.
It needs to incorporate how people are managed, how they are treated on a day-
to-day basis and how they are involved in their work and the organisation. This
is implicitly recognised in some organisations where efforts are being made to
develop different forms of ‘partnership’ with employees, for example by calling
them ‘associates’. Some general principles being applied in the retention of knowl-
edge workers are:
• Making explicit the terms of the psychological contract (the unwritten
agreement between the organisation and employees which forms the
basis of the relationship) through investigating the mutual expectations
of employer and employees – determining those terms that are reason-
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able and deliverable on both sides and producing a written summary.
In one organisation, this was described as articulating ‘our own psycho-
logical contract by formally and informally involving all staff in jointly
developing our whole range of human resources policies and practices’.
• Building trust and evaluating management decisions and communi-
cations in terms of their impact on that trust. This is seen as particularly
important in times of change. Building trust also means not trying to
manage by platitudes and ‘sound-bites’.
• Involving people in managing their own work and priorities and in
the organisation’s priorities. This also involves open communications
and allowing access to information about the organisation and the
issues it faces. It was noticeable in the organisations we spoke to that
a key use of the intranet was to allow access to company information
for all staff whether directly relevant to their job or not.
• Designing corporate personnel policies around the lifestyle choices
and personal aspirations of knowledge workers – this can involve
flexible working practices such as part-time and homeworking,
allowing sabbaticals, allowing time off for community based work and
similar. It was noticeable that in all the organisations that we spoke
to, flexible and employee centred personnel policies were in place. For
the future, such policies need to be flexible enough to respond to
different lifestyle choices at different stages in an individual knowl-
edge worker’s career. It would be a mistake to assume such choices
will reflect the traditional ‘upward pathway’ of career progression.
It is also noticeable that in knowledge environments the personnel role tends
to avoid a reliance on regulating the employment relationship through purely
contractual