km & business goals 2004/ 1 copyright © 2004 knowledge research institute, inc. people-centered...

KM & Business Goals 2004/ 1 Copyright © 2004 Knowledge Research Institute, Inc.

Situation-Handling and Mental Models: Stories Drive People-Centered KMPeople-Centered KM

Master Class

2004

Karl M. WiigKnowledge Research Institute, Inc.

Arlington, TX 76016-3517phone: (817) 572-6254 fax: (817) 478-1048

e-mail: [email protected] –– website: www.krii.com


Master Class Rationale Master Class Rationale

All deliberate actions are guided by models – models of situations and of how to handle them.

To support performance, effective KM makes use of the best understanding of knowledge-related

processes – such as the most relevant and reliable cognitive sciences results in the case of people.

This master class focuses on the role that stories play in learning and in structuring the mental

reference models used for handling situations – by people and organizations.


Stories Provide Structure to Stories Provide Structure to Mental ModelsMental Models

It is always difficult to integrate separate knowledge and information objects into coherent wholes

By engaging in conceptual blending, stories tie together concepts, judgments and other objects into

mental spaces that provide meaningful structure, organization, and relationships

Stories cover many abstraction levels: How-To, Know-That, Know-Why, Patterns and Metaphors

Stories complement theories and principles


Example:Example:

The Manager Uses IncentivesThe Manager Uses Incentivestoto

Influence Employee BehaviorInfluence Employee Behaviortoto

AchieveAchieveEnterprise Performance Enterprise Performance


Mental Reference Models Are Behind All Mental Reference Models Are Behind All Actions!Actions!

Mental Model ofHow Employee

Behavior InfluencesEnt. Performance

DesiredEnterprise

Performance

AchievedEnterprise

Performance

DesiredEmployeeBehavior

ActualEmployeeBehavior

Mental Model ofHow Incentives

InfluenceEmployee Behavior

Incentives

Real EmployeeReaction toIncentives

Enterprise andMarket Reaction

to EmployeeBehaviors

Observed Employee Behavior

Measured and Observed Enterprise Performance


How Does the Manager LearnHow Does the Manager Learnthe Relations between Employee the Relations between Employee

Behavior and Enterprise Performance?Behavior and Enterprise Performance?From personal experiences mostly remembered as

stories but also generalized as meaningful relations

By learning about and remembering stories of how people behaviors have influenced performance Best Practice stories Experiences related by other practitioners

By studying business theory

By formulating within her own mind cohesive understanding of how and why various incentives work – by building mental reference models


How Does the Manager LearnHow Does the Manager Learnto Influence Employees?to Influence Employees?

By learning about and remembering stories of how people have reacted to incentives Best Practice stories Experiences related by other practitioners Stories of personal experiences with incentives

By studying HR, psychology, and business theory

By formulating within her own mind cohesive understanding of how and why various incentives work – by building mental reference models


How Can Knowledge Management How Can Knowledge Management Strengthen the Manager’s Knowledge?Strengthen the Manager’s Knowledge?

Examples of KM Approaches:

Transfer employees to new roles

Communities of Practice

Use business simulations to build mental reference models for many different situations

Apprenticing and Shadowing

Examples of important knowledge: Judgment about which factors are important

Understand market reactions to enterprise behaviors Understand people reactions to incentives

Understand deployment of incentives


Our Work Is Becoming More ComplexOur Work Is Becoming More Complex

1. Routine tasks (simple,

repetitive, andwell understood)

2. Logical or lesscommon

variations(transformations)

ofRoutine Situations

3. Complex, yetexpected

extensions ofroutines

integrated withexternal factors

4. Unexpectedchallenges

(conditions),but with a mixof routines andexternal factors

6. Unusualchallenges

outsidejob scope

5. Totally unexpected

situations and non-routine challenges,

yet within the larger job scope

RequiredKnowledge

Can BeExplicated

(Some Can BeAutomated)

Workers NeedAdditionalKnowledge

ConsiderableNew Knowledge

Is Required

PastWork

FutureWork

Some AbstractKnowledgeIs Needed

Frequency ofOccurrences

Complexityof Work

Candidatesfor

IntelligentAutomation

Potentials forDelivering Work

RequiringGreater Knowledge


Adapted from Bechara et alia, Science 28 Feb, 1997 When Needed, New Situation-SpecificMental Reference Models

Are Created by Conceptual Blending

Most Decisions Are NonconsciousMost Decisions Are Nonconsciousand Result from Activating Mental Reference Models!

Decision

Situation ReasoningStrategies

Facts-Objectives

Options fordecision

andinnovation

Representationof futureoutcomes

Covert activation ofbiases related to

previous emotional[or meaningful]experiences ofcomparablesituations

Reference ModelLibrary

Personal MentalModels of

Wellknown Cases


StrategicStrategicActionActionModelsModels

Governing Principles ModelEthical and Judgmental Consideration

Values, Goals, Expectations

General Approach ModelGeneral Behavioral Conduct

Gestalt of Approach (Schema)

Specific Method ModelMethodological Approach

Specifics of Approach (Script)"Best Practices" Models

Operational Action ModelPractical Detailed Approach

Concrete Action Steps (Routines) Approaches to Engage Basic Mechanisms

PeoplePeopleImitateImitatetheirtheirRoleRoleModels!Models!


Mental Reference ModelsMental Reference Models

“Give me an example I can adapt to fit my problem!”

People Imitate Prior Behaviors and Organizations Reenact Past Practices

People making decisions, to the largest extent possible, rely on past experiences

People and organizations adapt and execute reference models to imitate prior successes and

avoid prior failures

They build large libraries of reference behavior patterns


Mental Reference Models Are StoriesMental Reference Models Are Stories

Stories, provide the basic structure and often the origin of mental reference models

It Is Always Hard to Grasp the Whole Coherently

Stories Are Unsurpassed for Effective Communication

We Rely on Stories to Tackle New Problems

Stories Help Us Learn Better

Stories and Mental Simulations


From Sensemaking to Effective ActionsFrom Sensemaking to Effective Actions

Personal Knowledge(Action-Oriented Operational and Governance IC Assets)

Mental Reference Models – Concepts – Understandings – Judgments – Principles – Facts

SituationalAwarenessSituation

Action Spaceand Innovation

Capability

ExecutionCapability

Effective

ActionUnderstandingof

Situation

Information

Decision

Actionsto ChangeSituationGovernance Competence and Perspectives

MonitoringFeedbackCorrective

AdjustmentFeedback FeedbackCorrective

Adjustment

SensemakingDecision-Making/Problem-Solving Implementation


Ongoing Situation

Information Information InformationNewNew New

Situations Are Mostly DynamicSituations Are Mostly Dynamic

Copyright © 2003 Knowledge Research Institute, Inc.

InitialSituation

SituationalAwareness

Sensemaking

Information

Action Spaceand Innovation

Decision-Making/Problem-Solving

Understandingof

Situation ExecutionCapability

Implementation

Decision

Monitoring

Governance Competence

CorrectiveAdjustment

CorrectiveAdjustment

Feedback FeedbackFeedback

KnowledgeMental Reference Models – Concepts – Understandings – Judgments – Principles – Facts

EffectiveAction

Actionsto ChangeSituation

Actionsto ChangeSituation


Sensemaking Reference ModelsSensemaking Reference Models

Situation Recognition reference models to:

Analyze, verify and validate the incoming information that describes the situation

Maintain situational awareness to ascertain that the situation is considered in its relevant context

Create reliable understanding of the situation

Communicate understanding to Decision-Making/Problem-Solving


Decision-Making/Problem-Solving Decision-Making/Problem-Solving Reference ModelsReference Models

This large library of reference models ranges from concrete action models, scripts, abstract schemata, to

metaknowledge models and are used to: Assess if routine or novel approaches are pertinent

for handling the situation Innovate, create and explore effective and desirable

action-options to handle the situation Evaluate the potential implications of the created Action-Options relative to situation objectives and

Implementation feasibility

Communicate Action-Option to Implementation


Implementation Reference ModelsImplementation Reference Models

Execution Method reference models are used to:

Interpret and understand the Action-Option intents and how to implement it effectively

Plan and manage the Implementation process

Secure and manage required resources

Improvise and innovate to adjust Implementation to actual conditions


Monitoring Reference ModelsMonitoring Reference Models

Governance Approach reference models to:

Ascertain that Situation-Handling is performed to fulfill context and enterprise

objectives best possible

Help the process become the most effective possible in spite of limited information, limited

knowledge, changing conditions, lacking motivation, and all other obstacles


MakeSense

Decide &Innovate

Execute

Monitor

Apply KnowledgePersonal OperationsLevel

Effective Actions Are Needed at All LevelsEffective Actions Are Needed at All Levels

MakeSense

Decide &Innovate

Execute

Monitor

Apply Knowledge

MakeSense

Decide &Innovate

Execute

Monitor

Apply Knowledge Division Business PlanLevel

MakeSense

Decide &Innovate

Execute

Monitor

Apply Knowledge Enterprise StrategyLevel


Missing Mental Reference ModelsMissing Mental Reference ModelsLead to:Lead to:

Focus on first-order and short-term results while disregarding long-term implications

Delays and procrastination when people are uncertain about how to proceed

Misunderstandings and frustrations when people do not share insights and perspectives

Work errors and costly mistakes when people lack the requisite expertise

Dissatisfied customers who are not understood well


Remember:Remember:Most Scientific Knowledge Is Built from Most Scientific Knowledge Is Built from

Observations of Real-Life Events that Observations of Real-Life Events that Initially May Be Represented by Stories Initially May Be Represented by Stories

Insights – including new perspectives that lead to further study and research – are typically

noted or discovered when “something” happens.

A story is established when “that” happens

And it is the story that is remembered and told


Stories are the normal and most effective way of Stories are the normal and most effective way of providing the context, structure, real meaning, providing the context, structure, real meaning,

metaphors and overall understanding of metaphors and overall understanding of complex topic areas – and their relations to complex topic areas – and their relations to

other parts of the system in which they exist.other parts of the system in which they exist.

Hence, stories – the portrayals of actors, the Hence, stories – the portrayals of actors, the telling of conflicts and relationships, the telling of conflicts and relationships, the illumination of objectives and drives, the illumination of objectives and drives, the

identification of threats and opportunities, and identification of threats and opportunities, and all the other aspects of interesting situations – all the other aspects of interesting situations –

are interesting and difficultare interesting and difficult but ever so important! but ever so important!


Thank You!


Additional Slides


Individual ActionsIndividual ActionsBuildBuild

Corporate Behavior and Corporate Behavior and PerformancePerformance

Our customers must experience uniformly helpful and innovative behavior from all

parts of our company.

They must obtain competitive benefits from their relationships with us


ConsolidatedEnterpriseBehavior

InnumerableNano Actions

Marketand

StakeholderResponse

RealizedPerformance

CostsService QualityProduct Quality

Customer Supportetc.

Effectsof

Actions

Effectsof

Actions

Micro"Action"

Micro"Action"

Micro"Action"

Micro"Action"

Small Actions Lead to Broad Behavior Small Actions Lead to Broad Behavior

R&D-Marketing

Engineering

Manufacturing

Delivery & Start-Up


Knowledge & Information Are Different!Knowledge & Information Are Different!

CumulatedOperating &Performance

History

KnowledgeDiscoveryin DataBases(KDD)

KnowledgeBases(KB)

Knowledge/ IT Apps

IT-Based Knowledge Management

ResultingBehavior

Decisionsfollowed by

Actions

ResultingBehavior

IdentifyRemedialAction

Decideto Pursue New

Product

PursueLoss-leaderw Promise

KnowledgeRequired to Perform

Activity

UnderstandCustomerSituations

AdhesiveBehaviors in

ExtremeConditions

Implicationsof Company& MarketActions

CriticalThinking forUnexpectedSituations

ArgyllStrategy

R&DCapabilities

ProcessOperationsEconomics

Cost-BenefitAnalysis

CommunicateEffectively

DetailedActivity or

Business Tasks

AggregatedBusinessFunction

New CustomerService

---• Application

Support• Create

New ProductOpportunities

• EducateCustomers

DiagnoseCustomer

ApplicationProblems

Identify"Best-Fit"

Products forApplications

AnalyzeNew Product

Cost/ScheduleOpportunities

EducateCustomers in

ComplexApplications

Work withCustomers'

Customers toEstablish Needs

Work withR&D to

Explore NewProducts

ImplementArgyll

StrategyIntents

New KnowledgeCreated during Work

Data &Information

Tacit & ExplicitKnowledge

InformationCapital

IntellectualCapital

Knowledge Management of Intellectual Capital

Information Management of Information Capital

MarketTrends

CustomerOrders &

Requirements

GeneralInformation Items

Required to PerformBusiness Tasks

InformationSystemBuildingBlocks

CorporateStrategy &Direction

Today'sProduction Plan

& Budget

CustomerOrders &Market &EconomicSituation

MarketTrends &

Forces

DetailedInformation

ItemsRequired

Today'sCompanyPicture

DetailedProduct

Information

CustomerRequirements

PlantSchedules

Order Book&

Backlog

R&DSchedules

TechnicalDevelopments

etc.

Company &Plant Situation& Conditions


Topic Knowledge and MetaknowledgeTopic Knowledge and Metaknowledge

TopicKnowledgeMethodology

Domain

Metastrategic Knowing

Metaknowledge

Metastrategic Knowing

Metaknowledge

TopicKnowledge

TopicKnowledge

TopicKnowledge

Primary WorkDomain

WorldUnderstanding

Domain

EnterpriseNavigation

Domain


Topic Knowledge at Five Conceptual LevelsTopic Knowledge at Five Conceptual LevelsTopic Knowledge

Schemata

Scripts

Operational Models

Routine / Rote Actions

Working Knowledge

General PrinciplesInsurance Business

Risks

ConceptualizeSituation

UnderwritingProcedures

Evaluating RiskCalculating Impacts

Obtain FactsComplete Forms

- Work Domain -


We Possess Knowledge in Many Domains We Possess Knowledge in Many Domains

Topic Knowledge Topic Knowledge Topic Knowledge Topic Knowledge

Schemata

Scripts

Operational Models


General Principles

Schemata

Scripts

Operational Models


Schemata

Scripts

Operational Models


Work Domain Enterprise Navigation World Understanding

Working Knowledge Working Knowledge

Social ConductBusiness Operations


Risks

General PrinciplesSociety

Environment

Create Gestalt ofCase

Relating Case toWorld-at-Large

Identify PublicInformation Sources

Access PublicAgencies

Identify Out-of-ScopeChallenges

Methods forSeeking Assistance

CollaboratingIncorporate Advice

Access ExpertNetwork





Schemata

Scripts

Operational Models


Methodology Domain

Working Knowledge

General PrinciplesRisk EvaluationMethodologies

Critical ThinkingStrategies





MetaknowledgeMetaknowledge Has Many Elements Has Many Elements

Metaknowledge

Metastrategic Knowing Metatask Knowledge

aboutTask Goals

Metastrategic Knowledgeabout Strategies to Address

Task Goals

Declarative Metaknowledge"Know What"

Knowing What Is Known

Procedural Metaknowledge"Know How"

Knowing Strategies for How to Proceed

Metacognitive KnowingMetaknowledge aboutDeclarative Knowing


Examples of Comprehensive KnowledgeExamples of Comprehensive Knowledge

Topic Knowledge

Metaknowledge

Metastrategic Knowing Metatask Knowledge

aboutTask Goals

Metastrategic Knowledgeabout Strategies to Address

Task Goals

Declarative Metaknowledge"Know What"

Knowing What Is Known

Procedural Metaknowledge"Know How"

Knowing Strategies for How to Proceed

Topic Knowledge Topic Knowledge Topic Knowledge

Schemata

Scripts

Operational Models


General Principles

Schemata

Scripts

Operational Models


Schemata

Scripts

Operational Models


Work Domain Enterprise Navigation

Working Knowledge Working Knowledge

Social ConductBusiness Operations


Risks

General PrinciplesSociety

Environment

Create Gestalt ofCase

Relating Case toWorld-at-Large

Identify PublicInformation Sources

Access PublicAgencies

Identify Out-of-ScopeChallenges

Methods forSeeking Assistance

CollaboratingIncorporate Advice

Access ExpertNetwork





Schemata

Scripts

Operational Models


Methodology Domain

Working Knowledge

General PrinciplesRisk EvaluationMethodologies





Metacognitive KnowingMetaknowledge aboutDeclarative Knowing

km & business goals 2004/ 1 copyright © 2004 knowledge research institute, inc. people-centered...

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