Fluent Essays

Knowledge Management in Theory and Practice Second Edition Kimiz Dalkir foreword by Jay Liebowitz Knowledge Management in Theory and Practice Knowledge Management in Theory and Practice Second Edition Kimiz Dalkir foreword by Jay Liebowitz The MIT Press Cambridge, Massachusetts London, England © 2011 Massachusetts Institute of Technology All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the publisher. For information about special quantity discounts, please e-mail [email protected] This book was set in Stone Sans and Stone by Toppan Best-set Premedia Limited. Printed and bound in the United States of America. Library of Congress Cataloging-in-Publication Data Dalkir, Kimiz. Knowledge management in theory and practice / Kimiz Dalkir ; foreword by Jay Liebowitz. — 2nd ed. p. cm. Includes bibliographical references and index. ISBN 978-0-262-01508-0 (hardcover : alk. paper) 1. Knowledge management. I. Title. HD30.2.D354 2011 658.4’038 — dc22 2010026273 10 9 8 7 6 5 4 3 2 1 Contents Foreword: Can Knowledge Management Survive? xiii Jay Liebowitz 1 Introduction to Knowledge Management 1 Learning Objectives 1 Introduction 2 What Is Knowledge Management? 5 Multidisciplinary Nature of KM 8 The Two Major Types of Knowledge: Tacit and Explicit 9 Concept Analysis Technique 11 History of Knowledge Management 15 From Physical Assets to Knowledge Assets 19 Organizational Perspectives on Knowledge Management 21 Library and Information Science (LIS) Perspectives on KM 22 Why Is KM Important Today? 22 KM for Individuals, Communities, and Organizations 25 Key Points 26 Discussion Points 27 References 27 2 The Knowledge Management Cycle 31 Learning Objectives 31 Introduction 32 Major Approaches to the KM Cycle 33 The Meyer and Zack KM Cycle 33 The Bukowitz and Williams KM Cycle 38 The McElroy KM Cycle 42 The Wiig KM Cycle 45 An Integrated KM Cycle 51 Strategic Implications of the KM Cycle 54 vi Contents Practical Considerations for Managing Knowledge 57 Key Points 57 Discussion Points 57 References 58 3 Knowledge Management Models 59 Learning Objectives 59 Introduction 59 Major Theoretical KM Models 62 The Von Krogh and Roos Model of Organizational Epistemology 62 The Nonaka and Takeuchi Knowledge Spiral Model 64 The Choo Sense-Making KM Model 73 The Wiig Model for Building and Using Knowledge 76 The Boisot I-Space KM Model 82 Complex Adaptive System Models of KM 85 The European Foundation for Quality Management (EFQM) KM Model 89 The inukshuk KM Model 90 Strategic Implications of KM Models 92 Practical Implications of KM Models 92 Key Points 93 Discussion Points 93 References 95 4 Knowledge Capture and Codifi cation 97 Learning Objectives 97 Introduction 98 Tacit Knowledge Capture 101 Tacit Knowledge Capture at the Individual and Group Levels 102 Tacit Knowledge Capture at the Organizational Level 118 Explicit Knowledge Codifi cation 121 Cognitive Maps 121 Decision Trees 123 Knowledge Taxonomies 124 The Relationships among Knowledge Management, Competitive Intelligence, Business Intelligence, and Strategic Intelligence 131 Strategic Implications of Knowledge Capture and Codifi cation 133 Practical Implications of Knowledge Capture and Codifi cation 134 Key Points 135 Discussion Points 135 References 136 Contents vii 5 Knowledge Sharing and Communities of Practice 141 Learning Objectives 141 Introduction 142 The Social Nature of Knowledge 147 Sociograms and Social Network Analysis 149 Community Yellow Pages 152 Knowledge-Sharing Communities 154 Types of Communities 158 Roles and Responsibilities in CoPs 160 Knowledge Sharing in Virtual CoPs 163 Obstacles to Knowledge Sharing 168 The Undernet 169 Organizational Learning and Social Capital 170 Measuring the Value of Social Capital 171 Strategic Implications of Knowledge Sharing 173 Practical Implications of Knowledge Sharing 175 Key Points 175 Discussion Points 176 References 177 6 Knowledge Application 183 Learning Objectives 183 Introduction 184 Knowledge Application at the Individual Level 187 Characteristics of Individual Knowledge Workers 187 Bloom ’ s Taxonomy of Learning Objectives 191 Task Analysis and Modeling 200 Knowledge Application at the Group and Organizational Levels 207 Knowledge Reuse 211 Knowledge Repositories 213 E-Learning and Knowledge Management Application 214 Strategic Implications of Knowledge Application 216 Practical Implications of Knowledge Application 217 Key Points 218 Discussion Points 218 Note 219 References 219 viii Contents 7 The Role of Organizational Culture 223 Learning Objectives 223 Introduction 224 Different Types of Cultures 227 Organizational Culture Analysis 229 Culture at the Foundation of KM 232 The Effects of Culture on Individuals 235 Organizational Maturity Models 238 KM Maturity Models 239 CoP Maturity Models 244 Transformation to a Knowledge-Sharing Culture 246 Impact of a Merger on Culture 256 Impact of Virtualization on Culture 258 Strategic Implications of Organizational Culture 258 Practical Implications of Organizational Culture 259 Key Points 262 Discussion Points 262 References 263 8 Knowledge Management Tools 267 Learning Objectives 267 Introduction 268 Knowledge Capture and Creation Tools 270 Content Creation Tools 270 Data Mining and Knowledge Discovery 271 Blogs 274 Mashups 275 Content Management Tools 276 Folksonomies and Social Tagging/Bookmarking 277 Personal Knowledge Management (PKM) 279 Knowledge Sharing and Dissemination Tools 280 Groupware and Collaboration Tools 281 Wikis 285 Social Networking, Web 2.0, and KM 2.0 288 Networking Technologies 292 Knowledge Acquisition and Application Tools 297 Intelligent Filtering Tools 298 Adaptive Technologies 302 Strategic Implications of KM Tools and Techniques 303 Practical Implications of KM Tools and Techniques 304 Contents ix Key Points 304 Discussion Points 305 References 306 9 Knowledge Management Strategy 311 Learning Objectives 311 Introduction 311 Developing a Knowledge Management Strategy 316 Knowledge Audit 318 Gap Analysis 322 The KM Strategy Road Map 325 Balancing Innovation and Organizational Structure 328 Types of Knowledge Assets Produced 333 Key Points 336 Discussion Points 337 References 338 10 The Value of Knowledge Management 339 Learning Objectives 339 Introduction 339 KM Return on Investment (ROI) and Metrics 343 The Benchmarking Method 345 The Balanced Scorecard Method 351 The House of Quality Method 354 The Results-Based Assessment Framework 356 Measuring the Success of Communities of Practice 359 Key Points 360 Discussion Points 362 References 362 Additional Resources 364 11 Organizational Learning and Organizational Memory 365 Learning Objectives 365 Introduction 365 How Do Organizations Learn and Remember? 368 Frameworks to Assess Organizational Learning and Organizational Memory 369 The Management of Organizational Memory 370 Organizational Learning 377 The Lessons Learned Process 378 Organizational Learning and Organizational Memory Models 379 x Contents A Three-Tiered Approach to Knowledge Continuity 385 Key Points 390 Discussion Points 391 References 392 12 The KM Team 397 Learning Objectives 397 Introduction 398 Major Categories of KM Roles 402 Senior Management Roles 403 KM Roles and Responsibilities within Organizations 410 The KM Profession 412 The Ethics of KM 413 Key Points 419 Discussion Points 420 Note 421 References 421 13 Future Challenges for KM 423 Learning Objectives 423 Introduction 424 Political Issues Regarding Internet Search Engines 425 The Politics of Organizational Context and Culture 427 Shift to Knowledge-Based Assets 429 Intellectual Property Issues 433 How to Provide Incentives for Knowledge Sharing 435 Future Challenges for KM 440 KM Research 442 A Postmodern KM 446 Concluding Thought 447 Key Points 448 Discussion Points 449 References 450 14 KM Resources 453 The Classics 453 KM for Specifi c Disciplines 454 International KM 455 KM Journals 455 Key Conferences 456 Contents xi Key Web Sites 457 KM Glossaries 457 KM Case Studies and Examples 458 KM Case Studies 458 KM Examples 459 KM Wikis 459 KM Blogs 459 Visual Resources 460 YouTube 460 Other Visual Resources 460 Some Useful Tools 460 Other Visual Mapping Tools 460 Note 460 Glossary 461 Index 477 Foreword: Can Knowledge Management Survive? The title of this foreword, “ Can Knowledge Management Survive? ” is perhaps rather strange for this second edition of this leading textbook on knowledge management (KM). However, as the KM fi eld has taught us to be “ refl ective practitioners, ” this question is worth pondering. Knowledge management has been around for twenty years or more, in terms of its growth as a discipline. Even though the roots of knowledge management go back far beyond that, is knowledge management generally accepted within organizations, and is KM a lasting fi eld or discipline? To answer the fi rst question, we can review some anecdotal evidence that suggests KM is more widely accepted within certain industries than others. Over the years, the pharmaceutical, energy, aerospace, manufacturing, and legal industries have perhaps been some of the leaders in KM organizational adoption. In looking toward the future, the public health and health care fi elds are certainly well positioned to leverage knowledge throughout the world. And as the graying workforce ensues and the baby boomers retire, knowledge retention will continue to play a key role in many sectors, such as in government, nuclear energy, education, and others. So, KM has permeated many organizations and has the propensity to propagate to others. However, there are still many organizations that equate KM to be IT (information technology), and do not fully grasp the concept of building and nurturing a knowl- edge sharing culture for promoting innovation. Many organizations do not have KM seamlessly woven within their fabric, and many organizations do not recognize or reward their employees for knowledge sharing activities. It is getting harder to fi nd the title of a “ chief knowledge offi cer ” or a “ knowledge management director ” in organizations, suggesting two possibilities. The fi rst is that KM is indeed embedded within the organization ’ s culture so there is no need to single it out. The second proposition is that KM has lost its appeal and importance, so there is no need to have a CKO or equivalent position, especially in these diffi cult economic times. xiv Foreword Probably, both propositions are true, depending perhaps on the type and nature of the organization. So, returning to the fi rst question about KM being widely accepted within today ’ s organizations, the jury is still out. It may be simply an awareness issue in order to show the value-added benefi ts of KM initiatives. Or it may be that KM was the “ man- agement fad of the day ” and we are ready to move on. I believe that KM can have tremendous value to organizations by stimulating creativity and innovation, building the institutional memory of the fi rm, enabling agility and adaptability, promoting a sense of community and belonging, improving organizational internal and external effectiveness, and contributing toward succession planning and workforce develop- ment. KM should be one of the key pillars underpinning a human capital strategy for the organization. As with anything else, some organizations are leaders and some are laggards. Those who recognize the importance of KM to the organization ’ s overarching vision, mission, and strategy should hopefully be in the winning side of the equation in the years ahead. Let us now address the second question posed, “ is KM a lasting fi eld? ” In other words, does KM have endurance to stand on its own in the forthcoming years? This relates back to whether KM is more an art than a science. KM is certainly both, and as the KM fi eld has developed over the years, an active KM community of both prac- titioners and researchers has emerged. There are already well over ten international journals specifi cally devoted to knowledge management. Worldwide KM conferences abound, and individuals can take university coursework in knowledge management, as well as being certifi ed in knowledge management by KM-related professional societ- ies and other organizations. There are funded research projects in knowledge manage- ment worldwide, both from basic and applied perspectives. In addition, there are many KM-related communities of practice established worldwide. So certainly there is an active group of practitioners and researchers who are trying to put more rigor behind KM to accentuate the “ science ” over the “ art ” in order to give the KM fi eld lasting legs. On the other hand, there is the “ art ” side of KM. Like many fi elds that draw from a multidisciplinary approach, especially from the social sciences, there is art along with the science. Whether KM contributes to “ return on vision ” versus “ return on investment ” indicates some of the diffi culty in quantifying KM returns. There certainly is a “ touchy-feely ” side to KM, but there is a sound methodological perspective to KM, too. Here again, the jury is still out on whether the KM fi eld will last. So what needs to be done? This is where textbooks such as Knowledge Management in Theory and Practice Can Knowledge Management Survive? xv play an important role. This textbook, in its second edition, marries the theory and practice of knowledge management; namely, it provides the underlying methodolo- gies for knowledge management design, development, and implementation, as well as applying these methodologies and techniques in various cases and vignettes sprin- kled throughout the book. It addresses my fi rst question of having knowledge manage- ment being more widely accepted in organizations by discussing how KM has been utilized in various industry sectors and organizational settings. The book also empha- sizes the “ science ” behind the “ art ” in order to address my second question regarding providing more rigor behind KM so that the fi eld will endure in the years ahead. Professor Dalkir, a leading KM researcher, educator, and practitioner, uses her insights and experience to highlight the important areas of knowledge management in her book. People, culture, process, and technology are key components of knowl- edge management, and the book provides valuable lessons learned in each area. This book is well-suited as a reference text for KM practitioners, as well as a textbook for KM-related courses. This book, and others, is needed to continue to take the mystique out of KM and provide the tangible value-added benefi ts that CEOs and organizations demand. Pro- fessor Dalkir should be commended on this new edition, which will hopefully propel others to be believers in the power of knowledge management. As this happens, the answers to my two KM questions will be quite obvious! Enjoy! Jay Liebowitz, D.Sc. Professor, Carey Business School Johns Hopkins University 1 Introduction to Knowledge Management A light bulb in the socket is worth two in the pocket. — Bill Wolf (1950 – 2001) This chapter provides an introduction to the study of knowledge management (KM). A brief history of knowledge management concepts is outlined, noting that much of KM existed before the actual term came into popular use. The lack of consensus over what constitutes a good defi nition of KM is addressed and the concept analysis tech- nique is described as a means of clarifying the conceptual confusion that still persists over what KM is or is not. The multidisciplinary roots of KM are enumerated together with their contributions to the discipline. The two major forms of knowledge, tacit and explicit, are compared and contrasted. The importance of KM today for individu- als, for communities of practice, and for organizations are described together with the emerging KM roles and responsibilities needed to ensure successful KM implementations. Learning Objectives 1. Use a framework and a clear language for knowledge management concepts. 2. Defi ne key knowledge management concepts such as intellectual capital, organiza- tional learning and memory, knowledge taxonomy, and communities of practice using concept analysis. 3. Provide an overview of the history of knowledge management and identify key milestones. 4. Describe the key roles and responsibilities required for knowledge management applications. 2 Chapter 1 Introduction The ability to manage knowledge is crucial in today ’ s knowledge economy. The cre- ation and diffusion of knowledge have become increasingly important factors in competitiveness. More and more, knowledge is being thought of as a valuable com- modity that is embedded in products (especially high-technology products) and embedded in the tacit knowledge of highly mobile employees. While knowledge is increasingly being viewed as a commodity or intellectual asset, there are some para- doxical characteristics of knowledge that are radically different from other valuable commodities. These knowledge characteristics include the following: • Using knowledge does not consume it. • Transferring knowledge does not result in losing it. • Knowledge is abundant, but the ability to use it is scarce. • Much of an organization ’ s valuable knowledge walks out the door at the end of the day. The advent of the Internet, the World Wide Web, has made unlimited sources of knowledge available to us all. Pundits are heralding the dawn of the Knowledge Age supplanting the Industrial Era. Forty-fi ve years ago, nearly half of all workers in industrialized countries were making or helping to make things . By the year 2000, only 20 percent of workers were devoted to industrial work — the rest was knowledge work ( Drucker 1994 ; Barth 2000 ). Davenport (2005, p. 5) says about knowledge workers that “ at a minimum, they comprise a quarter of the U.S. workforce, and at a maximum about half. ” Labor-intensive manufacturing with a large pool of relatively cheap, relatively homogenous labor and hierarchical management has given way to knowledge-based organizations. There are fewer people who need to do more work. Organizational hierarchies are being put aside as knowledge work calls for more col- laboration. A fi rm only gains sustainable advances from what it collectively knows, how effi ciently it uses what it knows, and how quickly it acquires and uses new knowledge ( Davenport and Prusak 1998 ). An organization in the Knowledge Age is one that learns, remembers, and acts based on the best available information, knowl- edge, and know-how. All of these developments have created a strong need for a deliberate and systematic approach to cultivating and sharing a company ’ s knowledge base — one populated with valid and valuable lessons learned and best practices. In other words, in order to be successful in today ’ s challenging organizational environment, companies need to learn from their past errors and not reinvent the wheel. Organizational knowledge is Introduction to Knowledge Management 3 not intended to replace individual knowledge but to complement it by making it stronger, more coherent, and more broadly applied. Knowledge management repre- sents a deliberate and systematic approach to ensure the full utilization of the organization ’ s knowledge base, coupled with the potential of individual skills, com- petencies, thoughts, innovations, and ideas to create a more effi cient and effective organization. Increasingly, companies will differentiate themselves on the basis of what they know. A relevant variation on Sidney Winter’s defi nition of a business fi rm as an organization that knows how to do things would defi ne a business fi rm that thrives over the next decade as an organization that knows how to do new things well and quickly . ( Davenport and Prusak 1998 , 13) Knowledge management was initially defi ned as the process of applying a system- atic approach to the capture, structuring, management, and dissemination of knowl- edge throughout an organization to work faster, reuse best practices, and reduce costly rework from project to project (Nonaka and Takeuchi, 1995; Pasternack and Viscio 1998; Pfeffer and Sutton, 1999; Ruggles and Holtshouse, 1999). KM is often character- ized by a pack rat approach to content: “ save it, it may prove useful some time in the future. ” Many documents tend to be warehoused, sophisticated search engines are then used to try to retrieve some of this content, and fairly large-scale and costly KM systems are built. Knowledge management solutions have proven to be most successful in the capture, storage, and subsequent dissemination of knowledge that has been rendered explicit — particularly lessons learned and best practices. The focus of intellectual capital management (ICM), on the other hand, is on those pieces of knowledge that are of business value to the organization — referred to as intel- lectual capital or assets. Stewart (1997) defi nes intellectual capital as “ organized knowl- edge that can be used to produce wealth. ” While some of these assets are more visible (e.g., patents, intellectual property), the majority consists of know-how, know-why, experience, and expertise that tends to reside within the head of one or a few employ- ees ( Klein 1998 ; Stewart 1997 ). ICM is characterized less by content — because content is fi ltered and judged, and only the best ideas re inventoried (the top ten for example). ICM content tends to be more representative of the real thinking of individuals (con- textual information, opinions, stories) because of its focus on actionable knowledge and know-how. The outcome is less costly endeavors and a focus on learning (at the individual, community, and organizational levels) rather than on the building of systems. A good defi nition of knowledge management would incorporate both the capturing and storing of knowledge perspective, together with the valuing of intellectual assets. For example: 4 Chapter 1 Knowledge management is the deliberate and systematic coordination of an organization ’ s people, technology, processes, and organizational structure in order to add value through reuse and innovation. This is achieved through the promotion of creating, sharing, and applying knowledge as well as through the feeding of valuable lessons learned and best practices into corporate memory in order to foster continued organizational learning. When asked, most executives will state that their greatest asset is the knowledge held by their employees. “ When employees walk out the door, they take valuable organizational knowledge with them ” ( Lesser and Prusak 2001 , 1). Managers also invariably add that they have no idea how to manage this knowledge! Using the intel- lectual capital or asset approach, it is essential to identify knowledge that is of value and is also at risk of being lost to the organization through retirement, turnover, and competition.. As Lesser and Prusak (2001, 1) note: “ The most knowledgeable employ- ees often leave fi rst. ” In addition, the selective or value-based knowledge management approach should be a three-tiered one, that is, it should also be applied to three orga- nizational levels: the individual, the group or community, and the organization itself. The best way to retain valuable knowledge is to identify intellectual assets and then ensure legacy materials are produced and subsequently stored in such a way as to make their future retrieval and reuse as easy as possible ( Stewart 2000 ). These tangible by- products need to fl ow from individual to individual, between members of a commu- nity of practice and, of course, back to the organization itself, in the form of lessons learned, best practices, and corporate memory. Many knowledge management efforts have been largely concerned with capturing, codifying, and sharing the knowledge held by people in organizations. Although there is still a lack of consensus over what constitutes a good defi nition of KM (see next section), there is widespread agreement as to the goals of an organization that under- takes KM. Nickols (2000) summarizes this as follows: “ the basic aim of knowledge management is to leverage knowledge to the organization ’ s advantage. ” Some of management ’ s motives are obvious: the loss of skilled people through turnover, pres- sure to avoid reinventing the wheel, pressure for organization-wide innovations in processes as well as products, managing risk, and the accelerating rate with which new knowledge is being created. Some typical knowledge management objectives would be to: • Facilitate a smooth transition from those retiring to their successors who are recruited to fi ll their positions • Minimize loss of corporate memory due to attrition and retirement • Identify critical resources and critical areas of knowledge so that the corporation knows what it knows and does well — and why Introduction to Knowledge Management 5 • Build up a toolkit of methods that can be used with individuals, with groups, and with the organization to stem the potential loss of intellectual capital What Is Knowledge Management? An informal survey conducted by the author identifi ed over a hundred published defi nitions of knowledge management and of these, at least seventy-two could be considered to be very good! Carla O ’ Dell has gathered over sixty defi nitions and has developed a preliminary classifi cation scheme for the defi nitions on her KM blog (see http://blog.simslearningconnections.com/?p=279) and what this indicates is that KM is a multidisciplinary fi eld of study that covers a lot of ground. This should not be surprising as applying knowledge to work is integral to most business activities. However, the fi eld of KM does suffer from the “ Three Blind Men and an Elephant ” syndrome. In fact, there are likely more than three distinct perspectives on KM, and each leads to a different extrapolation and a different defi nition. Here are a few sample defi nitions of knowledge management from the business perspective: Strategies and processes designed to identify, capture, structure, value, leverage, and share an organization’s intellectual assets to enhance its performance and competitiveness. It is based on two critical activities: (1) capture and documentation of individual explicit and tacit knowledge, and (2) its dissemination within the organization. ( The Business Dictionary , http://www.business- dictionary.com/defi nition/knowledge-management.html) Knowledge management is a collaborative and integrated approach to the creation, capture, organization, access, and use of an enterprise ’ s intellectual assets. ( Grey 1996) Knowledge management is the process by which we manage human centered assets . . . the function of knowledge management is to guard and grow knowledge owned by individuals, and where possible, transfer the asset into a form where it can be more readily shared by other employees in the company. ( Brooking 1999 , 154) Further defi nitions come from the intellectual or knowledge asset perspective: Knowledge management consists of “ leveraging intellectual assets to enhance organizational performance. ” ( Stankosky 2008 ) Knowledge management develops systems and processes to acquire and share intellectual assets. It increases the generation of useful, actionable, and meaningful information, and seeks to increase both individual and team learning. In addition, it can maximize the value of an orga- nization ’ s …