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Part of the series on the 7 habits of highly effective decision makers by Genesis. Habit 2: actively manage knowledge.
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The 7 Habits of Highly Effective Decision Makers
Habit 2: actively manage knowledge
Genesis Management Consulting Limited
“Improving lives through better decisions”
The underlying purpose of the series is …
… about helping you to improve people’s lives
by helping you to make better decisions!
The introductory slide show gave us an overview…
found at The 7 habits Overview
The decision ring of influence
reminding us that strategic decisions
have a far-reaching impact
1. get the basics right 2. actively manage knowledge 3. communicate visually and verbally 4. prioritize ethical implications 5. embrace complexity 6. “think like a shrink” 7. use tools and technologies
and summarized the 7 habits of highly effective decision makers
Where organizations can - and do - get the basics wrong
in the first habit we looked at:
What actions can be taken to get it right
How getting the basics right involves answering six key questions
the common knowledge management traps
in the second habit we look at:
some of the behavioral challenges and some of the tools available
how to improve decisions through effective knowledge management.
common knowledge-related traps
more than 60%* of respondents categorized knowledge management as either “very poor” or
“could do better”
(* 2010 Genesis global survey)
what are the common errors?
insufficient time
failure to deal with complexity
too much reliance on financial data
unfocused data collection
Untested assumptions
No insights
Knowledge not captured
common knowledge-related traps
Bias and misperceptions
even our in-house IT systems can be frustrating
unavailable data unusable data
decision information cuts across processes and functions
so how can we be more effective?
effective decision makers see knowledge management as a process to be dealt with proactively
insights information capture
with two objectives:
to capture the decision making process
• learn and improve
• re-play decision
• test assumptions
• explore options
to support the decision making process
• sense the future
• support intuition
• generate insights
• establish the facts
knowledge management process
Knowledge drivers define
requirements
Data is processed to yield insights
Knowledge management system captures the data,
knowledge and process
but also …
can be facilitated by the right tools but also hindered by behavioral problems
behavioral problems the right
tools
insights information capture
actively managing knowledge
behavioral problems the right
tools
insights information capture
this slide show will consider each of the elements of active knowledge
management
knowledge has to be improved, challenged, and increased constantly, or it vanishes
behavioral problems the right
tools
insights information capture
knowledge drivers define
the information requirements
the knowledge management process the inputs:
knowledge drivers: the elements of the decision process drive the information requirements
information requirements
example decision: should we acquire company x?
Driver Example Knowledge sought Objective Double market share By how much will our market share
increase after the acquisition? Situation appraisal
How will it change the competitive dynamics of the market?
Who are all the market players and what will be their possible reactions to our takeover?
Option generation
What are the potential terms of the deal?
What are the potential combinations of share swaps, cash, guarantees and debt that could be offered?
3 important questions
what knowledge do we already have in the organization?
what knowledge do we know we don’t know?
what knowledge do we not know we don’t know?
“There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we now know we don’t know. But there are also unknown unknowns. These are things we do not know we don’t know.”
United States Secretary of Defence Donald Rumsfeld
focused search: use hypotheses
track down the source, verify and capture it.
broad search: use external inputs and creativity
remember from Habit 1…
effective decision makers plan their information gathering ...
not enough too much
unreliable
… and get the balance right
uncertainty reduction? credibility of
source? impact on outcome?
effective decision makers measure
the cost of obtaining information against
the value of that information
"There's no such thing as knowledge management; there are only knowledgeable people.”
“Information only becomes knowledge in the hands of someone who knows what to do with it.”
Drucker
the knowledge management process the system:
the knowledge management
system captures the data, knowledge
and process behavioral problems the right
tools
insights information capture
all information & knowledge housed in one place: accessible relational scalable secure integrate-able
the knowledge management system captures the data, information and knowledge
the knowledge management system must capture the process
to learn and improve to re-play the decision to test assumptions to explore options
checking the results
of a decision against its
expectations shows
executives what their
strengths are, where they
need to improve,
and where they lack knowledge or information
the knowledge management process the insights:
data is processed to
produce insights
behavioral problems the right
tools
insights information capture
Data
Information what? who? where? when?
Knowledge how?
Insight and wisdom why?
Understanding
Context independent
insight is the ability to grasp the key elements of a complex subject, person or
situation
only with true insight can we find
the creative, disruptive solution that changes the
game!
true insight reveals the system …
its is more than just an aggregation of the underlying knowledge and
information
one method alone will not create insights
data analytics
visualization
systems thinking
crowdsourcing
simulation & games creativity exercises
to obtain insights, engage the right brain
computers can simulate much of the
left-brain activity
logical sequential
calculating …
insights come from the right-brain
holistic context
simultaneous synthesis…
intuition VERSUS
rationality
intuition AND
rationality
“A moment’s insight is sometimes worth a life’s experience”
the knowledge management process behavioral problems
behavioral problems
the best knowledge in the world is still subject to interpretation-bias and
misperceptions (behavioral economics)
recognition of your bias is not enough in itself to prevent you being influenced by them
see habit 6: “think like a shrink” for more on this topic
and misperceptions appear in many forms ….
ease of recall
seeking confirmatory evidence
overconfidence
anchoring
loss aversion sunk cost fallacy
misaligned objectives group-think
champion bias
“A point of view can be a dangerous luxury when
substituted for insight and understanding.”
the knowledge management process the right tools:
the right tools
there are a multitude of tools that can improve the capturing and conversion of knowledge
capture
share
generate insights
manage
analyze
simplify
systems think
model
visualize
simulate
see habit 7: “using tools and technologies” for more on this topic
find the right tool for the task for instance …
one tool cover almost the full spectrum of requirements
others help in a broad area
others are more specific
The Parmenides’ EIDOS software suite is comprehensive.
Consideo covers a wide-range of areas and is excellent in systems modeling and insight generation
however, tools are just tools and need to be applied with experience and intelligence
THOUGHTstream facilitates crowdsourcing and long-distance facilitation
Links to these tools available on the Genesis website on “The 7 Habits” page
or broad-based KM support Laminin Solutions coordinated with Genesis in this “Lean Information” presentation
even if the right tools are just paper, pencils and dialogue!
a simple tool the Genesis decision room: tapping into the power of the brain
a single room … …data, charts, research, presentations, web-sites, flip-
charts, etc are on display…
…to absorb, discuss, debate, draw, challenge in free-flow with the intention of developing insights…
why?
rational, conscious minds have limited capacity
letting knowledge sink into the unconscious and allowing it to develop its own links and patterns taps into our full mental powers
further stimulation through dialogue with others will further enhance the process
the subconscious needs time and
space to
roam
habit 2: actively manage knowledge summary
behavioral problems the right
tools
insights information capture
Check 1: Do you develop a knowledge management plan based on the key steps of the decision process? Check 2: Do you keep all your “knowledge” – data, information, analysis, insights, conclusions and process - in one central repository? Check 3: Do you look for “unknown unknowns” as well as the obvious “known unknowns” Check 4: Are you capitalizing on the tools, techniques and methods that could optimize your decision process? Check 5: Are you really focused on reaching creative insights that can identify innovative solutions? Check 6: Are you working at keeping the behavioral biases from corrupting the decision?
using this slide show … a check-list …
your question: can our
organization improve the
effectiveness of our decision making by
improving our knowledge
management?
through helping your organisation to take better decisions …
… you will make a positive impact on peoples lives!
for more information about the 7 habits series and other decision making support…..
Habit 1: get the basics right
The 7 habits of highly effective decision makers - the overview
Genesis web-site download all the slideshows at our web-site
Genesis Management Consulting Limited
Genesis is a strategy consulting firm with a mission of “improving lives through better decisions”
We do this by building individual and organizational competency through: • Decision coaching • Decision training • Decision support
This presentation is one of a series of articles that discusses decision making in more detail. For queries on in-house presentations or further information, please contact Simon Gifford at [email protected] or visit our blog at www.genesismc.co.uk/blog
Editing & graphics: M. Conidaris