Sesi 12 km strategies

KM STRATEGY and

MEASUREMENTS

CHAPTER 9

Kimiz Dalkir

2005

KM STRATEGY & MEASUREMENTS

KM Cycles (Zack, Bukowitz)

KM Model (Nonaka – Takeuchi)

KM Capture & Codify

KM Sharing

KM Application

• Learning Organization

• Organization Culture

• Organization Maturity

KM Tools

KM Team

KM Teaching Group - Universitas TELKOM 25/11/2014 2

KM Strategy

The Business Goals

THE FUTURE of KM

KM AUDIT

KM understanding in the organization

KM STRATEGY & METRICS

Discuss two things ;

KM strategy that is linked to the overall business objectives

Measurement framework to monitor progress toward those

organizational goals

Bnefit of KM strategy

Provides the building blocks to guide the process

Help achieving organizational learning & continuous improvement

Avoidance of wasting time from repeating mistakes

Everyone aware of new & better ways of thinking & doinag


KM STRATEGY & METRICS

Two objectives of KM are innovation and reuse

Innovation (& creativity)

• Generation of new knowledge or new linkages between existing

knowledge

• Involves lateral thinking such as seeing an analogy in a

completely different context.

Reuse forms the basis for organizational learning and should be

viewed more as a dissemination of innovation.

• Though seen as dull, routine, and unproductive work. In fact,

reuse



Masjid Agung Pekanbaru

Riau, April 2013

ORGANIZATIONAL MEMORY

The accumulated body of data, information, and knowledge

created in the course of an individual organization’s existence.

It has two repositories:

An organization's archives, including its electronic data bases;

Individuals’ memories.

Having value for re-use, consist of information services such as

libraries, records management and archival management.

Organizations must have effective retrieval systems and good

memory recall among the individuals.

Organizational memory’s veracity is invariably compromised by the

inherent limitations of human memory.



Organizational learning and knowledge management

depend on organizational memory

Support the user by providing, maintaining, and distributing

relevant information and knowledge

Organizational memory depends on the individual memories

of the members,

where the rules, procedures, beliefs, and cultures are preserved

over time through socialization and control



Organizational memory should not be passive, but must

serve as an intelligent assistant for user.

Short term knowledge efforts should concentrate on short term

knowledge preservation, facilitated through best practice data

bases, lessons-learned archives, or expert systems.

In long-term efforts, organizational memory should support

knowledge creation and organizational learning




http://www.ou.edu/deptcomm/dodjcc/groups/02b1/02b1litreview.htm


Organizations keep forgetting what they have done in the

past and why they have done it.

Building organizational memory systems failed because:

Required additional documentation effort with no clear short-term

benefit,

Did not provide an effective index or structure to the mass of

information collected in the system

Organizational memory enrich this asset by capturing,

organizing, disseminating, and reusing the knowledge

created by its employees



Organization stupidity or corporate amnesia (Sutton – 2003)

organizations which have difficulty to learn, because of their

inability to represent critical aspects of what they know

Organizational learning and the accumulation of knowledge

will be a source of immediate health as well as long terms

survival

Organizational memory must play a key role in KM strategy

KM Teaching Group - Universitas TELKOM

25/11/2014 11


Current notions of organizational memory

Assume a repository of artifacts (document, file).

Focus on preserving, organizing, indexing, and retrieving only the

formal knowledge as it is stored in documents and databases

Formal knowledge sometimes is sufficient, but often

knowledge worker face many problems with no clear

definition or the ever changing problems

Formal documents are not rich enough to support knowledge

related problems

Organizational memory consists only formal knowledge which is

bare and lifeless

KM Teaching Group - Universitas

TELKOM 25/11/2014 12


An organizational memory system (like human memory)

should have the capacity to recall whatever is relevant to the

need/problems

The volumes of corporate knowledge accessible online will

increase, which will make it even more difficult to pinpoint those

particular items relevant to users

KM strategy should address the cultural and technical

factors that influence effective organizational memory

management

Cultural barriers

Technical barriers


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Cultural barriers

A cultural which put too much emphasis on artifacts and results to

the exclusion of process.

Resistance to knowledge capture because of the effort required,

the fear of litigation, and the fear of loss of job security.

Resistance to knowledge reuse because of the effort required, and

the low likelihood of finding relevant knowledge.


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Technical barriers

How to make the knowledge capture process easy or even

transparent.

How to make retrieval and reuse easy or even transparent.

How to ensure the relevance and intelligibility (i.e., through

sufficient context) of retrieved knowledge



The challenge is to design an organizational memory system

that offers sufficient short-term payoffs to knowledge

workers who will use the system,

both to capture knowledge as they are creating it and to look for

and reuse existing knowledge,

as well as a system that is compatible with the long-term,

sustainable KM strategic objectives of the organization


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Riau, April 2013

KM DRIVERS

Retirement of key personnel

The unrecorded event-specific, organization-specific and time-specific

‘how’ of know-how that characterizes any organization's ability to

perform - walks out of the front door on a regular basis

The need for innovation to compete in dynamic, challenging

business environment

The need for internal efficiencies in order to reduce costs &

efforts


www.strengthsalchemy.com

FRAMEWORK

External structure initiatives

Acquire knowledge from outside sources such as customers, sharing

knowledge to others, experts, …….

Internal structure initiatives

Create knowledge-sharing culture, capture individual tacit knowledge,

create revenue from existing knowledge, store, spread, reuse

Competence initiatives

Setup careers based on KM, create knowledge transfer environment


FRAMEWORK

Three sources of intangible assets (Lev – 2001) ;

Discovery (new thing, new way, new method, new tools)

Organizational practices

Human resources competencies

A good KM strategy should identify :

The key needs and issues within the organization

Provide a framework for addressing these issues

Read p. 249. What is the topic of Monsanto example?


KM STRATEGIES

The resources and skills required to develop a KM strategy

depend on

The size and complexity of the organizational unit

The depth of information gathering and analysis.

The ideal mix of skills on the KM strategy team would be

KM expert to access to people who are knowledgeable about the

organization

KM advocate who will “sell” the strategy to the senior member of

management who mandated the strategy development

The differences of KM expert VS KM advocate???


KM STRATEGIES

A KM strategy is an approach to define objectives & operational

strategy with specialized KM principles and approaches

(Srikantajah and Koenig, 2000).

Identifying how the organization can best leverage its knowledge

resources.

What tools required

KM strategies answer :

Which KM approaches, will bring the most value to the organization?

How can the organization prioritize alternatives when any one or

several of the alternatives are appealing and resources are limited


KM STRATEGIES

A KM strategy is used to define an action to overcome gap

Defining organization current state and the desired business

objectives gap analysis

What is the components that KM strategy needs to possess?

Open and read p. 251-252

The road map typically represents a three- to five-year strategy

with clear milestones or targets to be achieved throughout that

time (what do you think???)


KM STRATEGIES

Current state of the organization assessed using

Information gathering from a variety of sources or key documents

(e.g., annual report)

Interviewing key stakeholders (e.g., senior managers, human

resources, information technology, and major business unit

managers)

How about desired business objectives?

………………………….

………………………….

………………………….


KM STRATEGY ROADMAP

Address the questions of ;

How to manage knowledge for the benefit of the business?

How to manage explicit & tacit knowledge priorities?

How the processes, people, products, services, organizational

memory, relationships, & knowledge assets be identified as high

priority knowledge levers to focus on?

What is the clear or direct link between KM levers & business

objectives?

What are some quick wins (early relatively inexpensive KM

successes)?

How will KM capability be sustained over the long term (e.g.,

defined KM roles)?


KM STRATEGY ROADMAP

One key component of a sustainable KM program is the

efficient and effective management of organizational

memory

Other key components are ;

KM roles and responsibility (KM team)

Framework to evaluate KM initiatives success




Riau, April 2013

KM Management of knowledge resources and processes

with an objective to improve competitive advantages and

organizational performance

Performance measurement is crucial in KM as it serves as

the foundation that enables an organization to evaluate,

control, and improve its knowledge processes.

Measuring knowledge as an intangible capital will be difficult

25 Nopember 2014 KM Teaching Group - MBTI 2012 28

KM MEASUREMENT

The measurement system must meet the requirement ;

Management set goals and objectives for managing

assets

Assessment of monetary dollar value — to know the actual

influence of these efforts on company value


MEASUREMENT CHALLENGE

Professor Baruch Lev’s method for assessing assets

Find quantitative dollar results (the actual annual earnings of

a company, deduct the customary yield on physical assets of

that industry, and the result is the contribution of the

intangible assets).

Still, not satisfying the need to measure the knowledge

In spite of sophisticated financial reports, it is often difficult to

determine the real value of a company in terms of the total

sum of its assets (tangible and intangible)



Professor Baruch Lev’s method for assessing assets

Coca Cola.

Discounting the extensive value of the sugar, water, bottling

facilities, and distribution system,

The company’s value lies in the formula to make Coke and in the

brand awareness the company has established.





Use knowledge

Review knowledge

Create knowledge

Capture knowledge

Sharing knowledge

Store knowledge

Knowledge audit

Leadership & Management

Sesi 12 km strategies