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1 Knowledgemanagementinaglobalknowledge basedfirm Dr RobinTeiglandStockholmSchoolofEconomicsSeptember2007robin teigland hhs se 2 Growth Time Outputofinformationandknowledge Humanabsorptivecapacity Aworldofincreasingknowledgeflows Cohen WMochLevinthal DA AbsorptiveCapacity AnewPerspectiveonLearningandInnovation Workingpaper CarnegieMellonUniversityandUniversityofPennsylvania October1989 3 thatisincreasinglyconnected Nodesareindividualsandcolorsrepresentorganizations Casper Murray2002 4 Whatisglobalization Theextenttowhichnetworksofindividualsandorganizations markets andtechnologiesareinterconnectedacrossgeographicandculturalboundariesBeechandChadwick2004 Friedman2002 5 Whatisyourcompany sglobalstrategy 6 Fromamulti domesticcompanytoasuccessfulglobalfirm Multi domestic Global Integrated 7 Globalstrategy Aligningoperationsincreasessuccess CompetenceManagement MotivationManagement Knowledge Management 8 ProfitablegrowththroughhigherefficiencyandinnovationPreventingthewasteofvaluableresources avoidreinventingthewheelEnsuringtheuseofleading edgetechnologyandthinkingacrossthefirmIncreasingcustomersatisfactionthroughshorterlead timesandconsistentbehaviorCreatingacompetitivecoststructureFacilitatingbreakthroughandincrementalinnovationsthroughcombinationoftechnologiesandideasfromacrossandoutsidethefirmAnattractiveworkplacethatencouragescross functionalco operationacrosstheglobeAttractingandretainingkeyindividuals Whatarethebenefitsofknowledgemanagement 9 Whatisknowledge 10 Fromtacittoarticulateknowledge Weknowmorethanwecantell MichaelPolanyi 1966 Tacit Articulated High Low Codifiability 11 Themajorityofacompany svaluableknowledgeistacitandresistsbeingarticulated Theknowledgemanagementchallenge 12 Anorganization sstructures systems andpracticesthatfacilitate withthegoalofenhancingtheorganization scompetitiveness Whatisknowledgemanagement Creatingknowledge Embeddingknowledge Disseminatingknowledge Organizingknowledge C CODE KM 13 Whodoesyourcompanytargetascustomers Whatproductsorservicesdoesyourcompanyofferthesetargetedcustomers Howdoesyourcompanydothisefficiently KMmustbealignedwithstrategy Globalstrategy CODE KM Whatknowledgesupportsthisstrategy Dowehavethisknowledge Create Howshouldweorganizethisknowledge Organize Whoneedsthisknowledge when andhow Disseminate Howdoweensurewegetvaluefromthisknowledge Embed 14 InformationtechnologyforKM Stocksofknowledge DatabaseanddatabasemanagementsystemstocollectandholdinformationFlowsofknowledge Communicationchannelstoconnectindividualsindependentoflocation ITisanenabler 15 Challengestoknowledgedatabases TimeconsuminganddifficultTakestimesforwritertodocumentexperiencesTakestimeforreadertosearchthroughdatabases informationoverloadOftenweakincentivestocontributegoldennuggetsDifficulttounderstandDifficultforwritertoexplaincontext tacit explicitDifficultforreadertointerpretexperienceanduseinownsituationDatabecomesout of dateveryquicklyDifficulttomaintain especiallyinfastmovingindustries 16 Avoidcreatinginformationjunkyards Buildingknowledgerepositories InformationjunkyardsorEmptylibraries 17 PhysicallayoutAppropriateKMfunctionsandunitsCross functionalandcross locationteamsCentersofexcellenceInstitutionalized recognizedareasofexpertiseSocializationmeasuresJobrotation cross officetrainingprograms etc OrganizationalstructureforKM 18 Physicallayout Anorganization sofficelayoutreflectsacompany sknowledgeflows 19 Creatingcentersofexcellence COE HQ 20 SanFrancisco Stockholm London Brussels Helsinki Madrid Copenhagen Improvingknowledgetransferthroughjobrotation 21 Wheredoindividualsgoforhelpinsolvingproblems 22 Knowledgenetworkingthroughcommunitiesofpractice Connectingpeoplesothattheycollaborate shareideas andcreateknowledge 23 Oneofthethingsthatwe restrugglingwithismovingtowardsamoreconsistentwayofdoingbusinessaroundtheworld Ithinktheknowledgecommunitiesareavehicletospeedupthatprocess President MontgomeryWatsonHarzaAmericas 24 Whatarecommunitiesofpractice Groupsofpeoplewhocometogethertoshareandtolearnfromoneanotherface to faceand orvirtually Theyareheldtogetherbyacommoninterestinabodyofknowledgeandaredrivenbyadesireandneedtoshareproblems experiences insights templates tools andbestpractices Membersdeepentheirknowledgebyinteractingonanongoingbasis Thisinteractionleadstocontinuouslearningandinnovation 25 CPsarenotteamsorpersonalnetworks McDermott2001 26 CommunitiesarethegreaseintheKMwheel Creatingknowledge Embeddingknowledge Disseminatingknowledge Organizingknowledge C CODE KM 27 Roleofcommunitiesofpractice Create Own developknowledgeDevelop managegoodpracticeBuildorganizationalcompetenceOrganize Develop managematerialsDeveloptools guidelines templatesManagedatabasesDisseminate ConnectpeopleacrossboundariesWhoknowswhatHomeinchangingorganization anuprootedsocietyEmbed Shareideas insightsSharetacit complexideas insightsHelpeachothersolveproblems findinnovations 28 Helping Best practice Innovation Knowledgestewarding Communitiescanhaveadifferentprimarypurpose 29 Communitymembershipandroles Coordinator Peripheral CoreGroup Active 30 Twoextremecommunitiesofpractice Face to face Virtual 31 Communitiescrossallboundaries Company Suppliers Customers Competitors 32 Organization Don tforgettosupportinformalexternalnetworksattheindividuallevel Electroniccommunities Partners Customersandsuppliers Previousworkandschoolcolleagues External Largeportionofnewideasandformalcollaborationrelationshipscomefrompersonalexternalcontacts 33 Encourageanopeninnovationattitude Notallthesmartpeopleworkforus Weneedtoworkwithsmartpeopleinsideandoutsidethecompany Thesmartpeopleinourfieldworkforus Ifyoucreatethemostandthebestideasintheindustry youwillwin Ifyoumakethebestuseofinternalandexternalideas youwillwin Closedattitude Openattitude Chesborough2003 34 ExamplesofcommunitiesofpracticeatEricsson Magnusson Davidsson2004 35 EricssonCompetenceGroups BackgroundandobjectiveToimproveknowledgesharingbetweenFlowControlcentersworldwidethatresponsiblefororderfulfillmentandcompleteorderflowOrganization14CompetenceGroupsfocusedononeFlowControlfunctioneach e g forecasting invoicing consistingofonememberfromeachof14FlowControlCentersworldwideEachCGheadedbyoneleaderwhodevotes30 oftimetoCGActivities14CGleadersmeetonceamonthandallCGmembersmeet3 4timesayearat2dayseminarDevelopcommonterminologyandprocessesDiscussprocessimprovementsandhowcanbeimplementedMonthlyphoneconferencestodiscussongoingworkCriticalsuccessfactorsWelldesignedorganizationAllallowedtocontributeandsuggestimprovements Magnusson Davidsson2004 36 Country1 Country2 Country14 1 Process IT 2 Ordermgt 14 Customercare Function Countries EricssonCompetenceGroupsforworldwideFlowControlCenters 3 Forecasting CGFunctionLeaders14leadersmeetmonthlyWork30 onCGCGFunctionMembers2dayseminar3 4xs yearMonthlyphoneconferenceWork3 5days mthonCG ProgramManagerCoordinatorWebAssistant Magnusson Davidsson2004 37 CapGemini NCNMSElectronicCommunity BackgroundandobjectiveToprovideprogrammersworkingwithMicrosoftproductsaforumtohelpeachothersolveproblemsOrganization345programmersacrossNordiccountriesActivitiesHelpingeachotherthroughpostingquestionsandresponsesonlistservnicknamed L2A2L Learntoasktolearn Criticalsuccessfactors Eldsj l onewhoburnedforcommunityandwalkedthetalkHighlevelofreciprocity 38 Anorganization sstructures systems andpracticesthatfacilitate withthegoalofenhancingtheorganization scompetitiveness Globalstrategy Whatisknowledgemanagement Creatingknowledge Embeddingknowledge Disseminatingknowledge Organizingknowledge C KM CODE 39 Whatisyourorganization sKMvision BritishPetroleum sKMVisionBPknowswhatitknows learnswhatitneedstolearn andusesknowledgetocreateoverwhelmingsustainableadvantage InglobalorganizationsKMisincreasinglycomplicated ThreetypesofboundariesInternalGeographical physical cultural Organizational horizontal vertical ExternalOrganizational formal informalrelationships 41 anddifficulttoachieve Gupta Govindarajan2000 Numberofsubsidiariesprovidingandreceivingknowledgeandskills 42 ChallengestosuccessfulKMprocesses IndividuallevelSubsidiarylevel 43 Twodepartmentswithinthesamefirm Department1 Department2 44 Unawarenessandpowergames Iconprogrammers Stockholm 45 SanFrancisco Stockholm London Brussels Helsinki Madrid Copenhagen IslandsofcompetencedespiteintensiveKMefforts Iconprogrammers Worldwide 46 Biggestdifficultiestosuccessfullymanagingknowledgeinorganizations Culture Topmanagement sfailuretosignalimportance Lackofsharedunderstandingofstrategy Organizationalstructure IT Communicationrestraints Incentivesystem Lackofproblemownership Ruggles1998 47 Biggestdifficultiestoknowledgetransfer Changingpeople sbehavior Measuringvalue performanceofknowledgeassets Determiningwhatknowledgeshouldbemanaged JustifyinguseofscarceresourcesforKMinitiatives Makingknowledgeavailable Attractingandretainingtalentedpeople Mappingorganization sexistingknowledge Ruggles1998 48 So whyshouldIshare Yougottarememberthatwe rehiredtobestarshereandnotteamplayers ResearcheratonehightechnologyfirmwithpoorknowledgeflowSometimesIgetcallsfromotheroffices ItfeelsweirdifIdon tknowtheperson IliketohelpthemonlyifIknowthem Programmeratsoftwaremultinational 49 Whataresomebarrierstosuccessfulknowledgemanagement 50 Challengeswithexternalnetworks Everybodyknowsthatifyourecruitonetalentedprogrammer you llgettwentyforfree SupportmanagerwithalargerSwedishTelecomcompany Lundkvist2003 51 Loyalty Loyalty Individualsoftenhaveconflictingloyalties Organization Profession Firmboundary 52 Isknowledgetradinggoodorbadforafirm Wepassoverthenondisclosureagreementsofdifferentcompaniesandtradecompanysecretsallthetime 53 Whoownstheknowledge Organizationalinformationvs Personalexpertise 54 Whataboutindividualperformance Ahighdegreeofparticipationinlocalcommunitiesofpractice On timeperformance Creativeperformance 55 Buthereweseethereverse Ahighdegreeofparticipationindispersedelectroniccommunities On timeperformance 56 Insummary individualshavechoicesabouthowtheyusetheirknowledge KnowledgeresidesinthemindsofindividualsIndividualsmakeownchoicesaboutknowledgeShareopenlyforthebenefitoftheorganizationProtectanduseonlyinworkpracticePerceptionthatanindividual svalueisdiminishedifshareknowledgeKnowledgeispowerProtectanduseonlyinexternalrelationshipsforownbenefitKnowledgeleakageLeavethefirmandtakeknowledgewiththem 57 andmostimportantly managementcannotmandatesocialrelationships John Eva Hans Miguel Paul 58 ChallengestosuccessfulKMprocesses IndividuallevelSubsidiarylevel 59 Aconstantlocalvsglobaltension Wedonotwanttobemanagedinourchoiceofcompetenceelements Wewouldwanttoselectthoseelementsthatweneed LineManager EricssonNorwaySpontaneityandcreativitycouldbethelosersinsomeareasbyimplementingglobalsolutions However the BestPractice policyinEricssonconcernscapturinggoodideas whichofcoursemaycomefromotherareasintheorganization HRManager EricssonNorway Hustad Munkvold2005 60 ConflictingdemandsonsubsidiariesleadtoresistancetoglobalKMprocesses OpportunitycostoftimeOpportunitycostofresourcesNot invented hereKnowledgeispower 61 Internalturfwars ItwouldhavebeenmucheasierformetotransferfromtheNewYorkofficetotheCaliforniaofficeifIhadjustquittheorganizationinNewYorkandthenreappliedforajobintheCaliforniaone Researcher XeroxCalifornia 62 Thechallengeofknowingwhatisbestpractice Hereoneknows Hereonedoesnotknow Arvidsson2002 63 Globalstrategy Aligningoperationsincreasessuccess KMCODE KMCODE CompetenceManagement MotivationManagement 64 SupportingglobalKMprocesses CompetenceManagement MotivationManagement Providingtheorganizationwiththerightmixoftalenttomeetexistingandfutureneeds Creatinganopen knowledgesharingculturewithahighdegreeofcompanyloyalty 65 Avarietyoftools CompetencesystemRecruitingIncentivesNetworksAvisionaryorganization CompetenceManagement MotivationManagement 66 Creatingacompetencemanagementsystem StandardizationCreatecommonstructureandterminologyDefineprofessional business andhumancompetenciesrelatedtoglobalstrategyandKMgoalsDon tunderestimatethistask AnalysisPersonaldevelopmentdiscussionsMappingofpresentandfuturetargetcompetencelevelsforindividualsandthenforbusinessunitsDefiningcompetencegapatbothlevelsPlanningandimplementationPreparecompetencedevelopmentplanImplementandevaluate Magnusson Davidsson2004 67 CreatingcompetencechartsatEricsson Individualsinoneunit Comparisonofunits Professional Operations financial etc Business Markets corebusiness strategy etc Human Interpersonal communication KMattitudes etc Magnusson Davidsson2004 68 CMsupportsKM Ithinkthatcompetencemanagementcanplayanimportantroleinknowledgemanagement Youcansearchforpersonswithcertaincompetenciesveryeasilythroughthattool Peoplehavingthesamecompetenciesandinterestscanbeaccessedandgettogether CompetenceManager EricssonCroatia Hustad Munkvold2005 69 Avarietyoftools CompetencesystemRecruitingIncentivesNetworksAvisionaryorganization CompetenceManagement MotivationManagement 70 Recruiting Whatshouldonelookfor Anexperiencedprofessionalwhohasworkedextensivelyinanothercompanywithdifferentvaluesandphilosophy Ayoungpersonwholacksprofessionalexperiencebuthastherightattitude Itischeaperandeasiertodeveloptechnicalskillsthantryingtochangementality HRManager EricssonRussia OR 71 you hire hisorhernetwork Whenyouhiresomeone 72 Avarietyoftools CompetencesystemRecruitingIncentivesNetworksAvisionaryorganization CompetenceManagement MotivationManagement 73 AligningincentiveswithKM RecognizeandrewardforcollaborativebehaviorAtindividual unit andorganizationallevelsShowmanagementcommitment Statusandrecognition Challenge Satisfaction Monetary 74 Examplesofincentives MonetaryNucorSteel Bonusesbasedonperformanceofrelevantgroup e g individualsandtheirworkgroup departmentmanagersandtheirplantStatusandrecognitionMcKinsey PracticeDevelopmentFlyersXerox TipoftheMonthChallengeMcKinsey PDOlympics Satisfaction 75 Encourageexperimentationandacceptfailure EveryNucorplanthasitslittlestorehouseofequipmentthatwasbought tried anddiscarded Justdon tkeepmakingbaddecisions Chairman NucorSteel 76 Butbeawareoflocaldifferences Globalefficiency Nationalresponsiveness 77 WorkingonempowermentisakeychallengeinChina Ouremployeesarenotusedtoworkinginanempoweredenvironment andittakesalongtimeandmuchefforttoexplainwhatempowermentisallabout Weareworkingonthisandhavemadesomeprogress butwehaveawaytogo GeneralManager TetraPakHoyerChina Fey Pavlovskaya Tang2004 78 OurheadquartersinSwedenprovidesuswithaclearplatform YetwestilladjustittotheChinesesituation Forexample whenwedesignourcompensationandbenefits weneedtothinkaboutwhattheChinesegovernmentrequiresustodoforsocialsecurityandmedicalinsuranceandwhatwillmotivateChineseemployeesbest Thus somedifferencesexistbetweenthesysteminChinaandthatfoundinSwedenHRDirector ElectroluxChina Fey Pavlovskaya Tang2004 79 Work to live culture Riskavoidance CulturaldifferencesaffectKMbehaviors 80 Avarietyoftools CompetencesystemRecruitingIncentivesNetworksAvisionaryorganization CompetenceManagement MotivationManagement 81 SanFrancisco Stockholm London Brussels Helsinki Madrid Copenhagen Promotesocializationtobuildnetworks RotatedfromStockholm Iconprogrammers Worldwide 82 Whyencouragesocialization Trust commitment andanopenenvironmentareessentialforknowledgeexchangeinnetworks 83 Socializationexamples Cross officeandcross functiontrainingprogramsMcKinsey sintroductionanddevelopmenttrainingprogramsCross officeprojectsProjectsofteninvolvemorethanoneofficeatEricssonR DJobrotation Thereare12differentwaystorotateatHP OnlinecareerdevelopmenttoolatNovartisSlackshopsHPR DallowstimeandprovidesresourcestoexperimentonnewideaswithotherswhohavesameinterestsInformaleventsPlantmanagersatNucorSteelorganizebusinessmeetingsthroughoutyearsoeveryemployeeattendsonemeetingperyear 84 Mythsandrealitychecksaboutnetworks Ialreadyknowwhat sgoingoninmynetwork Thosewhothinktheyknowtheirnetworkthebestareusuallytheoneswhoknowtheleast Tobuildnetworks wehavetocommunicatemore Tobuildbetternetworks focusonastructuredanalysisofthem Wecan tdomuchtohelpinformalnetworks Informalnetworkscanbesupportedthroughchangingtheorganizationalcontext Howpeoplefitintonetworksisamatterofpersonality whichcan tbechanged Howpeoplefitintonetworksisamatterofintentionalbehaviors whichcanbeinfluenced AdaptedfromCross Nohria Parker2002 85 Leverageandunderstandinternalandexternalnetworks IdentifywhichnetworksareimportanttounderstandE g productdevelopment mergerintegration etc CollectnetworkdataE g observe interviewpeople conductquestionnaire trackemail etc Askappropriatequestions e g advice trust innovation etc PretestsurveyonemployeesampleforreactionsDeterminecausesoffragmentednetworksE g physicallayout workflow jobdescription leadershipstyle knowledgeattitudes etc AdaptedfromCross Nohria Parker2002 86 Improveconnectednessandunplugbottlenecksinternally Reevaluatedesignofteams roles etc RethinkworkprocessesandprovidesupportReassigntasks rotateindividuals etc Shiftresponsibilities 87 Avarietyoftools CompetencesystemRecruitingIncentivesNetworksAvisionaryorganization CompetenceManagement MotivationManagement 88 Nurturingavisionaryorganization Aframework Awell conceivedvisionconsistsoftwomajorcomponents 2 Whatweaspiretobecome achieve create changing Collins Porras1996 Whatwestandfor whyweexist constant 89 1 Whyweexistandwhatwestandfor Mission purposeTheorganization sreasonforbeing notagoalorastrategyCapturesthesouloftheorganizationandshouldlast a100years Canneverbefullyrealized butinspireschangeandprogressIsthestaronthehorizon seenandtobechasedforever 3MTosolveunsolvedproblemsinnovativelyMerckTopreserveandimprovehumanlifeWaltDisneyTomakepeoplehappyWal MartTogiveordinaryfolksthechancetobuythesamethingsasrichpeople Collins Porras1996 90 1 Whyweexistandwhatwestandfor CorevaluesAsmallset oftennomorethan5 ofguidingprincipleswithintrinsicvalueandimportancetothoseinsidetheorganizationStandthetestoftime evenwhencircumstancesaroundchangeCannotbeforceduponpeople mustbesharedattheoutset MerckCorporatesocialresponsibilityScience basedinnovationHonestyandintegrityExcellenceinallaspectsofthecompanyProfit butprofitfromworkthatbenefitshumanity Collins Porra

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