Engr. Edward Ang

 

 

 

MAHATMA GANDHI

 

 

 

SINS OF THE WORLD

 

Wealth without work.

Pleasure without conscience.

Commerce without morality.

Worship without sacrifice.

Politics without principle.

Knowledge without character.

 

The error of youth is to believe intelligence is a substitute for experience,

while the error of age is to believe experience is a substitute for intelligence.

 

Your actions will speak for itself.

 

POWER

  • Power is of two kinds. One is obtained by the fear of punishment and the other by acts of love.

XXV-563

  • Power based on love is a thousand times more effective and permanent than the one derived from fear of punishment.

XXV-563

  • Real power does not consist in the ability to inflict the capital punishment upon the subjects, but in the will and the ability to protect the subjects against the world.

T-2-178

  • There is an indefinable mysterious Power that pervades everything.

T-2-312

  • Whilst power, superimposed, always needs the help of police and military, power generated from within should have little or no use for them.

MM-345

END

 

 

Do we need a Knowledge Management Officer ?

 

Write-up by Engr. Edward Ang

For the executive committee meeting.

January 21, 2003

 

This write-up is a product of voluminous research published in management journals, and compilations from the research academy done in various parts of the world through the Internet.  It tends to examine attributes of the Knowledge Management Officer or KMO position and the backgrounds of the people who fill it. Variations in the prescribed role for the KMO are reviewed, as are KMO critical success factors. One critical knowledge management issue, implicit-to-explicit knowledge conversion, is investigated in some depth to reveal the unique nature of issues confronting the KMO position. Finally, the arguments for potentially not implementing a KMO function are discussed.

 

T he Knowledge Management Officer (KMO) is an old paradigm under a new concept created to help manage a unique organizational asset — intellectual capital. The KMO concept is rooted in the realization that companies can no longer expect that the products and services that made them successful in the past will keep them viable in the future. Instead, companies will differentiate themselves on the basis of what they know and their ability to know how to do new things well and quickly. The changes and pressures of a rapidly changing global, information-based economy make knowledge vital to organizations.

 

The “intangibles” that add value to most products and services are knowledge-based — technical know-how, product design, marketing presentation, understanding the customer, personal creativity, and innovation. Critical success factors for organizations today — the need for speed, management of complexity a sense of history and context, effective judgment, and organizational flexibility — are all related to and dependent on organizational knowledge.

 

To meet these challenges, firms must recognize that long-term prosperity depends on management’s ability to leverage the hidden value of corporate knowledge. They must understand and appreciate that people in the organization may be ignoring past mistakes, making the same mistakes over and over, and wasting time that could be saved by making better use of the collective knowledge that exists in the organization. They must be candid and accept the premise that they are often not making good use of employee knowledge. In a nut- shell, they must realize that intellectual capital probably matters more than any other asset and must be managed explicitly, not left to fend for itself. Hence, in response to this realization, many firms are creating the KMO function.

 

The KMO role

 

The responsibility for developing and implementing knowledge management programs often falls on the shoulders of a KMO. It becomes the KMO’s responsibility to develop a strategy that dictates how a company handles its intellectual assets, which include such elements as creativity, communication ability, analytical skill, and intuition, along with traditional, bottom- line accounting and production bench- marks. The KMO’s goal is to foster a corporate culture that is constantly learning and growing by getting the firm’s individuals committed to learning, and to embed that in the process structure of the business.

 

To accomplish the KMO’s objectives, certain technical and organizational infrastructures must be in place so that knowledge can be transmitted, received, and clearly understood. Therefore, a KMO must address the following critical knowledge management activities:

 

•    Development of the knowledge management big picture, perhaps including a vision for the knowledge management program.

 

 •   Active promotion of a knowledge agenda, including the development and diffusion of knowledge management models, frameworks, and language.

 

•   The design, implementation, and over- sight of the creation and development of the organization’s knowledge architecture and infrastructure, including its libraries, knowledge bases, human resources, computer knowledge networks, research centers, and academic relationships.

 

•   The securing and prioritization of funding for knowledge management programs.

 

•   The establishment of a knowledge culture by creating mechanisms for the development and maintenance of knowledge bases in different functions and departments.

 

 •   The facilitation of knowledge-oriented connections, coordination, and communication activities, both internally and with important external constituencies.

 

•   The identification, measurement, and dissemination of results. The KMO must determine how better management of knowledge will make or save money for the firm and must document that economic impact.

 

However, what a KMO is functionally able to accomplish may depend on how and where the KMO role is positioned in an organization. For example, the KMO may be established as a senior standalone role, one in which the KMO’s responsibilities are seen as important and substantial enough to require significant power, authority, and influence. In such a role, the KMO would likely value ongoing communications with information technology and human resource executives, both of whom help to shape information sharing channels and capabilities. In this standalone role, some firms view the KMO as a position at the level of chief knowledge officer, chief technology officer, chief information officer (CIO), and chief operating officer, with duties that stretch across the company.

 

It is possible for the KMO function to report to Human Resource Department. The advantage here is that the KMO could help to shape personnel practices that facilitate employee empowerment and cross-departmental dialogue. At the same time, however, the HR function may already be consumed with other activities and do not want to add the responsibilities of creating, disseminating, and managing knowledge. The KMO function could also be embedded within the CIO role. Certainly technology is critical for information capture, storage, analysis, and dissemination. However, this might create a conflict of interest — CIOs typically care about information infrastructure, not information content. Moreover, CIOs often are not included in the senior management’s inner circle. Hence, many firms deliberately place the position outside the organization and assign it a high level of status and authority.

 

The KMO job description.

 

Once the position has been established, the job description itself can encompass a number of responsibilities. For example, the KMO might be responsible for leading executive management to develop an enterprise knowledge strategy, validating this strategy across the enterprise and then ensuring that its evolution complements and integrates with business strategy. The KMO may also be charged with setting priorities and securing funding for knowledge management (KM) programs as well as defining policies for security, usage, and maintenance of intellectual capital. Depending on the organizational culture, the KMO may also act as the chief advocate for KM as a discipline, walking and talking the program throughout the enterprise and assisting executives and senior management in building and communicating personal commitment and advocacy for KM.

 

In any scenario, the KMO must at least be responsible for managing and administering the day-to-day activities of the KM program and infrastructure. As noted earlier, this means overseeing the development of a KM architecture and assessing the specific knowledge needs of business processes. Moreover, the KMO must ensure the integration of KM into employees’ job activities, into key processes, and across communities of practice. KMOs should also lead the development of formal programs that foster knowledge sharing and innovation, define expectations for individual and community participation in the KM program, and ensure participation and knowledge contribution by all levels of experts (including executive management). In addition, they should create a process to measure benefits and progress against program goals — including competitive advancements, knowledge created, innovations, cost savings, speed of response, development of experts, sharing, and participation — and then communicate the achievements and shortcomings of the program. Finally, KMOs should manage relationships with external providers of information and knowledge and negotiate contracts with them.

 

What are the qualifications of the people currently filling these positions?

 

In a recent study conducted by Professors Michael Earl and Ian Scott of the University of California, Berkeley, 20 KMOs in North America and Europe, find that typically the KMO is a high-level appointment and that the individual chosen for the position is usually a member of senior management with an annual salary ranging from $200,000 to $350,000 per year. Their profile of KMOs reveals the following characteristics:

 

•   There is no such thing as an average KMO: they come from a wide range of professional backgrounds and organizational expectations of them differ.

 

•   Most KMOs know the businesses and cultures of their corporations from personal experience, and all of them are established figures in their organizations.

 

•   All of the KMOs are at least somewhat knowledgeable about, and are fully comfortable with, information systems and technology (though only a few have spent most of their careers in these fields).

 

•   Almost all KMOs are in their mid-thirties, suggesting that significant business and industry experience are required.

 

•   Most KMOs have direct access to the CEO, the President or the chief executive of a major autonomous business unit.

 

Interestingly, many KMO positions that are created are justified more on the basis of intuition than logic. Most organizations appear to have taken a leap of faith in creating the position, believing that the potential for high gains offset the risks of implementing the position. Because knowledge management is an emerging field, books, conferences, conventions, and input from multi-sectoral business organizations often constitute the only training KMOs have, and none have predecessors from whom they can seek guidance. Many KMOs start out as management consultants or college professors, with some having backgrounds of both engineering and business management.

 

Critical Success Factors

 

Earl and Scott have also identified five critical factors that mitigate KMO success. They found that KMOs :

 

•   Need ongoing support from the CEO or the President in order to win the trust and support of the senior executive team and line managers as a whole,

 

•   Need “slack” to get the problems solved. This translates to multiyear funding, pilot testing to try things out, and time to prove the value of knowledge management,

 

•   Need a clear appreciation that organizational members differ in their knowledge needs and their ability to contribute to the knowledge pool,

 

•   Need an ability to tolerate ambiguity. Knowledge itself is vague, and it is usually difficult to quantify the results of a knowledge management effort.

 

•   Must show early visible results from their efforts.

 

These factors suggest that the KMO must first be an effective leader. That is, a KMO must be able to form good working relationships with the CEO or the President and with operation, information, and financial officers, as well as with line executives. Doing so allows KMOs to participate in strategy development from the start, rather than after the fact, which gives them a jump-start on change initiatives.

 

Knowledge management experts Tom Davenport and Larry Prusak have argued that the person occupying the KMO position should have four personal characteristics to ensure success:

 

•   Deep experience in some aspect of knowledge management, including its creation, dissemination, or application

 

   Familiarity with knowledge-oriented organizations and technologies (computer softwares)

 

•   Display of a high level of knowledgeability directly related to one’s professional stature

 

 •   Comfort with (and, ideally, personal experience with) the primary processes of the business

 

A recent study of KMOs by the consulting firm finds that the majority of KMOs have most of these attributes. They also found that many persons occupying KMO positions come from planning, developing and training teams and possess one of three main backgrounds: information technology (IT), human resources, or a core business function. Their common strength appears to be their understanding of the organization and its business drivers, combined with an ability to take a holistic view of the company and to understand the mix of hard and soft skills necessary to create, sustain, and utilize the knowledge base.

 

Others have argued that the primary critical success factor for a KMO is the ability to create an environment that is supportive of learning. To do that, the KMO must be able to disabuse workers of the notion that corporate learning is simply training, and especially classroom training. In other words, the KMO must be able to convince workers of the value of learning through shared experiences. This sharing of experience can range from on-the-job-training to the use of role-playing and computer simulations. Implicit in this is the notion that the KMO must be able to inculcate the notion that learning is a group activity in which knowledge is shared. That is, people and teams must be made to work and learn together. Teams must also work together and learn seamlessly, not only in their units, but with others throughout the whole corporation. This requires a collective learning commitment, one in which people invest their discretionary energy in the vision of the corporation. Here conditions for KMO success include :

 

•   A corporation that sees learning as critical to its business strategy, not just a nice thing to have

 

•   An environment that recognizes that there is a collective intelligence through- out the organization

 

•   A top management commitment to embed and integrate learning in all business processes.

 

 

Managing different forms of knowledge

 

A KMO’s view of knowledge management depends on his or her attitudes about explicit knowledge and implicit knowledge. Explicit knowledge is defined as knowledge that can be expressed formally using a system of symbols and can therefore be easily communicated or diffused. It is either object based or rule based. It is object based when the knowledge is codified in strings of symbols (e.g. words, numbers, formulas) or in physical objects (e.g. equipment, documents, models). Object-based knowledge may be found in such items as product specifications, patents, software code, computer databases, technical drawings, and the like. Explicit knowledge is rule based when the knowledge is codified into rules, routines, or standard operating procedures.

 

Organizational members perform their work and make sense of their world using implicit knowledge as well. Implicit knowledge is knowledge that is uncodified and difficult to diffuse. It is hard to verbalize, because it is expressed through action- based skills and cannot be reduced to rules and recipes. Implicit knowledge is learned through extended periods of experiencing and doing a task, during which the individual develops a feel for and a capacity to make intuitive judgements about the successful execution of the activity. Implicit knowledge is vital to the organization, because organizations can learn and innovate only by leveraging the implicit knowledge of its members. Despite its being uncodified, implicit knowledge can be and is regularly taught and shared. It can be learned by example.

 

Implicit knowledge becomes substantially valuable when it is turned into new capabilities, products, or services.

 

It is important to note that implicit knowledge serves an important role in the innovation process. It facilitates problem definition, problem solving, and predicting the outcomes of potential solutions. However, it is often problematic to express implicit knowledge in a manner that others understand; hence, formal intellectual exchanges as well as apprenticeships should be used to tap implicit knowledge.

 

KMOs preoccupied with explicit knowledge typically promote the use of technology to enable information distribution and sharing. Technologies that KMOs can employ in the explicit knowledge management process include text storage and retrieval systems, expert systems, Lotus Notes groupware, and Intranets. Interestingly, KMOs taking an explicit knowledge bent often admit that implicit knowledge may ultimately be more important to the organization. Indeed, in a study that observed the success and failures of more than 100 knowledge management projects, it was observed that one factor that may limit the success of knowledge management programs is an overwhelming focus on explicit (as opposed to implicit) knowledge.

 

KMOs who emphasize implicit knowledge typically spend a great deal of their time enabling, facilitating, and promoting informal dialogues. These KMOs appear to accept the premise that managing implicit knowledge means accepting chaos, ambiguity, and uncertainty, and they feel that capturing implicit knowledge is expensive, because it can be revealed only through conversations. For these KMOs, technology cannot be a driving force in implicit knowledge management because it lacks the media richness of face-to-face conversations (though some KMOs do promote video conferencing, since it enables nonverbal communication).

 

Problems managing different forms of knowledge

 

In their book, The “Knowledge Creating Company”, knowledge management pioneers Nonaka and Takeuchi argue that organizational knowledge creation is a process that organizationally amplifies the knowledge created by individuals and crystallizes it as a part of the knowledge network of the organization. They contend that there are two sets of dynamics that drive the process of knowledge amplification:

 

A.     Converting implicit knowledge into explicit knowledge

 

B.     Moving knowledge from the individual level to the group, organizational, and inter organizational levels

 

Nonaka and Takeuchi therefore see implicit knowledge and explicit knowledge as complementary entities, and they present four modes in which organizational knowledge is created through the interaction and con- version between implicit and explicit knowledge:

 

 

1.      Socialization. Sharing experiences creates implicit knowledge, taking such forms as shared mental models and technical skills.

 

2.      Externalization. Triggered by dialogue, implicit knowledge becomes explicit during a period of collective reflection through the sharing of metaphors, analogies, models, or stories.

 

3.      Combination. This is the process of combining or reconfiguring disparate bodies of explicit knowledge that leads to the production of new explicit knowledge. This is a common form of knowledge transfer that typifies the learning in schools and instructional programs.

 

4.      Internalization. This is the process of learning and socializing by repetitively doing a task so that the explicit knowledge of the applied principles and procedures becomes absorbed as the implicit knowledge of the individual’s style and habit.

 

Implicit knowledge may be informally shared through rich communication devices, such as metaphors, analogies, models, and stories.

 

Although it has been noted that implicit knowledge is personal and difficult to codify formally, Dr. Chun Wei Choo states in his book, The “Knowing Organization”, that implicit knowledge may nevertheless be informally shared and revealed through the use of rich communication devices such as metaphors, analogies, models, and stories. Through a process of combination, testing, and refinement, Choo says that implicit knowledge is progressively transformed into more explicit, tangible forms, such as innovations, enhanced products or services, or new capabilities. Through this process, a work group may also develop new knowledge by absorbing knowledge from outside the group or organization, or conversely by transferring its own knowledge to other departments or organizations. Hence, Choo believes that knowledge conversion is as much a social as a technical process and that the pace and scope of the knowledge mobilization process depends on the culture of the organization. That is, the cultural knowledge influences behaviors such as the sharing of information, willingness to experiment, and working with outsiders.

 

Although dialogue, narratives, and other sharing activities are suggested as vehicles for implicit to explicit knowledge conversion, these processes are also time-consuming. Indeed, Davenport and Prusak state that the codification process for implicit knowledge in some organizations is generally limited to locating someone with the knowledge, pointing the seeker to it, and encouraging the parties to interact. As a result, Davenport and Prusak indicate that some KMOs choose to deal with implicit knowledge through the creation of knowledge maps that point to knowledge, do not contain it. These knowledge maps act as guides to people with implicit knowledge, or documents and databases that contain explicit knowledge. They note that Lotus Notes, Web browser/intranet systems, and, more recently, corporate portals are the most common technology-based systems used to publish corporate knowledge maps. Davenport and Prusak acknowledge that there are limitations to using knowledge maps. They explain that while mapping organizational knowledge identifies where knowledge is, it does not guarantee the ongoing availability of the knowledge. That is, knowledge mapping effectiveness depends upon whether the sources of knowledge have time available to share that knowledge and whether they are an active members of the organization.

 

From experience, the authors agree that knowledge maps are insufficient. Moreover, the use of dialogue and narratives cannot be circumvented because they are so essential to the transformation of implicit knowledge to explicit knowledge. However, these processes must be more focused to enable more efficient knowledge exchange. Otherwise, many KMOs will continue to avoid dealing with implicit knowledge because the knowledge sharing and conversion processes are too cumbersome, chaotic, and expensive to manage, thereby frustrating the KMO’s need to show visible results from his or her efforts. The obvious question is, “So how can KMOs make knowledge transfer more efficient?”

 

KMOs should employ knowledge exchange protocols to help improve the knowledge exchange process. Knowledge exchange protocols are procedures that help structure implicit knowledge sharing so as to yield a reasonably rich narrative while also enabling efficient implicit knowledge encoding without negating its leverageable value. Simply put, KMOs need to use techniques that structure, restrict, streamline, and focus narratives in order to speed up the knowledge transformation process. If the reader shares or is persuaded by these ideas, additional support can be found in the work conducted by researchers Vimla Patel, Jose Arocha, and David Kaufman, who examine knowledge management activities in the medical community. Patel and his colleagues argue that advances in learning are often dependent on making implicit knowledge explicit and thereby amenable to conceptual change. In the same vein, prior learning may be reinforced if implicit knowledge made explicit is reaffirmed. Their investigations provide clear evidence of the existence and the nature of implicit to explicit knowledge conversion in the medical field and the importance of structure in enabling this process.

 

For example, physicians have evolved specific structuration techniques that help in both knowledge exchange and its conversion. Students learn the SOAP protocol (subjective –objective — assessment — plan), which is an important component of the clinical teaching process. SOAP is used to structure both the clinician-patient encounter and the resultant documentation in the patient’s medical record (where the clinician’s implicit knowledge is made explicit). Formal medical review processes use SOAP documentation to evaluate clinician assumptions underlying action; as a result, implicit knowledge comes into focal awareness and scrutiny.

 

KMO use of similar protocols to structure the implicit to explicit knowledge conversion process is important in order to make the knowledge-transfer process more productive and efficient. Therefore, the authors suggest that such protocols, which they term knowledge exchange protocols (e.g., SOAP), are transferable structural aids that can potentially facilitate and improve KMO knowledge management efforts.

 

What is critical is to understand that knowledge exchange protocols are not simply a vehicle for enhancing technical knowledge conversion issues. They represent a “how to” for promoting and facilitating learning and sharing in a way that very much reinforces the KMO’s goal of fostering and enabling an effective knowledge sharing culture.

 

Knowledge Management Officer, A New Shift

 

Knowledge management as a discipline and the KMO as a new executive entity are both evolving. Clearly, there are inconsistencies in KMO roles, responsibilities, titles, and training. Moreover, there are even some concerns as to the need for having KMOs in knowledge management efforts.

 

Indeed, a recent article in Computer world contends that many firms feel that having a KMO is the wrong way to harness corporate know-how. Instead, some firms prefer a more grassroots approach, in which a team of knowledge management experts works closely with or even as part of the business units. KMOs were supposed to straddle business and information technology functions with a mandate to convince workers that it is good to share information and to work with IT to build applications to support such sharing. The problem was that companies found that putting more control of knowledge management in the hands of end-users themselves made it an easier sell. The article cites as evidence a study by Boston’s Delphi Group of 25 companies that have knowledge management groups. That study finds that that the bulk of knowledge sharing in these companies happens within business units. The research concludes that this evidence suggests that having a KMO under such circumstances would send the wrong message. Indeed, the article reports that some participants in the study said that knowledge management positions were seen as an interim step designed to bring knowledge management to a critical mass essentially a statement of corporate priorities, enabling knowledge management to become part of the corporate culture.

 

Earl and Scott have argued that appointing a KMO is one way of galvanizing, directing, and coordinating a knowledge management program. However, they also feel that it is unlikely to be sufficient in itself, nor is it likely to be universally necessary. They concede that some organizations are investing in aspects of knowledge management without appointing a KMO. They believe that knowledge management, like total quality management, will become embedded in organizations and knowledge will become an obvious imperative source of value creation and competitiveness. In this scenario, all members of firms will own and drive knowledge management and, hence, the importance of and need for a KMO might decline.

 

Contingency theory is useful in explaining company preferences relative to the need for and adoption of KMO positions. That is, in mature, knowledge sharing organizational cultures, the KMO function may not need to be formalized as a distinct management position. However, because of the relative newness of the concept, many organizations are somewhat less knowledge management mature. In these firms, knowledge management probably comprises a large agenda, and progress will take time. Under these circumstances, the KMO can act as a driver, leader, or coordinator of a knowledge management effort, serving to keep up momentum, while also facilitating efforts to distill, codify, and share learning about raising the firm’s knowledge capabilities.

 

Some argue that the KMO’s position is constrained by its inability to resolve issues concerning implicit to explicit knowledge conversion. Indeed, as previously discussed, most KMOs emphasize either an explicit or implicit focus. But this strategy is based more on pressures to produce demonstrable results than on the logic of facilitating organizational “knowing.” Both Choo and Nanaka and Takeuchi contend that such compromising tactics necessarily compromise the effectiveness of knowledge management efforts. They argue that implicit to explicit knowledge conversion is the very essence of the knowledge creation and amplification process. Therefore, if a KMO sidesteps this issue, the KMO is inevitably compromising the long-term success of the knowledge management effort itself. However, better techniques need to be developed to help the KMO improve the efficiency of the implicit-to-explicit knowledge transfer process.

 

The success of a KMO inevitably depends on finding ways to prove the worth of the enterprise. The CEO or the President, the firm’s culture, and the personality of the KMO will shape any knowledge management effort, and therefore the outcome is likely to be as distinct as a fingerprint. In the end, it may not matter who or what leads the knowledge management effort as long as the effort is done and done well.

 

References

 

1.      Choo, C.W. (1998). The Knowing Organization. Oxford University Press, New York, NY.

 

2.      Cole-Gomolski, B. (1999). “Knowledge ‘Czars’ Fall from Grace.” Computerworld , (33:1),1,13.

 

3.      Davenport, T. and Prusak, L. (1998). Working Knowledge. Harvard Business School, Boston, MA.

 

4.      Earl, M. and Scott, I. (1999). Opinion: “What is a Chief Knowledge Officer?” Sloan Management Review, 40(2), 29–38.

 

5.      Herschel, R. and Nemati, H. (1999). “CKOs and Knowledge Management: Exploring Opportunities for Using Information Exchange Protocols. Proceedings of the ACM SIGCPR Conference . New Orleans, LA. 42–50.

 

6.      Nonaka, I. and Takeuchi, H. (1995). The Knowledge Creating Company, Oxford University Press, New York, NY.

 

7.      Patel, V., Arocha, J., and Kaufman, D. (1999). “Expertise and Implicit Knowledge in Medicine.” In Implicit Knowledge in Professional Practice. Sternberg R. & Horvath, J. (Eds.) Lawrence Erlbaum Assoc., Mahwah, NJ.

 

8.      TFPL. (1998). “What Is a CKO — A Concept or a Team?” TFPL’s Knowledge Management Research, interim report. 1-3. http://www.tfpl.com/consult/what_is_a_cko.htm.