a specially commissioned report a practical guide to knowledge management...

A SPECIALLY COMMISSIONED REPORT

A PRACTICAL GUIDE TO KNOWLEDGEMANAGEMENT

Sue Brelade and Chris Harman

T H O R O G O O D

P R O F E S S I O N A L

I N S I G H T S

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T H O R O G O O D


I N S I G H T S

A SPECIALLY COMMISSIONED REPORT

A PRACTICAL GUIDE TO

KNOWLEDGE MANAGEMENT


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THOROGOOD PROFESSIONAL INSIGHTS

Acknowledgements

The authors would like to thank Kate Le Marechal for her assistance with this

Report.

They would also like to thank David Cowan, Juliet Butterworth and Sean Mcllveen

for contributing case studies and Andrew Docherty, Dr Peter Roberts and Robin

Williams for their helpful discussions on knowledge management.

They are also indebted to a number of managers and staff in various organi-

sations who shared their knowledge and experience freely.

The authors

Sue Brelade BA (Hons), MA, Dip.Mgt, FCIPD, AIL, works as a human resources

consultant. She has gained wide-ranging experience in the practical applica-

tion of training and development and HR, working in industry sectors as diverse

as central and local government, contracting, media, travel, financial services

and with trade bodies. She has worked within the UK and across Europe where

her multilingual skills have been invaluable. Bringing a combination of practical

and academic skills to the design and delivery of human resources solutions has

given her a reputation for understanding and meeting business needs. She is

the author of a number of published articles in professional journals, and co-

author of ‘101 Tips for Trainers’, ‘Practical Training Strategies for the Future’ and

‘Knowledge Management and the Role of HR’.

Christopher Harman BA (Hons), MA, FCIPD, has considerable experience

working at a senior and strategic level within organisations. Currently working

as an HR Director with local government and previously as a consultant and

within the television industry, he has extensive experience of professional HR

and strategic management. With a keen interest and involvement in training,

his work in the field of management development has gained national recog-

nition. He has served on national committees and has been a professional adviser

on HR issues for a major employers’ organisation. He is also the author of various

reports and published articles and is co-author of ‘Practical Training Strategies

for the Future’ and ‘Knowledge Management and the Role of HR’.

Sue Brelade provides a consultancy service to business and can be contacted

on [email protected]


Contents

INTRODUCTION 1

KNOWLEDGE MANAGEMENT MAP 3

1 INTRODUCTION TO KNOWLEDGE MANAGEMENT 4

Introduction .................................................................................................5

Definitions of knowledge management ....................................................5

The language of knowledge management ...............................................8

Drivers for knowledge management ......................................................12

Knowledge management activities .........................................................15

2 KNOWLEDGE MANAGEMENT – THE SYSTEMS DIMENSION 16

Introduction ...............................................................................................17

Technical perspectives on knowledge management .............................18

The Internet, ‘intranets’ and the World Wide Web ..............................21

Virtual communications and virtual relationships ................................25

3 KNOWLEDGE MANAGEMENT – THE PEOPLE DIMENSION 30

Introduction ...............................................................................................31

People management policies and practices

in the knowledge environment ................................................................31

Motivating and rewarding knowledge workers ...................................32

Recruitment, retention and succession planning

in a knowledge environment ...................................................................36


Impact of knowledge management on the role of managers ..............39

Training and development in a knowledge environment .....................42

Team working in a knowledge environment .........................................43

4 KNOWLEDGE MANAGEMENT – THEORGANISATIONAL DIMENSION 47

Introduction ...............................................................................................48

The cultural challenge of effective knowledge management ...............48

New organisational forms in the knowledge economy ........................55

Identifying knowledge resources – knowledge audits .........................58

Transferring knowledge – A ‘merger’ case study .................................60

5 CONCLUSION 63Lessons from the growth in knowledge management .........................64

Political and regulatory perspectives on knowledge

management and the knowledge economy ...........................................66

Preparing for the future in the knowledge driven economy ...............68

APPENDICES 70

1 Case studies ...........................................................................................71

2 Summary checklist: Introduction to knowledge management ....... 86

3 Summary checklist: Knowledge management

– the systems dimension ..................................................................... 87


– the people dimension ........................................................................ 88


– the organisational dimension .......................................................... 90

6 References ............................................................................................ 92

7 Further reading .....................................................................................94


Introduction

Knowledge management is not a new concept. Managing knowledge, using it

to do things better, more effectively, more aesthetically, or just differently has

been a continuing feature of human societies and human culture. Organisations,

in both the public and private sector, have always managed knowledge in one

shape or another.

What is new is the development of a separate discipline called ‘knowledge manage-

ment’. The development of recognised techniques and recognised approaches

for effectively managing the knowledge resources of an organisation. The purpose

of this Report is to introduce the reader to the central ideas and concepts of this

discipline.

What gives this urgency is the growth of the knowledge economy. An economy

based on developments in information and communications technology and on

the ways of working growing-up around the Internet, intranets and the World

Wide Web.

Success in this new economy, whether in the provision of goods and services

or the delivery of public services, will be dependent on obtaining maximum added

value from the knowledge resources available to an organisation. Hence, the impor-

tance of knowledge management.

Within knowledge management there is a continuing debate about the nature

of knowledge. Some experts view knowledge as an object. Something that can

be managed directly, traded and shared like any other commodity. In this view,

knowledge shares many of the qualities of information. Other experts see knowl-

edge as the product of a complex interaction between human beings and

information. In their view it cannot be managed directly but only through the

management of people and the complex web of systems and processes which

surround them. In this Report we have tried to steer a pragmatic course between

these different views of knowledge.

There is no single definition of knowledge management. For the convenience

of the reader, in Chapter 1 of this Report we provide a working definition of

knowledge management together with an explanation of the key concepts. In

practice, organisations involved in knowledge management generally arrive at

their own definitions relevant to their own context.

1THOROGOOD PROFESSIONAL INSIGHTS

In the subsequent chapters we consider the technological, people and organi-

sational issues involved in knowledge management. Finally we consider some

of the wider issues within the knowledge economy and the key lessons to be learnt

from the development of knowledge management practices. In the appendix are

case studies, summaries of key points from the first four sections and a guide to

printed and Web based resources for those wishing to pursue the subject further.


INTRODUCTION


Knowledge management map

KNOWLEDGE MANAGEMENT MAP


Corporatememory

Rewardingknowledge

Access toknowledge

Knowledgeassets

Organisationallearning

Tacit knowledgeArtificialintelligence

Knowledgemapping

Trust andrelationships

Peoplemanagementpolicies andpractices

Virtual worldE-commerce and e-world

Creatingknowledge

Creativity andinnovation

Data storage and retrieval

Customers,consumers,citizens

New ways ofworking

Management in aknowledgeenvironment

Communicationstechnology

Commercialimperatives

Structures andculture

Knowledgeworkers

Collaborativeworking

Knowledgeeconomy

Knowledge andorganisations

Knowledge and people

Knowledgetechnology

Relevance ofknowledge

Chapter 1Introduction to knowledgemanagement

Introduction

Definitions of knowledge management

The language of knowledge management

Drivers for knowledge management

Knowledge management activities

T H O R O G O O D


I N S I G H T S

Chapter 1Introduction to knowledgemanagement

Introduction

In this chapter we will introduce the key concepts and terminology of knowl-

edge management. We will look at defining knowledge management and provide

a working definition and we will look at the drivers for knowledge management,

both within the public and private sectors, and typical knowledge management

activities.

Definitions of knowledge management

In each of the organisations we have studied, knowledge management is given

a different definition. The language used to define knowledge management shows

a high degree of contextualisation and relevance to the particular business sector.

In one particular organisation, it was defined as the process of transferring knowl-

edge from one place to another, thereby solving a problem effectively and quickly.

In another it was seen as being a systematic approach to enabling people to access

and use relevant information and as the ability to distinguish the ‘wood from

the trees’. Another organisation described it as ‘the sharing of information amongst

the community that makes up the organisation’. In a large utilities group it was

seen as the process of ‘linking the right people to the right information at the

right time’. Much emphasis was also placed on the relevance of the information

and the fact that relevance changed and was context and need dependent.

Common to the various definitions were the two dimensions of people and infor-

mation. Knowledge management lies in the relationship of these two dimensions,

mediated by systems and processes. It is generally seen as an holistic approach

which recognises the inter-dependency for the organisational effectiveness of

people, the technology they use and the systems and process within which they

use it. Later on in this Report we will also consider the importance of an organ-

isation’s culture to this relationship.


A model of knowledge

In one organisation we looked at, the first stage in a corporate knowledge manage-

ment initiative was to bring together various managers into a ‘knowledge

management forum’. The model for knowledge adopted through this ‘workshop’

process is reproduced below.

Figure 1.1: A model of knowledge

The different stages of this hierarchy can be described by the analogy of someone

learning to ski. The ‘data’ stage would be buying the skis, the ‘information’ stage

would be using a book on skiing as an aid to learning how to ski, the ‘knowl-

edge’ stage would be being able to ski – actually having the experience of skiing.

Finally the ‘wisdom’ stage would be realising that you don’t ski ‘off piste’ in bad

weather.

Another view on the relationship between knowledge, information, data and

wisdom is that data has no context. When it is put into context it becomes infor-

mation. When the links between different pieces of information are formed and

the patterns apprehended it becomes knowledge, when the underlying princi-

ples behinds those patterns are understood it is wisdom.

In the organisations we spoke to, a common view about knowledge manage-

ment was that it was not an end in itself but a means to an end. Similarly, it was

thought that knowledge alone has no power, in that it requires human decision

Experience

Learning

Organise

What is knowledge?

Wisdom

Knowledge

Information

Data

1 INTRODUCTION TO KNOWLEDGE MANAGEMENT


and action to acquire power. However, there was an interesting divergence

between two underlying approaches to knowledge management. In one view

the role of knowledge management was seen as nurturing the process of knowl-

edge creation. The other view was that it was the process of managing and

measuring knowledge. In the former approach, knowledge is seen as an emergent

characteristic, in the latter it is seen as an object.

This divergence may reflect an underlying distinction between two ‘types’ of

organisation. The first ‘type’ are those involved in developing new products and

ideas for the market. For these organisations fostering innovation and creativity

are key drivers for knowledge management. The second ‘type’ are those more

established organisations that have a wealth of accumulated knowledge and intel-

lectual capital. For these organisations the issue is first to know what knowledge

resources they have and then to leverage maximum value from them.

In looking at various organisations, it quickly becomes apparent that knowl-

edge management is as much about culture and behaviour as it is about

technology and processes. Whether the culture of the organisation is one that

values knowledge resources, whether it values people and their ‘know how’ and

whether it has an approach to management that fosters innovation, creativity

and collaboration. We would suggest that it is unlikely that one would find effec-

tive knowledge management in a macho, ‘hire and fire’ type culture. The cultural

aspects of knowledge management are dealt with in more depth in Chapter 4

of this Report.

The link with culture means that any working definition of knowledge manage-

ment needs to be drawn more widely than simply people, information, systems

and processes. The working definition we have adopted for knowledge manage-

ment is as follows:

‘Knowledge management is the acquisition and use of resources to create

an environment in which information is accessible to individuals and in which

individuals acquire, share and use that information to develop their own knowl-

edge and are encouraged and enabled to apply their knowledge for the benefit

of the organisation.’ (1)

When we talk of resources in this definition, we include physical resources (such

as IT systems), financial resources, ‘intellectual’ resources and people. Creating

the environment in this definition is not just the right physical or technical environ-

ment but also the right working environment, the right culture. In this case the

‘right’ culture is one that encourages and enables individuals to want to use their

knowledge for the benefit of the organisation. In our experience, it is surprising

the number of organisations that assume that because they pay people, those



people will use their knowledge for the benefit of the organisation. Paying people

is a contractual relationship and only buys what is contracted for. True creativity

and innovation require the will on the part of the individual to give more than

can be bought with a contract. This is something we will consider further in

Chapter 3.

The language of knowledge management

Where specific knowledge management projects are put in place, a common

starting point is to spend time with managers, at the outset, clarifying the

‘language’ of knowledge management. This is based on the idea that with a shared

language it is possible to achieve a shared understanding and a shared value

set – essential elements in any successful project.

With a developing discipline, such as knowledge management, the ‘jargon’ is

likely to change and develop as understanding grows. Similarly, as a relatively

new discipline with many theoretical issues to resolve, what is meant by some

of the terminology is not always clear, even to experienced practitioners. Because

of this the approach of pooling understanding and agreeing ‘in-house’ working

definitions of the main concepts has much to recommend it.

The guide below is provided to introduce the reader to the main concepts and

the associated language within this evolving discipline.

The main concepts and the associated language of knowledge management

Corporate memory – the cumulative experiences within an organisation, often

embodied in long serving members of staff, particular processes and systems,

archives and also in the cultural ‘ways of doing things’. Corporate memory, when

effectively harnessed and integrated, can bring past experiences and lessons

learnt to bear on current issues and problem solving. Effective use of corpo-

rate memory is also seen in avoiding making the same mistakes twice. On the

negative side, failing to recognise a changed situation where a previously unsuc-

cessful approach may now work can indicate an overly dominant corporate

memory that stifles creativity and innovation. It is interesting to note that manage-

ment trends such as ‘down-sizing’ and the high levels of early retirement have

a negative impact on corporate memory and, by extension, effective knowledge

management.



Data-mining – the process of investigating or interrogating large databases

(including ‘data warehouses’) to find relevant information. With the vastly

increased capacity for online storage, finding relevant data (i.e. information) is

becoming an increasingly difficult and skilled task.

Explicit knowledge – used to refer to codified information (knowledge) that

can be shared, communicated and transferred from one place to another in

systematic or structured ways (for example in a written document). The explicit

knowledge in an organisation includes the contents of databases, operating proce-

dures, documented processes etc. (‘explicit knowledge’ is often contrasted with

‘tacit knowledge’, defined on page 11).

Information economics – the study of the tangible value of information to an

organisation. Particularly relevant in the concept of ‘knowledge brokering’ to deter-

mine the appropriate cost for acquiring information or value to trade information.

Intellectual asset management – covering management of intellectual property,

patents, copyright etc.

Knowledge analysis– a knowledge analysis is commonly used to describe a detailed

analysis of the strengths and weakness of a ‘knowledge source’. An example would

be an analysis of the use of an intranet in knowledge management.

Knowledge audit – the process of identifying what knowledge the organisa-

tion already possesses and where it could be found, together with the knowledge

the organisation needs but does not yet have. A knowledge audit covers the

skills and knowledge of people as well as the entire intellectual assets of an organ-

isation including documented systems and processes as well as intellectual

property such as copyrights and patents.

Knowledge brokering – based on the idea that ‘knowledge’ is a commodity

and that the knowledge economy is a new market where knowledge can be traded.

As in any marketplace, middlemen connect buyers and sellers. The classic example

of a knowledge broker is the consultancy which may not itself have the knowl-

edge you require but can introduce you to someone who does.

Knowledge capture – the process of identifying and recording knowledge. This

can include ‘exit interviews’ with departing members of staff as well as detailed

analysis of particular jobs or processes to identify the knowledge being applied.

Knowledge engineer – traditionally used to refer to a person involved in expert

systems development. It is, however, increasingly being used to refer to those

involved in developing systems and processes within organisations that are

designed to capture and utilise knowledge resources.



Knowledge mapping – this involves identifying where knowledge exists (usually

inside an organisation but it can include external sources) and producing a guide

to locate it – whether a simple directory listing or a more sophisticated Web

page with hyperlinks to databases, archives etc. The idea is that the knowledge

map can be used to navigate through the knowledge resources and find the

relevant knowledge or source of knowledge.

Knowledge needs analysis – this phrase is used to describe the process of identi-

fying the knowledge requirements to deliver a particular objective and the ‘gap’

with what currently exists.

Knowledge organisation – this phrase is used in various ways. It can refer to

an organisation whose primary assets and/or products are intellectual, or an

organisation that has mastered the art of leveraging value from its knowledge,

or simply an organisation that values knowledge.

Knowledge planning – knowledge planning generally encompasses an analysis

of future requirements in terms of systems, people and technology. It will also

involve planning for the ‘retirement’ and replacement of those resources.

Knowledge preservation – used to refer to capturing and archiving knowl-

edge and systematic processes for ensuring knowledge is not lost.

Knowledge requirements – the ‘know how’ – people, information, systems and

the infrastructure that an organisation needs to deliver its objectives.

Knowledge technology – this is often used to refer to IT systems (particularly

expert and ‘artificial intelligence’ applications). However, it can equally be used

to describe the printing press and the quill pen.

Knowledge transfer – for some practitioners this is viewed from the tactical

perspective of converting knowledge into working solutions. For others, it is

seen as the ability to literally move knowledge from one place to another (whether

a physical place such as an office block or a mental place such as a person’s mind).

In a merger or acquisition where people may be leaving, their knowledge needs

to be captured and transferred to the new organisation.

Knowledge worker – someone whose basic ‘tools of the trade’ are their knowl-

edge and experience. Traditionally associated with high paid individuals, either

employees, contractors or consultants. Sometimes used to refer to people who

work with information. In the knowledge economy most employees are

becoming knowledge workers.



Tacit knowledge – this involves an assumption in knowledge management that

there is personal and context specific knowledge that is not explicit. Examples

include the knowledge embedded in people’s experiences and linked to their

own beliefs and perspective. Part of the aim of many knowledge management

initiatives is to make the tacit knowledge of individuals explicit, by bringing it

into the public domain. This is considered further on page 11.

Tacit knowledge

There is considerable discussion within the field of knowledge management

about ‘tacit knowledge’. Some practitioners see it as being impossible (by defini-

tion) to bring into the public domain. Other practitioners see bringing tacit

knowledge into the public domain as central to knowledge management and

have developed various techniques for doing so. These techniques tend to centre

on working with individuals and groups (using structured interviews, focus

groups, job and task analysis and recording of activities) with the aim of making

explicit the knowledge that individuals are applying in their work or to their

particular functions. Within the world of artificial intelligence, much research

has gone into identifying how judgements and decisions are made by individ-

uals to try to develop similar processes in expert systems.

A particular difficulty with ‘codifying’ tacit knowledge arises where the knowl-

edge is closely linked to the human state – our particular experiences, emotions

and thought processes. This is seen in areas where success depends upon inter-

personal skills and relationships – most of us do not deal with relationships

following a set of codified ‘rules’ or procedures. In areas where relationship

management is central to business success this poses particular challenges for

knowledge management.

For example, within call centre environments, relationship management has

focused on ensuring that those dealing with calls have detailed information avail-

able to them about their customers. This involves the use of Computer Telephony

Integration (CTI) which brings up on screen corporate knowledge about the

customer. On the World Wide Web, relationship management has focused on

collecting information on ‘surfer’ habits through various means including

‘cookies’ (packets of information stored on the ‘surfers’ computer by web sites

they visit). This enables ‘banner’ advertising (adverts that ‘pop-up’ on screen as

you browse the Web) to be tailored to the customers interests. In both cases, CTI

and on the Web, the intention is to tailor the service to the customer, making it

both efficient and more effective in generating sales. Both approaches would fit

under the heading of ‘relationship management’. However, real relationships are



not based purely on the exchange of information. Knowing about a person is

not the same as knowing the person. In a call centre environment it is notice-

able that some staff are able to build a relationship with customers whilst others,

with the same information available, are not. The difference lies in the tacit knowl-

edge and understanding embedded in the interpersonal skills of the staff member.

Drivers for knowledge management

In a large part, the drivers for knowledge management are similar to most drivers

for change within the commercial and public sectors. The need for commercial

organisations to obtain competitive advantage and the need for public sector

organisations to deliver more with less. Knowledge management is seen as

meeting these requirements through the ability to leverage a unique asset – the

knowledge base within the organisation.

The development of the ‘knowledge economy’ has also created drivers for effec-

tive knowledge management. This can be seen in the increasing number of

organisations whose product and services are intellectually based. These include

newer industries in the technology sector as well as more established sectors

such as public service, media, financial services and similar. In these organisa-

tions, being able to effectively deploy the intellectual resources of the organisation

is not only central to business success, it is often the essence of the business.

There are further drivers for knowledge management that have their origins

in the development of the ‘knowledge economy’. For the public sector, the devel-

opment of this new economy has created a new level of expectation from the

public. This is seen in one of our case studies where the concern of the organ-

isation is not just about effective and efficient service delivery. As a public body

it is pursuing knowledge management as part of achieving social policy objec-

tives. These include; achieving increased social inclusiveness, facilitating the

involvement of service users in service development and strengthening local

democratic processes. It is important to note that for a public body, the ‘knowl-

edge base’ to be leveraged in the desire for improvements is not confined to

the employees of the organisation but encompasses citizens generally.

For commercial organisations, the development of the ‘knowledge economy’ has

followed an equalisation of access to information and techniques. These are no

longer the preserve of the large organisations, or those who can afford the expen-

sive consultancies. Total Quality Management, business process re–engineering,

workflow and activity management and similar disciplines are widespread and



understood. Against this background, high levels of operating efficiency become

the norm rather than an exception. This perception has led some organisations

to see knowledge management as a new way of achieving differentiation from

their competitors. From this perspective it offers an opportunity to gain

maximum advantage from the knowledge base already present within organi-

sations and to separate out the ‘best’ organisations from those that are merely

‘good’.

The Government White Paper ‘Our Competitive Future: Building the Knowledge

Driven Economy’ (2) identifies the following as drivers within the knowledge

economy:

• Competition from low cost economies

• Increasing innovation in products, processes and services

• Electronic commerce radically changing the way business meets

customer demands

• Science and knowledge underpinning the new technologies.

The White Paper also maintains that knowledge, skills and creativity are ‘the

distinctive assets in a knowledge driven economy’ and essential in order for the

UK to have a competitive edge within a global marketplace. The two roles of

business according to the White Paper are to:

• ‘Encourage and support all their employees continually to develop their

skills and qualifications.’

• ‘Identify, capture and market the knowledge base that drives all products

and services.’

In practice, we found the drivers for knowledge management included a combi-

nation of internal and external factors. Amongst those identified were:

• Increasing efficiency and productivity

• Reducing the risk and costs of ‘getting things wrong’ and avoiding

‘re-inventing the wheel’

• Addressing increasingly complex issues (particularly environmental

ones)

• Responding to globalisation

• Mergers creating the need to share knowledge more broadly

• Greater access to R & D

• The need to reduce product development time.



One of the organisations that we spoke to, which operates in the highly compet-

itive field of managed services, had clearly identified the role of knowledge

management as a means to:

• Differentiate their company within a highly competitive marketplace

• Maintain the company’s position at the forefront of managed services

• Facilitate an increasingly global approach to management.

In the various organisations that we looked at, the value of knowledge manage-

ment as a response to externally and strategically driven issues was clearly

articulated. However, practical knowledge management projects were more often

specified in terms of internally relevant issues.

Particular objectives included:

• Capturing, organising and verifying specific information and histor-

ical data

• Reducing the time delay before new recruits became productive

• Integrating and making accessible diverse sources of information e.g.

archives held departmentally and corporately, individuals ‘working files’

and personal records, quality assurance documentation

• Developing an intranet that gave access to useful information

• Developing a systematic process of ‘de-briefing’ outgoing employees

to ensure key knowledge was identified and captured

• Identifying what was needed in order to acquire and record new knowl-

edge in a readily accessible form

• Taking action to find and preserve existing knowledge (implicit and

explicit) in a readily accessible form

• Developing methods of effectively sharing and exploiting company

knowledge.



Figure 1.2: The drivers for knowledge management

Knowledge management activities

In response to the drivers identified above, organisations both in the public and

private sector are engaged in a range of knowledge management activities,

although few have a written knowledge management strategy. Typical activi-

ties include:

• Auditing knowledge ‘assets’ and identifying knowledge gaps

• Revising personnel policies and practices

• Investing in information and communications technology (ICT) and

developing knowledge based ICT strategies

• Developing new ways of encouraging innovation and creativity amongst

employees

• Developing new approaches to team working and redefining the

management role

• Changing organisational structures.

These areas are dealt with in more detail in the remaining chapters of this Report.

Customer and citizen

expectation

Globalisation

Technology

Competition

NEED FORKNOWLEDGE

MANAGEMENT



Chapter 2Knowledge management – thesystems dimension

Introduction

Technical perspectives on knowledge management

The Internet, ‘intranets’ and the World Wide Web

Virtual communications and virtual relationships

T H O R O G O O D


I N S I G H T S

Chapter 2Knowledge management – the systems dimension

Introduction

In this chapter we will look at the technical and IT related aspects of knowledge

management, the direction technology is taking and its current and likely future

impact on organisational practices.

Figure 2.1: Knowledge management systems

Computer telephonyintegration

Business analysis

and decision support

Internet

Extranet

Intranet

Search engines/

data-mining

Work tracking and work-flowmanagement

Computer telephonyintegration

Groupware

Business analysis

and decision support

Internet

Extranet

Intranet

Search engines/

data-mining

Work tracking and work-flowmanagement

KNOWLEDGE MANAGEMENT


Technical perspectives on knowledge management

As a result of strategic information systems being seen to be critical, many organ-

isations have, since the 1980s, been investing heavily in information technology.

Alongside that investment, organisations have developed IT strategies. The focus

of many of the early IT strategies was to regulate user behaviour, ensure common

standards and compatibility between different applications and different

technologies, facilitate corporate databases and, with the advent of e-mail, corpo-

rate communication systems.

This investment in new technologies has not necessarily led to improved organ-

isational performance or business success. Paul Strassman (1), has argued that:

‘There is no relationship between computer expenditure and company

performance. The key factor in maximising the return on investments

in new information technology is the effective use of information as it

relates to the performance of the particular organisation.’

This shift from a technical focus on what the technology can do, to a focus on

what people can do with the information it makes accessible, is at the heart of

the systems dimension of knowledge management.

The shift in focus means looking at the technology from the perspective of its

ability to facilitate individual access to information and knowledge, to enable

the sharing of ideas and experience, to facilitate communication and to remove

barriers to creativity and innovation.

In the organisations we looked at, the key drivers in technological development

were to give people access to the information they need, when they needed it and

to provide them with the applications to use that information and to share it. It

was the interaction between the information delivered through the technology

and the experience and knowledge of the individuals that was seen as creating

an environment of innovation.

Technology was seen as providing the solution to the storage of information

and codified knowledge. It was also seen as providing efficient search and retrieval

facilities, as well as being an effective communications tool. Technology was also

being used to remove the traditional barriers to collaborative work created by

geographic location.

The technologies of the 1980’s were essentially systematic and ‘linear’, designed

around data storage and retrieval. These still have their place in the form of data

2 KNOWLEDGE MANAGEMENT – THE SYSTEMS DIMENSION


warehouses and databases. However, the newer technologies are flexible, non-

linear and designed to reflect and support the innovative and creative capacity

of individuals.

Figure 2.2: Technologies

Typical applications being used as part of knowledge management in the organ-

isations we looked at included:

‘Groupware’ – software that supports groups of people engaged in a common

task or goal was being used to allow people to collaborate on projects irrespec-

tive of geographical location. Typical groupware products provide a calendar,

scheduling, web navigational tools and e-mail, as well as information sharing

functions and messaging.

‘Computer Telephony Integration’ (CTI) – being used to enable staff

responding to a customer telephone call to immediately access the organisa-

tion’s stored information about that customer, allowing a more tailored

response. Being able to access customer profiles means that the member of staff

taking the call can better understand what the customer values and what the

customer needs. Likewise, having access to the right customer information quickly

can ensure that complaints or concerns are solved rapidly. Having access to the

relevant information also means that the member of staff can anticipate

customer requirements as well as analyse any particular buying trends. For the

salesperson, being able to bring up on screen the relevant information also meant

1980s

SystematicLinear

2001

FlexibleNon-Linear

THEN

SystematicLinear

NOW

FlexibleNon-linear

TECHNOLOGIES



increased opportunity to ‘up-sell’ and ‘cross-sell’ any new product or services.

Using technology in this way utilises the stored knowledge of the organisation,

to impact on the bottom line and on the levels of customer service.

‘Work-tracking and work-flow management software’ – allowing organisa-

tions to improve the management of projects and tasks, providing instant feedback

on progress, generating monitoring statistics and ensuring that the correct steps

in particular processes were being followed. Tools for analysing business data

allowing trends to be quickly identified and informing business decisions.

A more complex area is product development where knowledge management

was identified by one of the organisations we looked at as the primary mover

in reducing product development times. This is an area that can add signifi-

cant value to the business as a whole, ensuring that products are improved or

new ones are created before that of the competition. The technology involved

in this can include the communications technology to build teams on a global

basis, work tracking applications to keep projects on time, the business intelli-

gence and analysis software to feed into the product design process and the

Computer Aided Design and manufacturing capability to deliver the product.

If a company isn’t managing its knowledge effectively they will find it difficult

to keep up with the changes in requirements of customers and the expectations

of customers. One of the main things that businesses can be assured of is that

change is constant and that they need to continually improve their systems and

their people in order to be competitive. In the knowledge economy, employees

need easy and quick access to the right information and they also need the

technology that will support their innovation and creativity.



The Internet, ‘intranets’ and the World Wide Web

The Internet and the World Wide Web

The Internet and the World Wide Web have developed at a rapid pace into a

major means and resource for gathering and exchanging information. Within

the UK, 91% of employees now work in businesses that are connected to the

Internet, 62% of UK businesses have a web presence and 45% of UK house-

holds are on-line with 47% of UK adults being regular internet users.

Within many organisations ‘internal’ versions of the Internet (‘intranets’) are being

put in place. These allow the same, browser based, navigation between ‘pages’

as on the World Wide Web. Some organisations are also developing ‘extranets’

– essentially an intranet that encompasses groups and individuals outside the

organisation (for example, suppliers, customers, community groups etc.).

The development and the popularity of Web based technology has created

an opportunity for different approaches to collaborative working and the sharing

of knowledge and expertise – what can be referred to as ‘knowledge creation

and diffusion infrastructures’. It also enables organisations to create a platform

for interactive working and a ‘knowledge repository’ accessible from anywhere

in the world at a relatively low cost. In essence the Internet can act as a platform

for collaborative knowledge management without regard to geographical

restrictions.

An example of this, from one organisation, was a Web based project manage-

ment site. It was being used to manage a research project with a virtual team

comprising members of different organisations from across the UK and

Europe. The secure site was hosted by the ‘project sponsor’ organisation, who

also directly employed the project manager. The members of the virtual team

could feed in results, interim reports and project data onto the site. All the

members of the team could access the data. In addition, as part of the financial

control systems for the project, the financial control data entered onto the site

by the partners in the project would automatically update the financial systems

of the project sponsor.

A non-commercial example of using the Web to draw a large number of people

into a collaborative network is the Search for Extra Terrestrial Intelligence (SETI)

screensaver. This can be downloaded from the Internet and, when the users

computer is idle, will receive, analyse and return SETI data.



The development of secure areas on the Web, accessible by members of virtual

teams, provides a structured, low cost, workspace. Providing remote access over

the Web to internal systems and databases extends the functionality of team

members when geographically distant.

Equally useful for effective knowledge management is allowing access to the Web

for employees from their workplace. It puts at their fingertips a considerable repos-

itory of information and knowledge, although the ‘unstructured’ nature of the

Web can make locating information a difficult and time-consuming task. Even

the best of the current publicly available ‘search engines’ will often return as much

relevant as irrelevant data, particularly if the search criteria are loosely set. In

one of our case studies it was noted that a primary limitation in the development

of a public access community information system was the current limitations of

search engines. To resolve this problem, further development of ‘intelligent agents’,

software that effectively scans the Web searching for the information that you

require within the parameters you set, offers the most promising solution.

Intranets

Intranets, the ‘in-house’ version of the World Wide Web based on Internet

technology, create a common corporate communications and information sharing

system. They can be used on a ‘push’ basis – where information is presented to

employees – and on a ‘pull’ basis – where employees seek out and retrieve infor-

mation for themselves.

‘Push’ technology is used when it is important that certain material is presented

to employees at their workstation. It ensures that no other function takes place

until all the information is correctly accessed. Examples of the types of infor-

mation that we found being ‘pushed’ to workstations included:

• Price changes to products

• New products or product updates

• System alterations

• Key briefing information and corporate announcements

• Tests for employees to complete so that new knowledge acquisition

can be established (this example was in a financial services organisa-

tion. The regulatory requirements meant that the organisation had to

ensure levels of competency amongst staff involved in selling finan-

cial products. As part of that the intranet allowed tests to be distributed

to workstations and the results sent back to the administrator who could

then collate the results to provide the necessary ‘evidence of compe-

tence’ to the regulatory authorities.)



• Health and Safety Workstation Assessments (this example required

individuals to complete a workstation assessment, again with the results

being sent back centrally to be collated).

‘Pull’ technology however, allows the employee to decide when to pull down

information from the intranet that they wish to view. To provide a seamless experi-

ence between viewing Web pages on the World Wide Web and viewing

information on an in-house intranet, access is usually via a standard Internet

browser.

Figure 2.3: Intranet content

Organisations that we looked at were also including:

• Agendas and minutes of senior management meetings

• Agendas, minutes and reports for project meetings

• Information being sent to staff for consultation

• Special events

• Areas for staff to publish their own information

• Union information

• Announcements

Health and safety information

Information on departments

Customer information

Supplier lists

Training

Company newsletters

Staff details (eg telephone extensions and photographs)

Company policy/staff handbook

Minutes of meetings

TYPICAL

INFORMATION

THAT CAN BE

ACCESSED ON

AN INTRANET



• Online job application forms and job vacancies

• Interactive staff surveys.

The perceived benefit, by employees, of using an intranet will be a large deter-

minant of its success. In the organisations we considered, these benefits were

variously summarised as:

• Greater feeling of involvement and participation in the life of the organ-

isation

• Feeling of being valued through sharing and receiving feedback on

work

• Ability to identify resources and relevant skills, especially when

putting together new teams for a project

• A feeling that the information being received was authoritative and

accurate – rather than receiving messages second or third hand they

could receive them directly from the Chief Executive or other senior

managers

• Ability to access information relevant for their jobs, with consider-

able time saving on hunting through files

• Able to make better decisions based on a fuller picture and an under-

standing of the organisations’ strategic direction

• Fewer surprises when changes were being made as they were always

signposted on the intranet, for example in the minutes of management

meetings

• A stronger ‘community’ feel.

The main limitation to the information to be placed on intranets is the resource

needed to maintain it and keep it up-to-date. This in turn reflects the level of

commitment to the intranet and the extent that it becomes part of the fabric of

organisational life. As one manager commented:

‘It’s only been fully in place for a year, but its difficult to imagine going

back to before we had it. It’s the first port of call if you want a report or

piece of information. It’s the first place you look if there are changes

going on and you want to know what’s happening.’

In this organisation, each department had trained users who were responsible

for updating departmental information on the intranet. In another organisation

that we looked at, the personnel system was accessible through the intranet.

Access was controlled through passwords but all staff could use the intranet



to update their personal information, enter training records, apply for leave,

fill in sickness forms and similar. This functionality helped to integrate the intranet

into organisational life whilst at the same time ensuring that the personnel

database was being kept more up-to-date than it had been previously, with less

administrative burden on the personnel department. It also enabled managers

to access accurate personnel information and statistics directly for decision

making and planning purposes as part of the knowledge management process.

Virtual communications and virtual relationships

Probably the most significant impact for individuals of new technology has been

the advent of e-mail. In many organisations it has become an integral part of

the communications process, both within the organisation and between the organ-

isation and the external world. For knowledge management it is one of the key

components in the sharing of information and ideas. Although not always recog-

nised, the information contained in e-mails is also a considerable knowledge

asset that needs to be managed – a task that many organisations have not yet

mastered, with unclear guidelines on what sort of e-mails need to be archived

and stored, which can just be deleted and so forth. Sometimes this can have

serious consequences, the authors know of one example where a court case had

to be settled to the detriment of the organisation, on the production of an e-

mail which the plaintiffs possessed but which had not been retained by the

originator within the organisation.

As a communications tool, e-mail cannot be managed in a hierarchical fashion.

It is an open and difficult to regulate communications medium. Just as it can be

used to communicate productively for the benefit of the organisation, it can also

be used negatively. It can be used to help build the knowledge base of an organ-

isation; it can also be used to send valuable information to any destination inside

or outside the organisation. Most organisations would probably be surprised

to find out how much of what they would consider ‘their’ information is being

shared by their staff (as attachments to e-mails) with people outside of the organ-

isation. Often this is fellow professionals helping each other through professional

networks which, as a reciprocal arrangement, can work to the benefit of the

organisation. Sometimes it is less benign.



Whilst e-mail enhances the ability of people to consult widely on a document

or report, this can have negative impacts in a traditionally managed organisa-

tion. The problem arises when there is a culture of ‘if you can consult with

someone, you must consult’. In these situations, a report that might have involved

one or two people suddenly finds inputs coming from many people. Whilst the

end product may be better, the time it takes to produce is not increased despite

the technology. An important paradigm that many organisations involved in

knowledge management have recognised is that new technology is often more

effective if combined with new ways of doing things, rather than when seen as

a way of improving old ways of doing things.

Improved communications technology, increased speed and increased complexity

do not of themselves produce better management of knowledge. Whilst the

technology can encourage and facilitate knowledge management, an organi-

sation that has never generated innovation and creativity within its staff is unlikely

to do so simply because of the introduction of technology. It is the management

of the human dimension and the creation of the right culture that will make the

difference. The authors are mindful of an organisation that decided to embark

on a knowledge management project. It looked into the matter and decided that

effective knowledge management was an ‘archives and records’ issue. It

decided that the way forward was electronic record management, a project to

be led by the records manager. Whilst a commendable start, it is a narrow perspec-

tive reflecting more the culture of the organisation than the real potential of

knowledge management. This is not the only example of an organisation running

the risk of making the ‘chief knowledge officer’ into a ‘chief librarian’ and knowl-

edge management into information management.

Where the communications and collaborative working technology is being used

effectively, organisations have been able to develop cross-functional and global

teams, harnessing and directing a range of talents, abilities and knowledge

towards tasks they need carried out. The use of virtual teams, whose meeting

place is in cyberspace and who communicate through e-mail and similar appli-

cations, allows teams of fluctuating size to be quickly formed and disbanded as

needed. Additional team members can quickly be brought on board and others

can leave as they move to other projects.



Figure 2.4: Communication and collaboration

However, studies in cognitive sciences (3) suggest that although different

perspectives on a problem develop a deeper understanding of it, too much knowl-

edge and information can lead individuals to experience a ‘cognitive overload’

which reduces effectiveness. This is a common complaint of knowledge workers

– that the volume of information induces a form of mental ‘paralysis’, stifling rather

that facilitating innovation and creativity. For knowledge management this

indicates the importance of effective search and navigation tools when accessing

information, knowledge filtering processes and the importance of effective design

for the user interface between individuals and knowledge sources (e.g. data stores).

Dependent upon the security access levels required the fact that virtual team

interaction takes place in cyberspace means that it can be made accessible to

non-team members. Other members of the organisation can link in to the work

of virtual teams through accessing ‘threaded’ discussions in cyberspace and other

team communications. This can allow people outside the team to keep abreast

of what the team is doing, make a contribution if they feel it will help and join

the team if asked. Never before have organisations had the opportunity to bring

such a diverse range of knowledge experience and understanding to bear on

any particular issue or problem.

In-house/physicallocation specific team

In-house physicalcross-functional team

Virtual national specific and/orcross-functional teams

Virtual global and/or cross-funtional teams

COMMUNICATION ANDCOLLABORATION

In-house/physicallocation specific team

In-house physicalcross-functional team

Virtual national specific and/orcross-functional teams

Virtual global and/or cross-funtional teams



There is a danger with the development of this type of approach that, although

results are delivered, the knowledge gained in the process is lost. This is because

it is fragmented and contained, not in files at the head office, but in the individual

computers and logs of the virtual team members, which could be scattered across

the globe. This presents a knowledge management challenge – of turning the

scattered, diverse knowledge of their knowledge workers, who are working in

a virtual team, into a well structured ‘knowledge repository’.

Spek and Spijkervet (4) identify three basic activities necessary to achieve this:

1. Creating knowledge

2. Securing and combining knowledge

3. Distributing and retrieving knowledge.

In this type of model for virtual team working, the ‘creation of knowledge’ is

seen as arising from the process of developing ideas or solutions, feedback being

received from other members of the team or externally and the feedback leading

to the development of revised or new ideas and solutions.

‘Securing and combining knowledge’ is seen as the process of storing and

indexing knowledge and ensuring that all team members can share (that is access)

the stored knowledge, understand it and integrate it with their own knowledge.

The storing and indexing needs to be a dynamic process to allow for updating,

modifications and amendments to the contents of the knowledge repository.

‘Distributing knowledge’ needs open, flexible, and reactive communication

channels. It is seen as an essential part of virtual team working to fuel the ‘learning

process’ inherent in developing new ideas and creative solutions. Retrieving

knowledge once stored on the collaborative systems is essential if the ‘knowl-

edge repository’ idea of the shared cyber-workspace is to have any value.

However, the dynamic nature of the environment is seen as requiring sophis-

ticated search tools rather than simple ‘key word’ searches – covering both

context and content. This is an area identified in our case studies as one where

weaknesses exist. As one manager commented:

‘The corporate systems are well organised and documented. That’s where

the resources go. But if you look at the information held electronically

by individuals, nine times out of ten it’s pretty haphazard. Navigating

it is more about psychology than systems – you need to know how they

think.’



The technology that organisations are employing are technologies that provide

flexibility to the business and provide customers with a quick customised solution.

In a knowledge management environment it is important to capture experiences

and ideas in a central deposit and also to provide information that is person-

alised to customers and to staff. This is done through content management

technology, which provides individuals with the ability to manage documents

as well as the content of those documents and it also allows searches across

web sites and files and databases. Other areas that could facilitate knowledge

flow within an organisation identified by Microsoft (5) included the digital

dashboard, which managers could use daily to log important information for

that day and the use of a wireless network so that users could access up-to-date

information on laptops, personal phones and mobile phones.

The basic role of technology in knowledge management can be briefly summ-

arised, in functional terms, into the areas of:

• Facilitating communication

• Enabling collaboration

• Collecting information

• Storing information

• Analysing information

• Disseminating information

• Updating information.

It is however important to note that knowledge is not just contained in an organ-

isation’s database systems. It is also contained in e-mails and memos with

suppliers, customers and competitors. Most importantly, it is contained in the

minds of individuals. It is the management of individuals to maximise the benefits

of that knowledge that we shall consider in the next chapter.



Chapter 3Knowledge management – the people dimension

Introduction

People management policies and practices

in the knowledge environment

Motivating and rewarding knowledge workers

Recruitment, retention and succession planning

in a knowledge environment

Impact of knowledge management on the role of managers

Training and development in a knowledge environment

Team working in a knowledge environment

T H O R O G O O D


I N S I G H T S

Chapter 3Knowledge management – the people dimension

Introduction

In this chapter, we will consider the challenges that knowledge management creates

for how organisations approach people management, the areas of recruiting,

rewarding, managing and developing knowledge and knowledge workers. We

will also identify the challenges facing the managerial role in the knowledge

economy and consider new paradigms for defining managerial effectiveness.

People management policies and practices in the knowledge environment

An emphasis on knowledge, skills and creativity and on the capturing and sharing

of information, are all issues that impact upon how people are managed. In many

organisations responsibility for these activities is often focused within a

specialist HR or personnel department. Over the past few years there has been

an increasing interest from personnel specialists in the area of knowledge manage-

ment and the contribution they can make both individually and as a profession.

This has been reflected in the conferences and publications of the Chartered

Institute of Personnel and Development. For personnel specialists there are partic-

ular hurdles to overcome to make a contribution. Knowledge management is

itself a multi-disciplinary area and it is necessary for personnel specialists to

work with other disciplines, often having to develop new skills and understanding

(particularly in the area of technology). Personnel specialists also have the conflict

inherent in reconciling seeing people as a cost to be controlled and as an asset

to be developed.


A key role for personnel specialists is to help bridge the gap between what people

know – the information and expertise they have available to them – and what

they do. In the knowledge economy, it is what people do with their knowledge

that is the driver for competitive advantage rather than the investment in infor-

mation systems, intranets, and electronic communications. Effective knowledge

management is not possible in an environment where people are disen-

chanted, de-motivated and demoralised.

Figure 3.1: Bridging the gap

Motivating and rewarding knowledge workers

The first and most obvious area of involvement for personnel specialists is in

the area of reward management. Reward management is a broader concept than

just managing the pay system. Rewards can take many forms other than cash

and reward management will deal with the formal and informal ‘recognition’

that employees receive, the types of behaviours that the organisation reinforces

and the types of behaviour that lead to promotion and progression. An

example of a non-pay reward that reinforces knowledge management would

be recognising and thanking staff who maintain good content on a company

intranet. Putting a feature in an in-house magazine could do this.

To begin looking at reward management from a knowledge management perspec-

tive means asking the question ‘do we recognise and reward people for sharing

their knowledge, for acquiring new knowledge and for sharing information?’

Too often, in organisations, what is actually rewarded is hoarding knowledge

and information. Where this occurs it is less likely to be a problem with the individ-

uals as such, and far more likely to be an issue with the reward system and the

culture that it reinforces.

What peopleknow

What peopledoPeople management policies and practices

3 KNOWLEDGE MANAGEMENT – THE PEOPLE DIMENSION


If the organisational preference is for an individual, performance related pay

approach, the pay element of the reward system will need to be designed with

care if the intention is to simultaneously encourage the sharing of information

and expertise – the two do not sit happily together. If a ‘performance pay’ approach

is the ‘culturally’ preferred medium for financial reward, then to reinforce good

knowledge management practices it will need to include input as well as output

measures (i.e. reward for how people/teams do things as well as what they do).

This will mean assessment of achievements against knowledge management

objectives such as:

• The extent to which the individual/team has acquired new skills and

knowledge

• Whether or not the individual/team has undertaken new projects or

taken on board new responsibilities

• The development activities undertaken by the team/team members

(either inside or outside work, training based or activity based)

• The contribution of individuals to team working/commitment of the

team to its own team development

• The contribution of individuals/of the team to the development of

another employee (e.g. mentoring or coaching)/induction of new team

members

• The generation of new ideas and improvements (in their own areas

of work and more widely) by the team/individuals.

These can be combined with generally defined ‘areas of competence’ in good

knowledge management, for the purpose of assessing performance of either

individuals or teams (or both).

The requirements of retaining knowledge workers within their field of expertise

may also present a challenge to traditional ‘pay hierarchies’ and it may be neces-

sary to develop different routes for pay progression that do not require people

to leave their area of expertise and move into ‘management’. This approach is

increasingly common in newer organisations but can be difficult for older, more

established, organisations where the way to climb the career ladder is to move

from technical specialisms into management. Similarly, traditional incremental

pay systems, that reward ‘length of service’ rather than contribution to the organ-

isation or particular expertise and skills, may prove counter productive in retaining

and motivating knowledge workers.



Within one of the organisations that we looked at, although fairly traditional,

positive steps had been taken to motivate and retain knowledge workers through

a reward strategy incorporating:

• Developing ‘recognition’ systems to publicise achievements

• Establishing two promotion routes – one technical for those who wished

to stay in their area of technical expertise, the other a route for technical

people wishing to enter management

• Merit pay (based on judgements about performance, potential and value

to the business)

• Support for attending and presenting at conferences and taking further

qualifications

• Flexible working

• Secondments externally.

In another, less traditional, organisation the pay system was determined on an

individual basis so that anyone could increase their pay dependent on the contri-

bution they made. This pay system also encouraged the sharing of ideas through

merit awards that involved judgement on an individual’s ability to work with

others. A profit sharing scheme was operating whereby 25-30% of all pre-tax

profits were distributed to staff. This particular organisation had also developed

a form of ownership that gave all the employees a stake in the company through

a share owning Employee Benefit Trust (EBT). The EBT provided additional profit

sharing to staff with more than three years service.

In developing a reward strategy that supports effective knowledge management,

it is important that it is both acceptable and relevant to knowledge workers.

Achieving maximum acceptability in a knowledge environment means devel-

oping the strategy in consultation with those it is intended to reward. This view

is reflected in ACAS guidance on developing pay systems (1). It also means

weighing up the expectations of knowledge workers and recognising the different

‘time horizons’ of different forms of reward. For example praise for a job well

done, bonuses and similar have a short time horizon. Pensions, promotions and

development that opens up future career opportunities all have a longer time

horizon. It is likely that within a knowledge environment a mixture of the short-

term and long-term rewards will be necessary. This will give immediate impact

and deliver immediate satisfaction to knowledge workers, whilst also seeking

to build longer-term commitment to the organisation.



A very good pension scheme still remains an effective ‘locking in’ device despite

the perceived job mobility of knowledge workers but by itself it will not guarantee

commitment in a very flexible and changing market. Neither will it promote

innovation and creativity and the short-term ‘burst of energy’ needed to produce

new ideas and new ways of doing things. There is an increasing recognition

that if the central element (and, after the paybill, often the most expensive element)

of a reward strategy is saying to employees ‘wait until you retire and you will

be looked after’ then some people will do precisely that!

Designing the non-pay elements of the reward system has involved organisa-

tions in reviewing how people are managed on a day-to-day basis as well as

developing formal and informal schemes for recognising people’s ideas and

contribution. Examples of non-pay elements of the reward system in organi-

sations that support knowledge management include:

• Annual awards of various sorts often supported by trophies, cash

payments and internal publicity. Examples include an annual training

award for the person who had done most to apply their learning within

the workplace, an award for the best technical paper of the year

published externally, awards for innovation and introducing new ideas

to the company

• Regular features in in-house magazines on the work of particular

individuals or teams

• ‘Lifestyle’ rewards for performance, designed to appeal to knowledge

workers – such as the opportunity to fly a light aircraft, balloon trips

etc.

• Internal recognition for external achievements, including cash rewards

for articles published, support (e.g. time off) for involvement in social

projects and recognition in the workplace of the development benefit

of such activities

• Ensuring internal reports at all levels are always in the name of the

main author rather than director or senior manager and that they

acknowledge other contributors

• Giving recognition through involving as many staff as possible in project

presentations and policy meetings and identifying and publishing the

names of ‘lead officers’ in different areas of work. A practical example

of this approach, from one organisation, was a ‘policy forum’. With

scheduled meetings over the year it allowed a large number of staff to

come together over a lunch-time to hear presentations on policy issues

from outside speakers as well as from the CEO and directors.



Recruitment, retention and succession planning in a knowledge environment

When recruitment, retention and succession planning are viewed from a knowl-

edge management perspective, the approach becomes less about ‘filling jobs’

and more about filling knowledge gaps – either current or anticipated.

Looked at this way, it is immediately apparent that knowledge gaps do not have

to be met through filling ‘job slots’ with people. Whilst recruitment may be a

solution, other solutions will include implementing new systems and processes,

purchasing new technology and contracting in specialist skills (or contracting

out a function). In a knowledge environment, recruitment, retention and succes-

sion planning are not simply personnel issues but strategic issues incorporating

decisions on the shape and form of the future organisation and the use of

technology. For example, succession planning traditionally deals with known

events such as future retirements of individuals and seeks to ensure a replace-

ment is ‘trained up’ to be ready. In a knowledge environment, succession planning

needs to incorporate the retirement not just of people but of technology and appli-

cations running on the technology. Similarly retention has traditionally been viewed

as keeping people within the organisation and reducing staff turnover. In a knowl-

edge environment what one is seeking to retain is the knowledge – this can mean

effectively capturing the knowledge of people who are leaving as well as

maintaining databases and archives. However, the separation that exists in many

organisations between personnel departments and IT departments does not lend

itself to this more holistic approach of focusing on the knowledge rather than

the resource.

Recruitment

Indicative of organisations involved in knowledge management is an increas-

ingly flexible approach to recruitment. As one of the directors we spoke to

commented ‘it is more important to recruit good people you come across than

to wait for vacancies to arise’. This person’s experience was that jobs quickly

grew up around talented people and that their contribution to the organisation

justified their appointment within the first year.

There are challenges, in this way of thinking, to the traditional approaches to

recruitment favoured (for many good reasons) by personnel departments. Tradi-

tional systems tend to be based around the idea of a job and a ‘job slot’ to be

filled. They are not focused on the contribution that individuals may make. A

difficulty for personnel specialists involved in knowledge management will be



to balance a more flexible approach with the statutory framework that tradi-

tional systems have been developed to deal with. The idea of a ‘job slot’ is, after

all, not something invented by personnel specialists but rather something deeply

embedded in the thinking of many employees, trades unions and also in employ-

ment legislation. The idea of a detailed job description, of a rigidly defined ‘job

slot’ to which a person is recruited, does not lend itself to effective knowledge

management – or to the development of that individual.

A more flexible approach to recruitment does not necessarily mean a less rigorous

approach. There is however a particular danger for effective knowledge

management in the use of sophisticated selection procedures – for example

personality and aptitude testing. The danger is that the ‘norms’ used (particu-

larly if internally generated) may be designed to obtain cultural fit. In doing this

they can easily exclude more creative and innovative individuals and discourage

diversity – to the detriment of effective knowledge management which seeks

to encourage precisely these factors. More important than cultural fit is the ability

of candidates to be effective in different cultures, especially as the current culture

may be destined (or overdue) for change. As one senior manager of a large

American multi-national in the technology sector commented:

‘Our organisation was founded by cowboys, now we only appoint people

in suits and complain about the lack of entrepreneurial spirit.’

Retention

In looking at the retention of knowledge, it was apparent that many organisa-

tions are adjusting their approach to retention to take into account the needs

and aspirations of knowledge workers. In part this involves changes to the reward

system discussed above. However it also involves taking account of the higher

expectations and higher perceptions of self and economic worth of knowledge

workers. In this context, a retention strategy cannot just be financially based.

It needs to incorporate how people are managed, how they are treated on a day-

to-day basis and how they are involved in their work and the organisation. This

is implicitly recognised in some organisations where efforts are being made to

develop different forms of ‘partnership’ with employees, for example by calling

them ‘associates’. Some general principles being applied in the retention of knowl-

edge workers are:

• Making explicit the terms of the psychological contract (the unwritten

agreement between the organisation and employees which forms the

basis of the relationship) through investigating the mutual expectations

of employer and employees – determining those terms that are reason-



able and deliverable on both sides and producing a written summary.

In one organisation, this was described as articulating ‘our own psycho-

logical contract by formally and informally involving all staff in jointly

developing our whole range of human resources policies and practices’.

• Building trust and evaluating management decisions and communi-

cations in terms of their impact on that trust. This is seen as particularly

important in times of change. Building trust also means not trying to

manage by platitudes and ‘sound-bites’.

• Involving people in managing their own work and priorities and in

the organisation’s priorities. This also involves open communications

and allowing access to information about the organisation and the

issues it faces. It was noticeable in the organisations we spoke to that

a key use of the intranet was to allow access to company information

for all staff whether directly relevant to their job or not.

• Designing corporate personnel policies around the lifestyle choices

and personal aspirations of knowledge workers – this can involve

flexible working practices such as part-time and homeworking,

allowing sabbaticals, allowing time off for community based work and

similar. It was noticeable that in all the organisations that we spoke

to, flexible and employee centred personnel policies were in place. For

the future, such policies need to be flexible enough to respond to

different lifestyle choices at different stages in an individual knowl-

edge worker’s career. It would be a mistake to assume such choices

will reflect the traditional ‘upward pathway’ of career progression.

It is also noticeable that in knowledge environments the personnel role tends

to avoid a reliance on regulating the employment relationship through purely

contractual

a specially commissioned report a practical guide to knowledge management...

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