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The Role of Knowledge Management in Change Management

Conference Paper · October 1999

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 Discussion Paper

Role of knowledge management in change management: conceptual dimensions

and some recent InterCooperation1(IC) experiences in India

R.S.Murali (muralirs@ncrcl.com)

This discussion paper has been prepared to look at some of the tools and techniques available for change
management projects. This is based on the premise that most of the development projects are basically
change management projects. The paper conceptually looks at knowledge management and change
management issues and examines the role of knowledge management in effecting management of
change. Experiences from the case of Sikkim Milk Union are discussed in this regard. The paper also
draws some broad conclusions on sort of the approaches that could be followed for change management,
using knowledge. Some ideas on how development organisations could document and internalise the
learning experiences are outlined.

Part – 1: The background

Shift in development policy and approaches
There has been a major shift in the way developmental projects have been thinking. The shift is
the result of various questions on:
 Achievement of the objectives of the project/government department
 Relationship between the physical targets and financial outlay
 Impact of the projects on the target groups
Earlier, it was thought that the governments had the wherewithal to manage its affairs, and so
the donors funded the governments directly with huge allocations for the infrastructure. Looking
at the field results, slowly the thinking changed. Thanks to the donors who introduced some
objective thinking in the project planning and monitoring.
Initially the donors were quite involved with the project implementation; slowly, they have started
withdrawing from the project implementation. This move has been basically due to the fact that
implementation is the job of the government departments and donors have no role in it. Also
some of the experiences of the donors showed that they were getting too much involved in the
day-to-day activities of the government departments and agencies. This was going against the
objective of strengthening the functioning of the partner departments.
While the donor interventions were basically to fill up gaps in social needs, policy support for the
governments was an essential element of the development perspectives. The lack of
coordination between policies of the government departments, and the departments existing as
water-tight compartments has/ had severe influence on the project achievements. Moreover,
many of the donors were bothered more about policies than practice. In developing countries,
particularly in countries like India, many of the departments have reasonably well drafted policy;
the problem is translation of them in to realities.

1
InterCooperation, SDC, Switzerland

Role of knowledge management in change management R.S.Murali Oct-1999 1

New approach
There has been a revised thinking by some of the donors which is well summarized by the World
Bank:

“Yet a consensus is emerging on the elements of future development policy.

 Sustainable development has many objectives
 Development policies are interdependent
 Governments play a vital role in development, but there is no set of simple rules that tells
them what to do
 Processes are just as important as policies”2

The first two statements on the multiple objectives and interdependency of the development
policies are well understood. These are beyond the ambit of discussions in this paper.
The last two statements are relevant from the view-point of successful implementation of the
projects. There is no set of simple rules that tells them what to do: the governments have to do
the job of social development/transformation; but the way they do or the methodology they have
to follow cannot be defined in simple terms and straight forward, as the problems in the field are
often complicated and intense than one could plan or imagine. Also, processes are as important
as policies. On the one hand the donors are moving away from implementation and on the other
the “process” is becoming very important. This dichotomy needs to be addressed.
“What to do” refers to implementation. Depending on a set of objectives and field realities,
appropriate set of rules has to be applied. The set of rules actually influence the process of
implementation. The ultimate analysis implies “implementation planning and execution”, that
have to be done without loosing the focus on identified policies.
The observations of the World Bank is interesting: while the 1997 World Development Report
focused on change management3 and the report discusses on matching the state’s role to its
capability and raising state capability by reinvigorating public institutions; the 1998/99 report was
on knowledge management4, where the focus was about knowledge gaps and information
problems. Unless the knowledge management elements are addressed, the desired changes
cannot take place and the desired changes are in relation to development policy and practice
which is the focus of the 1999/2000 report.

Implementation perspectives: OD and change

What constitutes implementation? A set of activities that would lead to the achievement of the
project outputs which in turn would create the necessary developmental impact on the target
groups. The donors have been focusing on several approaches/methods by which the user
department will be able to achieve the project outputs. Here, what are the actual interventions?
While in the early periods and in certain specific emergencies finance was (is) the basic element
and creating basic infrastructure was a part of it, the current focus is more and more towards
increasing the skills5 and competencies6 of the employees of the user departments who actually

2
World development report 1999/2000, The World Bank, August 1999, pp13-14
3
The STATE in a changing world, World development report, The World Bank, 1997
4
Knowledge for development, World development report, The World Bank, 1998/99
5
Skills relate to the technical knowledge and efficiency
6
Competencies relate to managerial knowledge and effectiveness

Role of knowledge management in change management R.S.Murali Oct-1999 2

implement the project. The required skills and competencies of the implementers are generally
enhanced by organisational development (OD) strategies. Structurally the projects would provide
the user departments OD interventions (with necessary infrastructure and technical support) and
the departments would implement. This OD model needs to be understood.

OD is defined as: “… a top management supported, long range effort to improve an

organisations problem solving and renewal processes, particularly through a more effective and
collaborative diagnosis and management of organisation culture – with special emphasis on
formal work team, temporary team and inter-group culture – with the assistance of a consultant-
facilitator and the use of the theory and technology of applied behavioural science, including
action research”7.

The above definition is comprehensive and all development projects, in some degree and with
some variations, implement OD strategies for improving the “service delivery’ of the partner
organisations. The projects are interested in the way the partner departments ‘execute’8 their
work and for this purpose OD interventions are used. Effectively what is aimed at is change.
Change in terms of:
 Technical capabilities
 Managerial effectiveness
 Objective orientation
 Proper utilisation of resources
 Attitudes and work culture, and so on.

The above list is only selective (more discussions are made in later part of the paper) and the
actual changes are expected in several other dimensions also. This would imply that effectively
the projects aim at “change management” though not explicitly stated.
Does the view of the project as “change management” project instead of “social development”
project help in planning developmental projects and managing them. This paper is positive that
the change management approach would benefit the project, the implementers and the
beneficiary group.

Part – 2 : Change management

Definition and need

“Change management is the process of moving from the current state to ‘vision’ of the future and
involves a degree of transition which may also result in ‘pain’ for some or, more commonly, all” 9.
This is an inclusive definition where by certain adverse organisational implications have also
been considered. The crux is that the process of change envisages movement: from the existing
state to the desired, which is the ‘vision’ of the project. In order to enable such changes OD

7
French, W.L. and Bell, C.H., 1984, “Organisational Development: Behavioural Science Interventions for
Organisation Improvement”, Englewood Cliffs, NJ: Prentice Hall
8
This paper does not go into details of execution which starts from planning and includes logistics
9
Neil Russell-Jones, 1997, The Managing Change Pocket Book, Management Pocketbooks, UK

Role of knowledge management in change management R.S.Murali Oct-1999 3

methods are resorted to. Now comes the direct nexus between the change management and
OD interventions.

It may be worthwhile here to note that inefficiently handled change situations could cause
several problems and10:
 Research suggests that many planned strategies are never implemented, often because
the change process is badly managed;
 The costs of implementation may rise;
 Benefits of change may be lost;
 The human consequences of the change may become greater;
 Motivation may be reduced;
 Resistance to future change may increase.

These factors influence the need for making the change management task a serious and urgent
one.

Approaches to change management

A normal change management programme (whether called by this term or not) looks at just the
overt components and not the covert ones11. Overt components are those that are generally
visible and logical; while the covert components are hidden and not very obvious. Generally the
covert components are qualitative and very difficult to recognise prima facie.
Overt components include:
 Job definitions and descriptions
 Organisations and structure
 Span of control and hierarchy levels
 Organisational missions, goals and objectives
 Operating policies and practice
 Production and efficiency , effectiveness measurements

Covert components include:

 Emergent power and influence patterns
 Personal views of organisations and individual competencies
 Patterns of inter-personal and group relationships
 Perceptions of trust, openness and risk taking behaviour

10
Hussey, D.E.,1997, How to manage organisational change, Kogan Page
11
Richard J. Selfridge and Stanley L. Sokolik, 1975, A Comprehensive View of Organisational
Development, M.S.U. Business Topics, Winter

Role of knowledge management in change management R.S.Murali Oct-1999 4

  Individual role perception and value orientation
 Emotional feelings, needs and desires
 Affective relationships between managers and subordinates
 Satisfaction and development effectiveness measurements
 Human resources accounting measures

Normally most of the projects take care of only the overt components. Of late, the emphasis for
tackling the covert components is also considered seriously by the projects.

Typologies of change

Another important aspect of change concerns how it comes about in an organisation (that is, the
process of change), with a commonly used distinction between planned change and emergent
change. Put simply

 planned change results from deliberate managerial decisions to alter the organisation

 emergent change happens on an ad hoc (improvised), incremental, and /or unanticipated

basis.

The understanding of the change typology helps in identifying the factors that contribute for
defining approaches and also, the success of the change process. When a project is viewed as
a change management project, then it becomes a planned change. In many projects, though the
objective is well laid out, due to the lack of this specific approach the changes are only
‘emergent’ in the sense considered here.

Planned Change

INTERVENTION(S)
CURRENT DESIRED
STATE FUTURE
A STATE
B

UNFREEZE MOVE / CHANGE REFREEZE

Role of knowledge management in change management R.S.Murali Oct-1999 5

The above is a typical representation of planned change, usually described as a managed
transition from an existing state towards a desired future state, as described in a strategic vision.
Kurt Lewin12 first developed the representation of planned change shown in the figure, and two
related concepts:

 force field analysis

 the unfreeze/change (or move)/refreeze sequence of planned change.

Force field analysis

According to Lewin, the current state of an organisation is in equilibrium, maintained by a field of

forces. Some are forces for change (known as drivers); others are forces against change
(known as restrainers). Force field analysis is a simple way of depicting these forces for a given
organisation. Figure shown below is an example, illustrated with reference to privatisation in a
developing country. Changing an organisation requires changing its force field, whether resulting
from increasing levels of environmental turbulence or managerial action to strengthen the drivers
(by adding new ones or strengthening those which already exist); and/or by weakening the
restrainers.

Force Field Analysis: An Example

Drivers Restrainers

Community opposition
Political will

Trade unions

IMF/Donor
pressure Opposition party concerns

Concerns about accountability

Opportunities for Requirements for infrastructure

investment investment

Lack of institutional capacity for

Claims for service improvement private investment

12
Cooke, B (1999) ‘Writing the left out of management theory: the historiography of the management of
change’, Organization, 6 (1), 81- 105; and discussions by the author

Role of knowledge management in change management R.S.Murali Oct-1999 6

Unfreeze – change – refreeze analysis

Unfreezing: Altering this field of forces is known as “unfreezing”, or sometimes as “creating a

readiness to change”.

Change: Once unfreezing has taken place, the drivers cause movement toward the desired
future state to occur (“movement” or “change”).

Refreezing: When the desired future state is achieved there is a need to re-establish the
equilibrium of forces, to embed or “refreeze” the change.

Stakeholder analysis for planned change

To initiate the planned changes, the target group, their nature, their readiness to change and the
their vested interest in the current situation, and so on have to be understood. In this regard one
useful technique could be ‘stakeholder analysis’13. This is basically a classification procedure.
The stakeholder analysis ultimately classifies the direct and indirect stakeholders of a project in
to a matrix called “importance – influence matrix”. Depending on the importance of the
stakeholder for development project, and their relative influence or power, their position is
plotted in the matrix. For instance a socially disadvantaged beneficiary group will be very
important but with least power. The positions of all the players are plotted based on this analysis.
By identifying all the stakeholders and their relative positions in the matrix, indirectly covert
elements and risks prone relationships of a project can be to some extent recognised.

An example of a population control project from a developing country is shown below. This type
of classification brings out the risk arising from the external stakeholders, who are dormant
during planning stage of the project and often influence at the implementation stage. They spring
surprises and the management of change fails or losses focus.

Stakeholder Analysis: An Example

High
A B Stakeholders:
*5 Secondary:
*4 *2 1.Ministry of Population welfare
*3 2.Pharma Companies/disrib.
Importance

3.Donor
*1 Primary:
D C 4.Lower middle income groups
5.Women
External:
*7 6.Clergy
*6 7.Traditional birth attendants

Low Influence/Power High

13
Montgomery, R. (1995), “Short guidance note on how to do stakeholder analysis of aid projects and
programmes

Role of knowledge management in change management R.S.Murali Oct-1999 7

Understanding change situations
Change management is a contingency (situational) approach and the strategies are necessarily
based on the situations. In a planned change management, though a situation analysis is done
the emergent changes are often dictated by the situations. Every change situation is influenced
by two major factors: urgency and resistance14. One way of understanding the factors that could
influence the situation/organisation is by conducting a urgency-resistance situation analysis as
discussed below.

Urgency: the concept of urgency is answered by answering the question: how urgent is the
need for change in relation to the extent of the actions that have to be taken? Many practitioners
and researchers feel that more the urgency, it is easier to effect change. However, this cannot
be accepted without analysis. In many government departments in developing countries, the
functionaries do not even recognise the need to change; hence urgency does not arise at all,
according to them. Also, in some situations the persons at policy level may recognise, while
persons at lower may not be aware at all of the need to change. Another complication is created
by the role and awareness of politicians who are decision makers in many cases.

Resistance: invariably is the result of feeling comfortable with the existing conditions.
Resistance to change is triggered by a sense of insecurity and arises due to threat to office or
ignorance about the change. Resistance can come out of personal reasons because the people
concerned do not perceive the need. Also the level at which resistance takes place is very
important; and, it can be different at different levels.
It is interesting to note that in the case of both urgency and resistance, one of the contributing
reasons is lack of knowledge or awareness.

Model for analysis: Resistance – Urgency Matrix

High

Moderate Critical
Urgency

Difficult Serious

Low Resistance High

14
for detailed discussions refer Hussey, D.E., 1997

Role of knowledge management in change management R.S.Murali Oct-1999 8

The resistance- urgency matrix (RUM) shown above gives the four situations that can possibly
arise in a change management situation based on the resistance and urgency factors.
Resistance from the stakeholders to the change is plotted on the x-axis, while the urgency of the
situation is plotted on the y-axis. This way it is a people-situation analysis. The classification
results in four ‘conditions’ or ‘situations’ to change.
 Moderate: This situation is relatively a better situation for a change management
programme. The coupling of high urgency for the change with low resistance makes the
situation moderately difficult for the managers. Good participative methods towards the
user department/organisational personnel are suggested approaches. Here the focus
should be on the groups resisting change. Also, key people who are positive should be
identified and made leaders. The strategy would be to sensitize the participants on
making them understand the urgency for change.
 Difficult: This is a low-key situation where there is neither urgency nor resistance. The
low urgency indirectly implies a reasonable time frame for the change. Here the
organisation requires extensive participation in making the employees feel a sense of
urgency for the change. The persons who would be affected by change should be
allowed (persuaded) to lead the change, if possible.
 Serious: The high resistance with low urgency for change makes the situation serious.
The concept of change should be sold to the employees. A sense of shared vision needs
to be created. The concept of “coercive persuasion” may be relevant here.
 Critical: High resistance and high urgency for change trigger these situations. These
situations are quite common; however, the projects have to take strategic decision about
such situations. Normally such a situation is triggered by a request from the recipient
department/government when they are not able to manage a situation. The donors have
to consider the situation seriously before acceptance. Here more than coercive
persuasion, multiple strategies may have to be used including force from decision
makers and interest/beneficiary groups.
The RUM model discussed above offers to identify the covert factors, discussed earlier, which
effectively influence the change. It has to be understood while changes in systems and
procedures are often made available, it is the “mind-set” of the user group (departmental
personnel/implementers) than that of the beneficiaries that often decides the success of
implementation.

Business Orientation Model

The change management strategies required for successful implementation of projects demand
the construction of a good model in order to look at elements that are likely to cause risks at a
later stage. While RUM looked at the change situation, this model looks at one of the factors
influencing “change. The approach is called ‘business orientation model’ (BOM).
This concept for this model arises from the following discussions. The objective of most of the
projects (excluding projects focusing on issues like human rights or war relief) is to improve the
economic empowerment of the target beneficiaries. This may be expressed in grosser terms like
improving the social status and so on. Based on the vocation of the target group: animal
husbandry, horticulture, etc. the required interventions: technical inputs, training, subsidy etc. are
made.

Role of knowledge management in change management R.S.Murali Oct-1999 9

Improving the economic condition of the say, dairy farmer would, in ultimate analysis, mean that
the farmer has to get an appropriate return on his investment. This means “business” in proper
sense of the term. He has to have his market, his technology has to be appropriate, he has to
manage human resources and of course the finances.
Here certain structural elements need recognition. Structurally all the organisations and bodies
involved in the development process are with non-business orientation. The developmental
organisation and government departments are “socially” motivated and business skills are not
required and generally not found. Hence, even in the thinking of the representatives of these
groups there are definite “non-business” orientations. Because of this “knowledge gap” in
running businesses, these organisations are not able to provide the necessary support required
for the micro-business community – the farmers/beneficiaries. It is also a fact that unless the
intricacies of the business systems are understood, necessary strategies for enabling change
cannot be created. That is the reason more and more private initiatives are sought after in
development projects.

Organisation/groups Orientation
Government – policy makers Non business
Donors Non business
Government – departments Non business
Beneficiaries Business
NGOs/Consultants Non business/partly business

This factor is extremely important and often lands projects in trouble. In the developmental
projects there is increasing stress on private sector participation and this means more pressure
on business performance of the beneficiary groups. Some times this lack business orientation
makes the private sector exploit the beneficiary groups and in certain cases even the project.
Also the developmental projects talk of “sustainability”. Sustainability at the beneficiary level
means “continued viability15”. These are hardcore business concepts and have to be necessarily
understood by all the players. Understanding these concepts can make the policy makers
effectively design projects and particularly develop implementable change management
strategies.

Part – 3 Knowledge management

Defining knowledge management

“….KM is more than just a buzzword or a sales pitch, it is an approach to adding or creating
value by more actively leveraging the know-how, experience, and judgement resident within and,
in many cases, outside of an organisation”16.

15
Viability concepts and discussions are beyond the ambit of this paper
16
Ruggles, R. (1998) The state of notion: knowledge management in practice, California Management
Review, 40(3), pp 80-89.

Role of knowledge management in change management R.S.Murali Oct-1999 10

“KM, then, is about harnessing the intellectual capital of an organisation, recognizing that
knowledge, not simply information, is the primary asset to an organisation”17.

These two definitions reasonably sums up the definition of what knowledge management is:
 It is an approach to create value
 It is based on know-how, experience and judgement
 It could reside inside or outside an organisation
 It means to harness such aspects given above
 It is an asset to the organisation
 It is not just information

Why KM at all
The sudden interest in KM is due attributed to two reasons18:
 Globalisation
 Availability of new forms of communication
Organisations that are dispersed in more than in one geographical region require focusing on
KM as the personnel in the organisation need to be connected to receive, share and contribute
knowledge. From this viewpoint, the new forms of communications: Internet, intranets play a
very vital role. This is the information technology (IT) enabled reason.
However, there is a much deeper and often hidden reason for KM: the need for institutional
memory (IM). Institutional memory resides in the head of the ex and current employees, the well-
wishers and all the persons/organisations that come in contact with the organisation/project at
some point of the time or the other. All such persons/organisations may not contribute to IM.
However, it depends on which particular aspect of knowledge that becomes important and
relevant at a particular point of time and then that particular IM becomes essential.

Forms of knowledge
Knowledge can be said to be in two forms: tacit and explicit19.
 Tacit knowledge is hard to formalize and, therefore, difficult to communicate to others. It
is also deeply rooted in action and in an individual’s commitment to a specific context. It
can also be referred to as ‘action knowledge’. Experiences of project functionaries,
consultants, beneficiaries, officials are under this category.
 Explicit knowledge is formal and systematic. For this reason, it can be communicated
and shared in product specifications or a scientific formula or a computer program or a

17
Marshall, L. (1997) Facilitating knowledge management and knowledge sharing: new opportunities for
information professionals, On line, 21(5), pp 92-98.
18
Willard Nick (1999) Knowledge management: foundations for a secure structure, Managing Information,
June 99-6:5, pp 45-49.
19
Nonaka, I. (1991) The knowledge creating company, Harvard Business Review, (Nov / Dec, 1991).

Role of knowledge management in change management R.S.Murali Oct-1999 11

 set of procedures. It can also be referred to as ‘recorded knowledge’. These are
manuals, procedures, study/planning/evaluation reports, MIS software, audit reports, etc.

The knowledge spiral

INTERNALISATION

ORGANISATION
COMBINATION
EXTERNALISATION

SOCIALISATION
TEAM

INTERNALISATION

INDIVIDUAL
COMBINATION
EXTERNALISATION

EXPLICIT TACIT

The knowledge spiral (Prof.Nonaka) is one way of expressing how the tacit knowledge could
become an explicit knowledge.
 Step #1: the basic idea/experience of a person, after due consideration is expressed to
others – externalization (by observation/casual discussions);
 Step #2: the individual combines the idea with other known concepts in a form of
contextualisation – combination (by presentations/discussions);
 Step #3: this on communication to colleagues at large takes shape and the colleagues
begin to picture in the idea – internalization (by say a working paper);
 Step #4: the idea grows and colleagues/interest groups contribute and the idea takes
shape - socialization (by say an agreed approach/procedure/policy/practice);
 Step #5: new ways of using the idea is found and it becomes a well laid system –
internalization.
Based on the knowledge spiral, it becomes evident that KM is a composite management of
people, information and processes; and of course the relations between the three.

Role of knowledge management in change management R.S.Murali Oct-1999 12

Process of KM
The process of KM involves four steps: acquisition, creation, storage, transfer and utilisation20

Acquisition Creation

Knowledge

Storage & Transfer &

retrieval utilization

# 1 : Knowledge acquisition
Knowledge acquisition is made in both internal and external ways.
The internal acquisition of knowledge is from the internal sources and is generally by:
 Tapping the knowledge/experience of the staff and associates (beneficiaries)
The external collection is made by a variety of methods:
 Benchmarking
 Attending conferences
 Hiring consultants
 Newspapers, e-mails, journals, books (print)
 TV, video, films (view)
 Observing economic, social, technological, political trends
 Data collecting from target groups, other resources
 Hiring new staff
 Collaborating, building alliances
However, it is important to note that the knowledge acquired is through the filter of executives
and their perception. Hence it is important to formalize the process of knowledge acquisition as
much as possible.

20
For a detailed discussion refer, Marquardt, M. J. (1996), Knowledge management in learning
organisations (chapter-6) in Building the Learning Organisation, McGraw Hill.

Role of knowledge management in change management R.S.Murali Oct-1999 13

# 2: Knowledge creation
The knowledge creation is generally made through:
 Knowledge spiral (discussed earlier)
 Action learning
 Systematic problem solving
 Experimentation
 Learning from past experiences

After acquiring the knowledge from internal/external sources, the organisation needs to use one
of the above methods to create the knowledge. Knowledge creation would mean the conversion
of various findings, experiences, studies into internalised system/procedure or a mechanism.
This requires a bit of decision making in order to understand the implication of the knowledge
generated and its usefulness to the project.

# 3: Knowledge storage & retrieval

The storage and retrieval of knowledge imply two things: relevance and retention.
Relevance would identify the knowledge that would be pertinent and applicable for the
organisation. It has to be understood that in any process certain ‘wastages’ are to be thrown out.
Organisation should have the mechanism of sifting and identifying the needed.
Retention would follow the decision on relevance and the way ‘knowledge’ needs to be stored.
This is where the IT interventions come in to picture.

The knowledge stored could have the following features:

 Structured, so that retrieval can be easy
 Categorized in to knowledge elements: facts, data, analysis, policies, procedures,
approaches, cases, factors, etc. depending upon the needs
 Timely availability
 Regularly upgraded/updated

# 4: Knowledge transfer & utilization

Knowledge transfer and utilization involves mechanical, electronic and interpersonal transfer of
information and knowledge. Also, these can be both intentional and unintentional.

Intentional transfer of knowledge happens in many ways:

 Written communication (reports, letters, memos,..)
 Training

Role of knowledge management in change management R.S.Murali Oct-1999 14

  Conferences, workshops, presentations
 Internal publications
 Tours and visits
 Transfers

The unintentional transfer of knowledge can be triggered by:

 Stories and gossips (grapevine)
 Informal networks
 Job rotation

In all the above cases, “communication” is the mode and all the characteristics of bad
communication will affect the transfer of knowledge.

While transfer of knowledge is relatively easy, the utilization of knowledge is quite difficult, as it
involves individual human element or the covert items, discussed earlier. However, the demands
from the system of management will enable progressive use of the knowledge stored. The
organisation should evolve systems in such a way that the employees would always look back,
refer and extensively utilize the stored knowledge.

Elements of KM
KM can be seen to contain the following elements:
 Technical skill (TS): this is basic skill required by the target group members: it could be
beneficiaries, the department or project personnel for a specialized technical
performance. Also various technical reports and studies would be included in this
category. Eg artificial insemination, disease control, technical evaluation studies, etc.
 Managerial competency (MC): this is the ability required to not only transfer the skills
but also effectively use the resources. Also various studies on managerial aspects would
be included under MC element. Eg. Project management, financial management, people
management, communication, institutional analysis, organisational study, etc.
 Institutional memory (IM): these are the experiences gained based on implementation.
Eg. Impressions on the discussions with minister, qualitative impressions during
evaluation, experience gained in dealing with legal aspects, etc.
 Information technology (IT): the way the above three elements are recorded effectively.
Eg. Format of storage, software design, hardware elements, etc.

All the four elements are necessary for any organisation to properly manage the ‘organisational
knowledge’. Specific strategies will have to be developed for each one of these elements: for
their acquisition, creation, recording and utilisation.

Role of knowledge management in change management R.S.Murali Oct-1999 15

 Knowledge type continuum

Type EXPLICIT TACIT

Element

Technical skills

Managerial competency

Institutional memory

Information technology

The above diagram synthesizes the knowledge type continuum. As discussed earlier, by the
knowledge spiral it is possible to convert the tacit knowledge into explicit knowledge and hence it
is expressed as a continuum. Various elements of KM have different continuum based on their
nature.
 Technical skills are reasonable explicit and may be about 20% of the “personal touch” of
the specialist can be considered tacit.
 In the case of managerial competency the explicit – tacit mix is 50-50. Many of the best
professors in business management have failed in their ventures due to the lack of
required competencies.
 Institutional memory is over 80% contributed by tacit knowledge, which again is fostered
by their background, levels of emotions, etc.
 Information technology is reasonably straightforward and over 80 – 85 % is explicit.

There could be lot of opinion about the pattern of continuum over various KM elements;
however, it is certain that such a continuum exists and it becomes easy for organisations to
develop strategies once they understand their organisational specific pattern.
One other point that arises out of this discussion is that managerial competency and institutional
memories are the areas that projects have to focus up on, as these are the weak areas.

KM in developmental projects
In developmental projects, the KM “levels” do exist. The knowledge levels of beneficiary groups,
the partner department functionaries, the policy makers, the NGOs, the consultants and of
course, the project functionaries are different. The knowledge gaps of these groups and between
these groups have to be identified and strategies developed to bridge the gaps. Invariably, it is
this knowledge gaps between the participants of a project that create problems at
implementation level.

Role of knowledge management in change management R.S.Murali Oct-1999 16

Part – 4: Knowledge management in Change management – the case of Sikkim Milk Union

What do development projects do? They seek to bring about a planned change in the way
government departments/social organisations are operating in order achieve the social objective
they work for. And, while doing such a planned change, the projects indirectly act as “change
agents”. “… the planned change that originates in a decision to make deliberate effort to improve
the system and to obtain the help of an outside agent in making this improvement. We call this
agent a change agent” 21. The projects make use of their own staff, consultants, NGOs and
voluntary agencies/workers who act as the change agents. It may not be exaggerating to say
that every developmental project is a “change management project” as there are very clear “as
is” and “will be” states.
While trying to bring about a planned change, what are the inputs given by the projects:
technical know-how, systems and methods of work/execution, expert advice, hardware
(construction, facilities, so on) and funds. Except for the last two items all others constitute
knowledge elements. The provision of hardware and funds just do not bring about the desired
change; it is the knowledge process that brings about the effective change. In fact the hardware
and funds provided get utilized properly only when the knowledge is properly managed.

Change path/milestones
In this context the KM is important than rather transfer of knowledge. By providing some training
it is deemed that knowledge is transferred; while the experiences have shown that ineffective
training leads to no improvement in the skill/competency levels of the target group. This means
that KM was not managed properly. This needs some discussion. Generally, number of training
programmes is monitored for evaluation and when the targeted number is achieved, it is
considered successful. This is because the “change” is considered as an impact and not as an
“output”; and not immediately measured. In the case of KM, change itself has to be considered
as the output. This requires serious consideration by the projects. There has to be a “change
path” or “change milestones” clearly laid out for the project activities. Unless such milestones are
achieved, the next obligation for the project should not arise. Change parameters can be easily
identified for projects once the change path is laid. Various elements of the change path can be
related to quantitative project plans. Thus managing change and managing knowledge
converge.

The case of Sikkim Milk Union in this regard is interesting. Though very clear KM programme
was not planned, definitely CM strategies were proposed (not explicitly expressed in the
planning documents or yearly plan of operations).

Sikkim Milk Union (SMU) is partner of the Indo Swiss Project Sikkim (ISPS) from the Phase II
(1996-1999). Until 1998 SMU remained a dormant partner. There was not much interaction
between the project and the Union. Even when invited for some programmes no body would
turn-up.
SMU was set up a co-operative milk union. It has about 80 functional societies and about 3,000
farmer members. SMU has installed capacity to process 15,000 litres /day (lpd) of liquid milk.

21
Lippitt, R., Watson, J., Westley, B. (1958), The Dynamics of Planned Change, Harcourt Brace, New
York.

Role of knowledge management in change management R.S.Murali Oct-1999 17

This capacity is distributed between the main unit at Gangtok (10,000 lpd) and Jorethang (5,000
lpd). It employs about 80 persons (both plants) and headed by a person on deputation from
Cooperative Department of the Government of Sikkim (GOS). The capacity utilisation of the
Union has been low - between 35 and 40% and the Union has been incurring losses. This
organisation is also linked to department of animal husbandry and veterinary services (a major
partner of the project) who provide some funds support from their budgetary funds. This
assistance from the department was taken for granted as a source by SMU. On the market side
the Gangtok unit was supplying about 5,000 lpd of packed milk to the city (total market at least
25,000 lpd). The Jorethang supplied outside the state to West Bengal and also made some
local sale (1,000 lpd). In terms of raw milk collections: Jorethang collects 3,500 lpd and Gangtok
just over 2,000 lpd. This means transfer of milk from Jorethang to Gangtok daily and this is a
costly affair.

May 1998: During the first mission to SMU, a meeting was fixed before the starting of a 10day
program on “turnaround plan preparation”. The managing director (MD) of the Union did not turn
up for the meeting. The deputy general manager (DGM) and the assistant manager
(procurement & inputs) turned up. The discussions showed they had the least idea of what was
going to happen.
The Development Commissioner (DC) of the state of Sikkim, who is also the Chairman of the
ISPS, inaugurated the turnaround plan preparation programme. The programme looked at
various overt components first. Starting from the organisational mission, the programme traced
in a participatory manner functions, functional objectives, roles of various departments,
organisational structure, job descriptions and of course, detailed financial projections and
viability. The executives had least idea of planning, did not have any quantitative information
about the market. Bad quality was only the processing department’s headache, no interaction
existed between the departments and no planning; decision-making was not known and even
cooperative concepts were not well understood.
At the end of the ten-day programme, the participants (heads of various functions) were able to
give a detailed presentation to the government, with reasonable conviction on what lies ahead.

22
Feed-back from the participants of the programme (sample)
- Such programmes should be organised from time to time not only to frame policies but also
for evaluating various follow-up activities.
- I feel that I am out of dark; and this should have been given 10 years earlier. Such
programmes half yearly should be arranged and this will give excellent result.
- We should have had more time and the workshop brought us for the first time closer to each
other. Each one of us now knows about the other’s problem. With joint efforts we know we
can overcome the problems. We have also learnt that it is never late to make changes for
achieving success.

The specific changes that were brought about were:

 The participants understood that there were lot of gaps in the way they were operating;
 They understood that lot of problems were at their level and because of themselves;
 They also understood that they had to be more participatory and remaining “closed” does
not help them or their organisation;
22
Murali, R.S. (1998), Report on Turnaround Plan for Sikkim Milk Union, ISPS, June 1998, pp-45.

Role of knowledge management in change management R.S.Murali Oct-1999 18

  The participants prepared a department wise action plan with specific responsibility given
to persons.
 There was opposition to the Union from the staff for ISPS identifying two milk societies
for supply of milk to the cheese project, supported by ISPS. This would mean that they
would no more supply to the Union and this would reduce the procurement of the Union.
During the programme this point was taken up and the specific group, which opposed the
proposal, was given training to work out the cost of transportation and carrying. The
group ultimately recommended that the societies better supplied milk to the cheese plant
rather than the Union.

The analysis clearly showed that the “knowledge” on specific areas of management made the
participants understand the situation of the organisation and their role. It made them change to
the extent of reversing their opinion on certain hard core issues like loosing their collections.

Sep 1998: The turnaround proposal was submitted to the government and the government had
immediately recommended that the required working capital be released to the Union through
the department. In September, the progress in various functional areas was reviewed. The
Union had progressed in lot of qualitative aspects. For instance, at the process level better
hygiene and testing methods were getting adopted; the MD was slowly calling his executives for
discussions. The DC was taking personal interest in the case and would even visit the Union
occasionally and meet the executives. However, the greatest weakness was still the “bad quality
of incoming milk”. The following box shows the progress made between June and September
1998.

23
Review of Performance since June 1998:
In order to assess the existing condition of SMU before the implementation of the Turnaround Plan, the
major events faced by the Union were analysed. Since June 1998 Sikkim has been facing extremely bad
weather conditions. It is stated that Sikkim was facing such bad conditions, after 1968. Due to rain and
landslides, several main roads have been cut-off from the main stream of operations. This has affected
the procurements adversely. Even during the pre-June period, the major problem was inadequate
procurement and with the stated conditions the procurement further dipped increasing the problem of
SMU.

At this backdrop the progress made by the Union from June 1998 was discussed. The highlights identified
by the participants are as follows:

 Purchased new truck for milk distribution

 Opened new route - Tumin route
 Stressed on importance of quality. Interacted regarding quality control with administrative officers of
the Union
 Farmers trained in animal management and farmers induction programme at ERDTC (NDDB) Siliguri
conducted
 Scheme for alternate water source under implementation
 Implemented a medical insurance scheme for staff of SMU
 Started raw milk supply to only one sweet shop. Others are likely to accept SMU milk after Sweet
Shops Union sort their differences
 Started to curtail unwanted expenses
 Started medical facilities for treatment of cattle by SMU

23
Murali, R.S. (1998), “Sikkim Milk Union – Report on follow-up of Turnaround Programme”, ISPS, pp-1

Role of knowledge management in change management R.S.Murali Oct-1999 19

 Farmer education programme done in two societies (Raley and Tumin)
 Four milk societies (defunct) re-organised and they have started pouring milk
 Placed order for milk packaging machine for Jorethang plant
 Operators/ lab staff training started
 Arrangement for expert's assistance in maintenance of machinery made.
 Procuring some new machinery/ equipment, initiation made.
It is interesting to note that the Union has initiated several steps based on the May 1998 programme, even
before the actual implementation of the turnaround plan has actually commenced. Many of the steps
taken are qualitative; and this is very important. Some of the quantitative improvements would follow, it is
hoped, once some financial assistance is provided. The initiatives taken by the management and
executives of the SMU clearly show that the Union can implement the turnaround plan.

Definitely the Union proved that it had capacity to implement the plans. The project also planned
to tackle the problem of quality. A set of officials was sent to the MRCMPU 24, Kerala to observe
the way P&I functions were taking place and quality was being assured.

Mar 1999: In March 1999, ISPS held a general “management orientation programme” for the
chief executives of the public sector and the government. In this the MD of the Union
participated well. There was change in his perceptions and during many sessions he could
contribute.
During this time the DC also took personal interest and the required funds for the Unit was
provided in the budget.

May 1999: A management orientation programme was arranged for the SMU, in which the
executives were exposed to various basic management concepts, along with tools and
techniques.
25
The feed back of the participants (sample):

 This is the first management training programme I was given an opportunity to attend sponsored by
the ISPS. Program was extremely fruitful for me and in my opinion it should be at least for 10 days.
Expecting some more training in financial management.
 The training has definitely helped to fill in some knowledge gaps and bring about some change in
attitude. I am certain that it will help bring about some positive changes in my performance.
 This programme has been as usual very useful to us. We all hope to work as a team. However we all
hoped that our CEO had also attended the programme.
 My knowledge and understanding has become enriched and clear. It also helps me to discover my
inner strength & weaknesses and to change/strength my particular traits.

The MD attended the programme just for the first day and did not attend from the next day
onwards. The reason was that the “files were on the move and some other person was likely to
occupy this chair”. This clearly meant he was not learning. However, the executives were quite
clear about the position and started coming out of the shell and their comments do reflect this
fact.

24
Malabar Regional Cooperative Milk Producers’ Union, Calicut, Kerala
25
Murali R.S., (1999), Report on Management Orientation Programme for SMU, June 1999, pp-9.

Role of knowledge management in change management R.S.Murali Oct-1999 20

During this time the Union had identified one society and started showing focused attention on
the same to improve the quality of incoming milk. The P&I personnel, with the help of the project,
started giving planned inputs to a chosen society. Slowly, the quantity and quality of the
incoming milk started improving.
The executives in general felt that they were not able to understand financial statements and
certain aspects relating to finance management. Hence the next attempt was to provide the
executives training in finance related aspects.

August 1999: Next the project focused on finance management. A training programme on
finance for non-finance executives was arranged. During this programme various concepts
underlying the finance management, relation between accounting and finance, reading the
balance sheet, analysing the performance of the Union, their net worth.
As a part of this programme, a one-day sensitization programme for the Board of Directors was
arranged. The BOD were introduced to the concept of finance management and also their rights
and duties in relation to the functioning of the organisation. They felt that the financial statements
were too complicated to understand. However, the programme ended by identifying four
important indicators that were required by them to monitor the performance of the organisation
and also ask the executives about the performance. They were made to understand the
indicators well. The executives were also present during this programme. The DC was also
present during the programme and he gave explanations to the technical points in the local
language, wherever required. This had a very good effect. The BOD realized that they should no
more depend on the government for money; SMU should act independently. The BOD
participants expressed this.

26
The feed-back of participants of finance programme (sample):
 Due to non-availability of such training facilities nothing was done by the previous executives
 It would help us to make joint decisions by using the cost accounting technique
 We all need to treat every section of our organisation as an integral part. Learn and teach
each other about their respective jobs
 We all should be accountable for the actions we take, however the CEO should second us

This programme had an interesting effect. It made the executives realize that the BOD would
ask for specific information and performance; there would be more technical/financial questions.
This made them realize the need for a well designed MIS.

A programme followed this, programme to SMU on “Performance Indicators”. It was a 6 day

programme with participatory workshops that led to the development of a Performance
Measurement System. The idea was to initially develop a simple measurement system that
would work. Once the system starts working the need and mechanisms of MIS can be
understood. They can then identify clearly their MIS needs based on which a workable MIS
could be developed. Their sub-ordinates assisted the executives during this programme. This
has also enabled the assistants understand their responsibilities towards providing information,

26
Murali. R.S., (1999), Report on MDP on Finance for Non-finance Executives of SMU”, September 1999,
pp-13-14.

Role of knowledge management in change management R.S.Murali Oct-1999 21

which is a very useful understanding for the development of MIS. Once the performance
measurement system works, then detailed MIS can be developed and implemented; the
organisation will be prepared for it. Now the Union has three PCs and the PMS has been made
in such a way that they would use some spreadsheet models for filling in the PMS reports. This
way the computer training that was imparted to the executives (with arrangements with a local
computer institute) and the hardware given will be fully used.

During this visit there was perceptible changes in the general atmosphere. The executives were
speaking with confidence. Slowly the covert points are coming out, as the last two items in the
box shows. Even in group discussions, comments on the work of each of the departments are
made and criticisms accepted positively. The PMS copy has been sent to the Union and several
elements in the document have to be filled in by SMU in order to complete the document. During
November/December 1999 the system will be field tested and the users trained. The draft will be
kept in the Board and approval of the BOD obtained. Between January and March 2000, the
system will actually be implemented. Only after that the final shape to the manual will be
developed.

Is the change obvious and is the organisation learning

During August 1999, a specific questionnaire was circulated amongst the SMU executives for
specific observations on whether any change was taking place. The responses are given below:

Change management questionnaire

1.Are you able to feel any change(s) happening in your organisation. If yes, what are the changes taking
place?
 Since last year, working under democratic pattern came in SMU. All the decisions are taken
jointly. Compared to previous working system, a lot of changes have been done in Accounts and
P&I sections.
 Yes there is greater awareness amongst the executives and those who underwent the various
training programmes/workshops, regarding the need for a change in attitude, work culture and the
need for improving productivity. Certainly, there has been acquisition of knowledge in the basics
of the core subjects.
 I do not see any drastic changes taking place in our organisation. However, I do feel that I
personally have been able to think positive and learn about the organisation, its position, its
weakness, the need to develop. Last but not least to take positive decision for the organisation to
really do well.
 In conceptual level there are certain changes. Some of us are more aware to some of the
management aspects.
2.What is the role of the (above) programmes in triggering such a change you have mentioned?
 The above programmes have helped us as they have been addressing SMU specific problems.
We have also been taught to think and plan in logical fashion. It has also been drilled in to us that
quality and productivity equals profitability.
 The turnaround plan made us realise our weakness and the need to change and develop.
 Still the MIS has not become effective.
 Only the above mentioned programmes brought about the changes. Previous to that there was
little awareness regarding various management aspects (among the executives).
3.What are the major areas/aspects in which you have seen the change happening?

Role of knowledge management in change management R.S.Murali Oct-1999 22

  Procurement has changed compared to the previous year. Some 20% of the changes have been
made in the collection of fat and SNF.
 There has been a slight improvement in quality of incoming milk in terms of total solids. There has
been slight improvement in organoleptic quality of out going milk to the market. Milk is being
delivered on time regularly and with out fail, except in a few stray cases. MIS has improved and
information is being generated compared to before. Costs have been curtailed and management
has improved. There is better teamwork amongst executives.
 Actually, major changes has not been taking place. But we are trying to take some tiny steps to
make some difference. After all, we have been exposed to above training for our organisation’s
benefit. Only after we start measuring our performance we can pin point our path we are heading
for.
 Some of us have become a bit conscious about costs/cost cutting techniques and we have also
started understanding the importance of information. But such an awakening is limited to
conceptual level.

4.Do you think changes are taking place at the required pace? If not, what do you think are the retarders?
 It is obvious that changes need some time; but I am sure that changes are taking place in SMU in
every field.
 No. Lack of knowledge, lack of proper direction, lack of discipline, lack of efficiency, inability to
take firm decisions, lack of strategy and implementation skills, and lack of performance
measurement are the retarders.
 No. The inability to take (individually) decisions in the right place and the right time. Inability on
the part of CEO to understand.
 No. Pace of change is almost negligible. Lack of decision making at correct point of time is the
retarder.

5.What is /are the area(s) in which change is rather slow or not obvious? And why?
 In my opinion the understanding that quality is the most important thing is almost ‘nil’ at certain
levels. I do not know the reason.
 The basic management concept. The inability to understand quality. As you have always put in:
the organisation is somebody’s baby; but whoever will accept the responsibility will work to bring
changes.
 Procurement and input wing has not shown much improvement. The officers concerned have not
been very effective and the field supervisors are not performing as they should. Financial
management is also weak. A qualified finance executive is required, I think.
 The quality of milk collected. This is due to non-availability of supervision in the field and farmers’
education on quality.

6.What according to you are the prescriptions for remedying the above?
 Field officers should be penalized if they fail to attend the societies in time. Massive farmer
education programme is required. Monthly meeting and follow-up should be done.
 The P&I executives have to deal more firmly with their supervisors. A great deal of field work will
have to be done to educate the producers, widen producers’ base and t improve quality/quantity
of milk. MIS has to be improved overall. Greater financial management and control is required.
More training has to be imparted to Union’s employees and farmers on a regular basis. More
dedication is required of everybody.
 The management to be totally aware of taking negative decision. Those unable to take decision
should not be involved in managing the affairs of the organisation.
 Professionalise the whole management.

Now, having discussed the case, have the SMU achieved the turnaround?:

Role of knowledge management in change management R.S.Murali Oct-1999 23

 Not yet but:
 The mind set of the executives has changed
 The organisation is very clear on basic issues now
 The executives now know their deficiencies
 The need for participative decision making has been well understood

There are several important elements that come out of the SMU case:
 The required changes can be triggered by knowledge: This is evident from the feedback
of the participants. There seems to be a very clear acknowledgment of the fact that “they
had to understand that they have to change”. This can be triggered basically by
knowledge.
 Knowledge disseminated has to be pertinent to the group; While skill imparting is
important competency focus assume great dimensions. “Delivery” is the key issue. The
trainings have focused on both technical skills and competency aspects.
 The participants should every time get value addition to their knowledge. Each of the
programmes was directly related to the day-to-day management. The actual registers
and reports were brought for analysis; and the existing procedures and practices
discussed. The examples were also not alien. In fact, some of the cases, developed
based on Andhra Pradesh experience, were used. The key factor is that at the end of
every programme, the participants should go back with some tools for their day-to-day
work. Otherwise they feel it theoretical. This fact has to be recognised.
 There has to be clear sponsorship from the power centres/policy makers: The role of
DC, the involvement of the BOD and the turnaround of MD in this regard are important.
In all these three cases also the influencing factor is knowledge. Though the MD has
been slow in his decision-making aspect, he has allowed democratic decision-making
system at the required levels.
 Change has to be gradual and systematic: this is very evident. The Union could not have
faced any drastic changes. There would have been resistance. The programmes were
given in reasonable intervals with follow-up on the utilisation of the same. The advantage
of having a turnaround proposal is that all elements of management are covered.
 Involve various levels in the change management programme: beginning with the middle
level both the levels above and below have now been brought in. While the demand is for
training for the lower and field staff, the suggestion is that the policy makers should also
be trained. The employees should get a “shared vision27” of what is happening and what
should happen.
 Prepare the target group for the change mentally. This is important for creating a
demand. At every stage the necessity for a particular knowledge is created. First on
general management, then on finance, now on MIS/computers and so on.
 Change management should not be named thus; it has labeled different. While the focus
was change management, it was labeled a financial turnaround. As of today financial
turnaround is slightly far away, but the change is evident.
 The change agents should be committed, themselves good managers and cannot have
ego. This is the personal character of the project officers and the consultant involved.
Otherwise, change cannot be triggered.

27
Senge. P, (1990), The Fifth Discipline, Doubleday:Newyork.

Role of knowledge management in change management R.S.Murali Oct-1999 24

  Provide the support system when working pattern starts changing. When the
organisation begins to change the required support system should be provided. Lab
equipment for testing, computers when they needed and now software when they feel
confident are being provided by the project. If such facilities are not provided, they will
not only loose faith in the system, but also get out of touch with what they have learnt.

Part – 5: Application of various techniques for CM & KM: Usefulness to IC projects

In this concluding part of the paper, the possible applicability of various tools and techniques
discussed in this paper to SMU case is made. Based on the discussions, some sort of guidelines
for managing the “knowledge” in IC with regard to tacit aspects are suggested.

1.Unfreeze/change/refreeze model

The SMU executives were unfrozen by the participative study for preparation of the turnaround
plan. It was not just a consultancy report. The executives, with the necessary facilitation of the
consultant, prepared it. It was made like a training programme and in fact, there re two reports in
this regard one on the programme of turnaround plan preparation and the other turnaround plan
itself. The unfreezing was possible because of the clarity the participants got on the state of
affairs of their organisation or the “actual” situation of the organisation. They were convinced that
some thing had to done to sort of “save” them. As discussed in the case there was a very clear
change in their attitude and one of the ways this was expressed was the revised position that the
executives took on the milk supplies by some of the societies to the proposed cheese plant.

This type of unfreezing was definitely due to the knowledge inputs the executives had gained
during the preparation of the turnaround plan.

The “change” stage or process is on now, where better empowerment and systems are getting
introduced. These have to be put in place and the system “refrozen” in order to internalize the
same. Then complete change would have agreed. In fact, in certain areas the refreezing would
set early and over a period of time the entire change process will be taking place. Moreover, this
model could be applied to each area where change is being proposed.

Though this model was not applied during the plan, it serves extremely well in understanding
what the current situation is. Also, the degree of change taken place and development the
strategic alternatives could be developed by using this model, depending on the areas where
change is being planned.

Role of knowledge management in change management R.S.Murali Oct-1999 25

2.Force-field analysis

Drivers Restrainers

Govt.’s (DC) will Idea that it is a Govt. organisation

IC partnership No incentive to change

Market Govt. is there for rescue

Young executives/workforce Attitude of BOD

Small organisation Attitude of field workers

Single product Sikkim syndrome

This probably would have been the first list of force fields that would have come if we had
resorted to this technique. The above list is only partial. Of the above forces or factors, the basic
drivers that were used in this case were: the DC’s will and focusing on the young executives. We
did not know their attitudes, but by the experience of the project we had idea about the attitudes
of both the BOD and the field executives. The strategy was to enter the organisation through the
executives.

In fact, if the force field analysis had been done with quantitative values for each of the forces
given above, then also the change process would have been initiated through the executives.
Hence this model serves as a modified form of SWOT analysis that could give entry strategies
for a change management programme.

3.Stakeholder Analysis for SMU

The stakeholder matrix shown above is very specific to SMU and this change management
programme. The focus area had to be the high-importance but low influence stakeholders.
Looking back this cell is the vulnerable cell and has to be addressed first in any change
management programme.

Role of knowledge management in change management R.S.Murali Oct-1999 26

 High
A B
* Dairy farmers/Soc *Agents *Consumers
*SMU staff/workers *GOS
*SMU exec. *BOD
Importance

*ISPS
*Consul.
D C

* AHD
*Co-op.dept.

Low Influence/Power High

With large participation and some sort of scoring mechanism this model can be of real good
value when designing a change programme

4.Resistance – Urgency Matrix for SMU

High

Moderate Critical
Urgency

Difficult Serious
X

Low Resistance High

The resistance-urgency situation at SMU is very typical. The organisation neither found it urgent,
nor did they offer too much of resistance for change. The Organisation was in a state of
ignorance is bliss and never had an idea that they had to change. The position X marked in the
above diagram would ideally classify SMU’s overall position. The resistance, though low, was
expected at various levels. However, because of the DC’s interest in the case and also the SMU
is likely to offer training, computers etc to the Union, the resistance would be relatively less.

Moreover, different stakeholders had different levels of urgency and resistance. For instance the
AHD were not too much bothered about change. When it came to budgets the AHD was

Role of knowledge management in change management R.S.Murali Oct-1999 27

concerned, as the SMU’s budget was operated through them; but when it came to extension
services in the area of operation of SMU, there was definitely some concern and resistance.

Looking back at this model and the case of SMU certain things become obvious:
 Different stakeholders have different interests and they may well be in different
quadrant of this matrix;
 Each stakeholder may be classified in different quadrants depending up on the issues
concerned;
 The stakeholders have to be moved to “moderate” resistance quadrant for developing
successful strategies for change management.

In fact, the “knowledge” given to the participants in the training is to make them understand the
“urgency”. Once the urgency was created, the organisation was ‘moderated’ to take the change.

5.Business orientation model

In the case of SMU the components of this model have been relatively favourable. Generally, in
the government the business orientation and acumen would be less, though sometimes they
would know what is to be achieved. In this case, the DC was extremely clear about business
management aspects and the business orientation at that level was good. The project (Swiss
visiting advisor and Liaison officer) was also very clear about the business aspects of this
organisation.

The Government departments (both AHD and Cooperative) were totally ignorant of the business
realities. The Consultant was with clear business experience and clearly understood what was
required by the Union. The most interesting part of this case is that the milk Union, the
employees, the BOD, the chief executive were with totally non business orientation.

Organisation/groups General Orientation SMU case

Government – policy Non business Business orientation
makers
Donors Non business Business orientation
Government – Non business Non business
departments
Beneficiaries Business Non business
Consultants Non business/partly Business orientation
business

When we look at the mechanism that had taken place, the out of the five major group of players,
three had business orientation. Out of the other two players, the Govt. departments were directly
irrelevant and the focus was in giving the Union, business orientation.

Two points emerge from this analysis:

 The business orientation of number of stakeholders did matter; and

Role of knowledge management in change management R.S.Murali Oct-1999 28

  Irrelevant stakeholders may not matter for commencement of the change process.

Even here, the core of the matter was making the Union aware of running the business
efficiently and all that mattered was “knowledge”.

6.Converting SMU experience into learning – implications for IC

Various concepts discussed using SMU case, the experience gained, the understanding
developed, etc was “tacit” until this was presented and discussed. The knowledge spiral has
begun. With discussions and thinking on how this experience can be used, the process of
internalization would commence. Based on a set of implementation rules that can be developed
by a group of people, the approach gained out of this case can be used. In the knowledge spiral,
the current situation is marked X in the following diagram.

INTERNALISATION

ORGANISATION
COMBINATION
EXTERNALISATION

SOCIALISATION
TEAM
X
INTERNALISATION

INDIVIDUAL
COMBINATION
EXTERNALISATION

EXPLICIT TACIT

There are some suggestions in this regard to convert the tacit experience into an explicit one:
 First develop a discussion paper (as this one) based on the experience of the
project/personnel/ etc with a very specific focus or objective;
 Working paper (after including discussion points and comments of others involved in the
particular project); this paper needs to be published and circulated;
 In case the paper is just an experience, it could go into a classified library called
“experience data-base”: technical (various sub-
categories)/financial/HR/political/planning/implementation/cultural practices, etc;
 In case there are some tools and techniques discussed, then a “technical note” for
implementing the tool and technique should be prepared for further use in the field;
 There should be a manager along with a small net-work of people working for the
purpose (need not be full time) who would centrally take up the responsibility of
formalizing and communicating such information to projects and network partners;
 Finalised experience to go to the IC web-site, which would also record the queries and
the query related updation to the site made with in a specified time (say one or two
months);

Role of knowledge management in change management R.S.Murali Oct-1999 29

  IC should also develop guideline notes for implementing certain practices and such
practices can be recognised in any document (like planning report or YPO) using
appropriate KM data-base codes;
 Other methods: half yearly research journals, taking part in conferences with follow-up
and internalization procedures, publications, internal/periodic conferences for the
purpose, and so on.

Epilogue

This idea for attempting at this discussion paper was triggered by the IC workshop held at
Hyderabad during March 1999. I had made some outlines and started collecting materials on
knowledge management (tool) and change management (objective). The intensive reading of
the subject coupled with the programme at IDPM, University of Manchester, gave me various
inputs, insights and inspiration that I put them in ‘some’ shape. I hope this work will be useful.

Presentation at IC and the feed-back

The content of this paper was presented to a small group at IC Bern, on 28th October 1999,
which mainly consisted of representation from programme management and consultants in IC
network. The main points of the discussion were:
o While understanding the concepts seems to be easy, is it not very difficult to document?
Yes, it is difficult, but it has to start somewhere; why not we begin.
o Will project personnel make use of the documentation? There has to be a bit of pressure
from the side of IC initially to use the coding system emerging out of the knowledge
database in its documents like planning reports/YPO and soon it will be absorbed by the
projects.
o Will these experiences be useful to another situation and why should the other projects
use them? In general the available documentation have had a technical bias and not
“implementation system” or “delivery experiences” per se though these have been
touched up on. Once experiences are documented they will definitely serve useful to
other projects, irrespective of the cultural, political and other differences.
o The Sikkim experience that was presented here was too short in terms of experiential
learning (just 18 months); how can we generalize it? It was clearly mentioned that we
are trying to document things as they happen. It was also mentioned that the SMU has
not yet achieved turnaround; but certain changes have been created in the system. The
objective of knowledge management process itself is to document things as they happen
so that we can learn even in case of non-achievement of the objectives. Hence the case
is appropriate.
o There seems to be a bias against “information technology” in the presentation?
Definitely no. In fact, one of the elements of knowledge management itself is IT.
However, the survey of current literature shows that most of the authors focus on IT
related technical aspects; this is likely to sway the focus of IT promoted knowledge
management, it should be IT enabled. That was the thrust in presentation.
o In IC it seems to be difficult because every person feels that he should not share his
experience or knowledge because he will be selling his “expertise” or his intellectual
property. How should this be treated? This is a question of understanding. Knowledge
management is a method by which learning organisations are formed. This means an
integration of people who are learning. Learning means gaining by experience and
sharing plus upgrading oneself so that on is always on the top. This way the

Role of knowledge management in change management R.S.Murali Oct-1999 30

 organisation gains “core competencies”. Also, the reality of the situation is unless there
is such a sharing/learning, the organisation becomes obsolete in the changing market
scenario. Even in IC there seems to be “resistance” to change and feeling of “urgency” is
low, once the “urgency” is felt, there will be change. IC has to initiate steps to create
urgency as outlined in this paper.

Role of knowledge management in change management R.S.Murali Oct-1999 31

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