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Knowledge Management Concept (KPMG Case)
Knowledge Management Concept (KPMG Case)
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ABSTRACT
According to Peter Drucker, knowledge has become a major economic resource and a key
source/drive of competitive advantage. Hence, it is important for organizations to
understand the key concepts of knowledge and how to manage their knowledge assets
effectively.
This paper seeks to explain the key fundamentals in knowledge management. The paper is
divided into three Chapters as follows:
Chapter One: This chapter presents a detailed description of knowledge management, the
underlying concepts, differences between Knowledge management and Information
management, barriers associated with knowledge management implementation.
Finally, this chapter illustrates successful implementation of Knowledge Management
using KMPG International as a case study and a failed knowledge management
implementation using Calibro Ltd as a case study.
Chapter Two: This chapter discusses the Five Disciplines of organizational learning
proposed by Peter Senge, strategies of becoming a learning organizations, differences
between learning organization and traditional organization and the drivers of a learning
organization.
Chapter Three: Describes the role technology plays in knowledge management. Also we
illustrated this role using a case study of a Knova Knowledge Management Tool.
This report contains appendices for further illustration of some key concepts
1
Contents
1 Chapter one.................................................................................................................................................... 4
1.1 What is Knowledge Management? ......................................................................................................... 4
1.2 Key Concepts in KM ............................................................................................................................. 4
1.3 Difference between Information Management and Knowledge Management ........................................... 5
1.4 Benefits of KM to an Organization ......................................................................................................... 5
1.5 Culture– A Barrier Implementing KM .................................................................................................... 6
1.6 Case Study I: Successful Knowledge Management in KPMG ................................................................. 6
1.6.1 KPMG Objective for Implementing KM ........................................................................................ 6
1.6.2 How did KPMG Implement the KM system? ................................................................................. 6
1.6.3 Features of K-World...................................................................................................................... 7
1.6.4 Key Success factors in KMPG “K-World” Project ......................................................................... 7
1.7 Case Study II: Failed KM initiative in Calibro Company ........................................................................ 7
1.7.1 How KM was in Calibro? .............................................................................................................. 7
1.7.2 The End of the BB project ............................................................................................................. 7
1.7.3 Failure Factors in Calibro .............................................................................................................. 7
2 Chapter Two .................................................................................................................................................. 8
2.1 Five Disciplines for Organisational Learning .......................................................................................... 8
2.2 The learning organization....................................................................................................................... 9
2.3 Drivers for Implementing Learning Organization ................................................................................... 9
2.4 Learning organization Vs Traditional Organization .............................................................................. 10
2.5 Top Strategies to Becoming a Learning Organization ........................................................................... 10
3 Chapter Three .............................................................................................................................................. 11
3.1 Roles of IT in Knowledge Management ............................................................................................... 11
3.2 Tools for KM – KNOVA Knowledge Management Tool ...................................................................... 11
3.1.1 Overview of Knova ..................................................................................................................... 11
3.1.2 Features of Knova ....................................................................................................................... 11
3.1.3 Limitations of Knova ................................................................................................................... 12
4 References .................................................................................................................................................. 12
5 Appendices .................................................................................................................................................. 14
Appendix 1 –Screenshot of KPMG KM Portal .................................................................................................. 14
Appendix 2 – Architecture of Knova Knowledge Management ......................................................................... 14
3
1 Chapter one
1.1 What is Knowledge Management?
1.2 Key Concepts in KM
Currently there is no single definition for Knowledge In order to distinguish between knowledge
Management (KM). Researchers define the term management and information management, one must
based on different concepts. Some definitions of KM understand the relationship between data; information
are as follows: and knowledge (Refer to Figure 1 presents a
graphical illustration of the difference between these
In terms of innovation- (McAdam, 2000) defines
terms)
Knowledge Management as the process of
adapting existing knowledge in order to solve
current business challenges and create new
solutions by studying patterns in existing
knowledge.
4
Table 1: Difference between Knowledge Management and Information Management
5
Eventually improving sales and revenue disseminate knowledge amongst themselves (This
generated from that good/service. (Birasnav, could be through informal chats, knowledge sharing
2013) sessions, using IT collaboration tools)
Some authors argue that when knowledge is seen
1.5 Culture– A Barrier Implementing KM as product of interaction, and not an object, the
effect of culture in will be understood better (Long,
1997). A good organization culture creates a platform
for social interactions amongst employees; this can
create knowledge sharing in an organization (Long,
1997).
6
1.6.3 Features of K-World 2. Noting the need lack of skill of the team BB, the
According to (Armacost, 2011) the feature of K- management decided to send the two staff for
World includes: trainings and classes (Akhavan et al., 2005).
3. Based in their discussion from just one
researcher (out of 1000 researchers) the team
Unified Access Point to KPMG resources globally.
designed an intranet website with a discussion
Single Knowledge repository for all KPMG
forum (e-room) and intranet storage (knowledge
divisions.
store).
Integration of market trends and news relevant
4. After designing the portal. email were sent to
knowledge sourced from the web.
persuade research staff in other locations to
In 2011 K-World‟s functionality was further
developed to include: participate in the planning of the knowledge
a. a search engine, store and e-rooms.
b. micro blogging tool, 1.7.2 The End of the BB project
c. forums, chats and list of all clients related jobs
present and ongoing globally. After nine months of design and implementation the
KPMG staff can upload and share documents that BB team was disappointed to find the following:
relate to a particular client. - There were no discussions on the KM intranet
staff.
- Some staff felt that the initiative was suspicious,
1.6.4 Key Success factors in KMPG “K-World” therefore they refused to utilise the KM portal,
Project - A lot of researchers refused to share knowledge,
stating lack of time and work pressure as excuses.
KPMG KM was driven and supported by top The project was eventually abandoned (Akhavan et
management, and was supervised by line managers al., 2005).
globally.
There was a clear strategy for implementing KM 1.7.3 Failure Factors in Calibro
within the organization.
There was a well defined business requirement
before adopting technology. In contrast, most
companies that adopt technology that is irrelevant
to their business.
KPMG advertised and publicised the portal.
They also implemented strategies that foster
culture change and acceptance of the systems.
7
- Poor organisational culture,
- No dedicated budget for Project BB,
- Staff where resistant to change.
2 Chapter Two
discipline deals with the need for self awareness-
2.1 Five Disciplines for Organisational Senge stress the fact that personal mastery
Learning transcends skills or competence, spiritual
opening and spiritual growth.
According to (Senge, 1990) there are five models
which can be used to understand the underlying and Mental Models - Mental Models are
interconnected themes that are required to build a combination of assumptions, deep rooted beliefs,
learning organization. Senge refers to these models as pictures/images that influence and dictates the
“discipline”. The term discipline was deliberate as it thought process and the actions of an individual.
requires a tenacious and enlighten leader to maintain It also involves the act of participating in
these process. The disciplines are as follows: „learningful‟ conversations where people can
expose their perspective of thinking in order to
Systems Thinking- Deals with the ability to influence other people (Senge, 1990).
examine the underlying interrelationships This process begins with an introspective review
between systems. The fifth discipline stresses the of one‟s life. It is an individual‟s subjective
fact that a system is not merely the sum of its understanding of the world. Senge states that
parts, but a system is determined by the focusing on openness can bring about real
interaction of its parts (Senge, 1990). It, allows change. In addition serious discipline is required
people understand interdependency, interactions for one to change his mental model (Senge,
and change in a system (rather than viewing a 1990).
system as a linear series of cause and effect). By If an organization is to develop a mental model,
so doing, People/teams learn to deal more there will be need for people to learn to adopt
effectively with the forces that form the new orientations. It entails encouraging
consequences of our actions (Senge, 1990). openness, division of labor and dismissing
System thinking also stresses the need for a internal politics.
paradigm shift from isolated systems to
interconnected whole system. Building Shared Visions – This discipline
Systemic thinking is a core discipline, as it is the entails establishing a singular shared vision
discipline that unifies and integrates the others, within an organization. People learn to be
to create a systematic body of theory and committed to organizations or groups where
practice. there is a mutually upheld vision. Where there is
Peter Senge advocates that organization/ Leaders a genuine vision, people strive to achieve this
use 'Systems Thinking Maps' in analyzing vision willingly as opposed to been told what to
events, challenges and events and causes/courses do (Senge, 1990).
of action- in order to identify the best Vision cannot be enforced on individuals; this is
solutions/solutions (The Change Forum, 2013). because employee have personal visions, which
may be conflicting with an organizations vision.
Personal Mastery - Begins with an awareness of Many leaders make the mistake of not translating
the need for continuous learning throughout their personal vision to shared organizational
one‟s lifetime. It involves a commitment/ strives learning. Visions can spread through a process of
to become a better person. It is a disciplines that reinforcement. For instance where people
stresses the need be realistic, persistent and focus constantly discuss a vision there will be clarity;
in achieving personal visions. Senge further in turn clarity of vision creates an enthusiasm to
states that vision should be viewed more as a commit to the vision (Senge, 1990).
personal vocation than a vague idea/ “nice to The main question to ask when building a shared
have” (Senge, 1990). vision is „What do we seek to create in a team?‟
Organizations can only learn if the This should be communicated early, so that
employees are dedicated to learning. members of the team understand the vision
Personal mastery is not a skill or an which you seek to create.
achievement, but it is a process/ a, which
continues throughout one‟s life time. This
8
Team Learning – Team learning involves the for a „learning organization “to merely survive
process of building and enhancing the capacity (“Survival learning”), but adapting is more important
of a team in order to achieve their shared vision. (“adaptive learning”). Furthermore adaptive learning
This process commences when teams think must be combined with “generative learning”;
together by; sharing their previous experiences, learning to improve our capacity to innovate/create.
skills, and knowledge. By so doing team
members learn to build reflective, analytical, 2.3 Drivers for Implementing
discussion and inquiry skills (Senge, 1990). This Organizational Learning
involves team dialogue, vertical communication.
This discipline builds on both personal
mastery and shared vision; in addition it stresses
the need for team work /collaboration. Senge
states that team learning is a symbiotic
relationship between the organizations and
employees, such that the organization attains its
organizational goal, while the employees can
grow and develop their skills. Dialogue is very
important to create a common insight across a
team (Senge, 1990).
9
Policy Directorate Canada Public Service Agency, Customer Realtionship Management(CRM) software.
2007). Knowledge workers need to constantly learn from
Knowledge workers such knowledge in order to develop innovative ways
The rapid change of technology has fostered similar to solve issues in an ever changing environment (Lea
rapid creation of new knowledge. Knowledge can be et al., 2013).
accessed over social media, online forums, structured
Organizational Insight and vision are commonly shared across all Insight and vision are dictated by (Purhaghshenas
Direction organizational levels and the major aim of the supreme managers only. & Esmatnia,
managers is to ensure the existence of a vision 2012)
Implementing and forming ideas and innovative is Only the Supreme manager for (Purhaghshenas
Idea/ Vision
done in all organizational levels. deciding what to be done. The & Esmatnia,
Formulation
members of the organizations a 2012)
merely actors.
Systemic thinking: Members in learning There is no sense of ownership, (Senge, 1990)
Thinking organization think from a systemic perspective people think from isolated point
Perspective (the bigger picture) on how their actions influence of view (they just want to
the organization as a whole accomplish their task)
Group learning Group learning and discussion is encouraged to There is hierarchical approach. (Purhaghshenas
/communication facilitate building and achieving shared vision. Only Top to down & Esmatnia,
communication 2012)
The leader generally fulfills three major roles: The role of leader is (Purhaghshenas
Leadership and designer, teacher and servant. Also the major aim presenting insight, reward and & Esmatnia,
of a leader is to create shared vision, encourage punishment and supervision 2012)
motivation
personal mastery, and unify mental models of the
people.
10
storm and develop innovative strategies. When
staff from different department interact and share
3 Chapter Three
3.1 Roles of IT in Knowledge Acquisition: information can be acquired
management from within an organization and its
environment.
Computer-based technology is fundamentally
Refining: The technology tool cleanses,
concerned with digitalization of the process involved labels, indexes, sorts, re-catigorise
in knowledge management (this includes digitalizing knowledge acquired.
creation, identification, collection, organization and Storage and Retrieval: Involves creating a
dissemination of knowledge) (Milton, Shadbolt, single unified point of access for automated
Cottam, & Hammersley, 1999). According to knowledge retrieval.
(Marwick, 2001) technology in knowledge Distribution: The acquires knowledge is
Management refers to the automatic extraction of distributed throughout the organization
network
deep knowledge from knowledge assets stored in a
Presentation: Using business intelligent
digital format. Technology does not just assist in algorithms knowledge can be presented
storage but is actively used as a tool for knowledge graphically, analytical to provide business
creation. Some technological tools provide insight insights.
from analyzing data (Marwick, 2001).
3.2 Tools for KM – KNOVA
According to (Zack, 1999), there are two ways
Knowledge Management Tool
technology can provide support for knowledge
management:
3.1.1 Overview of Knova
1. Codification and personalization: through the
Knova knowledge management tool is a tool
codification approach, structured knowledge developed by Aptean Technologies. The tool was
(explicit) can be codified and stored in a designed for customer service and support
knowledge base. Technology helps to create organizations. The major objectives of the software
single point of access to knowledge, for easy are to (Knova, 2014):
retrieval and reuse of knowledge (Zack, 1999)
- Help such companies manage knowledge on
(Marwick, 2001). resolution of customer issues (by storing
2. Personalization approach: Technology creates customer calls, logging issues and resolutions
a platform for sharing tacit knowledge. For into a unified knowledge base).
instance using online forums and discussion - Keeps track on how the issues have been
resolved (it also allows for updating resolutions
groups people share knowledge (Tacit to customer issues).
knowledge) whilst communicating. Examples of - Allows for reuse of knowledge in solving
such IT tools are knowledge expert directories customer issues, and hence improve the
and video-conferencing tools (Zack, 1999). efficiency of organizations using the tool
(Knova, 2014).
Technology infrastructure can further help to support 3.1.2 Features of Knova
KM mainly through the 5 stages:
Retrieval, Storage, and Capture of Knowledge
11
- Knova Creates a unified knowledge management Knowledge Management Systems In Organizations.
platform that provides singular point of access to Journal of Knowledge Management Practice , 6 (1),
customer related issues, resolutions, customer 1-10.
details.
- The tool can be integrated with a CRM software,
in order for customer service representative to Alavi, M., & Leidner, D. E. (2001). Review:
analyse customer information and previous Knowledge Management and Knowledge
history. Management Systems: Conceptual Foundations and
- Knova has an indexing and categorization tool Research Issues. MIS Quarterly , 107-136.
that categorises customer‟s issues when logged.
This allows for organization of issues. Armacost, R. L. (2011). Knowledge at KPMG.
- Knova ensures that all this functionality are
presented in a single screen to help customer KPMG International Cooperative.
service representative make decisions, reuse
knowledge and provide faster and quality service Birasnav, M. (2013). Knowledge management and
to customers. (Knova, 2014) organizational performance in the service industry:
The role of transformational leadership beyond the
Visualization of Knowledge (Analytics) effects of transactional leadership. Journal of
Knova KM software has the ability to identify Business Research , 1 (1), 1-8.
trends and define key support concepts, by
analyzing activities from system users. Biygautane, M., & Al-Yahya, K. (2011, April).
Users can see trends, in a graphically format (inform Enablers and Barriers to Effective Knowledge
of pie charts and bar chart). Management: The Case of Dubai's Public Sector1.
Some of the trends that can be studied using knova
Retrieved March 21, 2014, from Academia:
include:
- Site Traffic – Creates a visual representation of https://www.academia.edu/1049537/Enablers_and_B
traffic trends, it highlights areas where customers arriers_to_Effective_Knowledge_Management_The_
have logged the most complaints Case_of_Dubais_Public_Sector1
- Knowledge Gaps – Graphical illustration of
areas where there is high traffic but low Bouthillier, F., & Shearer, K. (2002). Understanding
knowledge/information on how to resolve such
traffic. knowledge management and information
- Coverage Summary – Presents a summary of all management: the need for an empirical perspective.
traffic, activities , possible red flags and areas of Information research , 1-39.
special attention
- Search Outcomes – Keeps tracks of all searches Castellón, Y., & Gutiérrez, J. A. (2013). Information
queries to the knowledge base (made by both Systems: Transforming the Future . 24th Australasian
staff and customers) (Knova, 2014).
Conference on Information System (pp. 1-10).
Melbourne: ACIS.
3.1.3 Limitations of Knova
- Unlike many modern KM tool, Knova does not Choo, C. W. (1999). The art of scanning the
support collaboration, through: discussion environment. Bulletin of the American Society for
forums, instant messaging, and micro-blogging. information Science and Technology , 25 (3), 21-24.
These features are necessary as they create a
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foster knowledge transfer and conversion of tacit Knowledge management: An organizational
knowledge to explicit knowledge.
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Knowledge Management Architecture. Information Systems , 18 (1), 185-214.
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5 Appendices
Appendix 1 –Screenshot of KPMG KM Portal
14