Course : ISYS 8108 – Knowledge Management

Effective Period : September 2018

Knowledge Management
Strategy and Planning

Session 21&22

Prepared by Nuril Kusumawardani

 Acknowledgement

These slides have been

adapted from:

Dalkir, K. (2017). Knowledge

Management in Theory &
Practice, 3rd edition. MIT
Press
Chapter 9
 Learning Objectives
1. Provide examples of major KM objectives and how specific KM
initiatives can be implemented to address them.
2. Illustrate the major elements of a KM strategy and discuss the
processes involved in each step.
3. Outline the key steps in the evolution of an innovative new idea
and the institutionalization of a best practice that forms the object
of reuse.
4. Describe the major strengths and weaknesses of different maturity
models in terms of how they can be used to assess progress
toward KM goals.
5. Discuss and evaluate the different approaches that may be
undertaken in order to achieve an optimal balance between
creativity and organizational structure.
6. List the different types of knowledge assets that result from KM
initiatives.
7. Understand the major advantages and shortcomings of the three
KM metrics.
 Sub Topics

• Introduction
• Developing a Knowledge Management Strategy
• Organizational Maturity Models
• Gap Analysis
• The KM Strategy Road Map
• Balancing Innovation and Organizational Structure
• Types of Knowledge Assets Produced
• The Role of Leadership and Different KM Leadership
Styles
 1. Introduction
Organizational Culture

KM Strategy

Assess

Knowledge Capture Knowledge Sharing and

and/or Creation Dissemination

Contextualize

Knowledge Acquisition
Update and Application

KM Technologies
 Introduction
• The KM Strategy provides the basic building blocks used
to achieve organizational learning and continuous
improvement so as to not waste time repeating
mistakes and so that everyone is aware of new and
better ways of thinking and doing.

wearelegacy.co.uk
 Introduction
• Sveiby (2001) developed a framework for categorizing the
different types of KM initiatives. He uses three categories:
– External structure initiatives (e.g., gain knowledge from
customers, offer customers additional knowledge).
– Internal structure initiatives (e.g., build a knowledge-
sharing culture, create new-revenues from existing
knowledge, capture the individual’s tacit knowledge, store
it, spread it and reuse it and measure knowledge-creating
processes and intangible assets produced).
– Competence initiatives (e.g., create careers based on KM,
create microenvironments for knowledge transfer, and learn
from simulations and pilot projects).
 Introduction
• A number of different types of business needs may trigger the
need for KM :
1. Imminent retirement of key personnel
2. Need for innovation to compete in dynamic, challenging
business environment
3. Need for internal efficiencies in order to reduce cost and
effort (e.g. time to market a new product))

driven2b.com
 Developing of KM
Strategy
• A KM strategy is general, issue-based approach to defining
operational strategy and objectives with specialized KM
principles and approaches (Skikantajah and Koenig, 2000).
• Once the KM strategy is defined, the organization will have a
road map that can be used to identify and prioritize KM
initiatives, tools, and approaches in such a way as to support
long-term business objectives.
 Components of Good KM
Strategy
An Articulated A Description of An inventory of An analysis of
business strategy knowledge-based available recommended
and objectives business issues knowledge knowledge
• Product or services • Need for resources leverage points
• Target customers collaboration • Knowledge capital • Collect artifact &
• Preferred • Need to level • Social Capital exploit them
distribution or performance • Infrastructure • Store for future use
delivery channels variance capital • Focus on connecting
• Characterization of • Need for innovation
regulatory • Need to address
environment information
• Mission or vision overload
statement
 Knowledge Audit
• A knowledge audit service identifies the core information and
knowledge needs and uses in an organization. It also identifies
gaps, duplications, and flows and how they contribute to
business goals.
• A knowledge inventory (sometimes called an information audit
or a knowledge map) is a practical way of coming to grips with
“knowing what you know.” This inventory is usually performed
by applying the principles of information resources
management (IRM).

A knowledge audit identifies

owners, users, uses, and key
attributes of core knowledge
assets

www.haikudeck.com
 Knowledge Audit
A knowledge audit can produce the following types of results:
– Identification of core knowledge assets and flows – who
creates, who uses.
– Identification of gaps in information and knowledge needed
to manage the business effectively.
– Areas of information policy and ownership that need
improving.
– Opportunities to reduce information-handling costs.
– Opportunities to improve coordination and access to
commonly needed information/
– A clearer understanding of the contribution of knowledge
to business results.

www.modulesolutions.com
 Organizational
Maturity Model

• One way in which culture changes within organization

is through a maturing process.
• Maturity models is a descriptive model of the stages
through which organizations progress as they define,
implement, evolve and improve their processes.
• The Capability Maturity Model is an organizational
model that describes five evolutionary stages (levels)
in which an organization manages its processes.
Organizational
Maturity Model

www.itgovernance.co.uk
Organizational
Maturity Model
 KM Maturity Model

• There are currently a half a dozen or so KM maturity

models.
• One of the ones that have been implemented in a
variety organizations to date is the Infosys Model
(Kochikar, 2000).

www.infosys.com
 Infosys KM Maturity Model

Default

Reactive

Aware

Convinced

Sharing
 KM Maturity Model
• Paulzen and Perc (2002) have proposed a knowledge
process quality mode (KPQM) based on the major
tenets of quality management and process
engineering.
• The authors make the assumption that since software
development is a knowledge-based activity, it is valid
to adapt these models for KM.

The KPQM Maturity Model

Quantitatively
Initial Aware Established Managed Optimizing
 KM Maturity Model
• The Forrester Group KM maturity model describes
the different stages of maturity in terms of how
people are supported throughout the KM Cycle.
• This model is quite useful in determining the level of
knowledge support that will be needed for effective
KM to be established within a given organization.

Forrester Group KM Maturity Model

Self
Assisted Service Organic
 CoP Maturity Model
• Maturity models have also been applied to the CoP
life cycle.
• A CoP maturity model can serve as a good road map
to show what steps need to be taken to move
communities to the next stage.

www.pepnet.org
Community of Practice Maturity Model
 Gap Analysis
• The difference between the organization’s existing and
desired KM state is analyzed in terms of enablers and
barriers to successful KM implementation.

www.uie.com
Gap Analysis

(Tiwana, 2000)
 Gap Analysis
• A good gap analysis should address the following points
(Zack, 1999; Skyrme, 2001):
1. What are the major differences between the current and
desired KM states of the organization?
2. List barriers to KM implementation
3. List KM leverage points or enablers
4. Identify opportunities to collaborate with other business
initiatives
5. Conduct a risk analysis
6. Are there redundancies within the organization?
7. Are there knowledge silos?
8. How does the organization rank with respect to others within
the industry?
 Gap Analysis
• The result will be a KM strategy document that can be
used as road map to implement short-term KM initiatives
within the organization (those with the highest scores on
feasibility, cost-benefit, and priority) as well as a longer-
term KM strategy that will describe some of the longer,
more complex initiatives.
 The KM Strategy
Road Map
The final recommended strategy would typically cover a three to
five year period, outlining the key priorities for each year. The
road map addresses issues such as:
1. How will the organization manage its knowledge better for the
benefits of the business?
2. Content (management of explicit knowledge) and community
(management of tacit knowledge) priorities.
3. Identification of process, people, products, services,
organizational memory, relationships, knowledge assets as
high priority knowledge levers to focus on.
4. What is the clear or direct link between KM levers and
business objectives?
5. What are some quick win?
6. How will KM capability be sustained over the long term?
 Balancing Innovation
and Organizational
Structure
• A balance between innovation and organizational structure
should be the desired outcome of a good KM strategy.
• If the organization is too fluid, there will be no solid connection
of knowledge work to business goals, and it will be difficult to
have clear accountability.
• If the balance shifts too much in favor of institutionalization,
however the organization risks becoming too formal, which can
stifle innovation and the open communication necessary for
creative work to take place

iStock
 Balance between fluidity and
institutionalization
(adapted from Klein 1999)
Where is the high-value IC?

Fluid
Institutional
•Spontaneous
•Structured
•Creative
•Codified
•Dynamic Knowledge •Controlled
•Experimental
•Measured

Tacit Explicit

IC = Intellectual Capital
 Balancing Innovation
and Organizational
Structure
• Some companies, including Buckman Labs, 3M, KAO in Japan
and AES, have manage to strike the right balance. Some of their
critical success factors were:
– Consistency between core values, business strategy, and
actual work environment.
– Stress on personal freedom, cooperation and community.
– Top leaders as good role models – “they walk the talk”.
 Types of Knowledge
Assets Produced
• Intellectual Assets (IA) are the intangible and often highly
valuable assets that can include brands, employee know-how,
trade secrets, and technical information.
• IA also covers Intellectual Property (IP), those assets such as
patents and trademarks that are formally protected by statute
law.
• Intellectual capital (IC) is often used synonymously with the
terms intangible assets, intellectual assets, or knowledge
assets.

Scottish Enterprise
 Types of Knowledge
Assets Produced
• Edvisson and Malone (1997) propose that knowledge assets can
be placed in one of these categories:
1. Human capital, or all the brainpower that “leaves at 5 PM.”
2. Structural capital, or all the brainpower that “stays after 5 PM”
(policies, procedures, training courses, patents, etc).
3. Customer capital, or all the corporate relationships with
customers and prospects.

BEESA
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