Organizations that figure out how to manage the knowledge residing within their employees enhance their operations, avoid costs, save time by eliminating “rework”, and become more effective. Organizations that fail to manage their knowledge are in danger of being relegated to the trash bin of history.
Definitions
The Merriam-Webster online dictionary defines Knowledge as a) “the fact or condition of knowing something with familiarity gained through experience or association; acquaintance with or understanding of a science, art, or technique,” b) “the fact or condition of being aware of something,” and c) “the circumstance or condition of apprehending truth or fact through reasoning (cognition).” (http://www.merriam-webster.com/dictionary/knowledge)
The Merriam-Webster online dictionary defines Management as “judicious use of means to accomplish an end.” (http://www.merriam-webster.com/dictionary/management)
Given those two definitions, it follows that Knowledge Management can be defined as the conscience act of using information to achieve a designated purpose or to enhance operations.
Forms of Knowledge
Knowledge comes in two forms – tacit information, that is information stored in someone’s head; and explicit knowledge, or knowledge that has been codified (documented) in some way. Tacit knowledge comprises approximately 80% of all knowledge. Much of that knowledge cannot be easily codified, which makes personal contact extremely important for knowledge transference.
In order to properly use knowledge management, one needs to know three things about knowledge: ways to transfer knowledge, purposes of knowledge, and reasons to use knowledge.
There are two methods of knowledge transference: Personalization (P) vs. Codification (C).
Personalization involves discussions between two or more people. This type of transference is more likely to expand ideas in new directions, leading to innovations. Codification is basically “putting pen to paper” and putting knowledge in written form. Forms include After Action Reports, Documents, or PowerPoint Presentations. Codification does not generally lead to
innovations – it is new information only to the reviewer of this knowledge.
There are two purposes for knowledge use: Advancement (A) vs. Survival (S). Advancement is
innovating, creating new ideas or products. Survival is using knowledge to maintain current operations or keep the current situation stable.
There are two uses for knowledge: Exploration (ER) vs. Exploitation (EX). Exploration is the
act of taking knowledge in new directions to create new products or gain a market advantage. Exploitation is using the knowledge to better leverage what you already know.
Models
There are two perfect alignments of knowledge management – one model is Personalization (P) --> Advancement (A) --> Exploration (ER); the other model is Codification (C) --> Survival (S) --> Exploitation (EX).
In Model one, the organization encourages personal contacts and discussions (Pc) and uses new knowledge created to advance new ideas and new approaches (As) to their business, which encourages exploration (ERex).
In Model two, the organization is pursuing Codification (Cp) which inhibits creation of new knowledge, leaving it stuck in survival mode rather than advancing new ideas (Sa). This leads the organization to use their knowledge to try to exploit the market with their current knowledge rather than exploring new situations (EXer).
Recommendations
Knowledge transfer can occur along any line of communication. Tacit information will most often transfer via direct conversation as it can be difficult to codify. Tacit information becomes explicit knowledge once it’s been recorded in some way (codified). This will make knowledge available to others within the organization.
Codification can be via written documents, voice or video recordings, emails, etc. Sharing codified information can be much easier than sharing tacit information, given technology such as email and share portals. Codified information by definition is already known knowledge, but it
could be new to someone else. Codified knowledge generally does not lead to the advancement of new ideas or new ways of conducting business.
Since roughly 80% of all knowledge is difficult to codify and is, therefore, tacit knowledge, the preferred method of knowledge transfer is direct conversation. Leaders must get into the habit of having verbal conversations with people instead of email discussions. A proactive leader is a
leader who can implement new ideas. Advancement of new ideas generally comes from the personalization of knowledge between two or more people. Codified knowledge may give new information, but it is likely only new to the reader since someone documented it.
Meetings can be a good place to personalize knowledge, but it will depend on the leader holding the meeting, the size of the group, and the environment of the meeting. If the meeting is an open forum for discussion and no one gets “shot down” for bringing up ideas, it could be a sign of a growing organization that is actively striving to personalize, advance, and explore new knowledge. If the leader shoots down ideas, the organization will begin to stagnate because no one will want to be “shot” by the leader. That will lead that organization into codification, survival, and exploitation mode until either a new leader takes over or the organization ceases to exist over time.
Summary
Knowledge management, done correctly, has the ability to greatly enhance operations, avoid unnecessary costs, and bring organizations into the future. On the other hand, organizations that do not properly manage their knowledge risk entry into a sort of death spiral of codification, survival, and exploitation until new leadership emerges or the organization ceases to exist. For that reason alone, it is vitally important to every organization to begin harnessing the knowledge resident within their employees in order to avoid extinction.







