Organizational Management Knowledge Management and Decision Making BBUS 507 Professor Vandra L. Huber, DBA

1
Organizational ManagementKnowledge Management
and Decision MakingBBUS 507Professor Vandra L.
Huber, DBA

• Session 1 Course Introduction

2
Agenda

• Administrative matters and course objective
• Course Requirements
• Exercise BARNGA
• Todays topic Definitions Knowledge Management
  Models

3
Administrative Matters

• Contact information on syllabus
• Office hours By appointment
• Course materials
• - Course pack available from Kinkos,
  Bothell-Everett Highway
• - Additional materials distributed by me
• Honor code issue

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Honor Code

• Prepared and on time for all simulations
• Do not show your confidential case instructions
  to the other parties.
• Do not make up facts or information that
  materially change the power distribution of the
  exercise
• Do not borrow notes or discuss roles outside of
  class.
• Class discussion stays in class

5
Attendance/Participation Policy

• You will be penalized one letter grade on final
  course grade, if you
• Fail to participate in more than one exercise or
  case discussion
• Arrive after 10 minutes of the beginning of
  class
• Are unprepared or not present to obtain
  simulation assignments for the next class (don't
  ask me to email them to you)
• Must inform me of absence 48 hours in advance
• .

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Grading

• Class Participation 20
• Professionalism 5
• On time
• No complaining or whining
• Ethical behavior
• Respect for others
• Out of Class Project Participation 10
• Qualitative Team Project Survey 5
• Team Project 40
• Project outline 5
• Oral presentation 10
• Final Written Report 25
• 2 Individual Assignments 40
• Knowledge debriefings
• Case Analyses

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Knowledge Management Basics
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Origins ofKnowledge Management
IT Track Knowledge Objects People Track Knowledge Process
Organizational Level Re-engineering Organizational Theorists
Individual Level AI -Specialists Psychologists
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What is knowledge?

• Knowledge is the combination of data and
  information to which is added expert opinion,
  skills and experience, to result in a valuable
  asset which can be used to aid decision making.

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Four Stages of Learning

• Stage 1 Data Relevance Purpose
• Stage 2 Information Application
• Stage 3 Knowledge Intuition
• Stage 4 Wisdom (Tacit
  Knowledge)

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Hierarchy of Knowledge

• Skill
• Ability to act according to rules which depend on
  feedback from a non-social environment.
• Know-How
• Includes skill and is the ability to act in
  social contexts.
• Knowledge
• Includes know-how the ability of reflection.
• Implies the ability of know-how within a certain
  domain and the ability not only to submit to the
  rules but also by reflection influence the rules
  of the domain or the tradition.

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Test Your Tacit Knowledge

• Shut your eyes. Then try to touch the tip of your
  nose with your index finger. At the same time,
  concentrate hard on what you are doing and on
  where your arm is at all times.
• Do the exercise slowly. Allow a minimum 20
  seconds for it.

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Test Your Tacit Knowledge

• Now, explain to the person sitting next to you
  exactly how you did the exercise, describe how
  you held your index finger, every movement your
  arm was doing, all different angles, all the way
  up to your nose.
• Was it easy to describe in words how you did the
  exercise?
• Why or why not

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Two Types of Knowledge

• Explicit Knowledge is articulated in formal
  language
• Grammatical Statements
• Mathematical equations
• Specifications
• Manuals
• Tacit Knowledge is personal knowledge embedded in
  individual experience
• Personal beliefs
• Emotion
• Perspective
• Experience
• Intuition

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Item 2 represents tacit knowledge
Invoice Date_______
To_______________ _______________
Item Description of Service, Parts, etc. Cost
Item 1 Hitting pipe with hammer 1.00
Item 2 Knowing which pipe to hit and where to hit it 9,999.00
Please remit within 30 days Total 10,000.00
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What is knowledge management?

• "Knowledge Management embodies organizational
  processes that seek synergistic combination of
  data and information processing capacity of
  information technologies, and the creative and
  innovative capacity of human beings to improve
  organizational capabilities

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Why Knowledge Management

• Because we want superior performance and
  competitive advantage
• For innovation and to avoid decline
• To improve quality and customer relations
• To increase our ability to manage change
• For energized committed work force
• To expand boundaries and to engage in community

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Competitive Advantage Of the Firm

• Lies in its
• Ability to create, transfer, assemble, integrate
  and exploit knowledge assets
• Knowing-Doing Gap
• Difficulties arise not in accessing knowledge
• But in utilizing knowledge

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Knowledge Economy In WA
Indicator Rank Score
Overall 2 86.21
Aggregated Knowledge Jobs 5 13.24
Managerial, Professional and Tech Jobs 14 27.7
Job Churning (New start-ups and failures combined) 10 21.3
High Tech jobs as a share of total employment 9 6.6
Gazelle Jobs with 20 growth for 4 or more years 1 16.5
On-line population of adults with access 7 61.3
Initial public offerings (weighted by number and value) 1 11.78
Patents per 1,000 workers 9 1.03
RD Industry investment as a of Gross State Product 11 2.25
Venture capital investment as a of GSP 5 1.34
Progressive Policy Institute, Washington, D.C.
2002
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Knowledge Versus Service
High Customer Adaptation Low

• Service
• Servicing Routine Problems
• Bigger
• Productive
• Hierarchy
• People Intensive
• Low Education
• Economies of Scale

• Knowledge
• Problem solving non routine problems
• Smaller
• Creative
• Adhocracy
• High Education
• No economies of scale
• Economy of scope in intangible assets

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Tangible and IntangibleAssets of Knowledge
Organization
Tangible

• Cash
• Accounts Receivable
• Computers, Offices
• Human Capital
• Information Capital
• Organizational Capital

Intangible
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Models of Knowledge Management
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Constraints and Opportunities
Knowledge Management Processes
Human Capital Information Capital Organizational
Capital Organizational Systems
Transformations
Outputs Satisfied Stakeholders (Customers,
Public, Policy Makers) Profitability System
Effectiveness Employee Satisfaction /Performance
Inputs Stakeholder Expectations Strategy/Vision,
Mission, Values Information
External Environ ment
Business Economic Environment
Social Values/ Community Environment
Legal/ Public Policy Environment
Competitors
Technology
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Balanced Scorecards Explore Cause-and-Effect
Relationships
Financial Customer Internal Business Proces
s Intangible Assets
ROCE
Customer Loyalty
Quality Quantity
Employee Skills
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Sources Formal and informal Networks Internal and
External Acquisitions
Process of Knowledge Creation and
Innovation Which Firm Operates
Uses Quality of Problem Solving/ Decision Making
Individual and organizations ability to absorb
information and turn it into know how
Outcomes Innovation Market/ Financial Performance
New organizational knowledge flows from
activities and decisions
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Total Systems Model
Vision
Strategy
Leadership
Human Capital
Organizational Capital
Information Capital
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Human Capital Knowledge

• Professional Knowledge
• Rules
• Programs
• Manuals
• Organizational Knowledge
• Strategy Making
• Marketing
• Human Resources
• Accounting

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Personal Mastery

• To learn, grow, and achieve personal mastery that
  fuels and provides substance to all learning
  organizations is the basic human need.
• No organization can truly be a learning
  organization without its individual members being
  free to learn.

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Human Capital
High Low
Professionals Leaders
Supporters Managers
Professional Knowledge
Low Organizational Knowledge
High
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Informational Capital

• Systems
• Collecting knowledge
• Organizing knowledge
• Distributing knowledge
• Securing/Protecting knowledge
• Databases
• Harvesting Data
• Storing Data
• Divergent Free to all
• Convergent Reviewed by experts
• Networks
• Intranet
• Internet
• Global

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Informational Capital

• Database Subsystems
• Allows managers and employees to share the right
  information in a timely and efficient manner
• Organizational Language Subsystem
• Allows understanding of the meaning of things
• Decoding Codifying into usable data for others
• Systematic language that allows people to
  recognize the deeper meaning
• Networks
• Retrieve and acquire information and knowledge
  from internal and external sources
• Transfer Subsystem
• Transfers information between individuals or
  creates new knowledge

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Four Fold Focus

• Generating
• Identifying desired content proactively
• Getting people to contribute ideas.
• Evaluating based on contributions
• Organizing
• Selection and refinement of material
• Distillation of material
• Chunking data into knowledge objects
• 7 plus or minus 2 tidbits of information
• SME review, certify bless material

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Four Fold Focus

• Developing
• Organized so it can be represented, retrieved and
  used
• Navigational tools, user interfaces,
• Position and linkages among elements
• Divergent versus convergent processes
• Difusing and Distributing
• Insuring its use internally and externally
• Training and rewarding
• Choice between push or pull systems

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Organization Capital

• The capacity to manage human intellect -- and to
  transform intellectual output into a service or a
  group of services embodied in a product is fast
  becoming the critical executive skill of this era
• James Brian Quinn

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Organizational Capital

• Corporate Brand
• Image
• Reputation
• Culture
• Organizational
• Global
• Leadership
• Development
• Strategic Focus
• Teamwork
• Integration
• Knowledge Sharing

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Culture

• A shared set of enduring meanings, values and
  beliefs that characterize an organization,
  national, ethnic, and other groups and orient
  behavior.
• Includes
• Behavior Patterns
• Values and Norms
• Rules, Concepts and Assumptions

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Process of Knowledge Creation
Knowledge Individual
Social
Capturing Holding On Transacting Exchanging Knowledge
Bestowing Sharing Indwelling Looking With
Care High Low
George von Krogh, California Mgt Review, 1998
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Leadership

• Having a definitive leadership brand
• Embedding formal and informal leaders through the
  organization (Up, down and across)
• Establishing development programs for leaders

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Alignment

• Individual actions are directed towards achieving
  high level objectives
• Understanding of strategy
• Sense of urgency
• Clear line of sight between vision and behavior
  and reward
• Empowerment

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Teamwork (knowledge sharing)

• Development of communities of practice
• Ensuring communication of best practices
• Common global system of knowledge sharing
• Integration of employees

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Concluding Thoughts
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Knowledge Nuggets

• All organizational learning (knowledge) is
  leveraged in delivering business advantage to the
  customer
• Knowledge Management focuses on Intangible
  Assets
• Human Capital
• Informational Capital
• Organizational Capital
• Learn Once, Use Anywhere!

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Knowledge Nuggets

• Tacit Knowledge is critical and resides most
  often in the heads of individuals.
• Knowledge is enmeshed with its use.
• The flow of knowledge is as important as the
  stock of knowledge.

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Knowledge Nuggets

• Experimentation is pivotal to knowledge
  generation
• Technological should not be substituted for human
  interaction
• A fundamental intermediate purpose of knowledge
  management is to create a shared context

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Knowledge Nuggets

• Knowledge management requires organizational
  commitment.
• Planning and decision-making
• Internal customer service
• Technology
• Financial
• Time
• The knowledge life cycle consists of multiple
  stages
• Knowledge Generation
• Knowledge Organizing
• Knowledge Generating
• Knowledge Diffusing
• Knowledge Reusing

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Hmmm

• Do You Agree or Disagree?
• Knowledge never can be transferred. We can only
  transfer information.