GETTING KNOWLEDGE MANAGEMENT GOING: DBSA AS CASE STUDY

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GETTING KNOWLEDGE MANAGEMENT GOINGDBSA AS CASE
STUDY
SMS CONFERENCEFREE STATEAugust 2007
David ViljoenManager Information UnitResearch
and Information Division
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KNOWLEDGE MANAGEMENT IN CONTEXT

• In the beginning there was knowledge, now there
  is Knowledge Management
• (Stephen Little, Open University Business
  School, UK 2002)
• There are much evidence to suggest that human
  societies have for centuries managed knowledge
• (Stephen Little, Open University Business School,
  UK 2002)
• Economist have, always recognised the dominant
  role that increasing knowledge plays in economic
  processes but have, for the most part, found the
  whole subject of knowledge too slippery to
  handle.
• Edith Penrose, Theory of the Firm (1959)
• Knowledge, during the last few decades has
  become the central capital, cost centre and the
  crucial resource of the economy.
• Peter Drucker The Age of Discontinuity (1969)
• Knowledge is the axial principle of
  post-industrial society
• Daniel Bell, The coming of Post-Industrial
  Society (1973)

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KNOWLEDGE MANAGEMENT IN CONTEXT

• WHY ALL THE NEW INTEREST, GLOBALLY,
• IN KNOWLEDGE MANAGEMENT?
• Increasing dynamic and competitive global
  environment within which economies and
  organisations have to survive
• Increased global connectivity through explosion
  in information and communication technology
• Technology convergence
• Growth in alliances and partnership
• Emphasis on competencies rather than industry
  structure
• Human Capital Mobility
• Increased pressure to obtain and maintain market
  competitiveness

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KNOWLEDGE MANAGEMENT IN CONTEXT

• WHY ALL THE NEW INTEREST, INSTITUTIONALLY, IN
  KNOWLEDGE MANAGEMENT?
• Increasing pressure to gain and maintain local
  and international market competitiveness dont
  allow organisations to
• Repeat mistakes costly, impact on competitive
  prices
• Duplicate work reinventing the wheel, delay
  product to the markets
• Strain customer relations better customer
  solutions
• Not to share best practices experiences ideas
  have to be shared
• Compete only on price have to provide a total
  value-added package
• Not to create and innovate new products
  services market changes
• Be to dependable on key individuals all staff
  must know how

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GETTING KNOWLEDGE MANAGEMENT GOING
Concept Clarification (Definition)
Why? Knowledge Management (Business Case /
Value)
What? Knowledge Management (Knowledge
categories)
How? Knowledge Management (KM Strategy)
When? Knowledge Management (Implementation plan)
Deploy? Knowledge Management (Integrate into
business processes, products and services)
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CONCEPT WHAT IS KNOWLEDGE MANAGEMENT?

• Ask 100 different people and you will get 100
  different definitions
• Karl-Erik Sveiby
• The art of creating value from an organisations
  Intangible Assets
• Knowledge Associates
• The new discipline of enabling individuals,
  teams entire organisations to collectively and
  systematically capture, create, share and apply
  knowledge to better achieve the organisational
  objectives
• Dave Snowden
• Knowledge Management is the identification,
  optimisation and active management of
  intellectual assets, either in the form of
  explicit knowledge or tacit knowledge

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KNOWLEDGE MANAGEMENT WHY? BUSINESS CASE

• The DBSAs rationale for implementing and
  integrating knowledge management processes into
  its existing business processes is to maximize
  the leveraging of its existing and new knowledge
  to
• Add value to its roles of financier, advisor,
  partner, implementer and integrator
• Add knowledge as a differentiating value-add to
  its existing core value chain and products
  services
• Build knowledge foundations for improved
  development impact

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KNOWLEDGE MANAGEMENT WHY? VALUE PROPOSITION

• To position Knowledge Management as a tool
• to achieve organisational goals, and
• as an enabler of core business processes and
  practices
• the DBSA deployed the following KM value streams
• To use knowledge to add value to products and
  services
• To use knowledge to build institutional and human
  capacity
• To use knowledge to innovate new products and
  services
• To use knowledge to solve complex development
  problems
• To use knowledge to improve business practices
• To use knowledge to improve decision-making
• To use knowledge to manage and grow a valuable
  knowledge asset

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KNOWLEDGE MANAGEMENT WHAT KNOWLEDGE?

• The nature and focus of knowledge management is
  determined by the knowledge needs of the
  organisation
• The DBSA identified the following knowledge
  categories
• External
• Knowledge of development
• Knowledge of infrastructure
• Knowledge of the markets
• Knowledge for the design of products and services
• Knowledge for product and service delivery
• Knowledge to ensure additionally
• Internal
• Knowledge for staff selection
• Knowledge for skills transfer and development
• Knowledge capture and archiving systems
• Knowledge access and dissemination systems
• Knowledge to support organisational sustainability

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KNOWLEDGE MANAGEMENT HOW? STRA KNOWLEDGE
MANAGEMENT IN CONTEXT TEGY
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KNOWLEDGE MANAGEMENT HOW? STRATEGY
DBSA Knowledge Management strategy 2002
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KNOWLEDGE MANAGEMENT HOW? STRATEGY
DBSA Knowledge Management strategy 2004
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KNOWLEDGE MANAGEMENT WHEN? IMPLEMENTATION PLAN

• DBSA FIVE-YEAR KM STRATEGY IMPLEMENTATION PLAN
• PHASED APPROACH
• The Five-Year Implementation Plan to
  institutionalise KM throughout the DBSA is made
  up of two phases
• Phase One Will take two years to complete, and
  will focus on laying the capability and capacity
  foundations for KM, as well as the piloting of
  the KM processes and tools and the improvement
  thereof
• Phase Two Will take three years to complete, and
  will focus on the integration of knowledge into
  the business processes, products and services of
  the Bank as well as the consolidation of KM as an
  every-day business practice.

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KNOWLEDGE MANAGEMENTDeploying Institutional
arrangements

• Knowledge is not the preserve of a specific group
  / division or cluster but is an integral part of
  the entire organisation

• 2001 to 2006
• Knowledge Strategy Sub-Committee of Board (KSC)
• Knowledge Management Division
• Knowledge Management Committee (KMC)
• Knowledge Management Quality Assurance Meeting
  (KMQA)

• 2007
• Knowledge Strategy Sub-Committee of Board (KSC)
• Research and Information Division
• Corporate Knowledge Management Committee (CKM)
• Knowledge Management Quality Assurance Meeting
  (KMQA)
• Knowledge Facilitation Centre (KM integration
  across DBSA)

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KNOWLEDGE MANAGEMENTDeploying Integrate into
processes products Services
DBSA Internal Knowledge Management Process
Teams and committees scanning documents, project
assignment de-briefings, compulsory
reporting requirements, inclusion of
knowledge sharing, transferring and lessons
learned sections in project assignment
documents
Knowledge Generation
Extracting it from all DBSA's operational
activities, reports and systems e.g. project
appraisals, monitoring and completion reports,
financial and risk reports, evaluations,
research, client information
Identify and collect KM related data and
information
Knowledge Accounting
Create a learning corporate culture by
motivating staff to create and share knowledge
and to apply the knowledge gained
Provide access to data, information and knowledge
via portals, hub, websites and electronic systems
Capture, analyse, interpret and package mistakes
to learn from, successes to take note off,
problems to address and issues to deal with as
well as all explicit knowledge
Knowledge Application
Integrate lessons learned and successes into
research topics and themes
Sector, technical, information, advice Case
studies / Articles Best practices
R I
Integrate lessons learned and successes
into operational activities, processes and
systems
SA Ops
Adapt and align, business development, products
and services
PSI
Adapt and align, business development, products
and services. Vulindlela Academy aligned training
courses, course materials /case studies
Integrate lessons learned and successes
into operational activities, processes and
systems
CDD
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KNOWLEDGE MANAGEMENTDeploying Products and
Services
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Critical success factors for Knowledge
Managementto drive Excellence

• Vision StrategyKM strategy aligned with
  Organisations Vision Strategy
• LeadershipKM Top down process / Management
  support and communication
• Resources FundingKnowledge Management is
  expensive / requires extended resources
• Project ManagementProject management approach
  to implement
• CommunicationMarketing / Stakeholders roles /
  Partnerships
• Education TrainingUser training for knowledge
  sharing
• MeasurementImpact of KM must be monitored and
  measured

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Critical success factors for Knowledge
Managementto drive Excellence

• IncentivesRewarding of knowledge sharing
  important, not only financial rewards for KM
  efforts
• TechnologyNot to be the end of all, only the
  enabler
• ProcessFully embedded into existing business
  processes of organisation
• Governance PeopleRoles and responsibilities
  must be clear
• Value SystemConducive environment to foster
  development of a knowledge sharing Culture

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Role of the Knowledge Leaders

• Roles of the Knowledge Leaders can be divided
  into the following components Strategy,
  Structure, Processes, People, Rewards Managing
  of KM Tensions

• Strategy
• Strategy guides KM activities and instill
  commitment from knowledge workers
• Communicate strategy that gives employees an
  understanding of where the business is
  heading and what competencies will be important
  in future
• Use knowledge strategy to guide all business
  decisions (Korn/Ferry International)
• Structure
• Knowledge is dispersed across different parts of
  the organisation, linkages must be developed
  amongst the different knowledge communities
• Build interpersonal networks for learning and
  collaboration
• Establish special roles to share knowledge
  across boundaries and provide a catalyst for
  creating learning networks
• Create electronic networks that support the
  learning and task-orientated networks of the
  organisation (Korn/Ferry International)

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Role of the Knowledge Leaders

• Roles of the Knowledge Leaders can be divided
  into the following components Strategy,
  Structure, Processes, People, Rewards Managing
  of KM Tensions

• Processes
• Core organisational processes such as
  communication and goal setting are important KM
  management tools because they focus attention
• Include KM objectives in the goals of the
  organisations and its units
• Link these KM objectives to the organisations
  strategy
• Provide customer and competitor information so
  employees can think in terms of overall
  business requirements/. (Korn/Ferry
  International)
• People
• At the core of an effective knowledge-based /
  learning organisation is motivation get employees
  to take an active role in knowledge sharing,
  learning and management
• Create employment contracts that will motivate
  employees to continually increase their own
  capabilities and share knowledge
• Build knowledge-sharing and development into
  job responsibilities at all levels
• Adopt a broad view of development, recognizing
  activities beyond formal education and
  training. (Korn/Ferry International)

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Role of the Knowledge Leaders

• Roles of the Knowledge Leaders can be divided
  into the following components Strategy,
  Structure, Processes, People, Rewards Managing
  of KM Tensions

• Rewards
• Rewards are important because they attract and
  retain employees, foster organisational
  commitment and focus attention on the kinds of
  performance organisations want to promote
• Create explicit rewards for knowledge sharing
• Giving employees a stake in the business
• Avoid over-emphasis on individual
  pay-for-performance when trying to foster
  knowledge-sharing in team-based organisations
  (Korn/Ferry International)
• Managing key KM tensions
• Value of people vs. mobility of employees The
  same time leaders are increasingly dependent on
  knowledge workers to create value, these workers
  are more mobile than ever before
• Knowledge leverage vs. complexity of the
  challenge Just as the need to leverage knowledge
  effectively is increasing, the organisational
  challenges of moving this knowledge are
  multiplying, organisations become more global and
  decentralised
• (Korn/Ferry International)

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Role of the Knowledge Workers

• To add value by processing existing information
  to create new information which could be used
  to define and solve problems. (Peter Drucker)
• To use their intellect to convert their ideas
  into products, services processes (WC Miller)
• To gather and analyse information and make
  decisions that will benefit the company (RR
  Rogoski)
• To work collaboratively with and learn from
  others (RR Rogoski)
• To take risks in innovating new products,
  services, and processes (RR Rogoski)
• To learn form their mistakes rather than to
  criticize them (RR Rogoski)
• To continuously learn because knowledge has a
  limited shelf life- (V Allee)

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THANK YOU
QUESTIONS?
David ViljoenManager Information UnitResearch
and Information Division