Slide 1

Knowledge Management & Organization Development

Regardless of your business, KM is getting the right information to the right people at the right time for the right decision

Knowledge management and organization development. In this presentation we will define knowledge and knowledge management, the relation between knowledge and organization development, factors in organizational change regarding knowledge, and use of social network analysis to identify the people-expertise structures.1

Describe the shift from tangible to intangible assetsDefine knowledge management with reference to data, information, knowledge and wisdomExplain the role of knowledge management within OD effortsIntroduce the technique of Social Network Analysis as a way of describing knowledge networksConsider the current state of knowledge management in your organization in the context of ODObjectives

In this presentation we will introduce the concept of knowledge management. We will describe how organizations have shifted from emphasis on tangible to intangible assets such as knowledge. We will also define the various terms associated with knowledge. The relationship between OD and knowledge management will be explained, and how social network analysis can be used in OD to monitor how effective change has been in sharing knowledge. Finally, we will encourage discussion of how these concepts and practices might be used in your work setting.2

The book value of companies has shown a significant increase in the value of intangible to tangible assetsBranding. Loyalty, trademarks, reputationContracts, licenses, customer lists organizational models, software, proprietary processes, franchise rightsR&D, patents, human capital, intellectual property

During the agricultural and manufacturing eras in the US, the market value of most companies was expressed by the tangible assets they held, such as equipment, buildings, and other hard assets. As we have increasingly shifted to a service and knowledge society, intangibles have largely replaced the tangible assets. Notice how, during the short period from 1982 to 1998, there was a 47% increase in the value that intangible assets brought to companies. These intangibles included such things as branding, contracts, proprietary processes, R&D, and human expertise, among others.3

Here is another example of the valuation of specific corporations comparing book or tangible value with intangible value. Notice the market value based on knowledge capital of these companies.4

Smarter than the average cavemanWhats the difference between data, information, knowledge, and wisdom?

There is often some confusion about what knowledge is, and it is often confused with data, information and wisdom. As this cartoon suggests, data is the lowest level and consists of simple and discrete bits of facts that do not have meaning attached. When the data is interpreted it becomes information that has meaning. As information becomes applied and is useful it becomes knowledge. Finally, as knowledge is applied and refined over time, it can become wisdom.5Reflection/AwarenessWhat do you notice?InterpretationWhat are connections?What does it reflect/mean?ApplicationWhat will happen next?What can we do differently?Task originTask CompletionVVVVReflective Learning Cycle(Wisdom)EngagementDo it!DataInformationKnowledge

Another way to think of the data-information-knowledge-wisdom sequence is through the Reflective Learning Cycle. At the first reflective stage of awareness we are usually attending to data, such as survey or observational data about how people are responding to pending changes. During stage two or interpretation, we often present data to a management team and ask how they might interpret it. In stage three we take their interpretation and move to considering how we can apply the information, or turn it into knowledge. Managers who continue this cycle develop wisdom about their organization and the change process.6

So, knowledge, then, is the accumulation of applied information we have about all aspects of our business, both internal and external. If these environments were fairly stable, as they were before the 1980s, or growth of communication devices and technology was slower, the management of knowledge might not be such an issue. However, the current turbulence in the work and market place makes continual updating of knowledge absolutely essential. 7

Why KM in OD?because during organizational change and transition it is likely that some people will be reassigned, relocated, retired, or replaced

and because new information systems may or may not be designed, accepted or used by the people who need it

the result: loss of valuable experience, expertise and knowledge, some of which may go to competitors

that can take years and even more people to replace or reinvent it

Given this increasingly important role of knowledge, it is important to understand how organizational change might affect it. During change there is high risk that valuable knowledge or even wisdom can be lost due to loss or reassignment of people with expert knowledge, new information systems may be underused or conflict with newer systems, some people may go to competitors, and recreating knowledge can take years.8

Knowledge attrition due to turnover is 20% with 80% of Companies concernedMergers increased 30-fold since 1980; demand for integrating diverse knowledge modelsDigitally stored business critical data has annual growth rate of 80%; needs logical organization for storage, access, & useE-learning is increasingly used for KM

This emphasizes even more the management of organizational knowledge and expanding role of collaborative technology in organizations. Internet connectivity in particular has enabled organizations to communicate globally, virtually, and in real time, and provide data warehouses and data mining that can get the right information to the right people for the right decision at the right time. Consequently, most organizations struggle with implementing new information systems as one facet of OD. And while the technology may be in place with relatively little problem, it can be more of a challenge to get people integrated with what they need to do differently.9

TechnologyPeopleProcesses10%20%70%

There are three major areas to consider in change efforts: technology, processes, and people. As the figure indicates, technology generally occupies only about 10% of the change effort and Processes only 20%. The bulk of change effort is occupied by people and how they deal or need to deal with the change. It is generally the focus of OD to assist people with change and help them consider how to better manage the technology and processes.

10

http://www.wellsphere.com/healthcare-industry-policy-article/emr-implementation-meta-framework/462007

This slide shows even more clearly the involvement of people across the entire knowledge management process, from pre-implementation, through implementation, to post-implementation of technology. Even though processes and technology are important, it is people who adopt, use and manage these.11Social Network Analysis

SNA is a graphic tool that enables measurement and visualization of the connections among people. It can:facilitate the flow of information across people and boundariesidentify the key information brokers, thought leaders and bottlenecksutilize the existing social structures for communicating key information & influencing changehelp identify gaps in collaborationBe used for pre- post intervention comparisons as metrics of changeWhom do you typically turn to for help in thinking through a new or challenging problem at work?Whom are you likely to turn to in order to discuss a new or innovative idea?Whom do you typically give work-related information?Whom do you turn to for input prior to making an important decision?Whomdo you feel hascontributed to your professional growth and development?

Given the focus on people, a way is needed to identify how knowledge is structured and shared socially in the organization, or between organizations. The tool of social network analysis is one useful way to represent such structures. The information about who communicates with whom, and to whom people go for expert information or are influenced by change can be captured by social network analysis.12

What does this suggest about how siloed the organization is?

Although the technique is beyond what we are covering in this specific presentation, this figure shows how the connections between people can be shown through SNA. In this figure, different groups from product lines, operations, accounts, HR/Finance, and the president can be identified, and whom they communicate with described.13

The percent of interaction between the various groups can be used to identify when departments are sharing or becoming isolated or siloed in their communications and knowledge sharing. In this case, we can see how most communications occurs within separate groups which is to be expected, but we can also see which groups rarely share information with anyone else a clear risk of losing information or at least not sharing valuable information.14

BeforeAfterSocial Network Analysis reflecting OD effects on teams

Here is an example of how SNA can be used diagnostically to describe the degree of pre and post intervention effects of OD. On the left is a figure showing the separation between two departments, and that there is only one bridge person between them. Following OD intervention, you can see how much more sharing occurs with more balanced communication.15Identification of knowledge needs1. Discovery of existing knowledge3. Creation of new knowledge2. Acquisition of knowledge4. Storage & organization of knowledge6. Use & application of knowledge5. Sharing of knowledgeKM audit: How is key knowledge created, stored, shared and utilized in the organization so that it provides healthy organizational functioning and competitive positioning?Change audit: what do we know about how people are likely to react to change? Who are stakeholder groups and key people? How should information about change be disseminated?

When OD efforts focus on KM, we first start with a knowledge audit regarding how key knowledge is created, stored, shared and used for effective organizational functioning. Following that, we conduct a change audit to determine how people may react to change, identify key people and communication structures, and develop a strategy for engagement.16

The Role of Business KnowledgeWhat are some key areas of knowledge in your organization, without which your efforts would be difficult or even fail?How is knowledge handled (stored, communicated, used) in your organization? What kind of organizational change would disrupt your current knowledge management?How would a new and essential information management system be accepted by employees? What would they have to do differently and how would they respond?

This is the challenge of OD in KM

Lets apply some of this to your current organization or one with which you are very familiar. Take a few minutes and answer these questions about change and knowledge. If this kind of inquiry was conducted in your organization, what difference do you think it could make?17

We should write that spot downEarly Knowledge ManagementEND