Knowledge Management

Abstract

Most managers can probably state one of the many textbook definitions of knowledge management. Most would also agree that knowledge management would benefit their organization and that their worker’s intellectual capital could be useful to their organization. Yet, they usually don’t have a clue on what kinds of useful knowledge and skills the individuals in their organization possess. Time and time again managers find themselves saying “if only we had known” after realizing an issue could have been corrected internally by one of their own employees. Many managers today still cling to the traditional autocratic management style that basically assumes that all ideas and strategies are only generated at the top senior management level and all directives flow vertically down the corporate ladder. In today’s information-driven society companies have to realize that more can be gained from their company’s intellectual rather than their physical assets. To tap this intellectual asset will require an organization to implement a successful knowledge management program in a culture that supports innovation, learning and knowledge sharing. Effective and active knowledge management implies a change in the way managers think and lead their organizations. They must be willing to manage and lead their organization based on the best ideas generated from their organization’s learning processes. To be effective, managers must be able to leverage “tacit” or personal knowledge as well as the “explicit” or organizational knowledge in their organizations. I will explain the fundamental differences between these two approaches and the advantages and disadvantages when using them. I will conclude my report by recommending four essential processes that must take place to sustain an organization’s knowledge management strategy

The art of progress is to preserve order amid change and to preserve change amid order

- Alfred North Whitesides

Knowledge Management

Most managers can probably state one of the many textbook definitions of knowledge management. Most would also agree that knowledge management would benefit their organization and that their worker’s intellectual capital could be an asset to their organization. Yet, they usually don’t have a clue on what kinds of useful knowledge and skills the individuals in their organization possess. Makes you ask is implementing knowledge management to big of a challenge? The answer of course is no. Implementing successful knowledge management requires a systematic change and project management approach (Skyrme, 2003).

When trying to define my interpretation of knowledge management, I found R. Gregory Wenig’s (KM Forum, 2007) definition mirrors the same key points that I think makes knowledge management relevant. Wenig states knowledge management for the organization consists of activities focused on the organization gaining knowledge from its own experience and from the experience of others, and on the judicious application of that knowledge to fulfill the mission of the organization. These activities are executed by marrying technology, organizational structures, and cognitive based strategies to raise the yield of existing knowledge and produce knowledge. Critical in this endeavor is the enhancement of the cognitive system (organization, human, computer, or joint human-computer system) in acquiring, storing and utilizing knowledge for learning, problem solving, and decision making. Wenig’s definition supports the basic goal of knowledge management, which is creating knowledge that has value when it is applied to one of the organization’s processes.

The level of interest in knowledge management has increased significantly in the last couple of years. Analysts agree there are several reasons why the level of interest has grown so dramatically recently. Organizations need to:

• maintain or gain the competitive advantage, improve customer service

• facilitate and managing organizational innovation and learning processes

• create and share best business practices; be prepared for market shifts

• use available knowledge to increase efficiency in all operational processes

• solicit tacit knowledge from their baby boomer aged employees before they retire

But the most important reason why knowledge management is a hot topic now