ACTive ALIA

proACTive

Number 233: April 2003

What is knowledge management?

...an edited version of the talk that Dr Trish Milne gave for the URLs in February.

Firstly, what knowledge management is not. Knowledge management is not 'some higher form of information management' and it is not 'what librarians have always done'. But information professionals should be playing a leading role in organisations where knowledge management principles and processes are being implemented.

Knowledge management involves the identification and sharing of the tacit knowledge that is contained in an organisation so that the organisation is empowered to achieve its business outcomes in the most effective way and to keep it ahead of its competitors. Lew Platt, one-time CEO of Hewlett-Packard, commented: 'If HP knew what HP knows, we would be three times as profitable.'

Is it just another fad? Laurence Prusak said, 'There is no sustainable advantage other than what an organisation knows, how it can utilise what it knows, and how fast it can learn something new'. It has been fuelled by the fact that what employees know is at the heart of how the organisation functions.

Why has it become important at this time? A number of factors have contributed to this. They include the globalisation of the economy, awareness of the value of specialised knowledge as embedded in organisational processes and routines, awareness of knowledge as a distinct factor in production and the availability of cheap networked computing. In an age of uncertainty there is a need for more flexibility and responsiveness than can be provided by a mechanical understanding or organisations. Organisations need to be able to sense change on receipt of incomplete data or stimulus and respond in a way that reduces uncertainty for the organisation but not for the competition.

It is important to remember that knowledge-based assets are not always owned by the organisation, and that deriving a direct benefit from them is not under the control of the organisation. Also, intellectual assets have to be volunteered, they can't be conscripted and there are no quick solutions. Finally, knowledge management builds on organic models of the organisation.

At the same time, knowledge management is not rocket science. It is about smart ways of working and smart organisations. It requires conditions where employees can develop and apply their knowledge in optimal ways.

Smart organisations know how to share knowledge across borders (functional, divisional, regional and cultural) in order to improve performance. They know how to learn before, after and during activities to increase efficiency and effectiveness and they also know how to learn from colleagues, clients and other parties to improve products and processes. Knowledge management activities should support two basic processes, the use of existing knowledge and the creation of new knowledge.

Having said this, creating a knowledge environment is a complex and evolving process and it can't be designed and built in one fell swoop. It requires patient, piecemeal growth. The process includes addressing the organisational culture (values and beliefs), the people (their attitudes, behaviour and skills), organisational processes, technology, roles and responsibilities, strategic directions, workplace design, incentives and sanctions, content, organisational structure, and leadership (one that empowers and builds trust).

Some final comments from David Snowden: 'KM programs cannot be imposed from the top or achieved through the adoption of a complex external consultancy model or the purchase of 'knowledge ware'. They have to win the hearts and minds of individuals of all levels. Simple models, based on coherent, common-sense values in an incremental, evolutionary environment, are the way to success'.