Process 4: Strategizing Knowledge Management

As explained under the LAD classification of gaps, the type of the knowledge gap determines the choice of the procedure that is best suited to fill that gap, and hence provides guidance as to the suitable knowledge strategy. In Chapter 5, four knowledge strategies are identified for filling knowledge gaps from internal sources through KM.2 Under this process, guidance is provided on the use of these strategies. The first step outlines what each of these strategies can be used to achieve, and the way it affects the design of the KM program.

Step 1: Identify Knowledge Strategies to Fill Gaps.    The knowledge strategies referred to here are:

•   Best practices strategies for leveraging existing knowledge resources. These resources, though mainly explicit, are usually created through codifying tacit knowledge into forms that can be replicated. Under this strategy, the focus is on identifying and perfecting cer­tain business practices for the purpose of dissemination to other departments, sites and business units that use a similar practice. It is particularly beneficial for mature industries and large organizations where there is a wealth of experience. The strategy is best suited for the transfer of explicit knowledge for specifically defined applications.

•   CoP strategies for creating new knowledge through transfer of mainly tacit knowledge, by bringing people concerned with one area of knowledge/practice together. Under this strategy, the focus is on growing the tacit knowledge in a particular area where members' ownership has a great effect on learning and innovation. The strategy is particularly suited for large organizations where there is a need to find new solutions by tapping into tacit resources.

•   Codification strategies for codifying the knowledge, which the organization applies and uses in support of its critical business processes. Under this strategy, the focus is on cod­ifying knowledge and making it available to employees in real time for application and reuse. It is best suited for industries in which solutions in one area can be applied to another with moderate modifications. The strategy deals with codifying existing explicit knowledge of wide application.

•   Personalization strategies for locating and connecting experts in specialized areas of knowledge to tap into tacit knowledge where new knowledge is created to respond to unique situations. It is best suited for industries or businesses where unique situations require the application of human intelligence to innovate new solutions. The strategy addresses needs for creating new tacit knowledge for specific applications.

It is further noted that the focus of best practices and codification strategies is operational excel­lence by leveraging existing knowledge and hence preventing organizational memory loss. The focus of the CoPs and personalization strategies, however, is on innovation and creation of new knowledge to respond to new situations, where tacit knowledge is the main driver and hence pre­venting organizational brain drain. To decide on the appropriate knowledge strategies, a number of variables should be considered.

Step 2: Understand the Various Variables That Knowledge Strategies Address. To decide on the appropriate knowledge strategies, the following variables should be considered:

•   The level to which innovation or creation of new knowledge is required to fill the gap, and hence the mix between personalization and codification strategies.

•   The tacit/explicit content of knowledge in the area of knowledge where the gap is detected, and whether the knowledge is expected to have specific (narrow) or general (wide) application.

•   The level of replication - whether knowledge in a certain area has narrow or wide appli­cation to existing or future situations, and the ease with which it can be replicated (best practices strategy).

Exhibit 11.6 illustrates how these variables affect the choice of strategy. For example, in cases where creation of new knowledge is required in strategic areas, forming CoPs to fill identified gaps is the best strategy. In the converse situation depicted in quadrant four, where the knowledge created is of general application and can be easily replicated for reuse, then the best option is to use a predominantly codification KM strategy .

Step 3: Assess Need for Innovation versus Replication in Critical Business Processes. Every area of knowledge or practice contains both explicit and tacit knowledge components, has fea­tures of narrow or wide application, and involves a mix of existing and new knowledge. To decide on the KM strategy, therefore, top management should assess these variables in a matter of degrees. Knowledge strategies should be applied in combinations by reference to the degree of innovation (tacit knowledge) as opposed to replication (explicit knowledge) required for optimal business performance, as shown in Exhibit 11.7. As the tacit knowledge component and the need for new knowledge increases, the strategy should move to more of a personalized and CoP strat­egy. The nature of variables to which a business is subject depends on the industry/line of busi­ness and the organization's vision and competitive strategy.

Specific

 

EXHIBIT 11.6    Variables Affecting Choice of Knowledge Strategies

Some organizations compete through operational efficiency or excellence, and hence focus on developing best practices where replication of existing knowledge is core,3 while others compete mainly through innovation where new knowledge creation via CoP/personalization is core. Needless to say, neither of these two organizations should neglect either operational excellence or innovation completely, even though they should adopt one as the predominant competitive strategy. This step should be aligned with the strategic planning steps under both the IM and IP management stages. Ensuring alignment among knowledge, innovation, and IP strategies is essential to create fit between the various IC strategies and the overall strategy of the business.

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Increasing tacit content, narrower application - Innovation

EXHIBIT 11.7    Operationalizing Knowledge Strategies

Strategizing KM is not a question of which strategy to use but rather which one to use in relation to which areas of knowledge, and in relation to which business processes. Under this process, top management should review the audit results, the analysis of the nature of gaps, and then decide the mix of strategies that enable innovation (new knowledge needs) versus replication (sharing knowl­edge needs) to meet strategic goals. These decisions will affect the role that CoPs will play in the business, the nature of best practices to be collected and codified, and the design and content of the knowledge base, the IT architecture. This will inform implementing KM at the operational level.

Once these broad lines are defined, management can proceed with operationalizing the KM strategies. Though the focus, depending on strategy, will be placed on one approach rather than another, the infrastructure supporting each of the approaches should be considered in the plan for implementing KM. Implementation of the programs mentioned should be phased according to strategic needs, priorities, and budget. Phasing out implementation will also enable monitoring of progress and keeping track of results. Following is a step-by-step guide on the formation and dis­solution of CoPs (creating new knowledge strategies), the dissemination of best practices (shar­ing and reusing knowledge strategies), and the design of the knowledge base and IT architecture (according to the personalization/codification strategy).