
FINANCE
WORLD IN EUROPE SLOW TO ADOPT KM
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DEBRIEF -
POSITIVES
| NEGATIVES
| CHALLENGES
POSITIVES
1.
Companies who have kept their long-term commitment to KM initiatives
can testify that it has been worth the effort. That is
a very encouraging third party endorsement. KM practices improve
individual and company capabilities enough for these companies
to continue on and invest more in the process. A follow-up step
could then be to study these companies in depth to determine their
success factors and possible predictors for optimal KM returns.
KM is becoming an 'intuitive daily normal work practice' for staff
in some companies.
2.
A high proportion of KM implementors have KM budgets. This says
that whether at the strategic or operation levels, someone has
put a strong business case and governance procedures to make it
an officially company sanctioned initiative. It also means
that the instigator has likely done a lot of planning to make
the anticipated KM initiative a potential success. The
multi-disciplinary nature of KM requires nothing short of this
level of commitment.
3.
Fancy technology is not necessarily needed. People-to-People
methods such as Communities of Practice are proving the most
effective. This special interest group method of knowledge sharing
has been voted by respondents as the best for real knowledge sharing.
Technology is being valued not so much for knowledge sharing but
for knowledge storage. So technology has a complementary role
in KM but not a mandatory role. This is true for Nucor Steel shop
floor staff who used CoPs to boost individual and organisational
capabilities without any strong reliance on database and intranet
systems. This study has affirmed this important principle of effective
KM. Regardless of how much added-value People-to-Technology-to-People
systems might provide people-to-people methods are the bread 'n
butter of KM.
4.
There is a combination of KM methods being used in a company.
Multiple communication channels are being seen as important by
many and this may be an ideal setup. What can't be found from
a face-to-face interaction with your immediate colleagues could
be found with the use of an electronic discussion forum or the
humble email or phone call to the appropriate source.
5.
End users want to see more of the KM process in their work.
60 % see the level of current investment here as inadequate and
according to the decentralised budget fact most of the KM process
is being driven by the end-users, the operations staff that KM
has been primarily intended for. That is a healthy sign that there
is atleast a strong buy-in from this critical part of the company.
POSITIVES
| NEGATIVES
| CHALLENGES
NEGATIVES
1.
KM seems to have been slow to reach mainstream awareness.
The continued poor level of knowledge toward KM - 90 % of all
respondents - is a great worry.
Despite
several annual KM conferences promoted widely across Europe along
with exhibitions as well as a plethora of popular press articles
the discipline is still perceived as more confusing than convincing
to many companies. Undoubtedly early proponents to KM have been
incapable of communicating its processes and benefits ,
and there is clear evidence for this as seen by the myriad of
bland business definitions (see KM Tutorials section if need be).
No doubty the discipline is still steadily evolving and has yet
reached a basic 'steady state' of a set of basic universal
principles. In a previous study,
I concluded that without a working knowledge of proven
human learning models as a foundational element, KM outcomes
will be modest at best. Yet the majority of practitioners to date
who run KM services are from the Information Management/ Information
Technology field and only 10 % at best from HR and Training/HRD
fields. So there must be a new type of KM practitioner who has
a sub-set of skills in each of the above disciplines. This may
take DECADES. Only then will major outcomes be realised from KM
practices and that this new discipline will be recognised as a
legitimate player in the corporate world.
The
lack of coverage of it in business schools across the world
along with generally shallow articles is another clear sign of
the overall confused state of KM. A third factor is that senior
managers may still be over-stretched with existing process
improvement initiatives that prevent them from learning and implementing
newer ones. Fourthly, managers may be more skeptical of
newer improvement processes having had
mixed success with current or previous ones. Of course, it could
be a combination of these factors that are producing a 90 % ignorance
level !!!
This
is how confused the majority of European respondents are with
KM - the top most response for reasons to use KM came at 63 %
of respondents who declared knowledge storing as the driver.
KM is not about knowledge storing ! It is about producing astute
employees and improved processes from generated and stored knowledge
! As Dore, the researcher, warns :
'Any
organisation that can document itself is history.' (p.23)
How
about BUILDING intellectual capital ? Let's not confuse means
with ends. Contributing
to a glorified electronic database does not necessarily motivate
me.
Proponents
of the Quality Movement would say that it took a long time for
their discipline to reach mainstream status (30 years ?). So we
should not be surprised that KM acceptance and usage is taking
longer than expected. Arguably, it is more complex than Quality
because it is perceived to be less measurable as we are not dealing
with physical objects but unpredictable, mental objects primarily.
Quality cars have a universal standard... not a problem. Quality
ideas are far less perceptable and more open to interpretation
and which require enabling social cultures. Further to this, it
is more holistic and multi-disciplinary than Quality, as mentioned
earlier.
A
90 % unsatisfactory knowledge level is also troublesome because
part of these respondents have already put so-called KM processes
in place ! Extrapolating from the percentages, atleast a third
of KM users admit they too still have a poor level of knowledge
of KM and its benefits. One only hopes they are aggressively learning
as they go along... and recording their learnings ! That is a
natural step for any new discipline to grow into maturity.
2.
Senior managers are not leading enough by example despite
the possible causes to this mentioned earlier. The signs are that
although there seems to be operational buy-in, senior leaders
are slow to understand the potential benefits of KM. Dore declares
that only continued education may turn around these senior managers.
I think education through continued growing success stories may
bring management thinking to a new threshold of acceptance and
implementation. Early adopters of KM practices were none other
than the CEOs themselves who role modelled the practices... Jack
Welch of GE, Andy Grove of Intel, John Seely-Brown of Xerox, Bob
Buckman of Buckman Chemicals, etc. I suggest it takes a visionary
senior leader to drive new cultural changes. This is a major factor
in the KM success equation.
3.
Likely over-reliance on technology versus culture improvements
because of perceived associated links by KM to initiatives like
CRM. This came out in the problems section of the results pictorial
highlighting technical obstacles. Five of the seven problems seem
to be associated with technology.
POSITIVES
| NEGATIVES
| CHALLENGES
CHALLENGES
1.
Length of years implementing KM on its own is probably an unreliable
determinant of a company's level of KM maturity. Duration
of activity is not necessarily adequate evidence of your competence
levels.... in your work role or on the tennis court. This study
could have considered a few more indicators. We need to look for
'pervasiveness' of practice as another success indicator. One
small department of one mega-division out of five mega-divisions
does not equate to a 'knowledge-smart' company. Yet from other
research, including some of the more established companies in
this discipline that level of pervasiveness is closer to reality.
We need to look at sophistication of the KM process as another
success factor. We need to look at the major customers - the end
users - and their feedback to see if it is meeting their needs.
McKinsey and Co went further and decided to examine 134 KM practice
indicators as a truer measure of KM maturity (see 'Business Rationale
and Returns' in KM Tutorials pages). So next time a few more perceptive
questions in this area would be valuable.
2.
The respondents could be differentiated next time into
senior management and operations staff as well as truly maturing
KM companies and novice companies as stated previously. Success
factors could then be more accurately elucidated.
3.
Computer interfaces and portals must be adequately user-friendly
and tailor made to some degree even down to the individual user,
not just the department.
The high level of technology problems voiced by respondents must
be minimised if respondents are going to embrace this tool as
part of their 'intuitive normal everyday work practice.' IT staff
must develop skills in consulting with end-users to optimise user-friendly
interfaces. Becoming internal customer-oriented has been a major
challenge for many IT departments according to recent anecdotes.
4.
KM proponents must be great educators and influencers in
their own context. It won't be enough to hand someone an article
by Davenport, Prusak or Stewart. But just as importantly, you
can't educate anyone unless you yourself have a well-established
set of first-principles to the discipline in question. Thus any
KM practitioners must also be researchers and communicators.
They must uncover more first principles, ironically through practising
their very own discipline. Then they must learn to clearly communicate
it with conviction across their company. Learning to think beyond
one's traditional discipline and incorporate other disciplines
as mentioned earlier is the challenge. One may need to find and
keep like-minded KM practitioners as a critical support mechanism
to transform oneself into a KM leader. Are you prepared to walk
a long, perhaps lonely journey ?
CONCLUSION
Although
a few years old, this survey is one of the largest ever undertaken
in the KM discipline. One out of ten companies could be said to
have some reasonable set of KM practices in place. Undoubtedly
the discipline is still in its infancy phase. Yet KM has already
been an invaluable feature to some companies who have perservered
in pursuing the promised benefits. But cultural and technical
obstacles are still prevalent. Visionary leaders and passionate
KM proponents and implementors will be needed to progress KM towards
its full potential.

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What
do you think ?