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KNOWLEDGE MANAGEMENT - NEED OF THE HOUR

Introduction

1. Management in modern context means optimum utilization of available resources to

achieve a pre determined result. It is a human-driven process of pursuing goals andcreating conditions of success to achieve these goals. Because not all goals are createdequal and not all conditions are optimal, there are sound and poor management practices.However, the fundamental notion of management is to establish and execute a process,which is intended to achieve results. Among various resources of management, one of theimportant resources is knowledge.

2. Knowledge is the full utilization of information and data, coupled with the potential ofpeople's skills, competencies, ideas, intuitions, commitments and motivations. A holisticview considers knowledge to be present in ideas, judgments, talents, root causes,relationships, perspectives and concepts. Knowledge is stored in the individual brain or

encoded in organizational processes, documents, products, services, facilities andsystems. Knowledge is action, focused innovation, pooled expertise, special relationshipsand alliances. It provides the ability to respond to novel situations.

3. Given the importance of knowledge in virtually all areas of daily and commercial life,knowledge as assets are to be applied or exploited, nurtured, preserved and used to thelargest extent possible by both individuals and organizations. For knowledge to be of valueit must be focused, current, tested and shared. In other words, knowledge must becarefully and explicitly managed in all affected areas to ensure that the basic objectives forexistence are attained to the greatest extent possible. Effective and active knowledgemanagement requires new perspectives and techniques and touches on almost all facetsof an organization. Organizations worldwide are gradually discovering that goodmanagement of individual or group knowledge is a major component of their sustainingstrategy. Organizations must continuously adapt to arrive at effective solutions tounfamiliar and complex situations. Free flow of information both from the individual to theorganization and vice-versa is the key to mining information for quick and timely decisionmaking. To do so, organizational activities are faced with the need to encourage thecollation and exchange of ideas, skills and know how to manage their intellectual capital.

Knowledge Management

4. Understanding Knowledge Management. To understand the concept of knowledge management and its related components; we need to understand whatknowledge is all about. Let us consider following observations:-

(a) A collection of data is not information.

(b) A collection of information is not knowledge.

(c) A collection of knowledge is not wisdom.

(d) A collection of wisdom is not truth.

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The idea is that data, information, knowledge and wisdom are more than simplycollections. Rather, the whole represents more than the sum of its parts and has a synergyof its own.

5. We begin with data, which is just a meaningless point in space and time, withoutreference to either space or time. It is like an event out of context, a letter out of context, a

word out of context. The key concept here is out of context. And, since it is out of context,it is without a meaningful relation to anything else. The implication is that when there is nocontext, there is little or no meaning. So, we create context but, more often than not, thatcontext is somewhat akin to conjecture, yet it fabricates meaning.

6. A collection of data for which there is no relation between the pieces of data is notinformation. The pieces of data may represent information, yet whether or not it isinformation depends on the understanding of the one perceiving the data. Information isquite simply an understanding of the relationships between pieces of data, or betweenpieces of data and other information. While information entails an understanding of therelations between data, it generally does not provide a foundation for why the data is what

it is, nor an indication as to how the data is likely to change over time. Information has atendency to be relatively static in time and linear in nature. Information is a relationshipbetween data and, quite simply, is what it is, with great dependence on context for itsmeaning and with little implication for the future.

7. Beyond relation there is pattern, where pattern is more than simply a relation ofrelations. Pattern embodies both a consistency and completeness of relations which, to anextent, creates its own context. When a pattern relation exists amidst the data andinformation, the pattern has the potential to represent knowledge. It only becomesknowledge, however, when one is able to realize and understand the patterns and theirimplications. The patterns representing knowledge have a tendency to be more self-contextualizing. That is, the pattern tends, to a great extent, to create its own contextrather than being context dependent to the same extent that information is. A patternwhich represents knowledge also provides, when the pattern is understood, a high level ofreliability or predictability as to how the pattern will evolve over time, for patterns areseldom static. Patterns which represent knowledge have completeness to them thatinformation simply does not contain.

8. Wisdom arises when one understands the foundational principles responsible forthe patterns representing knowledge being what they are. And wisdom, even more so thanknowledge, tends to create its own context. These foundational principles are universal

and completely context independent. So, in summary the following associations canreasonably be made:-

(a) Information relates to description, definition, or perspective (what, who,when, where).

(b) Knowledge comprises strategy, practice, method, or approach (how).

(c) Wisdom embodies principle, insight, moral, or archetype (why).

9. Every organization has a wealth of knowledge. This knowledge may exist as explicit

knowledge in the form of data bank, repositories, MIS etc. and this explicit knowledge isavailable to all those who have access within the organization. Besides, there is individualknowledge existing in the form of tacit knowledge that may reach full potential only if

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converted in to organizational knowledge. In knowledge management, both explicit andtacit knowledge are harnessed to the maximum for enhancing the overall competitivenature of an organization. The spirit of knowledge management lies in knowing individuallywhat we know collectively (making available explicit knowledge), knowing collectively whatwe know individually and making it reusable and knowing what we do not know andlearning it.

10. In order to make use of these capabilities, it requires identification of the knowledgeto be captured and reused as a matter of priority, the culture that needs to be built in to thesystem, skills to be developed and the goals and the targets of the process. This requiresa comprehensive knowledge management process that allows access to organizationalknowledge, expertise and solutions that are available as a solution; a system that permitscross-pollination of ideas that encompasses an organizations core business. Theknowledge management system should encourage sharing of best practices, which in turnform communities of excellence. The organization should ultimately strive to evolve into alearning organization. This can be achieved through a systematic approach towardsidentifying in house talent and developing them into a long term asset.

11. Knowledge Management Defined. Knowledge Management caters to thecritical issues of organizational adaptation, survival and competence in face of increasinglydiscontinuous environmental change. Essentially, it embodies organizational processesthat seek synergistic combination of data and information processing capacity ofinformation technologies, and the creative and innovative capacity of human beings.

12. The value of Knowledge Management relates directly to the effectiveness withwhich the managed knowledge enables the members of the organization to deal withcurrent situations and effectively envision and create their future. Without on-demandaccess to managed knowledge, every situation is addressed based on what the individualor group brings to the situation with them. With on-demand access to managedknowledge, every situation is addressed with the sum total of everything anyone in theorganization has ever learned about a situation of a similar nature.

13. Knowledge management focuses on 'doing the right thing' instead of 'doing thingsright.' Knowledge management is a framework within which the organization views all itsprocesses as knowledge processes. In this view, all processes involve creation,dissemination, renewal, and application of knowledge toward organizational sustenanceand survival.

14. This concept embodies a transition from the recently popular concept of 'informationvalue chain' to a 'knowledge value chain.' The information value chain considerstechnological systems as key components guiding the organizational activity, while treatinghumans as relatively passive processors that implement 'best practices' archived ininformation databases. In contrast, the knowledge value chain treats human systems askey components that engage in continuous assessment of information archived in thetechnological systems. In this view, 'best practices' are not implemented without activeinquiry by the human actors. Human actors engage in an active process of sense makingto continuously assess the effectiveness of 'best practices.' The underlying premise is that'best practices' of yesterday may not be taken for granted as 'best practices' of today ortomorrow. Hence, double loop learning, unlearning and relearning processes need to be

designed into the organizational processes.

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15. Knowledge management is necessary for an organization like ours because whatworked yesterday may or may not work tomorrow. The assumptions about the optimalorganization structure, the control and coordination systems, the motivation and incentiveschemes, and so forth do not remain static through out. To remain aligned with thedynamically changing needs of the operational environment, we need to continuouslyassess our internal theories of practices and strategies for ongoing effectiveness. That is

the only viable means for ensuring that today's 'core competencies' do not become 'corerigidities' of tomorrow.

16. The Present Practice. In our organization, the databases, information requiredfor all decisions are well formulated in some form or other. Various Publications, Orders,Instructions, References, Software Systems are existing to help in decision making andrunning the organization smoothly. There are well defined standard operating procedureslaid down to give guidance in decision making in all possible situations. There are regularexercises conducted to practice this procedures in action or otherwise. Personnel aretrained at regular interval in their career span to keep abreast of the latest rules,regulations and practices. Logistics becomes an effective tool only when these databases

of information in the form of instruction or otherwise are well utilized and interpreted tomeet the organizational goal.

Roadmap for Knowledge Management Practice

17. The data in an organizational context represents facts or values of results, andrelations between data and other relations have the capacity to represent information.Patterns of relations of data and information and other patterns have the capacity torepresent knowledge. For the representation to be of any utility it must be understood, andwhen understood the representation is information or knowledge to the one thatunderstands. Yet, what is the real value of information and knowledge, and what does itmean to manage it? The data, information, knowledge and wisdom in our organization arestill data only. There has to be a rationalized system and relationships need to beestablished between them. Knowledge Management will promote an integrated approachto identify, capture, retrieve, share and evaluate the knowledge assets. These knowledgeassets may include databases, documents, policies, procedures, as well as the un-captured tacit expertise and experience stored in individual's heads.

18. The Process. In order to store, share and use the database of information, thereshould be a clearly defined process that helps us to not only store information in acommon location but also easily locate and retrieve it. Unless a process is defined,

capturing information becomes a very difficult task. Take an example where one of us hasaccomplished a milestone after a hard fought battle. Information such as how the missionwas accomplished, some of the key players who tilted the balance in favour and thereason behind this, how similar missions can be accomplished in future and so on need tobe captured. If we do not have a well laid out plan, this information will be totally lost to theorganization.

19. Our organization can initiate actions towards network development by establishingprocesses that ensure productive inter-personnel interactions. These include creatingmaintaining and enriching knowledge forums, collecting and formalizing best practices,and deploying best practices across the organization.

20. We have been trying to push for adoption of computer technologies for storing ourknowledge in computerized databases and programming logic in order to manage them.

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Our in house developed soft wares such as ILMS, SLMS and IPADS are testimony to it.Best practices, benchmarks, and rules tend to define the assumptions that are embeddednot only in information databases, but also in the organization's strategy, reward systems,and resource allocation systems. Such inputs-oriented mechanistic and staticrepresentations of knowledge though simplify the processes but do not provide any hint asto how these inputs would affect our performance. Nor do they suggest how to deal with

associated emotions and specific contexts that characterize tacit knowledge.

21. Recent thrust of some organizational knowledge management initiatives in the formof computerization on archiving 'best practices' and 'what we know' to guide futuredecisions and actions is also based on a relatively predictable view of the on goingpractices. Not surprisingly, this model of knowledge management guided by pre-specification and pre-determination of organizational logic with primary emphasis onoptimizing the user of existing knowledge (defined in best practices, computational logic,data warehouses, etc.) has primarily focused on knowledge re-use over creation of newknowledge. However the endeavour should be to have an information system that willmaintain the data history, experience and expertise that we hold now. The information

systems themselves, not the people; can become the stable structure of the organization.People will be free to come and go, but the value of their experience will be incorporatedin the systems that help them and their successors run the business.

22. Organizational Control and MIS. The most important issue for organizations is toensure that they focus on the synergy of data and information processing capacity ofinformation technologies, and the creative and innovative capacity of their humanmembers. Advanced information technologies can increasingly accomplish 'programmable'tasks traditionally done by humans. If a procedure can be programmed, it can bedelegated to information technology in one form or another. The information and controlsystems in organizations are intended to achieve the 'programming' for optimization andefficiency. However, checks and balances need to be built into the organizationalprocesses to ensure that such 'programs' are continuously updated in alignment with thedynamically changing external environment.

23. Organizational control is imperative in any knowledge management system toensure pre-determined meanings, pre-defined actions, and pre-specified outcomes.Consistency is imperative for ensuring homogeneity of processing of same information inthe same manner to ensure same outcomes and is achieved by minimizing criticism andquestioning of the status quo. This may, however, take its toll by suppressing innovationand creativity. Even despite organizational control that demands absolute conformance,

personnels attention, motivation, and, commitment may moderate or intervene in itsinfluence. Control is often based on rules and hence difficult to maintain in a world wherecompetitive survival often depends upon questioning existing assumptions. Given anenvironment characterized by radical and discontinuous change, the survival of theorganization would hinge on ongoing assessment of assumptions underlying theorganizational effectiveness as well as ensuring that the definition of strategicorganizational logic is aligned with the changing geo-political environment.

24. Organizational controls tend to seek compliance with pre-defined goals that need tobe achieved using pre-determined best practices and standard operating procedures.Such organizational controls tend to ensure conformity by enforcing task definition,

measurement and control, yet they may inhibit creativity and initiative. Enforcement ofsuch controls is essentially a negative activity since it defines what cannot be done andreinforces a process of single loop learning with its primary emphasis on error avoidance.

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However it needs to be encouraged keeping the dynamically changing environmentalneeds. Design of new information architectures thus needs to take into considerationambiguity, inconsistency, multiple perspectives, and impermanency of existinginformation. Such architectures need to be designed along the principles of flexible andadaptive information systems that facilitate exploitation of previous experiences whileensuring that memory of the past doesnt hinder ongoing experimentation and adaptation

for the discontinuous future.

25. The Management. For knowledge management, to succeed, at least during theinitial stage a lot of hand holding is required. A lot of commitment is required from peopleat the top. Unless top management does some pushing, the whole effort may turn out tobe a failure. For initiative such as knowledge management, it will take some time forresults to show. So the question that the top management needs to ask before venturinginto implementation of knowledge management is how long will it take and would theywait? And are we really serious about this initiative? Such introspection will definitely leadto serious effort being put into cultivating the culture of knowledge sharing. Also, grass rootinvolvement alone is typically not enough to sustain a knowledge network. If processes are

to function smoothly, management must formally allocate adequate and qualifiedresources to them. Unstinted support and involvement from all levels of management, theirfull commitment to knowledge management initiative in terms of their continuous effort tobreakdown cultural and behavioral barriers are all key factors for success.

26. In the world of re-everything, automation of functions, rationalization of workflows,and redesign of organograms, a simple knowledge management system will beinadequate. Rather, we will need to develop adaptive capacity for redefining ourorganizational value propositions keeping the organizational goal intact that will addgreatest value to the whole organizational structure. Ongoing sustenance and optimumoperational performance would depend on the ability to continuously redefine and adaptorganizational goals, purposes, and the organization's way of doing things. The criticalchallenge will lie in the ability to redesign and reinvent our organizational activities,processes and strategies for realizing more demanding operational situations, customervalue propositions, while harvesting the knowledge flows embedded in the current setup.As Bill Gates pointed out, Technology itself is available to everyone. So, its how you usethese tools inside the company thats going to provide the competitive differentiation.

27. A key challenge for managers in the forthcoming turbulent environment will becultivating commitment of personnel to the organizational vision. As it becomesincreasingly difficult to specify long-term goals and objectives, such commitment would

facilitate real-time strategizing in accord with the organizational vision and its real timeimplementation on the frontlines. Managers would need to take autonomous roles of self-leadership and self-regulation as they would be best positioned to sense the dynamicchanges in their immediate environment. Compliance will lose its effectiveness as themanagerial tool of control as managers removed from the frontlines would have less andless knowledge about the changing dynamics for efficient decision-making. Managerswould need to facilitate the confidence of all personnel in acting on incomplete information,trusting their own judgments, and taking decisive actions for capturing increasingly shorterwindows of opportunity.

28. We should also be careful when it comes to technology. Too much stress on

technology may not lead to a successful knowledge management implementation.Technology is a means for knowledge management to be successful but not an end by

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itself. The most important factor in the success of any knowledge management initiative isthe acceptance of the whole idea by the people involved.

29. The People. It is well known that about 70 to 80 per cent of all the knowledge in theworld is held in human minds. The rest could be found in repositories or libraries. Thus, allform of knowledge begins and ends with people. The key to success of any knowledge

management initiative, therefore, lies in getting the entire organization to adopt a culture ofsharing knowledge and expertise and to instill the practice of a learning organization.Convincing people to share knowledge is a herculean task considering that it involveschanging the whole way one looks at present circumstances. It involves a change in theway one thinks, an attitudinal change about sharing knowledge and most importantly theenlightenment required to understand that hoarding knowledge does more harm to youthan good.

30. The human sensors that are interacting continuously on the front lines with theexternal environment have a rich understanding of the complexity of the phenomena andthe changes that are occurring therein. Such sensors can help the organization

synchronize its programmed routines with the external reality of the prevailingenvironment. Hence, organizational processes need to implement knowledgemanagement in reinforcing linkage between the archived organizational 'best practices'and the actions taken by organizational members based on that information. This is wherehuman creativity and innovation comes into the picture.

31. Often, individuals may not willingly share information with their departmental peers,supervisors or with other departments, because they believe that what they know providesthem with an inherent advantage in bargaining and negotiation. Despite the availability ofmost sophisticated knowledge sharing technologies, such human concerns may oftenresult in sharing of partial, inaccurate, or ambiguous information. Even more critical thanthe absence of information is the propensity of sharing inaccurate or ambiguousinformation because of competing interests that may not yield true integration ofinformation flows despite very sophisticated integration of enabling informationtechnologies. Integrated information flows depend upon motivation of people to shareaccurate information on a timely basis across intra-enterprise and inter-enterpriseinformation value chains. Motivation of personnel, departments, sections and sub-sectionsto share accurate and timely information is based on trust, despite the potential of use ofinformation in unanticipated ways. This in turn depends upon the overriding inter-enterpriseand intra-enterprise information sharing cultures.

32. Constrains of Knowledge Management. Knowledge management systems can failbecause of two broad reasons.

(a) Knowledge management systems are often defined in terms of inputs suchas data, information technology, best practices, etc., that by themselves may beinadequate for effective organizational performance. For these inputs to result inoptimum organizational performance, the influence of intervening and moderatingvariables such as attention, motivation, commitment, creativity, and innovation, hasto be better understood and accounted for in design of business models.

(b) The efficacy of inputs and how they are strategically deployed are important

issues often left unquestioned as 'expected' performance outcomes are achieved,but the value of such performance outcomes may be eroded by the dynamic shifts inthe tactical and strategic environments.

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Conclusion.

33. Under present day circumstances, management of intellectual capital is still in itsinitial stage. Any efforts that attempt towards achieving the goal of a learning organizationneed a climate of trust and patient from the management. It is always better to considerthe processes in place, with management commitment, before embarking on a knowledge

management initiative but it is always a must to people first because any success or failureis finely balanced based on the level of acceptance by the people within the organization.

34. It is always better to know that knowledge management initiatives that begin withmanagement directives often end there; and grass root level networks that start withoutmanagement support from all levels within an organization that will ultimately make anorganization a true knowledge organization.