KNOWLEDGE

MANAGEMENT

Presented by:
Aditi Sharma
Pharma MBA
Major- HR
 CONTENTS

 Introduction
 Benefits

 KM alignment with strategy

 Organization structure for KM

 Challenges

 Tools used by organizations

 Conclusion
GLOBALIZATION
 KNOWLEDGE MANAGEMENT
An organization’s structures, systems, and practices that facilitate..

KM
Embedding Creating
knowledge knowledge
C

Disseminating Organizing
knowledge knowledge

…with the goal of enhancing the organization’s competitiveness 4

 BENEFITS OF KNOWLEDGE MANAGEMENT

 Higher efficiency and innovation

 Avoid reinventing the wheel

 Ensuring the use of leading-edge technology and thinking across

the firm
 Increasing customer satisfaction

 Creating a competitive cost structure

 Facilitating breakthrough and incremental innovations

 An attractive workplace

 Attracting and retaining key individuals

5
 KM MUST BE ALIGNED WITH
STRATEGY

Do we have this knowledge? (Create)

How should we organize this knowledge? (Organize)

Who needs this knowledge, when, and how? (Disseminate)

How do we ensure we get value from this knowledge? (Embed)

KM

Global
strategy
6

CODE
 ORGANIZATIONAL STRUCTURE FOR KM

 Physical layout

 Appropriate KM functions and units

 Cross-functional and cross-location teams

 Centers of excellence

 Socialization measures

7
 PHYSICAL LAYOUT

An organization’s office
layout reflects a company’s
knowledge flows

8
 CREATING CENTERS OF EXCELLENCE

HQ

GM centre of COE
excellence:
Internal
consulting team

9
KNOWLEDGE NETWORKING THROUGH
COMMUNITIES OF PRACTICE
Connecting people
so that they collaborate, share
ideas, and create knowledge

10
One of the things that we’re struggling
with is moving towards a more
consistent way of doing business around
the world. I think the knowledge
communities are a vehicle to speed up
that process.
President, Montgomery Watson
Harza Americas

11
 EXAMPLES OF COMMUNITIES OF
PRACTICE AT ERICSSON
Objectives Communication
Community Type and Members
channel
eRelationship -Inter-organizational -Use internet to design -Virtual
Vodafone -1400 members in 10 joint e-business platform
countries
Competence -Intra-organizational -Ensure sharing of best - Primarily face-
Groups -200 members in 14 practices and to-face
countries commonality
Ericsson - Inter-organizational - Think tank on emerging - Virtual and
Foresight including universities, trends in society, face-to-face
experts, & institutions technology, & consumers
- 600 with core of 40
Ericsson - Intra-organizational -Facilitate inter-project Primarily face-
System - 20 members from 14 learning and innovation to-face
Architect countries -Retain key individuals
Program,
ESAP

12
CHALLENGES TO SUCCESSFUL KM PROCESSES

 Individual level

 Subsidiary level

13
CHALLENGES TO SUCCESSFUL KM PROCESSES

 Individual level

 Subsidiary level

14
 WHY SHOULD I SHARE?

You gotta remember that we’re hired to be stars here

and not team players.
- Researcher at one high technology firm
with poor knowledge flow

Sometimes I get calls from other offices. It feels weird

if I don’t know the person. I like to help them only if I
know them.
- Programmer at software multinational

15
 BIGGEST DIFFICULTIES TO
SUCCESSFULLY MANAGING KNOWLEDGE
IN ORGANIZATIONS

Culture 54
Top management’s failure to signal
importance
32
Lack of shared
30
understanding of strategy
Organizational structure 28
Lack of problem ownership 28

IT / Communication restraints 22

Incentive system 19

16
0 10 20 30 40 50 60
CHALLENGES TO SUCCESSFUL KM PROCESSES

 Individual level

 Subsidiary level

17
CONFLICTING DEMANDS ON SUBSIDIARIES
LEAD TO RESISTANCE TO GLOBAL KM
PROCESSES
We do not want to be managed in our choice of competence
elements. We would want to select those elements that we
need.
Line Manager,Ericsson-Norway

Spontaneity and creativity could be the losers in some areas

by implementing global solutions. However, the “Best
Practice” policy in Ericsson concerns capturing good ideas,
which of course may come from other areas in the
organization.
HR Manager,Ericsson-Norway
18
 INTERNAL TURF WARS

It would have been much easier for

me to transfer from the New York
office to the California office if I had
just quit the organization in New York
and then reapplied for a job in the
California one.
Researcher, Xerox
California

19
 A VARIETY OF TOOLS

 Competence system

 Recruiting

 Incentives

 Networks

 A visionary organization

20
 A VARIETY OF TOOLS

 Competence system

 Recruiting

 Incentives

 Networks

 A visionary organization

21
 CREATING A COMPETENCE MANAGEMENT
SYSTEM

 Standardization
 Create common structure and terminology
 Define professional, business, and human competencies
related to global strategy and KM goals
 Analysis

 Personal development discussions

 Mapping of present and future target competence levels
for individuals and then for business units
 Defining competence gap at both levels
 Planning and implementation

 Prepare competence development plan

 Implement and evaluate 22
 CM SUPPORTS KM

I think that competence management can play an important

role inthat
I think knowledge management.
competence You can can
management search for an
play
important
persons withrole in knowledge
certain competenciesmanagement. You that
very easily through can
search
tool. for persons
People with
having the certain competencies
same competencies very easily
and interests
through that tool. People having the same competencies
can be accessed and get together.
and interests can be accessed and get together.
Competence
Competence Manager,
Manager,Ericsson Croatia
Ericsson Croatia

23
 A VARIETY OF TOOLS

 Competence system

 Recruiting

 Incentives

 Networks

 A visionary organization

24
RECRUITING – WHAT SHOULD ONE LOOK FOR?

 An experienced professional
who has worked extensively
in another company with
different values and OR
philosophy
 A young person who lacks
professional experience
but has the right attitude

25
It is cheaper and easier to develop technical skills than trying
to change mentality.
HR Manager, Ericsson Russia

China – Involve line managers

Whirlpool example of group problem-solving exercise to look at

collaborative relationships

GE 2x2 matrix when Jack Welch took over

Cisco -changing from hiring fresh graduates to mid-career

professionals
 A VARIETY OF TOOLS

 Competence system

 Recruiting

 Incentives

 Networks

 A visionary organization

27
 ALIGNING INCENTIVES WITH KM

 Recognize and reward for collaborative behavior

 Show management commitment

Satisfaction

Status and
recognition
$$$
Monetary

28
Challenge
 EXAMPLES OF INCENTIVES

 Monetary
 Nucor Steel: Bonuses based on performance of
relevant group, e.g., individuals and their
workgroup, department managers and their
plant

n
o
cti
 Status and recognition

sfa
 McKinsey

ti
 Xerox

Sa
 Challenge
 McKinsey
29
 BUT BE AWARE OF LOCAL
DIFFERENCES

Working on empowerment is a key challenge in China. Our

employees are not used to working in an empowered
environment, and it takes a long time and much effort to explain
what empowerment is all about. We are working on this and have
made some progress, but we have a way to go.
General Manager, Tetra Pak Hoyer China

30
 A VARIETY OF TOOLS

 Competence system

 Recruiting

 Incentives

 Networks

 A visionary organization

31
 SOCIALIZATION EXAMPLES
 Cross-office and cross-function training programs
 McKinsey’s

 Cross-office projects
 Projects often involve more than one office at Ericsson R&D

 Job rotation
 “There are 12 different ways to rotate at HP.”
 Online career development tool at Novartis

 Informal events
 Plant managers at Nucor Steel organize business meetings 32

throughout year so every employee attends one meeting per

year
 A VARIETY OF TOOLS

 Competence system

 Recruiting

 Incentives

 Networks

 A visionary organization

33
 1) WHY WE EXIST AND WHAT WE STAND FOR
 Mission / purpose
 The organization’s reason for being – not a goal or a strategy

Merck To preserve and improve human life

Walt Disney To make people happy
Wal-Mart To give ordinary folks the chance to buy the same
things as rich people

34
1) WHY WE EXIST AND WHAT WE STAND FOR
 Core values
 A small set of guiding principles with intrinsic value and
importance to those inside the organization

Merck
Corporate social responsibility
Science-based innovation
Honesty and integrity
Excellence in all aspects of the company
Profit, but profit from work that benefits humanity

35
2) WHAT WE ASPIRE TO BECOME, ACHIEVE,
AND CREATE

Wal-Mart (1990) Become a 125 billion dollar

company by the year 2000
Nike (1960s) Crush Adidas

36
 POINTERS FOR EFFECTIVE KM
PROGRAMME
 Users need matches the type of knowledge and system use
to transfer it.
 Users must believe that knowledge sharing is indeed useful
for them
 Users must be motivated enough to be willing to travel and
to share the knowledge with others.
 Experts must be available to help teams solve tough
problems or answer queries.
 Users must be willing to reflect.

 Target `the transfer systems to specific groups of employees

 REFERENCES
 Barritt, C. (2002). Learning Objects & ISD. Performance Improvement, 41(7) ,
28-32.
 McGraw, K. (n.d.). Ten questions Executives should ask about Knowledge
Management. WhitePaper Cognitive Technologies , 3-9.
 Primus Knowledge Solutions. (2002). Knowledge management best practices:
turning information into corporate asset for call centers, help desk and other
support environments. White Paper , 2-9.
 Talisma Coorporation. (2006). Knowledge Management Best Practices. White
Paper: Talisma , 1-13.
  www.knowledgenet.org
 www.jetcityorange.com
 www.sribd.com
 www.citehr.com
 www.googleimages.com
THANK YOU