Knowledge Management in Theory and Practice
Kimiz Dalkir
Elsevier KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE
KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE
Kimiz Dalkir McGill University
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CONTENTS
Foreword xiii Acknowledgements xv
1 INTRODUCTION TO KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE ...... 1 Learning Objectives 1 Introduction 2 What Is Knowledge Management? 4 Multidisciplinary Nature of KM 6 The Two Major Types of Knowledge 8 The Concept Analysis Technique 9 History of Knowledge Management 12 From Physical Assets to Knowledge Assets 16 Organizational Perspectives on Knowledge Management 17 Why Is KM Important Today? 18 KM for Individuals, Communities, and Organizations 20 Key Points 21 Discussion Points 21 References 22
2 THE KNOWLEDGE MANAGEMENT CYCLE ...... 25 Learning Objectives 25 Introduction 26 Major Approaches to the KM Cycle 26 The Zack KM Cycle 26 The Bukowitz and Williams KM Cycle 32 The McElroy KM Cycle 35 The Wiig KM Cycle 38 An Integrated KM Cycle 43 Strategic Implications of the KM Cycle 45 Practical Considerations for Managing Knowledge 45
vii Key Points 46 Discussion Points 46 References 46
3 KNOWLEDGE MANAGEMENT MODELS ...... 47 Learning Objectives 47 Introduction 48 Major Theoretical KM Models 49 The von Krogh and Roos Model of Organizational Epistemology 50 The Nonaka and Takeuchi Knowledge Spiral Model 52 The Knowledge Creation Process 52 Knowledge Conversion 53 Knowledge Spiral 56 The Choo Sense-making KM Model 58 The Wiig Model for Building and Using Knowledge 61 The Boisot I-Space KM Model 66 Complex Adaptive System Models of KM 67 Strategic Implications of KM Models 72 Practical Implications of KM Models 72 Key Points 73 Discussion Points 73 References 74
4 KNOWLEDGE CAPTURE AND CODIFICATION ...... 77 Learning Objectives 77 Introduction 78 Tacit Knowledge Capture 80 Tacit Knowledge Capture at Individual and Group Levels 82 Interviewing Experts 83 Structured Interviewing 84 Stories 86 Learning by Being Told 89 Learning by Observation 90 Other Methods of Tacit Knowledge Capture 90 Tacit Knowledge Capture at the Organizational Level 94 Explicit Knowledge Codification 96 Cognitive Maps 97 Decision Trees 98 Knowledge Taxonomics 99 Strategic Implications of Knowledge Capture and Codification 102 Practical Implications of Knowledge Capture and Codification 103 Key Points 104 Discussion Points 105 Note 105 References 105
viii KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE 5 KNOWLEDGE SHARING AND COMMUNITIES OF PRACTICE ...... 109 Learning Objectives 109 Introduction 110 The Social Nature of Knowledge 114 Sociograms and Social Network Analysis 116 Community Yellow Pages 119 Knowledge-Sharing Communities 122 Types of Communities 123 Roles and Responsibilities in CoPs 126 Knowledge Sharing in Virtual CoPs 129 Obstacles to Knowledge Sharing 132 The Undernet 133 Organizational Learning and Social Capital 134 Measuring the Value of Social Capital 135 Strategic Implications of Knowledge Sharing 137 Practical Implications of Knowledge Sharing 138 Key Points 139 Discussion Points 140 Notes 140 References 140
6 KNOWLEDGE APPLICATION ...... 145 Learning Objectives 145 Introduction 146 Knowledge Application at the Individual Level 148 Characteristics of Individual Knowledge Workers 148 Bloom’s Taxonomy of Learning Objectives 152 Task Analysis and Modeling 159 EPSS 160 Knowledge Application at Group and Organizational Levels 166 Knowledge Reuse 169 Knowledge Repositories 172 Strategic Implications of Knowledge Application 172 Practical Implications of Knowledge Application 173 Key Points 174 Discussion Points 174 Notes 175 References 175
7 THE ROLE OF ORGANIZATIONAL CULTURE ...... 177 Learning Objectives 177 Introduction 178 Different Types of Cultures 181 Organizational Culture Analysis 182
CONTENTS ix Culture at the Foundation of KM 185 The Effects of Culture on Individuals 187 Cultural Transformation to a Knowledge-Sharing Culture 190 Organizational Maturity Models 201 KM Maturity Models 204 CoP Maturity Models 207 Strategic Implications of Organizational Culture 209 Practical Implications of Organizational Culture 209 Key Points 213 Discussion Points 213 Notes 214 References 214
8 KNOWLEDGE MANAGEMENT TOOLS ...... 217 Learning Objectives 217 Introduction 218 Knowledge Capture and Creation Tools 218 Content Creation Tools 218 Data Mining and Knowledge Discovery 219 Blogs 222 Content Management Tools 224 Knowledge Sharing and Dissemination Tools 225 Groupware and Collaboration Tools 225 Wikis 231 Networking Technologies 232 Knowledge Acquisition and Application Tools 236 Intelligent Filtering Tools 237 Adaptive Technologies 241 Strategic Implications of KM Tools and Techniques 241 Practical Implications of KM Tools and Techniques 242 Key Points 243 Discussion Points 243 Notes 244 References 244
9 KM STRATEGY AND METRICS ...... 247 Learning Objectives 247 Introduction 248 Knowledge Management Strategy 251 Knowledge Audit 253 Gap Analysis 256 The KM Strategy Road Map 257 The Management of Organizational Memory 260 Balancing Innovation and Organizational Structure 263 Historical Overview of Metrics in KM 266 KM Metrics 268 The Benchmarking Method 272
x KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE The Balanced Scorecard Method 275 The House of Quality Method 277 Key Points 279 Discussion Points 279 Notes 280 References 280
10 THE KM TEAM ...... 283 Learning Objectives 283 Introduction 284 Major Categories of KM Roles 287 Senior Management Roles 290 KM Roles and Responsibilities within Organizations 294 The KM Profession 296 The Ethics of KM 297 Key Points 300 Discussion Points 301 Note 301 References 301
11 FUTURE CHALLENGES FOR KM ...... 303 Learning Objectives 303 Introduction 304 Political Issues Regarding Access 305 The Politics of Organizational Context and Culture 307 How to Provide Incentives for Knowledge Sharing 309 Shift to Knowledge-Based Assets 313 Future Challenges for KM 318 KM Research Issues 319 A Postmodern KM? 322 Concluding Thoughts 323 Key Points 324 Discussion Points 325 References 326
Glossary 329 Index 345
CONTENTS xi
FOREWORD
Knowledge management as an organizational innovation has been with us for more than a decade. As a discipline, it has reached a state of maturity where we can now discern the principles, practices, and tools that make it unique. As a discourse, it has engendered new concepts and categories for us to make sense of the many important ways that organizations use knowledge to create value. Given the richness of ideas and innovations that have emerged under the rubric of knowledge management, and given the tremendous interest in schools and organizations to learn about the subject, it is something of a mystery that there are so few textbooks available. Perhaps it is because the field draws upon a wide range of subject areas, or perhaps it is because many different perspec- tives complicate the discussion of issues that engage knowledge management. Despite these difficulties, or perhaps because of them, there is a pressing need for a textbook that presents a thoughtful, systematic view of knowledge man- agement as a coherent body of management theory and practice. The book in our hands answers this call. What then is knowledge management? The first chapter of the book gives a well-argued answer, but for our purposes here, we may define knowledge man- agement as a framework for designing an organization’s goals, structures, and processes so that the organization can use what it knows to learn and to create value for its customers and community. Thus, there is no single, universal recipe for managing knowledge—each organization has to think through and design its own approach. This design process will have to encompass four sets of orga- nizational enablers posed by these questions: What is the organizational vision or strategy driving the need to manage knowledge? What roles and structures ought to be in place? How to develop processes and practices that promote knowledge sharing and use? Which tools and platforms can support these efforts? For each of these enablers, research and practice in knowledge man- agement has identified principles, exemplars, and lessons that can help to plan and execute an effective strategy. Considering these enablers also highlights the special strengths of this textbook. First and foremost there is the question of vision and strategy—why try to manage knowledge? The book makes clear in its early pages how the creation and application of knowledge can be the engine of organizational performance and growth. In their attempts to pursue this vision, many organizations quickly
xiii discover that their most daunting task is to cultivate the norms of trust, coop- eration, and mutual respect that nourish the creation and sharing of knowl- edge. The book recognizes this challenge, and devotes an entire chapter to examining in detail the impact of organizational culture. Consider next the issue of roles and structures. Departments in organiza- tions are naturally territorial and guarded about losing control of where their information goes to, and how it might be used. The book highlights the impor- tance of leaders such as the Chief Knowledge Officer or the Chief Information Officer who champion the collective benefit of sharing information, and who remove the barriers that prevent cooperation between departments. At the same time, knowledge sharing cannot simply be mandated through formal authority. Some of the most valuable knowledge sharing occurs in communi- ties of practice that are self-organized around informal roles and relationships. A fine chapter in the book discusses communities of practice in the context of knowledge sharing. The process and practice of knowledge management is a central focus of the book. After a survey of major theoretical approaches in the literature, the book develops a new synthesis that views knowledge management as a continuous cycle of three processes: (1) knowledge creation and capture, (2) knowledge sharing and dissemination, (3) knowledge acquisition and application. This “KM Cycle” model forms the organizational principle of much of the book, and is carefully considered in the first six chapters. The balance between process and practice is a delicate one. A process that is regulated strictly by rules and policies can stifle creativity and experimentation. On the other hand, relying only on informal practices may mean that new learning is dispersed and unavailable to others in the organization. An alluring aspect of knowledge management is the range of tools and plat- forms that hold out the promise of transforming the ways we work with infor- mation and knowledge. Thus, there are tools that capture and represent content so that it can be accessed efficiently; tools that discover and extract knowledge; tools that facilitate social networking and community building; and tools that support communication and collaboration in groups. While the discussion of tools and techniques takes place throughout the book, a system- atic analysis is presented in a well-structured chapter that covers many recent technological developments. A textbook is a pedagogical apparatus, and this book has incorporated a number of features that will enhance student learning and student-teacher interaction. Each chapter contains learning objectives, side-boxes of short cases, summaries of main messages, and questions for discussion. Beyond these features, the most engaging quality of the book is the combination of experi- ence and enthusiasm that the author brings to the subject: the insights, the resonant examples, the lively language, and the occasional touch of humor. The book is an invitation to students to embark on an exciting and rewarding learning adventure.
Chun Wei Choo Faculty of Information Studies University of Toronto
xiv KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE INTRODUCTION TO KNOWLEDGE MANAGEMENT IN THEORY AND PRACTICE1 A light bulb in the socket is worth two in the pocket. Bill Wolf (1950–2001)
This chapter provides an introduction to the study of knowledge manage- ment (KM). A brief history of knowledge management concepts is outlined, noting that much of KM existed before the actual term came into popular use. The lack of consensus over what constitutes a good definition of KM is addressed, and the concept analysis technique is described as a means of clar- ifying the conceptual confusion that persists over precisely what KM is. The multidisciplinary roots of KM are enumerated, together with their contribu- tions to the discipline. The two major forms of knowledge, tacit and explicit, are compared and contrasted. The importance of KM today for individuals, for communities of practice, and for organizations are described, together with the emerging KM roles and responsibilities needed to ensure successful KM implementations.
LEARNING OBJECTIVES
1. Use a framework and a clear language for knowledge management concepts. 2. Define key knowledge management concepts such as intellectual capital, organizational learning and memory, knowledge taxonomy, and com- munities of practice using concept analysis. 3. Provide an overview of the history of knowledge management and iden- tify key milestones. 4. Describe the key roles and responsibilities required for knowledge man- agement applications.
1 INTRODUCTION
The ability to manage knowledge is becoming increasingly more crucial in today’s knowledge economy. The creation and diffusion of knowledge have become ever more important factors in competitiveness. More and more, knowledge is being regarded as a valuable commodity that is embedded in products (especially high-technology products) and in the tacit knowledge of highly mobile employees. Although knowledge is increasingly being viewed as a commodity or an intellectual asset, it possesses some paradoxical character- istics that are radically different from those of other valuable commodities. These knowledge characteristics include the following: