Organizational Management

Organizational Management Knowledge Management and Decision Making BBUS 507 Professor Vandra L. Huber, Ph.D.

M-W 8:00 p.m. -10:05 p.m. UW1 050

Office: 360 MacKenzie (Mount Lake Campus) Office Hours: By appointment Email: [email protected] Office: 206.543.5365 Home: 425.881.5809

1. Purpose of the Course This class explores the intangible assets in organization that underscore organizational transformation and change. Specifically we will examine (1) human capital, (2) information capital and (3) organization capital as they relate to strategic transformations. We will approach these issues by examining organizations as knowledge management systems. This will be our guiding metaphor because the flow of knowledge is crucial for effectiveness in organizations. If you and your employees are exceptional at creating, managing, and diffusing knowledge within the organization and between organizations, you are more likely to bring about enduring transformations, which enhance organizational effectiveness. Finally, we will examine the decision processes that underscore the effective utilization of knowledge to bring about enduring change and transformation in organizations.

We will approach the topic of knowledge management using a variety of learning strategies:  Readings will focus on the theoretical aspects of knowledge management. Theoretical readings will be complemented with practical applications  Case studies will serve as a source of “best practices” on knowledge management and utilization in organizations.  Exercises are framed and analyzed in terms of readings, lecture and in-depth class discussions and will provide you will opportunities to experience knowledge issues and solutions.  Application Assignment. The final course project is designed to give executives the opportunity to apply what they’ve learned to a personal relevant situation.

This course is an opportunity for you to increase your capacity to learn. Success as a leader requires learning continually from your experience through the disciplined integration of action and reflect. My instructional strategy is that you don’t learn about knowledge management or any other topic by simply reading or attending lectures. Learning depends on a willingness to act and to learn from experience and from sharing your knowledge and reflecting on the knowledge of others.

2. Readings: A packet of readings will be available at Kinkos Office Print Center, 22612 Bothell-Evertt Hwy, Bothell, WA 98021. Telephone number 425 483-0801. Please call ahead to order your packet as they produce them one at a time. 1 BBUS 507 Organizational Management The packet will be listed under the title Organizational Management BBUS 507 Professor Vandra L. Huber. The packet contains all course readings and the majority of case studies we will use. Roles and information on interactive simulations will be distributed in class (not always available electronically). It will be your responsibility to get these materials should you miss a class in which they are distributed.

Some case material and simulation materials will be distributed in class. If you can not attend class, it will be up to you or your intellectual agent to collect the appropriate materials for you.

3. Honor Code

An honor code will be strictly enforced in this class.  You are expected to be prepared and on time for all simulations (See attendance policy).  You may not show your confidential case instructions to the other parties, though you are free to tell the other side whatever you would like  Do not make up facts or information that materially change the power distribution of the exercise  It is not appropriate to borrow notes or discuss cases with people outside of class.  Class discussion stays in class. An essential contribution I ask each of you to make to this course is to be professional in your actions in the class and your interactions with me and with your classmates. Treat the simulations seriously. If you are at all frivolous about what we do in the class, you will learn less and provide less opportunity for others to learn. This does not mean that you have to be stern and not enjoy the simulations we do in class. You should consider the consequences of your action within the framework of the exercise and what they might be in actual professional situations. The classroom is an excellent place to experiment with different styles and approaches – in fact you may be asked to “try on” different styles.

4. Attendance Policy

BBUS507 has an attendance policy that is strictly enforced. You are expected to participate in al exercises, simulations and case discussions. If you: (1) fail to participate in more than one exercise or case dicussion (2) arrive after10 minutes of the beginning of class; (3) are unprepared or not present to obtain simulation assignments for the next class (don't ask me to email them to you ); you will be penalized one letter grade on final course grade. Participation includes full preparation for the exercises. If you fail to inform me of your absence in advance of class (by 48 hours), you will lose an additional letter grade.

Each student is allowed to miss one class without penalty, assuming the instructor has been notified in advance and the student has found a suitable replacement for their role in the simulation. Medical excuses with documentation and deaths in the immediate family are the only acceptable excuses for missing an exercise or case discussion. No student will be allowed to miss the first under any conditions.

2 BBUS 507 Organizational Management If you are not in attendance when a role assignment for a case or excercise is distributed, you/you intelligent agent must make your arrangements to get the material. There is no courier or email service (see professionalism).

5. Grading

There are three components of grading:

1. Class participation = 20 % There are several components to class participation, broken down as follows:

a. Professionalism (5%). You are expected to conduct yourselves in a professional manner, as in a business setting. Important aspects of professionalism include: . Arriving to class on time. . Preparing for class (failing to pick up handouts/ cases distributed in class will be duly noted). . Refrain from complaining or whining about projects and expectations. . Engaging in ethical behavior which means that you do no ask the professor to make “special exceptions” (i.e., bend the rules) for you. . Respect others’ time: please do not ask questions which are readily answerable via course materials. Obviously, ask questions or share knowledge that is relevant to the course and our discussions. c. Out of class team projects (10 %). In addition to participating in group activities during class, you will be working in teams with other classmates on team exercises that will be completed outside of class. You should anticipate spending quite a bit of time together; these teams will be self managing. Further instructions for these tasks will be provided on an ongoing basis.

The two major out class assignments include: (1) Sound Manufacturing Simulation (requires a minimum of two hours of out of class team training) in mid January and (2) Albion in China simulation which requires that assigned groups meet before the in-class simulation on February 16 for about two hour to prepare for the simulation. You will turn in a team preparation report. Students who fail to participate in these out-of-class activities will be duly penalized.

c. Qualitative Team Project Group Feedback Survey (5%). Students are required to turn in a feedback instrument which assesses the contributions made by individuals in your term project group.

2. Team Project = 40% (further broken down as follows) and adjusted by peer evaluation ratings: I. Project outline and progress report = 5% II. Final project oral presentation = 10% III. Final project written report = 25% (adjusted by peer evaluation ratings)

This part of your grade will be determined by a major team project to be completed by your

3 BBUS 507 Organizational Management formally assigned study group. Your team will be asked to conduct a knowledge audit which diagnoses an organizational unit or organization in regards to key areas of knowledge management (human capacities, information knowledge, organizational knowledge), selecting a significant problem and then to write a report of your diagnosis, problem identification, intervention plan and selling strategy. In addition to a project overview, there are several relevant readings for your project which are contained in your reading packet in Appendix A.

Deliverables include:  A 1-2 page project overview of what you INTEND to do. Due January 19, 2005.  A 10 page maximum report which is due the last day we meet in class (Please do not ask for an exception to this deadline, see “professionalism section).  A 20 minute oral report using appropriate media (e.g. powerpoint, handouts) which describes the diagnosis process, the proposed change project). You should assume you are making the presentation to members of the executive team for the chosen organization. Please note, your classmates will serve as board members and will evaluate the presentation, providing feedback on “pitch” including content and style. Their ratings will serve as the grade for the oral portion of the team assignment.  Preparation of an appropriate handout (1-2 page executive summary) which will be distributed to all class members the day of the presentation. Note: It is totally appropriate to list this strategic audit on your resume. I recommend a section on key competencies containing such headings as (Leading, Strategic Analysis, Transforming, etc.) 3. Individual Assignments – 40%. There are two ways to fulfill the individual knowledge assignments for the class. These include: (1) a case analysis or (2) Knowledge Debriefing . You must complete TWO individual write- ups.

I Knowledge Debriefing.

Debriefing allows one to learn from a experience. Knowledge debriefing reports are due one week after the simulation in which you participated. Each knowledge debriefing paper should analyze the process and outcome of the simulation. The debriefing reports are NOT permanent records of each detail of what happened. Debriefing reports should be 3-5 typed pages. Knowledge debriefings can be written about the following simulations: (a) Sound Manufacturing Part A or Sound Manufacturing Part B (one or the other), (b) GlobeSmart; (c) Albion in China or (d) Best Stuff on Earth. Debriefing reports should address the following issues for each simulation:

a. (20% ) Briefly summarize what happened – a brief overview of the events. Pay special attention to the specific strategies or tactics you or the others used to acquire or disperse knowledge.

b. (50%) How do the concepts from the text and readings and to a lesser degree 4 BBUS 507 Organizational Management lectures enrich your understanding of the knowledge process, and the outcome of the simulation. Be specific and properly footnote the references. You may discuss strategies tactics and shortcomings. Identify behaviors (what either of you said or did) in detail as well as the outcome and use class concepts (terms) to show me you have understood the practical implications of the knowledge concepts and theories presented in class. Please include specific references as footnotes including page numbers from the course reading packet and the textbook. There should be a minimum of 5 distinct references.

c. (20%) What did you learn about knowledge from the simulation? About yourself? About others? from the simulation? Were there any surprises?

d. (10 %) If you had the chance to do the simulation over, what would you do differently? Why? II. Case Analysis. Case studies allow students to learn not only about key concepts but also how those concepts relate to organizational strategies and actions. To fulfill the individual requirements, students can prepare a case write-up which is due at the day the case is discussed. A write-up (should you need it) is contained in Appendix B of the reading packet regarding how to conduct a case analysis. The cases that can be written up include: (a) Jack Smith: Career Launch at Toyota Part 1 or Part 2 (not both); (b) McKinsey and Company; or (c) Facing Crisis: Lars Kruse Thomsen starts his new job. Your case write- ups should be succinct, approximately 3-5 pages. Components should include: a. Background summary b. Issue Identification . Identification . Supporting Evidence . Prioritization c. Recommendations . Appropriateness . Specificity in action, not words . Linkage to issue resolution d. Knowledge Linkages . Depth – within knowledge management arena . Breadth – cross topical areas . Scope – draws from readings and class discussion . Appropriateness e. Style

5 BBUS 507 Organizational Management Week Date Topic, Readings, Activities

1 Session 1 Topic: Mapping the Domain of Knowledge Management Monday, Jan. 3 Readings:  March, A. 1997. A note on Knowledge Management, HBR.  Kaplan and Norton 2004. Measuring the strategic readiness of intangible assets, HBS. Packet

Activity: 1. Course Introduction 2. Overview of knowledge processes

1 Session2 Topic: Human Capabilities – Selecting and Orienting Wednesday, Jan. 5 Readings:  Ulrich, D. & Smallwood, N. June, 2004. Capitalizing on Capabilities. HBR  Nonaka, I. 1991. The Knowledge Creating Company. HBR Classic

Activity:  Jack Smith: Career Launch at Toyota HBS (Packet) Questions 1. What elements should their orientation/ knowledge acquisition process for Smith include? 2. What should Smith do, with whom, and where? 3. What's the rationale? What are these elements meant to accomplish? 4. What does Smith already know and what must he learn?

2 Session 3 Topic: Human Capabilities – Selecting and Orienting Monday, Jan 10 Readings: No new readings

Case Study: 1. Team Project Discussion 2. Jack Smith A: Becoming a Toyota Manager (I). HBS. (Handed out in class)

6 BBUS 507 Organizational Management Questions: Before reading the case, first reflect: 1. What had you expected/predicted his initiation into Toyota would be (based on the first Jack Smith case)? Now, read the case 1. Why did Ohba and Fukanaga take the approach they did? 2. It is now the end of the 12 weeks in the West Virgina plant. What should Fukanaga do with Smith next?

Generate an action plan outlining the next steps for Smith. The following questions might help you think about your proposed plan: 1. What does Smith know well? 2. What knowledge, skills and abilities does he still need to acquire (e.g. what is the problem you are trying to solve)? 3. How will your suggestion solve the problem you are addressing? 4. How will you know you are right? 5. What will you do if you are wrong?

2 Session 4 Topic: Knowledge Capital – Creating Knowledge Wednesday, Jan. 12 Readings:  Thompson. 2003. Improving the creativity of organizational work groups. Academy of Management Executive 17(1): 196-109.  Breen, B. December, 2004. Six Myths of Creativity. Fast Company. 75-78  LaBarre, P. January, 2002. Fresh Start 2002: Weird Ideas that Work. Fast Company. 68-72. (Scan)  Deutschman, A. December, 2004. The Fabric of Creativity. Fast Company. 54-62. (Scan)

Activities 1. Creativity Exercises. No advance preparation. 2. Food for Thought Simulation

Turn in Managerial Self Assessment (Appendix C at back of packet) Sound Manufacturing Radio Kits passed out

7 BBUS 507 Organizational Management 3 Monday, Jan. 17 Martin Luther King Holiday

No class. May be a good evening to do the out of class portion of the Sound Manufacturing Task

3 Session 5 Topic: Knowledge Capital –Sharing knowledge Wednesday, Jan. 19 Readings:  Leornard, D., & Swap, W. September, 2004. Deep Smarts. HBR.  Argyris, C. 1991. Teaching Smart People How to Learn, HBR Classic.

Activity: 1. Turn in a one page proposal for your group project 2. Sound Manufacturing continued. (Task Instructions in your packet and assembly instructions with the radio kit)

Prior to the class today, you should meet in the groups assigned by the professor to complete the radio assembly task. Since we don’t have class on Martin Luther King Day, that may be a possible date for your group to meet. The task must be done as group activity and takes about 2 hours to complete. Come to class with the surveys filled out and your kit that you assembled in groups unassembled as per the instructions.

4 Session 6 Topic: Knowledge Capital – Information Sharing Monday, Jan 24 Readings:  Thompson, L. 2004. Sharpening the Team’s Mind. Making the Team. Pearson Prentice Hall.

Activity: 1. PB Technologies or GlobeSMART (In class simulation. No advance preparation) 2. Bring your cellphones to class.

4 Session 7 Topic: Knowledge Capital -- Managing Knowledge Wednesday, Jan. 26 Readings:  Hansen, Nohria & Teirney. 1999. What's your strategy for managing knowledge? HBS. Packet.

8 BBUS 507 Organizational Management  Hansen, M.T. & von Oetinger, B. March-April, 2001. Introducing the T-shaped managers. HBR.

Case Study: McKinsey & Company: Managing Knowledge and Learning

Questions: 1. How was this obscure little firm of accounting and engineering advisors able to grow into the world’s most prestigious consulting firm? 2. What was the unique source of competitive advantage developed by McKinsey and later Bower? 3. How effective was Ron Daniel in leading McKinsey to respond to challenges identified in the Commission on Firm Aims and Goals? What contribution did Fred Gluck make to the required changes? 4. Judging by the evidence in the three mini cases of front line activities, how effective has the firm been in its two decade long change process? 5. What’s your evaluation of Rajat Gupta’s “four prong approach to knowledge development and application within McKinsey? As a senior partner, what specific advice would you give him?

5 Session 8 Topic: Knowledge Capital – Managing the Data and Monday, Jan. 31 Getting Knowledge Utilized

Readings:  Powell. 1998. Knowledge from collaboration: Knowledge and networks in the biotechnology pharmaceuticals industries. California Management Review. Packet  Brown, J. & Duguid, P. 2000. Balancing Act: How to capture knowledge without killing it. HBR

Activity: Guest Speaker -- Michael Krolewski from Rosetta Informatics, a subsidiary of Merck.

5 Session 9 Topic: Knowledge Capital – Strategies for using Wednesday, Feb 2 intellectual property to manage knowledge and create relationships

9 BBUS 507 Organizational Management Readings:  Lo, M.Y., Yang, F.Z. & Yang, M.L. March, 2004. Protecting your creativity. Research Library.  Krebsbach, K. February, 2004. Patents: what it takes to protect intellectual property. USBanker,.20-24.  Gladwell, M. May, 2002 The televisionary. The New Yorker. Activity: 1. Guest Speaker -- Charles R. Williams , Director, Office of Software & Copyright Ventures, University of Washington

6 Session 10 Topic: Organizational Capital - Leadership Monday, Feb. 8 Readings:  Organizational Capital: Leadership, alignment and teamwork. HBS. Packet  Raelin, J.A. 2004. Don’t bother putting leadership into people. Academy of Management Executive, Vol. 18(3): 131-135.  Tischler, L. November, 2004. IBM’s Management Makeover. Fast Company. 112 -118.

Activity 1. Results of your leadership audit passed back. 2. Class discussion

6 Session 11 Topic: Organizational Capital - Culture Wednesday, Feb.10 Readings:  Earley & Masakowski. 2004. Cultural Intelligence. HBS. Packet  Christensen, C.M. 2004. What is an organization’s culture? HBSP

Activity: 1. Global Business Quiz 2. In class discussion of culture

7 Monday, Feb 14 No class. Both sessions with Professor Karen Brown

10 BBUS 507 Organizational Management 7 Sessions 12- 13 Topic: Organizational Capital – Dealing with Culture Wednesday, Feb 16 Yours and Theirs Class begins at 6 p.m. Readings:  Huber, V. L. 2004. Preparation for Global Deals  Rivette, K. & Michael, D. July 2004. Protecting Trade Secrets in China. Chief Executive, 52-54. (Scan)  Fowler, G. April 29. Good Idea, Copy It. Far Eastern Economic Review (Scan)

Activity: Albion in China simulation. Teams of three students representing a U.S. firm and a Chinese agencies negotiate a technology deal. Read the case materials before class. In advance meet with your group to discuss your strategy and determine appropriate cultural specific props (e.g. gifts, food, attire). Best Stuff on Earth Individual role materials distributed.

8 Monday, Feb. 21 President's Day

8 Session 14 Topic: Organizational Capital – Decision Making Wednesday, Feb. 23 Strategies

Readings:  Drucker, P. F. 2004. What makes an effective executive. HBR.  Pearce, C.L. 2004. The future of leadership: Combining vertical and shared leadership to transform knowledge work. Academy of Management Executive, Vol 18(1). 47-59.  Charn, R. 2001. Conquering a culture of indecision. HBR.

Case Study: The Best Stuff on Earth Simulation. Individual roles passed out last week in class Read your role material in advance

9 Session 15 Topic: Managing Organizational Transformations Monday, Feb. 28 Readings:  Pfeffer and Sutton. The smart-talk gap, HBS. 11 BBUS 507 Organizational Management Packet  Beer, M. & Nohria. N. 2000. Cracking the code of change, HBR.  Kotter, J. P. 1995. Leading Change: Why transformation efforts fail. HBR

Case Study: Facing Crisis: Lars Kruse Thomsen starts his new job (A) Questions: 1. What do you see as the most critical issues for Lars to address? 2. What are the core problems of HoP-Poland's troubles? 3. What recommendations do you have for Lars with respect to adapting his culture and experience to Poish realities? 4. How does the ownership structure of the company contribute to difficulties in the day to day management of the firm? 5. What do you suggest Lards do? Why?

9 Session 16 Topic: Managing Organizational Transformations: Wednesday, March 2 Persuasion

Readings: . Conger, J.A. The Necessary Art of Persuasion, HBR. . Sussman, L. July, 1999. How to Frame a Message: The art of persuasion and negotiation. Business Horizons . Lovett, P.D. 1988. Meetings that work, HBR Classic

Activity: 1. Video Persuasion (Really good) 2. Time to work on Projects

10 Session 17-18 Topic: Knowledge Sharing Monday, March 7 Class begins at 6 p.m. Activity Presentation of Transformation Projects

12 BBUS 507 Organizational Management