People-Focused Knowledge Management
How Effective Decision Making Leads to Corporate SuccessBy
- Karl Wiig, Chairman and CEO of Knowledge Research Institute, Inc.
The business environment has changed. Sharper competition requires organizations to exhibit greater effectiveness in their operations and services and faster creation of new products and servicesall hallmarks of the knowledge economy. Up until now, most of the knowledge management literature has focused on technology, systems, or culture. This book moves to the next stage, to focus on the peoplethe knowledge workers themselves. Noted expert Karl Wiig synthesizes recent research findings in cognitive science and related fields to describe how people actually work. He focuses on how people learn, remember, make decisions, solve problems and actin general, how knowledge relates to work behavior. By understanding how people work, managers can improve effectiveness to gain competitive advantage.
Senior executives in corporate and government sectors; professionals in knowledge management, organizational behavior and development, and systems theory; HRD and OD professionals.
Published: June 2004
Imprint: Butterworth Heinemann
"Karl Wiig's understanding of the human and organization dynamics of KM is unsurpassed. His decades of experience and insight are captured in this seminal work." -- Carla O'Dell, Ph.D., President, APQC "When it comes to weaving together theory and practice, Karl Wiig is a master! People-Focused Knowledge Management illustrates this beautifully. In it he integrates management philosophy with company specific illustrations, cutting edge epistemological theory with specific knowledge management strategies, and current psychological research with operational details. The depth of Wiig's analysis is unusual, and the fact that he carries the analysis all the way to concrete actions makes this book an especially valuable addition to the growing literature on knowledge management. A feast for the mind as well as the enterprise!" -- Sue Stafford, Professor and Chair, Department of Philosophy, Simmons College "Drucker may point the way of a knowledge economy, a knowledge business, a knowledge worker, but Karl Wiig instructs us precisely how to take advantage of a dynamic knowledge strategy. In 'People-Focused Knowledge Management', he simplifies the complex, makes the concepts relevant and actionable and leaves the (inevitable) results to us. Finally, we have a resource for creating a compelling knowledge value proposition linking economics, behavior and technology. For decades, his remarkable graphics and penetrating analysis has been a cornerstone for managerial excellence in all corners of the globe and all sectors of the economy. Few can match his roots and vision in this field; and no one will be disappointed with this newest triumph. -- Debra Amidon, Founder and CEO, Entovation International, Ltd., and author of "The Innovation Superhighway" "In People-Focused Knowledge Management, Karl Wiig goes beyond the boundaries of traditional knowledge management and integrates this with recent cognitive research on such diverse subjects as mental models, narrative, conceptual blending, decision theory, and sensemaking, in a very comprehensive treatment." -- Steve Denning, author of "The Springboard" "This book distills the practical and theoretical wisdom of one of the true pionneers in the field of Knowledge Management. The constant interplay of case analysis and fundamental propositions signals the coming of age of the discipline. It takes seasoned practitioners and students alike to the strategic and systematic perspective of management that is reqired to release the power of knowledge in action." -- Francisco J. Carrillo, Professor of Knowledge Management, Center for Knowledge Systems, ITESM "Wiig is uniquely qualified to provide such a thorough and thought-provoking analysis of the role of knowledge and knowledge management in meeting the business challenges that we all face." "As businesses move their attention from capital to human resources, this book should become required reading for managers and senior executives." "Melding theory with application, Wiig has created an invaluable ready reference for everyone who works in the knowledge management arena." -- all 3 above from Alex Bennet; Mountain Quest Institute; Co-Author of Organizational Survival in the New World: The Intelligent Complex Adaptive System; former ChiefKnowledge Officer of the U.S. Department of the Navy "A distinguishing feature of Wiigs book is that he makes the tie of KM to employee motivation and commitment as they (can) lead to greater organizational productivity and effectiveness. As well, he uses stories to facilitate learning, so each chapter starts off with a case vignette and as the book evolves, so does the complexity of the micro-cases to further his points . . . . Karl Wiig is one of the most influential developers in the world of knowledge management, and his latest work is well worth the read." - The Learning Organisation
- CONTENTS iiiACKNOWLEDGEMENTS ixPREAMBLE xiFOREWORD xiiiCHAPTER 1 COMPETING IN THE GLOBAL ECONOMY REQUIRES EFFECTIVE ENTERPRISES 1Premise 1-1: The Global Economy Demands Excellence The Competitive Enterprise Example The Global Economy Challenge The World Requires Us to Change KNOWLEDGE INTENSIVE WORK The Misunderstanding of Knowledge-intensive WorkKnowledge-Intensity WORK IS BECOMING INCREASINGLY COMPLEX Complex Work Creates Greater Value THE SIX MAJOR CHALLENGES FOUR MANAGEMENT INITIATIVES Enterprise Effectiveness Requires Good Intellectual Capital Assets EXAMPLES OF STRUCTURAL INTELLECTUAL CAPITAL THE ROLE OF KNOWLEDGE WORKERS CHAPTER 2 THE EFFECTIVE ENTERPRISE Premise 2-1: Individual Actions Lead to Overall Enterprise Performance Premise 2-2: Effective Enterprise Behavior Leads to Success The Proactive and Decisive Company Example Management Philosophy Management Choices Knowledge-Related Practices and Actions Resulting Behavioral and Cultural Traits The Companys Business Results What Does It Mean for the Enterprise to Be Effective GOOD ENTERPRISE PERFORMANCE RESULTS FROM EFFECTIVE PERSONAL ACTIONS EFFECTIVE ENTERPRISES RELY ON BROAD AND DEEP KNOWLEDGE WHAT IS SUCCESSFUL ENTERPRISE PERFORMANCE? EXTERNAL AND INTERNAL ENTERPRISE EFFECTIVENESS SUCCESS AND KNOWLEDGE-INTENSIVE WORK THE IMPORTANCE OF INFORMATION TECHNOLOGY Productivity Is Not Always What We Expect! DIFFERENT KINDS OF PRODUCTIVITY VALUE CREATION AND PRODUCTIVITY A Systemic Model of Enterprise Performance CHANGING ENTERPRISE PERFORMANCE TAKES TIME Characteristics of the Effective Enterprise SIX SUCCESS FACTORS FOR THE EFFECTIVE ENTERPRISE 1. Management Philosophy and Practice 2. Deliberate and Systematic Knowledge Management 3. Knowledge and Other Resources 4. Motivation and Personal Energy 5. Opportunities 6. Permission SIX BEHAVIORS OF THE EFFECTIVE ENTERPRISE 1. Ethical, Safe and Approachable Behavior 2. Effectiveness-Seeking Behavior 3. Consistent and Durable Behavior 4. Employee Engagement Behavior 5. Stakeholder Supportive Behavior 6. Competitive Behavior Successful Performance Is Durable Performance Is a Function of Many Factors Acting Simultaneously The Intellectual Asset Management Mentality Building and Exploiting Intellectual Capital Assets Are Important People Adopt New Mindsets! CHAPTER 3 ACTIONS ARE INITIATED BY KNOWLEDGEABLE PEOPLE: PEOPLE MAKE DECISIONS AND ACT USING DIFFERENT KINDS OF MENTAL FUNCTIONS Premise 3-1: The Machinery of the Brain Is a Useful Beginning Premise 3-2: The Mind-as-Machine Metaphor Does Not Cover Everything The Personal Reasoning Example Have We Misunderstood How People Think, Make Decisions and Act? THINKING, REASONING AND KNOWLEDGE Associations and Biases Govern Our Actions Information Is Not Knowledge! On Information, Knowledge and Discontinuity GOOD REASONING MATCHES KNOWLEDGE AND INFORMATION KNOWLEDGEABLE AND INFORMED DECISIONS DELIVER PERFORMANCE GOAL-DIRECTED REASONING RELIES ON GOALS, INFORMATION AND KNOWLEDGE Personal Knowledge Is Built from Mental Models ON MENTAL MODELS MANY MENTAL MODELS ARE BASED ON METAKNOWLEDGE The Importance of Metacognition The Importance of Implicit Learning The Personal and Enterprise Knowledge Evolution Cycle The Needs to Increase Peoples Knowledge KNOWLEDGE REQUIRED TO ACT EFFECTIVELY Examples of Approaches to Develop Mental Models in People CHAPTER 4 MENTAL AND STRUCTURAL REFERENCE MODELS Premise 1: People Imitate Prior Behavior Premise 2: Organizations Reenact Past Practices The Personal Memory Example Mental Model Preview Personal Reference Models Reference Models Are Stories! Why Are Stories Important? IT IS ALWAYS HARD TO GRASP THE WHOLE COHERENTLY STORIES ARE UNSURPASSED FOR EFFECTIVE COMMUNICATION WE RELY ON STORIES TO TACKLE NEW PROBLEMS STORIES HELP US LEARN BETTER STORIES AND MENTAL SIMULATIONS Organizational Reference Models LEADERS CREATE POWERFUL REFERENCE MODELS CHAPTER 5 A KNOWLEDGE MODEL FOR PERSONAL SITUATION-HANDLING Premise 5-1: Situation-Handling Requires Actions Premise 5-2: Good Situation-Handling Is the Result of Effective Actions Personal Situation-Handling: A Customer Service Example Introduction to Personal Situation-Handling THE GENERAL CONTEXT The Knowledge-Based Situation-Handling Model THE CUSTOMER SERVICE EXAMPLE REVISITED The Four Tasks of Situation-Handling SENSEMAKING AND SITUATIONAL AWARENESS Sensemaking Situational Awareness DECISION-MAKING/PROBLEM-SOLVING AND ACTION SPACE AND INNOVATION CAPABILITY Decision-Making Single-Stage and Multi-Stage Decision-Making Mental Simulations Problem-Solving Action-Space Innovation Capability IMPLEMENTATION AND EXECUTION CAPABILITY Implementation Execution Capability MONITORING AND GOVERNANCE COMPETENCE AND PERSPECTIVES Monitoring Governance Competence and Perspectives The Expert and the Novice: When Situations Are Not As First Believed Story-Based Reference Models Provide Situation-Handling Knowledge TOPIC DOMAIN KNOWLEDGE The Mental reference Models in Situation-Handling Understanding Adjacent Operations THE RELEVANCE OF GENERAL AND WORLD KNOWLEDGE CHAPTER 6 ENTERPRISE SITUATION-HANDLING Proposition: Individual Situation-Handling ActionsLead to Consolidated Enterprise Behavior The Enterprise Situation-Handling Example The Situation Information Gathering Sensemaking Understanding the Situation Decision-Making/Problem-Solving and Action-Selection General Aspects Introduction to Enterprise Situation-Handling The Four Enterprise Situation-Handling Tasks SENSEMAKING AND SITUATIONAL AWARENESS Sensemaking in the Enterprise Enterprise Situational Awareness DECISION-MAKING/PROBLEM-SOLVING AND ACTION SPACE AND INNOVATION CAPABILITY Enterprise Decision-Making Enterprise Problem-Solving Enterprise Action Spaces Enterprise Innovation Capabilities IMPLEMENTATION AND EXECUTION CAPABILITY Implementation in the Enterprise Enterprise Execution Capability MONITORING AND GOVERNANCE COMPETENCE AND PERSPECTIVES Monitoring in the Enterprise Enterprise Governance Competence and Perspectives Enterprise Situation-Handling Has Many Levels The Importance of the Situation-Handling Model ENTERPRISE SITUATION-HANDLING MODEL INSIGHTS WHY SHOULD WE BE CONCERNED WITH DETAILS? Chapter 6 Appendix: Action Program Details of the Enterprise Situation-Handling Example CHAPTER 7 PEOPLE-FOCUSED KNOWLEDGE MANAGEMENT IN DAILY OPERATIONS Premise 7-1: Knowledge Drives Enterprise Performance Premise 7-2: Knowledge Must Be Managed Premise 7-3: Effective Knowledge Management Must Be People-Focused Premise 7-4: Six Factors Determine Personal Knowledge-Related Effectiveness The Vigilant Knowledge Company Example New Generation Knowledge Management NEW GENERATION KNOWLEDGE MANAGEMENT IS DIFFERENT NEW OPPORTUNITIES REQUIRE NEW EFFORTS AND DIRECTIONS New Generation Knowledge Management Perspectives DELIBERATE AND SYSTEMATIC KNOWLEDGE MANAGEMENT New Generation Knowledge Management Foci The Bar Has Been Raised NGKM Implications STARTING THE KNOWLEDGE MANAGEMENT PRACTICE Problems with Conventional Knowledge Management NEW GENERATION KNOWLEDGE MANAGEMENT CHALLENGES Knowledge-Related Mentality and Corporate Culture THE ENTERPRISE CULTURE FOUR KEY KNOWLEDGE MANAGEMENT THRUSTS THE POWER OF ROLE MODELS, EXAMPLES AND PRACTICES Making Everybody Understand UNDERSTANDING THE ENTERPRISE DIRECTION AND CONTEXT THE SERVICE PARADIGM Knowledge-Related Effectiveness and Efficiency KNOWLEDGE EFFECTIVENESS AND EFFICIENCY Knowledge Effectiveness Knowledge Efficiency KNOWLEDGE MANAGEMENT EFFECTIVENESS AND EFFICIENCY Knowledge Management Effectiveness Knowledge Management Efficiency CHAPTER 8 PEOPLE-FOCUSED KNOWLEDGE MANAGEMENT EXPECTATIONS Premise: People-Focused Knowledge management Supports Global Excellence The Global Leader Example What Future Knowledge Management Business User May Expect The Business Environment Is under Pressure SUCCESS RELIES UPON KNOWLEDGEABLE BEHAVIOR EXPECTED KNOWLEDGE MANAGEMENT DEVELOPMENTS THE CHANGING WORKPLACE Knowledge Will Be Bought and Sold Societal Side-Effects We Are Far from Finished! New Enterprises and Integrative Management Objectives of Integrative Management In Complex Businesses, Better Practices Are Required Intellectual Work Is Indeed Complex HOW DO WE IMPLEMENT INTEGRATIVE MANAGEMENT? Final Thoughts OUR PRESENT DIRECTION THE SOCIETAL CONUNDRUM WHAT SHALL WE DO? APPENDICES APPENDIX A EXAMPLES OF KNOWLEDGE MANAGEMENT ANALYSIS TOOLS Knowledge Assets Mapping Knowledge Flow Charting and Analysis Knowledge Management Benefit Assessment Knowledge Diagnostics Critical Knowledge Function Analysis Knowledge Vigilance Survey Approaches APPENDIX B EXAMPLES OF KNOWLEDGE MANAGEMENT PRACTICES AND INITIATIVES Knowledge-Supported Mentality and Culture Changes Knowledge-Supported Enterprise Strategy ImplementationTransfers of Expert Concepts to Other Practitioners Expert Networks Town Meetings and Knowledge Cafés Options for Sharing and Spreading Expertise Intelligent Performance Support Systems (IPSS) APPENDIX C MEMORY AND KNOWLEDGE CATEGORIZATIONS Human Memory Organization Personal Knowledge Structural Knowledge Domains of Knowledge Types of Knowledge GLOSSARY REFERENCES AND RECOMMENDED READINGS INDEX