Boosting business performance through knowledge management

Executives across the globe have found that knowledge management is critical to business success. Knowledge management alone, however, is not enough to satisfy the vast array of changes in today’s organizations.

Therefore, knowledge management is only a necessary precursor to effectively managing knowledge within the organization and executives must first have an understanding of the concept of knowledge itself.

Knowledge is identified as a multi-faceted concept and is distinct from information and data. Data has been defined as raw entities and information is understood as a meaningful pattern within these raw entities.

Knowledge management is a resource that enables organizations to solve problems and create value through improved performance. It is this point that will narrow the gaps of success and failure leading to more successful decision-making.

Executives are perplexed by the amount, both in depth and in breadth, of knowledge management models and applications. A new model that can easily be applied and that takes into consideration some of the major tasks that executives must consider is needed.

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A good example of this is executives looking at three-step processes of knowledge accumulation, integration and reconfiguration of the knowledge management model as shown in figure 1.

Figure 1: Knowledge management model (source: Mostafa Sayyadi)

The key point in this model is the knowledge accumulation section coupled with integration and reconfiguration to ensure that the knowledge is actually helping the organization grow, both professionally for individuals and profitably for all stakeholders.

Knowledge accumulation

Knowledge management in enterprises can be evaluated by measuring the processes of knowledge finding, integrating and networking. The knowledge accumulation process in this model plays an important role for organizations through acquiring knowledge and information from the external business environment and developing the capabilities to create new knowledge within a company.

In doing this process, executives can develop a workplace which is effective in:

• Acquiring knowledge about new products/services within their industry.
• Benchmarking performance with competitors or industry.
• Using feedback to improve subsequent practices.
• Utilizing teams, such as committees or management teams, to manage knowledge resources.
• Developing and implementing education or training programs.
• Carrying out a career path program or recruitment program to acquire experts.
• Conducting organizational events such as a “knowledge contest” or “knowledge fair” that promote knowledge activities.

Knowledge integration

A further step to implementing knowledge management is to integrate knowledge within companies. Executives can synthesize new knowledge and information to improve the effectiveness of organizational processes and the quality of products or services.

The key here is to internally integrate knowledge so that it is quickly retrievable at the right time and place. Knowledge cannot be used adequately if it takes time to acquire it. Expert systems can provide kiosk-like knowledge databanks and intranet searches to retrieve information from the knowledge bank quickly and effectively.

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In doing this process, executives can develop a workplace which is effective in:

• Monitoring or controlling organizational knowledge to keep product or services in line with market requirements.
• Regularly assessing knowledge requirements according to environmental changes.
• Linking the knowledge-sharing system using various software and programmes.
• Defining “core knowledge” or “core competence” areas.
• Using expert groups to evaluate the quality and effectiveness of organizational knowledge.
• Disseminating organizational knowledge among employees.
• Rewarding individuals or teams based on the quality of knowledge generated.

Knowledge reconfiguration

Moreover, competing organizations find ways to share common knowledge so that it can be used by industry alliance when the information is non-specific to a certain organization.

Organizations must collaborate with other companies and share their knowledge with them to improve community issues and global problems in a manner that solves problems and creates solutions when necessary.

This is called knowledge reconfiguration. The key kernel for executives is that knowledge is shared with other organizations to recognize the changes occurring in external environments and respond to them quickly and effectively.

For example, competing organizations ought to find ways to share common knowledge so that it can be used by industry alliances when the information is non-specific to a certain organization.

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In doing this process, executives can develop a workplace which is effective in:

• Creating knowledge alliances with suppliers, customers or other partners.
• Sharing knowledge management visions and goals with external partners such as suppliers and customers or other partners to develop collaborative activities, shared goals and trust-based relationships with them.
• Extending or linking knowledge-related policies or rules related to measurement or rewards with external partners such as customers, suppliers or other partners.
• Linking the knowledge-sharing system with external partners such as customers, suppliers or other partnerss.
• Facilitating and implementing activities such as conferences, contests, seminars with external partners.

Executives now know that applying knowledge management using the process perspective is advantageous and allow for strategic implementation.

Executives going through a process of knowledge accumulation, integrating knowledge into day-to-day operations and a continuous reconfiguration will be able recognize the changes occurring in external environments and respond to them quickly and effectively.

Reference: Leading Between the Lines: Breaking through Performance Gaps in Large Companies

Are you using the knowledge management model in your organization? Let us know by leaving a comment below.