This document provides an overview of knowledge management (KM) principles and practices. It discusses the history and evolution of KM, from early informal knowledge sharing between individuals to modern formalized approaches. Key aspects of KM covered include the distinction between explicit and tacit knowledge, protecting knowledge assets, dimensions of knowledge, and the KM cycle of vision, generation, acquisition, capture, transformation, transfer and application of knowledge. The goal of KM is to harness expertise and continuously develop individual and organizational learning to achieve business objectives.

1. Applying Knowledge
Management
PRINCIPLES AND PRACTICES
14TH OCTOBER 2016

2. Outline
Introduction and objectives
History of KM
Sticky Knowledge
Development and Evolution of KM
Explicit and Tacit Knowledge
Protection of knowledge
Dimensions of Knowledge
The KM Cycle
Conclusion

3. Introduction
Main Forms of Production: Land (Materials), Labour and Capital
New form of Production: Knowledge
Knowledge is a fluid mix of framed experience, values, contextual
information, expert insight and grounded intuition
The concept of managing knowledge or knowledge management has
attracted much attention in recent years. Knowledge is not new, but
over the last decade or so the concept has grown from a convergence of
ideas and existing practice.

4. DIKW Pyramid
Wisdom
Knowledge
Information
Data

5. Data
Data consist of images, sounds, digital transmissions and the like, which are
generally context-free and difficult to understand. They have little value until
they are interpreted by structuring, filtering or summarizing and then they
achieve meaning. In other words they become information.

6. Information
Information is constructed from data. Where once there was often insufficient
information with which to make a decision, the World Wide Web has moved us
to an environment with a vast repository of information available. The problem
now is that people have too much information, which creates anxiety and
information overload and thus impedes the abilities to think. Burton-Jones
argued that ‘Information is not the problem – understanding is. Society is
drowning in information but still left thirsty for knowledge.’

7. Knowledge
Knowledge differs from information in that it exists within people and is
personal to them. Marchand stated that ‘Information involves the actions of
sensing, collecting, organizing, processing, communicating and using expressions
and representations of our or others’ knowledge, whereas knowledge
emphasizes personal interpreting and understanding.’

8. Wisdom
Wisdom is located at the apex of the pyramid. It is insufficient to know
something: the important thing is to understand when to apply that knowledge
to best advantage. When knowledge is combined with experience and intuition
it is often called wisdom.

9. Definition of KM
The term ‘Knowledge management’ was first used by Wiig in a keynote address for the United
Nations’ International Labour Organization. He stated that;
The focus of knowledge management is to harness and control the organization’s
expertise to preserve it and to put it to use in the best possible ways.
Drawing from many other sources, the following definition is suggested for KM;
Knowledge management is the systematic process that supports the continuous
development of individual, group and organizational learning, and involves the creation,
acquisition, gathering, transforming, transfer and application of knowledge to achieve
organizational objectives.

10. Objectives of KM
Improved Performance
Competitive advantage
Innovation
Sharing of lessons learned
Integration
Continuous Improvement

11. History of KM
People have been managing knowledge since the days of Abraham.
Consider a craftsman and his apprentice
Here knowledge is shared informally between two people not by writing it down
but by shadowing, mentoring, story-telling and job rotation.
It was not called Knowledge Management then and it did not involved codifying
knowledge writing things down, capturing knowledge.
KM actually took off in the 1990s.

12. Sticky Knowledge
Scholars have defined knowledge as sticky because
◦ we are not motivated to share it.
◦ People we want to share it with don’t trust us
◦ Or because they do not understand it
It is especially sticky in professional groups.
It is easier to share knowledge where everyone is an accountant than it is in a
multi-disciplinary group.

13. Sticky Knowledge in Projects
Consider projects – people from different industries dipping in and out to meet
objectives often under time pressure.
How do you manage knowledge in this type of environment?
How do you motivate people to share knowledge when they have different
stakes?
People in project teams might be competitive because it gives them a
competitive edge in other projects.

14. Development of KM
In the 1990s when KM became mainstream, people started to think of
knowledge as an asset, a thing that could be managed.
Early KM was about capturing knowledge, writing things down for people to
read.
Lessons Learnt data bases and document management systems were developed
The assumption was that knowledge can be captured people can go find it, they
will understand it, they will use it and it will work in the situation where they
applied it.

15. Evolution of KM
In the mid 90s it was discovered that this was not always true
We were sharing explicit knowledge – this was really information management.
But not tapping into tacit knowledge, which are things that are more difficult to
express, know-hows, insights usually involves conversation, trust and time.
Thus a new flavor a KM based on connecting people became mainstream
It included communities of practice, social network analysis, people finders

16. Evolution of KM cont’d
Fast forward to the early 2000s it was realized that we have swung from one
extreme to another. Hierarchies to Networks
Then with the explosion of social networks in our faces all the rules of owning
knowledge went out the window.
Some people embraced social networks as part of KM, others proclaimed KM
dead.

17. KM Today
But if KM isn’t dead, today it could mean anything from information
management to crowd sourcing, ideas market, collective sense making etc.

18. KM in projects
In projects the purpose of a lessons learnt database is to use it but we know
they don’t work
We try to capture knowledge so that when an individual leaves an organization,
there is something left of their knowledge, but can we really capture the
knowledge of a human being?
Projects are an opportunity for integrating knowledge, creating new knowledge
and learning.

19. Explicit and Tacit Knowledge
The explicit and tacit dimensions were explored in detail by Nonaka and
Takeuchi (1995)
Tacit knowledge consists partly of technical skills the kind of informal, hard-to-
pin-down skills captured in the term ‘know-how’. A master craftsman after
years of experience develops a wealth of expertise at his fingertips. But he is
often unable to articulate the scientific or technical principles behind what he
knows.
Explicit knowledge is formal and systematic. For this reason it can easily
communicated and shared in product specifications, scientific formula or a
computer programme.

20. Key Elements of tacit and explicit
Knowledge
TACIT
Personal
Private
Exists in people’s minds
Unique
Hard to formalize
Difficult to communicate
Generated through experience
Acquired on the job
EXPLICIT
Codified
Shared
Available to everyone
Systematic
Formal
Articulated and communicable
Captured

21. The Knowledge Creating Company
• Explicit
to explicit
• Explicit
to tacit
• Tacit to
explicit
• Tacit to
tacit
Socialization Externalization
CombinationInternalization

22. Protection of Knowledge (Internal)
Employees signing non-disclosure agreements
Incentives to discourage employees from changing company
Job design in which employees only contribute to part of a process
Products and processes can be designed to prevent core knowledge from being
accessed
Secret recipes
Complex knowledge
Tacit Knowledge

23. Protection of Knowledge (External)
Copyright
Trade Marks
Patents
International Non-proprietary Names or Generic Names
Legal contracts with customer / suppliers, non-disclosure agreements etc.
Protected Denomination of Origin eg Champagne
Technical standards e.g ISO standards
Time to market

24. The Prisoner’s Dilemma
Silent Prisoner B
Silent
Talks
Talks
Prisoner A
Long
Sentence
Long
Sentence
Maximum
Sentence
Freedom
Freedom
Minimum
Sentence
Maximum
Sentence
Minimum
Sentence

25. The Employee’s Dilemma
Share Employee B
Share
Hoard
Hoard
Employee A
Modest
gains
Modest
gains
Played
the fool
Windfall
gains
Windfall
gains
Significant
gains
Played
the fool
Significant
gains

26. Dimensions of Knowledge
Apart from the distinction of knowledge as either tacit or explicit, a further
categorization can be identified
Embodied – this knowledge is action-oriented and is only partly explicit.
Embedded – this is knowledge that exists within systems and routine.
Enbrained – this is the knowledge based on cognitive abilities and conceptual
skills, which can develop into rules and causation.
Encultured – this comprises the shared understandings and cultural meanings
that people have within the organization.
Encoded – this is knowledge captured in books, operating manuals and
information systems.

27. The Knowledge Management Cycle
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

28. Vision and search
Probably the main driver for a commercial organization is the desire to earn
income and generate profit. In addition to this there are the inner motivations of
the owners, managers and employees of the organization.
Our aspirations are also very important. Our aspirations are rooted in our deep
values. They are the things for which we have passion. They are the energy
sources of our actions. They are the drivers for invovation, creativity and
excellence. They point us to the future and its possibilities
Bertels and Savage
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

29. Generating Knowledge
Encouraging the generation and acquisition of knowledge is the lifeblood of a
commercial organization, and it can occur in many forms. Arguably, knowledge is
created each time employees share their knowledge with others, or a person
reads or understands something for the first time. There are numerous
approaches to the generation of knowledge, and a range of these will now be
considered.
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

30. GK – Research and Development
If an organization has an R&D department, this is an obvious area to look for the
generation of new knowledge. However, it should not be considered the only
place to find innovative capacity. The potential for innovation is high for all
employees in their work practices, and it is only through the whole organization
seeking alternative ways of working that there can be continuous improvement.
Alexander Fleming Harry Brearley
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

31. GK – Employees as a source
The generation of ideas and knowledge can be encouraged in a wide variety of
ways including
Desk Research Think tanks
The Delphi technique Creative Friction
Devil’s advocate Ideas contest
Suggestion boxes Brainstorming
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

32. GK – Suppliers and Customers
No organization operates in a vacuum, since it is designed to provide a product
or service for the benefit of its stakeholders or customers. Moreover it also
interacts with its suppliers ad together with customers these constitute the
supply chain, if the organization consults with customers, areas for improved
performance may be identified, or even new markets, likewise with suppliers.
Uber Airbnb
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

33. GK – Systematic creativity
Systems and processes in an organization are often regarded as the kiss of death
to encouraging creativity, but this need not be the case. Without a system, the
generation of ideas and applications can be lost of forgotten. Creativity is very
important in the early stages of the product development.
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

34. GK – Diversity and culture
In order to maintain company values and also avoid personal disputes, managers
sometimes recruit people with similar dispositions. This may bring short-term
harmony but unfortunately it may cause a form of inbreeding which cause
people to think in the same way.
It is simpler to manage knowledge of technology or products than to manage
knowledge at a human and cultural level, because this latter kind of knowledge
is much deeper. Thus, for organizations to embed a culture it needs to have key
values that are communicated regularly to all employees.
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

35. Knowledge Acquisition
Many organizations no longer exist or have failed to anticipate changes in their
markets and now hold only a small percentage of their former market share.
We do not have to invent new ideas or solutions. It may be possible to purchase,
lease, license or share knowledge or acquire or merge with another
organization. Some od these solutions are often much cheaper than generating
new knowledge. It is often cheaper to imitate than to innovate.
Supermarkets / news blogs
Steal ideas shamelessly – Michael Milliken
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

36. Capture
Knowledge generated in an organization can be lost if it is not captured and
stored in some form: for example electronically, in text or in prototypes. Storing
knowledge also allows its use at some time in the future assuming it has not yet
reached its sell-by-date.
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

37. Transform
Knowledge can be generated by compiling or recombining information in new
forms. Other approaches to transforming existing information or knowledge can
be through integration, synthesis, fusion and adaptation.
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

38. Knowledge Transfer
The generation of knowledge in an organization is important, but without
transmission, its impact can remain minimal. For this reason knowledge and
ideas have their greatest value and effect when they are shared and held by a
large number of people rather than just a few.
Mechanisms for transfer include written reports, oral presentations, site visits,
tours, job rotation, education and training programmes, coaching and
mentoring, conference, job descriptions, work manuals, meetings and
communities of practice.
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

39. Knowledge Transfer
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

40. Application
Creation of new knowledge is not an end in itself, since it possesses little value
unless it is applied. The application of knowledge is everything, as John Ruskins,
the naturalist and reformer said, ‘What we think, or what we know, or what we
believe is, in the end, or little consequence. The only consequence is what we
do.’
Vision and
Search
Generate
Acquire
CaptureTransform
Transfer
Apply

41. Conclusion
We are at a revolutionary period, moving from physical capital to knowledge
capital. KM would not disappear in the next few decades rather it would become
routine, along with tools and practices needed to support it. KM is a journey not
a destination.
There is less to fear from outside competition then from inside inefficiency,
miscalculation, lack of knowledge. Beat your competitors with the knowledge
edge!
Annonymous