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1、1,Knowledge management in a global knowledge-based firm,Dr.Robin TeiglandStockholm School of EconomicsSeptember 2007robin.teiglandhhs.se,2,Growth,Time,Output of information and knowledge,Human absorptive capacity,A world of increasing knowledge flows.,Cohen,WM och Levinthal,D A,Absorptive Capacity:A
2、 new Perspective on Learning and Innovation,Working paper,Carnegie Mellon University and University of Pennsylvania,October 1989,3,that is increasingly connected.,Nodes are individuals and colors represent organizations,Casper&Murray 2002,4,What is globalization?,The extent to which networks of indi
3、viduals and organizations,markets,and technologies are interconnected across geographic and cultural boundaries Beech and Chadwick 2004,Friedman 2002,5,What is your companys global strategy?,6,From a multi-domestic company to a successful global firm,Multi-domestic,Global,Integrated,7,Globalstrategy
4、,Aligning operations increases success,CompetenceManagement,MotivationManagement,Knowledge,Management,8,Profitable growth through higher efficiency and innovationPreventing the waste of valuable resources-avoid reinventing the wheelEnsuring the use of leading-edge technology and thinking across the
5、firmIncreasing customer satisfaction through shorter lead-times and consistent behaviorCreating a competitive cost structureFacilitating breakthrough and incremental innovations through combination of technologies and ideas from across and outside the firmAn attractive workplace that encourages cros
6、s-functional co-operation across the globeAttracting and retaining key individuals,What are the benefits of knowledge management?,9,What is knowledge?,10,From tacit to articulate knowledge,“We know more than we can tell.”Michael Polanyi,1966,Tacit,Articulated,High,Low,Codifiability,11,The majority o
7、f a companys valuable knowledge is tacit and resists being articulated,The knowledge management challenge,12,An organizations structures,systems,and practices that facilitate.with the goal of enhancing the organizations competitiveness,What is knowledge management?,Creating knowledge,Embeddingknowle
8、dge,Disseminating knowledge,Organizing knowledge,C,C O D E,KM,13,Who does your company target as customers?What products or services does your company offer these targeted customers?How does your company do this efficiently?,KM must be aligned with strategy,Globalstrategy,CODE,KM,What knowledge supp
9、orts this strategy?Do we have this knowledge?(Create)How should we organize this knowledge?(Organize)Who needs this knowledge,when,and how?(Disseminate)How do we ensure we get value from this knowledge?(Embed),14,Information technology for KM,Stocks of knowledge:Database and database management syst
10、ems to collect and hold information Flows of knowledge:Communication channels to connect individuals independent of location,IT is an enabler!,15,Challenges to knowledge databases,Time consuming and difficultTakes times for writer to document experiencesTakes time for reader to search through databa
11、ses,information overloadOften weak incentives to contribute golden nuggetsDifficult to understandDifficult for writer to explain context,tacit-explicitDifficult for reader to interpret experience and use in own situationData becomes out-of-date very quickly Difficult to maintain,especially in fast m
12、oving industries,16,Avoid creating information junkyards,Building knowledge repositories,Information junkyardsorEmpty libraries,17,Physical layoutAppropriate KM functions and units Cross-functional and cross-location teamsCenters of excellenceInstitutionalized,recognized areas of expertiseSocializat
13、ion measures Job rotation,cross-office training programs,etc.,Organizational structure for KM,18,Physical layout,An organizations office layout reflects a companys knowledge flows,19,Creating centers of excellence,COE,HQ,20,San Francisco,Stockholm,London,Brussels,Helsinki,Madrid,Copenhagen,Improving
14、 knowledge transfer through job rotation,21,Where do individuals go for help in solving problems?,22,Knowledge networking through communities of practice,Connecting peopleso that they collaborate,share ideas,and create knowledge,23,One of the things that were struggling with is moving towards a more
15、 consistent way of doing business around the world.I think the knowledge communities are a vehicle to speed up that process.President,Montgomery Watson Harza Americas,24,What are communities of practice?,Groups of people who come together to share and to learn from one another face-to-face and/or vi
16、rtually.They are held together by a common interest in a body of knowledge and are driven by a desire and need to share problems,experiences,insights,templates,tools,and best practices.Members deepen their knowledge by interacting on an ongoing basis.This interaction leads to continuous learning and
17、 innovation,25,CPs are not teams or personal networks,McDermott 2001,26,Communities are the grease in the KM wheel,Creating knowledge,Embeddingknowledge,Disseminating knowledge,Organizing knowledge,C,C O D E,KM,27,Role of communities of practice,Create:Own&develop knowledgeDevelop&manage good practi
18、ceBuild organizational competenceOrganize:Develop&manage materialsDevelop tools,guidelines,templates Manage databasesDisseminate:Connect people across boundariesWho knows what Home in changing organization&an uprooted societyEmbed:Share ideas&insights Share tacit,complex ideas&insightsHelp each othe
19、r solve problems&find innovations,28,Helping,Best-practice,Innovation,Knowledge stewarding,Communities can have a different primary purpose,29,Community membership and roles,Coordinator,Peripheral,Core Group,Active,30,Two extreme communities of practice,Face-to-face,Virtual,31,Communities cross all
20、boundaries,Company,Suppliers,Customers,Competitors,32,Organization,Dont forget to support informal external networks at the individual level!,Electroniccommunities,Partners,Customers and suppliers,Previous work and school colleagues,External,Large portion of new ideas and formal collaboration relati
21、onships come from personal external contacts,33,Encourage an open innovation attitude,Not all the smart people work for us.We need to work with smart people inside and outside the company.,The smart people in our field work for us.,If you create the most and the best ideas in the industry,you will w
22、in.,If you make the best use of internal and external ideas,you will win.,Closed attitude,Open attitude,Chesborough 2003,34,Examples of communities of practice at Ericsson,Magnusson&Davidsson 2004,35,Ericsson Competence Groups,Background and objectiveTo improve knowledge sharing between Flow Control
23、 centers worldwide that responsible for order fulfillment and complete order flowOrganization 14 Competence Groups focused on one Flow Control function each,e.g.,forecasting,invoicing,consisting of one member from each of 14 Flow Control Centers worldwide Each CG headed by one leader who devotes 30%
24、of time to CGActivities14 CG leaders meet once a month and all CG members meet 3-4 times a year at 2 day seminarDevelop common terminology and processesDiscuss process improvements and how can be implementedMonthly phone conferences to discuss ongoing workCritical success factorsWell designed organi
25、zation All allowed to contribute and suggest improvements,Magnusson&Davidsson 2004,36,Country 1,Country 2,Country 14,1.Process&IT,2.Order mgt,14.Customer care,Function,Countries,Ericsson Competence Groups for worldwide Flow Control Centers,3.Forecasting,CG Function Leaders14 leaders meet monthlyWork
26、 30%on CGCG Function Members2 day seminar 3-4 xs/yearMonthly phone conferenceWork 3-5 days/mth on CG,Program ManagerCoordinatorWeb Assistant,Magnusson&Davidsson 2004,37,Cap Gemini NCN MS Electronic Community,Background and objectiveTo provide programmers working with Microsoft products a forum to he
27、lp each other solve problems Organization 345 programmers across Nordic countriesActivitiesHelping each other through posting questions and responses on listserv nicknamed“L2A2L”(Learn to ask to learn)Critical success factors“Eldsjl”one who burned for community and walked the talkHigh level of recip
28、rocity,38,An organizations structures,systems,and practices that facilitate.with the goal of enhancing the organizations competitiveness,Globalstrategy,What is knowledge management?,Creating knowledge,Embeddingknowledge,Disseminating knowledge,Organizing knowledge,C,KM,CODE,39,What is your organizat
29、ions KM vision?,British Petroleums KM VisionBP knows what it knows,learns what it needs to learn,and uses knowledge to create overwhelming sustainable advantage.,In global organizations KM is increasingly complicated,Three types of boundariesInternal Geographical(physical&cultural)Organizational(hor
30、izontal&vertical)ExternalOrganizational(formal&informal relationships),41,and difficult to achieve.,Gupta&Govindarajan 2000,Number of subsidiaries providing and receiving knowledge and skills,42,Challenges to successful KM processes,Individual levelSubsidiary level,43,Two departments within the same
31、 firm,Department 1,Department 2,44,Unawareness and power games,Icon programmers Stockholm,45,San Francisco,Stockholm,London,Brussels,Helsinki,Madrid,Copenhagen,Islands of competence despite intensive KM efforts,Icon programmers Worldwide,46,Biggest difficulties to successfully managing knowledge in
32、organizations,Culture,Top managements failure to signal importance,Lack of shared understanding of strategy,Organizational structure,IT/Communication restraints,Incentive system,Lack of problem ownership,Ruggles 1998,47,Biggest difficulties to knowledge transfer,Changing peoples behavior,Measuring v
33、alue/performance of knowledge assets,Determining what knowledge should be managed,Justifying use of scarce resources for KM initiatives,Making knowledge available,Attracting and retaining talented people,Mapping organizations existing knowledge,Ruggles 1998,48,So,why should I share?,You gotta rememb
34、er that were hired to be stars here and not team players.-Researcher at one high technology firm with poor knowledge flowSometimes I get calls from other offices.It feels weird if I dont know the person.I like to help them only if I know them.-Programmer at software multinational,49,What are some ba
35、rriers to successful knowledge management?,50,Challenges with external networks,Everybody knows that if you recruit one talented programmer,youll get twenty for free-Support manager with a larger Swedish Telecom company,Lundkvist 2003,51,Loyalty,Loyalty,Individuals often have conflicting loyalties,O
36、rganization,Profession,Firm boundary,52,Is knowledge trading good or bad for a firm?,We pass over the nondisclosure agreements of different companies and trade company secrets all the time.,53,Who owns the knowledge?,Organizational information vs.Personal expertise,54,What about individual performan
37、ce?,A high degree of participation inlocal communities of practice,+,On-timeperformance,Creativeperformance,55,But here we see the reverse,A high degree of participation in dispersedelectronic communities,-,On-timeperformance,56,In summary,individuals have choices about how they use their knowledge,
38、Knowledge resides in the minds of individualsIndividuals make own choices about knowledge Share openly for the benefit of the organizationProtect and use only in work practice Perception that an individuals value is diminished if share knowledgeKnowledge is powerProtect and use only in external rela
39、tionships for own benefitKnowledge leakageLeave the firm and take knowledge with them,57,and most importantly,management cannot mandate social relationships,John,Eva,Hans,Miguel,Paul,58,Challenges to successful KM processes,Individual levelSubsidiary level,59,A constant local vs global tension,We do
40、 not want to be managed in our choice of competence elements.We would want to select those elements that we need.Line Manager,Ericsson NorwaySpontaneity and creativity could be the losers in some areas by implementing global solutions.However,the“Best Practice”policy in Ericsson concerns capturing g
41、ood ideas,which of course may come from other areas in the organization.HR Manager,Ericsson Norway,Hustad&Munkvold 2005,60,Conflicting demands on subsidiaries lead to resistance to global KM processes,Opportunity cost of time Opportunity cost of resources Not-invented-hereKnowledge is power,61,Inter
42、nal turf wars,It would have been much easier for me to transfer from the New York office to the California office if I had just quit the organization in New York and then reapplied for a job in the California one.Researcher,Xerox California,62,The challenge of knowing what is best practice,Here one
43、knows,Here one does not know,Arvidsson 2002,63,Globalstrategy,Aligning operations increases success,KM CODE,KM CODE,CompetenceManagement,MotivationManagement,64,Supporting global KM processes,CompetenceManagement,MotivationManagement,Providing the organization with the right mix of talent to meet ex
44、isting and future needs,Creating an open,knowledge sharing culture with a high degree of company loyalty,65,A variety of tools,Competence systemRecruitingIncentivesNetworks A visionary organization,CompetenceManagement,MotivationManagement,66,Creating a competence management system,StandardizationCr
45、eate common structure and terminologyDefine professional,business,and human competencies related to global strategy and KM goalsDont underestimate this task!AnalysisPersonal development discussionsMapping of present and future target competence levels for individuals and then for business unitsDefin
46、ing competence gap at both levelsPlanning and implementationPrepare competence development planImplement and evaluate,Magnusson&Davidsson 2004,67,Creating competence charts at Ericsson,Individuals in one unit,Comparison of units,Professional Operations,financial,etc.,Business Markets,core business,s
47、trategy,etc.,Human Interpersonal,communication,KM attitudes,etc.,Magnusson&Davidsson 2004,68,CM supports KM,I think that competence management can play an important role in knowledge management.You can search for persons with certain competencies very easily through that tool.People having the same
48、competencies and interests can be accessed and get together.Competence Manager,Ericsson Croatia,Hustad&Munkvold 2005,69,A variety of tools,Competence systemRecruitingIncentivesNetworks A visionary organization,CompetenceManagement,MotivationManagement,70,Recruiting What should one look for?,An exper
49、ienced professional who has worked extensively in another company with different values and philosophy,A young person who lacks professional experience but has the right attitude,It is cheaper and easier to develop technical skills than trying to change mentality.HR Manager,Ericsson Russia,OR,71,.yo
50、u“hire”his or her network.,When you hire someone,72,A variety of tools,Competence systemRecruitingIncentivesNetworks A visionary organization,CompetenceManagement,MotivationManagement,73,Aligning incentives with KM,Recognize and reward for collaborative behavior At individual,unit,and organizational
