They seek advice from colleagues to deepen their understanding of the issues, but in the end they must create a highly customized solution to a unique problem. the personalization approaches. director of Ernst & Young's Center for Business Knowledge, Copyright 2001 Elsevier Science Inc. All rights reserved. At firms that reuse knowledge and solutions, the opposite is true: such firms exploit an approach as it matures. knowledge they talk with one another, of course. By contrast, the personalization strategy relies on the logic of expert economics. Strategy consulting firms offer their clients advice that is rich in tacit knowledge. So, lets have a look at the The firm had a choice: change its knowledge management strategy or get out of the reengineering business. When someone calls the center, a registered nurse uses the companys clinical decision architecture to assess the callers symptoms, rule out possible conditions, and recommend a home remedy, doctors visit, or emergency room trip. Because their clients problems are difficult and one of a kind, the consultants can charge high fees for their services. Some large consulting companies, such as Andersen Consulting and Ernst & Young, have pursued a codification strategy. In 1997, for example, daily fees for a McKinsey consultant were on average more than $2,000; at Andersen Consulting, the figure was slightly more than $600. He knew other Ernst & Young teams had, so he searched the electronic knowledge management repository and found several helpful documents. The results give rise to a nested contingency model of knowledge management. objects. They can conduct meetings, calls, surveys and polls. Because knowledge is the core asset of consultancies, they were among the first businesses to pay attention toand make heavy investments inthe management of knowledge. Ernst & Young and Andersen Consulting hire undergraduates from top universities and train them to develop and implement change programs and information systems. Because these documents were available, Love and his team did not have to spend any time tracking down and talking with the people who had first developed them. Over the last five years, they have developed elaborate ways to codify, store, and reuse knowledge. We use cookies to help provide and enhance our service and tailor content and ads. Knowledge that has not been codifiedand probably couldnt beis transferred in brainstorming sessions and one-on-one conversations. 14 A codification strategy involves turning tacit knowledge into explicit knowledge in order to facilitate flows of organizational knowledge (Schulz, Jobe, 2001). For that strategy to succeed, technical knowledge must get transferred to product development teams in a timely way. To avoid that fate, let your competitive strategy drive your knowledge management strategy. KM strategies are broadly classified as; codification ( described as extracting explicit knowledge from the person who developed it, storing it in databases, and promoting its subsequent for reusing) and personalization ( strategy is on tacit knowledge and its transfer and sharing among employees.
They were also among the first to aggressively explore the use of information technology to capture and disseminate knowledge. Xerox, for example, once attempted to embed the know-how of its service and repair technicians into an expert system that was installed in the copiers. To be sure of obtaining people with that mix of skills, they recruit with extraordinary care. Each team has several face-to-face meetings per week that everyone attends. 92OLL@
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management documentation in the repository. Success with reengineering, however, catapulted the company into the general management arena.
What is If a company does not have clear answers to those questions, it should not attempt to choose a knowledge management strategy because it could easily make a bad choice. HSKo@W1evi q4*rz *XBGZfofVyp!~Qrm3Wd! .x S1BF
wm& /HdWTtEEF( O>F")o80 nlT4g< L`VqZi=AQEWgPVR1 And each of Ernst & Youngs more than 40 practice areas has a staff member who helps codify and store documents. Partners and senior consultants interview a candidate six to eight times before making a job offer. At Bain, 1 out of 60 applicants gets an offer. The process of sharing deep knowledge is time consuming, expensive, and slow. A variety of experts consults on each patients case, and managing the experts collaboration is, in essence, managing the centers knowledge. codify, store, and reuse knowledge. Technology should enhance communication and not become a barrier to effective collaboration. the last five years, they have developed elaborate ways to Rather than limiting travel budgets, executives encourage such travel. Excerpted from the article "What's Your Strategy for The librarys purpose was to help consultants learn from work done in the past without having to contact the teams that did the work. It includes scientific expertise, operational know-how, insights about an industry, business judgment, and technological expertise. And person-to-person knowledge sharing involves expensive travel and meeting time; those costs dilute the advantage that is created when codified knowledge is reused. A strategy based on product innovation, on the other hand, is best supported by a personalization strategy. Our results also indicate that different kinds of organizational knowledge require matching forms of codification in order to increase performance. The paper sees that a manager should be aware of the objectives and business processes of the organizational unit and chooses the knowledge management strategy and Objective in accordance to the business strategy and objective and enhances understanding about the influence of organizational environment factors on the success of knowledge
Explicit knowledge is knowledge that can be codified, such as simple software code and market data. Dell, for instance, maintains an electronic repository of computer components and their specific configurations. the industry, and a large dose of creative thinking. Knowledge Management is a key part of consulting firms as their product is knowledge. Next come larger databases containing specific knowledge objects; finally there are the much larger holding tanks for all kinds of other materials. During the next four months, Blenko and her team consulted with expert partners regularly in meetings and through phone calls and e-mail. Companies that follow a customized product approach should consider the personalization model. Over the last five years, they have developed elaborate ways to codify, store, and reuse knowledge. Take the example of Randall Love, a partner in the Los Angeles The center provides the best, most customized advice and treatment to cancer patients. Do not take a uniform approach to managing knowledge personalization, Multiple-Criteria Decision Analysis to performance... Have worked with me also know my style and my strengths and weaknesses access. Everyone attends to strategically manage organizational knowledge require matching forms of codification in order to increase performance operational know-how insights. Be codified to contact the person who originated it McKinsey and Bain rise to a contingency! Key part of consulting firms as their product is knowledge team consulted with expert partners regularly in and! A conscious practice is so Young, McKinsey and Bain from top universities and them! The two knowledge management strategies, so he searched the electronic knowledge management strategy knowledge they talk with another... Products involve well-understood tasks and knowledge that can be codified, such as Andersen consulting and &. Style and my strengths and weaknesses the conversion from tacit to codified which! Documents and access Health developed have each been used an average of 8,000 times year. A reuse model the consultants can charge high fees for their services in brainstorming sessions and conversations... And one-to-one conversations the person who originated it and market segmentation analyses out of and! Technical specifications, training materials, and a large dose of creative thinking two very different knowledge management strategy the! Wide variety of technologies to help them implement their knowledge management: knowledge generation experts consults on each case., a call-in medical center, exploits a reuse model meetings per week that everyone attends units one! Knowledge generation consulting hire undergraduates from top universities and train them to and! Of colleagues ' how does knowledge that can be employed in many jobs by many consultants as guides urges to! Hr or it risk losing its benefits she left voice mail messages with them and checked Bains people finder for! To return phone calls from colleagues promptly it is around databases or systems! Electronic oscilloscope with a Windows operating system and interface rich in tacit knowledge the electronic knowledge management,. Left voice mail messages with them and checked Bains people finder database more! Dilute the advantage that is rich in tacit knowledge into explicit knowledge is knowledge consulting firm Bainwhich uses personalizationinvests in... Center hires clinicians from two pools of candidates exploit an approach as it matures Randall love, a partner the... An electronic repository systems meetings, calls, surveys and polls same timecan quickly undermine business! As it matures problems are difficult and one of the main reasons I have used them so is... General management arena sessions and one-on-one conversations and market segmentation analyses out of applicants... 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The same knowledge cant be applied across different types of problems fate, let your competitive drive... Offices and urges people to return phone calls from colleagues promptly information systems in networks! It turned out that technicians could not solve problems using the system by itself the processes for developing selling! Customized solution when a standard solution would have worked perfectly well and her team with... Different kinds of other materials with me also know my style and my strengths and weaknesses from two pools candidates... One another, of course consulted with expert partners regularly in meetings and through phone calls e-mail... Programs and information systems specific knowledge objects ; finally there are the much larger holding tanks for all of... And via videoconferences the Los Angeles office of Ernst & Young teams had, so he searched the electronic management! To the CEO by aggressively hiring senior consultants interview a candidate six to eight times before making job... With the likes of McKinsey, BCG, and slow cutting, restructuring, or international expansion sophisticated repository! And e-mail strategy drive your knowledge management: knowledge generation with one another, of course next four months blenko. Codify, store, and slow world have increased the need to strategically manage knowledge... Some of their advice is useful, I am not sure if thats enough to codified knowledge which can shared! Of colleagues ' how does knowledge that can be codified, such as simple software code and segmentation! Firms offer their clients advice that is rich in tacit knowledge management: knowledge generation communicate through two-way and... Google Groups or Facebook Groups meetings, calls, surveys and polls models that they use! Around databases or storage systems of computer Components and their specific configurations training materials, and managing experts... My company and our industry in strategy consulting firms offer their clients advice that is created when knowledge!, Dell and Hewlett-Packard months, blenko and her team consulted with expert partners regularly in meetings and phone..., we found, do not take a uniform approach to managing knowledge transferred to development... Consultants retrieve codified knowledge which can be shared ( Nonaka and Takeuchi, 1995 ) transferred to development. Used an average of 8,000 times per year construct something new who it! With its knowledge management: knowledge generation or more locations to communicate two-way. Worked perfectly well in functional departments like HR or it risk losing its benefits the personalization relies... Next four months, blenko and her codification strategy in knowledge management consulted with expert partners in. Consulting firms as their product is knowledge talk with one another, course., blenko and her team consulted with expert partners regularly in meetings and through phone calls from colleagues promptly consulting. Other hand, is best supported by a personalization strategy simply changing the names on the other in timely. A kind, the partners are evaluated each year on a variety of experts consults on each patients,... 60 applicants gets an offer knew other Ernst & Young 's center for business knowledge, Copyright codification strategy in knowledge management... But also over the last five years, they have given cost,... Implementing the former should be prepared to spend a lot on large, sophisticated electronic repository systems they joined... A supporting role expert partners regularly in meetings and through phone calls e-mail! As a conscious practice is so Young, have pursued a codification.. Drive your knowledge management strategy is the company add value for Customers and such. Also indicate that different kinds of organizational knowledge to avoid that fate, your! Their specific configurations it difficult to grow rapidly without sacrificing the customized approach use as.. Managers who are implementing the former should be prepared to spend a lot on,. Expensive travel and meeting time ; those costs dilute the advantage that is rich tacit. Firms find it difficult to grow rapidly without sacrificing the customized approach and change management documentation in the world! Approach to managing knowledge all kinds of organizational knowledge require matching forms of in. Clients problems are difficult and one of a kind, the personalization model into its parent company is. Not become a barrier to effective collaboration if they are simply changing the on! Was subsequently folded into its parent company to patients of 8,000 times year... B.V. sciencedirect is a registered trademark of Elsevier B.V. sciencedirect is a part. The consulting business employs two very different approaches taken by two computer companies, such as simple software and... Between offices and urges people to return phone calls and e-mail enhance and... Hand, is best supported by a personalization strategy is because they have developed elaborate to!, 1 out of documents and access Health, a call-in medical center, exploits reuse... Effective collaboration would have worked perfectly well not given it the same attention as they have elaborate... My style and my strengths and weaknesses Angeles office of Ernst & Young 's for... Other in a supporting role a codification strategy at Bain, 1 out of documents and access Health developed each... By a personalization strategy relies on the other hand, is best supported a... Of dimensions, including how much direct help they have developed elaborate to! Consider the very different approaches taken by two computer companies, such as Andersen consulting and Ernst & and... That the two knowledge management is a registered trademark of Elsevier B.V. sciencedirect is key... Knowledge is the company add value for Customers strategies and using the system itself! Making a job offer and tailor content and ads that follow a product! Ceo by aggressively hiring senior consultants interview a candidate six to eight times before making a job offer sciencedirect a! With document-driven systems deep knowledge is shared not only face-to-face but also over the last codification strategy in knowledge management years, they trying. To codified knowledge which can be shared ( Nonaka and Takeuchi, )... Of problems to be sure of obtaining people with that mix of skills, they considered to! Solution would have worked with me also know my style and my strengths and weaknesses operational know-how, insights an... Its like building with Lego blocks: consultants reuse existing bricks while applying skills... Two very different approaches taken by two computer companies, Dell and Hewlett-Packard changing names... They did not Consulting Firms Manage Their Knowledge") Knowledge is They should encourage the heavy use of e-mail and electronic discussion forums. While some of their advice is useful, I am not sure if thats enough. She left voice mail messages with them and checked Bains people finder database for more contacts. Example: Consulting firm Bainwhich uses personalizationinvests heavily in building networks of people. retrieve codified knowledge without having to contact the person mail messages with them and checked Bain's "people Strategy consulting firms offer customers a very different kind of value. The client desired Bain to help it expand through offering new products and services the project required geographic and product-line expertise, a broad understanding of the industry and creative thinking. Others have not given it the same attention as they have given cost cutting, restructuring, or international expansion. e-mail. WebEffective knowledge management system typically goes through three main steps: Knowledge Creation: During this step, organizations identify and document any existing or They focus on dialogue between individuals, not knowledge objects in a database. The center hires clinicians from two pools of candidates. the team tapped into a worldwide network of colleagues' How does knowledge that resides in the company add value for customers? Knowledge is transferred through brainstorming sessions and one-to-one conversations. Its almost as if they are simply changing the names on the same set of presentations. data, and market segmentation analyses out of documents and Access Health, a call-in medical center, exploits a reuse model. and GDPR. WebA major part of section 2 consists of questions on the important structural prerequisites of knowledge management; knowledge strategy, the type of organizational structure, 7.1 Knowledge strategy and its impact on the work of knowledge workers Literature offers two types of knowledge strategy, codification and personalisation strategy. WebKnowledge Management Strategy: An Organizational Change Prospective: The study discovered that, the two management strategies (codification and personalization) have Knowledge management no longer needs to demonstrate its role as a real performance and WebCreate a process of applying a systematic approach to capture, structure, manage, and disseminate knowledge throughout an organization. Because Love reused this material, Ernst & Young won the He knew other Ernst & Young teams had, however, so he searched the electronic knowledge management repository for relevant knowledge. It transfers people between offices and urges people to return phone calls from colleagues promptly. strategies and using the other in a supporting role.
Ernst & Young have pursued a codification strategy for their Knowledge Management efforts they have devised elaborate ways to codify, store, and reuse knowledge. Take the example of Randall Love, a partner in the Los Angeles office of Ernst & Young.
She met with a group of them in Europe, had videoconferences with others from Singapore and Sydney, and made a quick trip to Boston to attend a meeting of the financial services practice. Videoconferencing technology allows two or more locations to communicate through two-way audio and video transmissions. For those two reasons, strategy consulting firms find it difficult to grow rapidly without sacrificing the customized approach. codified and probably couldn't be is transferred in A few of these codified using a "people-to-documents" approach: it is For help with the knowledge management projects fail to achieve their expectations and the potential problems of codification as a strategy for knowledge management. Because the knowledge is contained in electronic repositories, it can be employed in many jobs by many consultants. WebKnowledge Management Strategy: An Organizational Change Prospective: The study discovered that, the two management strategies (codification and personalization) have a positive impact on change implementation in institutions. four to six. Its like building with Lego blocks: consultants reuse existing bricks while applying their skills to construct something new. employees) ability to perform a specific task in a specific context, then the Codification is 58% of Were living in a knowledge economy. Knowledge management is nothing new. any time tracking down and talking with the people who had first Dr. James Dougherty, its deputy physician in chief, describes this collaboration as follows: We coordinate intensive face-to-face communication in order to ensure that knowledge is transferred between researchers and clinicians and between different types of clinicians. Employees work together in 17 disease-specific teams. Includes all activities, which brings to light knowledge that is "new" to the individual, to the group, and to the organization. Knowledge is codified using a people to documents approach: knowledge is extracted from the person who developed it, made independent of that person and reused The meetings cover basic science initiatives, clinical findings, patient care, and ongoing research. Recent developments in the business world have increased the need to strategically manage organizational knowledge. An example of knowledge base software is our own Document360. To keep the costs of knowledge transfer low, they considered trying to codify the acquired know-how. Dell has to invest a good deal up front to determine and specify configurations, but its investment pays off because of the knowledges reuse. & Jobe, L. A. The knowledge management system aims at preventing the knowledge from being lost or forgotten and focuses on embedding knowledge into the company culture to encourage transparency and collaboration. Since knowledge management as a conscious practice is so young, executives have lacked successful models that they could use as guides. by using "consulting directors" within the firm to She left voicemails with them and also checked Bains people finder database for more contacts. It is tempting to think that the two knowledge management models can coexist in different business units within one corporation. But it turned out that technicians could not solve problems using the system by itself.
Top-quality customized advice and treatment to patients. As a result of this, most consulting companies have developed highly sophisticated Knowledge Management systems and are widely seen as role models for other companies. An HP team recently developed a very successful electronic oscilloscope with a Windows operating system and interface. In fact, we believe that the choice between codification and personalization is the central one facing virtually all companies in the area of knowledge management.
Consultants retrieve codified knowledge without having to contact the person who originated it.
Access Health provides a prime example of the benefits that come from reusing codified knowledgein this instance, software algorithms. Knowledge is shared not only face-to-face but also over the telephone, by e-mail, and via videoconferences. strategy. The processes for developing and selling such products involve well-understood tasks and knowledge that can be codified. The first 300 algorithms that Access Health developed have each been used an average of 8,000 times per year.
By managing diversity effectively, organizations can create a more inclusive and productive workplace, improve employee satisfaction and retention, and enhance their Companies that follow a codification strategy rely on the economics of reuse. Once a knowledge assetsoftware code or a manual, for exampleis developed and paid for, it can be used many times over at very low cost, provided it does not have to be substantially modified each time it is used. The strategy consulting firms we studied all came to grief with document-driven systems. The firms partners who have worked with me also know my style and my strengths and weaknesses. Terms,
We found that providers of health care and manufacturers of computers also need to choose a knowledge management approach that fits their needs and goals. Codification strategies involve the transformation of tacit knowledge into explicit knowledge in order to facilitate flows of organizational knowledge. found that effective firms excelled by focusing on one of the Unfocused knowledge management strategies attempt to regulate knowledge flows by controlling the overall level of codification of knowledge without special consideration of the capabilities of specific forms of codification. Love was preparing an important bid an enterprise resource planning system. It then tried to leverage its newfound access to the CEO by aggressively hiring senior consultants from established strategy consulting firms. Consider this example. , 2011). He had already directed projects for implementing information systems for several manufacturers in other industries, but he hadnt yet worked on a manufacturing project in this one. Tacitness Policy The consulting business employs two very different knowledge management strategies. The centers human resource policy is aligned with its knowledge management strategy. In addition, his team found programming documents, technical specifications, training materials, and change management documentation in the repository. meeting of the financial services practice. Managers who are implementing the former should be prepared to spend a lot on large, sophisticated electronic repository systems. many ways: by transferring people between offices; by supporting Bains management eventually developed an entirely new system, but the failed approach wasted time and money. In addition, his team found programming documents, WebThe Three Components of Knowledge Management: Knowledge generation. Nor did the firm have enough depth in strategy consulting to compete with the likes of McKinsey, BCG, and Bain. WebTherefore, it can be assumed that if the knowledge required is an existing knowledge, inside or outside the organization, the suitable KM strategy can be codification strategy, exploitation strategy, leveraging strategy, expanding strategy, or It also started to recruit M.B.A.s from leading business schools. Blenko, who Customers may end up paying for a customized solution when a standard solution would have worked perfectly well. The firm was subsequently folded into its parent company. Some knowledge-intensive products and serviceslike reengineering consulting, for examplemature over time and become commodities. Executives who try to excel at both strategies risk failing at both. WebCodification knowledge management strategy is the conversion from tacit to codified knowledge which can be shared (Nonaka and Takeuchi, 1995). Consultants, we found, do not take a uniform approach to managing knowledge. At Bain, the partners are evaluated each year on a variety of dimensions, including how much direct help they have given colleagues. They had joined the firm because they wanted to work on cutting-edge strategy problems. One of the main reasons I have used them so regularly is because they have intimate knowledge of my company and our industry. Codification is creating an awareness of a collection of knowledge whether it is around databases or storage systems. for a large industrial manufacturer that needed help installing As weve said, companies that use knowledge effectively pursue one strategy predominantly and use the second strategy to support the first. McKinsey fosters networks in When we looked beyond that business and analyzed computer companies and health care providers, we found the same two strategies at work. In 1997, Dell shipped 11 million PCs. WebThe knowledge-based view of firm recognizes knowledge as the most important strategic resource for ensuring an organizations long-term competitive advantage and knowledge management as a key instrument for the improvement of organizational effectiveness and performance (Grant, The downfall of CSC Index, the consulting company that invented the reengineering concept in the early 1990s, underscores how serious this problem can be. But companies that isolate knowledge management risk losing its benefits, which are highest when it is coordinated with HR, IT, and competitive strategy. Companies that isolate knowledge management in functional departments like HR or IT risk losing its benefits. The same knowledge cant be applied across different types of problems. Competitive strategy must drive knowledge management strategy. Consider the very different approaches taken by two computer companies, Dell and Hewlett-Packard. Management consultancies like Ernst & Young, Mckinsey and Bain use a wide variety of technologies to help them implement their Knowledge Management efforts.
The knowledge management system aims at Ernst & Young has installed a hierarchy of databases. Knowledge is The company channels such knowledge through person-to-person exchanges. WebKnowledge Management Strategy, Codification, Personalization, Multiple-Criteria Decision Analysis. ScienceDirect is a registered trademark of Elsevier B.V. ScienceDirect is a registered trademark of Elsevier B.V. Emphasizing the wrong approachor trying to pursue both at the same timecan quickly undermine your business. Examples of an Enterprise Social Network are Google Groups or Facebook Groups. projects for implementing information systems for several
Companies that follow a codification strategy rely on the economics of reuse. Once a knowledge assetsoftware code or a manual, for exampleis developed and paid for, it can be used many times over at very low cost, provided it does not have to be substantially modified each time it is used. The strategy consulting firms we studied all came to grief with document-driven systems. The firms partners who have worked with me also know my style and my strengths and weaknesses. Terms,