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A Framework for the Management of Corporate Knowledge
Copyright (:) IFAC Artificial Intelligence in Real-Time Control, Kuala Lumpur, Malaysia, 1997
A FRAMEWORK FOR THE MANAGEMENT OF CORPORATE KNOWLEDGE by Mohd. Sharifuddin Ahmad Universiti Tenaga Nasional ABSTRACf
real benefits if knowledge is not available to decipher the information.
There is a threat of knowledge erosion occuring within companies when experieced knowledge workers leave the companies through natural attrittion. Although no formal studies have been found to identify the effect of these circumstances, it is thought that the problem could be quite serious.
Earlier attempts of knowledge management have been corroborated by the deployment and integration of expert systems within organisations. This trend is expected to continue when expert systems are coupled with or embedded within information systems and equipped with advanced intelligent capabilities. Attempts are also being made to enable an expert system to operate in real time. The next trend, it seems, is the integration of information systems and expert systems through knowledge network when organisations share information and knowledge for mutual benefits.
To address this problem, a framework for the management of knowlegde within a company is formulated to resolve knowledge-related problems, preserve knowledge, transfer and share knowledge, assimilate knowledge growth and to align critical knowledge towards the achievement of the company's objectives. Copyright © 1998 IFAC
Although expert systems have been deployed to replace the functions which were preViously undertaken by humans, they still could not match the skills and knowledge of humans and their usefulness is limited to very narrow domains. As such, attempts are also being made to manage the knowledge assets of organisations that reside in the head of knowledge workers. However, very few organisations really consider such knowledge as their most valuable assets due to the difficulty of identifying the types of knowledge and measuring their Significance in relation to the advantages they would bring. This problem is further aggravated by the difficulty of preventing the loss of knowledge when experienced knowledge workers leave the organisation taking along years of valuable experience with them.
1. 0 INTRODUcnON Since the beginning of the last decade, there has been an increasingly forceful thrust imposed upon business organisations to increase productivity, reduce lead times, improve product quality, apply lean manufacturing, promote creativity, and respond coherently to fierce global competitions. These phenomena are said to be the results of the information explosion which has been brought about by the application of sophisticated and fast responding information technology by discerning organisations. In fact, it is vehemently expounded in most business management literature that the only way for business organisations to survive in the 19905 is to deploy and make the best and effective use of information technology. Today, information technology is regarded as a crucial lever for the success and survival of an organisation. The concerns of most business organisations regarding the use of information for strategic advantage are corroborated by the proWeration of information technologies deployed in these organisations. The effect of these technologies results in the accumulation of information. The information glut has generated the need for new knowledge to utilise the information as evidenced by the growing number of attempts to harness the knowledge within the organisations. Soltan proposes two formulas which clearly indicate the relationships between data, information and the application of knowledge leading to the generation of a decision[2): Data + Analysis = Information . . .. .. .. . . . (i) Information + Knowledge = Decision . . ... (ii) Equation (i) states that information is produced as a result of analysis on a given data. Equation (ii) interprets that knOWledge is required to process this information to arrive at a decision. Even if an organisation has sophisticated state-of-the-art information systems, they would not bring
201
The problem of knowledge loss is an experience of all organisations, big and small, resulting from the loss of experienced knowledge workers when they leave the organisations. However, most organisations do not find this problem compellingly urgent if failures of performance do not incur high costs to the business as new knowledge workers could be hired to replace the loss or they could prOVide other measures to avoid serious disruption of business activities. The problem becomes a matter of concern when the loss involves an expert, which may pose a serious threat to the business. However, if recurring problems are not addressed, the costs of managing this problem could be astounding. As Soltan puts it, "knowledge mismanagement is costing a company far more than management of information systems." From the review of literature on the strategies for the management of knowledge, the notion of knowledge management is confined to managing the data, information, rules, transaction-oriented systems and existing supporting technolOgies [3], [4]. These literature consider the stores of knowledge in organisations as existing in databases, files, records, reports, minutes, letters, software and peoples' memories. From these considerations, a knowledge mana-
gement environment, framework, activities and architecture are proposed [5], [6]. However, only a handful have been found to suggest strategies for the management of knowledge that reside in the head of knowledge workers and how they should be deployed effectively for the benefits of organisations [6], [7], [8]. Others suggest that the management of knowledge should espouse certain concepts but they fail to give a comprehensive and detailed approach to such concepts [3], [9], [10], [11]. This paper proposes to formulate a framework for the management of the knowledge assets of a company. The knowledge assets to be managed are those that reside in the head of the company's knowledge workers.
The concepts of knowledge audit and knowledge structure are contrived to identify and resolve knowledge-related problems, preserve, transfer and share, and promote the growth of knowledge and consolidate new knowledge into the company's knowledge structure. Subsequently, these are strategically aligned to assist in the achievement of a company's objectives.
2.0 THE KNOWLEDGE MANAGEMENT FRAMEWORK It could be identified, in order of importance, that the knowledge elements of a company are composed of[l]:
• • • •
motor skills, heuristic or tacit knowledge, procedural knowledge, fundamental or basic knowledge.
A motor skill here refers to the ability, talent and craftiness of a knowledge worker to perform a manual task completely and thoroughly. These are the assets that must be preserved, nurtured and shared within the company. It must be the concern of a knowledge management framework to:
abide by in order to perform the tasks required by the company. A knowledge framework should: • •
Knowledge acquired by knowledge workers through formal education and training is called the fundamental or basic knowledge. It is the enabling knowledge which serves as a foundation for the knowledge workers to acquire and utilise more advanced knowledge required for the performance of their jobs. A knowledge management framework should: • • •
(a) (b) (c) (d) (e) (f)
IV. V.
Heuristic refers to the tricks of the trade, rules of thumb, hunches, intuitions, instincts or short cuts which evolve through constant exposure to and prolonged experience in a specific task. It is crucial that a knowledge management framework addresses the management of heuristic knowledge, where possible and feasible, as follows: • • • •
capture it in Expert Systems, capture it in documents, promote the growth and transfer of this knowledge, prevent or minimise the loss of this knowledge.
Procedural knowledge refers to the steps or procedure of performing a specific task. The procedures represent the rules and guidelines with which knowledge workers must
202
Organisational knowledge should be identified, Knowledge should be preserved, Knowledge growth should be fostered, Changes in the knowledge should be monitored, Knowledge should be shared, New knowledge should be consolidated with existing knowledge.
Having derived the principles of knowledge management and the possibility of levering these knowledge assets towards the achievement of the company's objectives, a Knowledge Management Framework is formulated and accorded the follOWing functions[l] :
11. Ill.
identify these skills or the lack thereof, establish a standard for the highest skill level, improvise these skills, prevent or minimise the loss of these skills, transfer these skills.
identify what fundamental knowledge is appropriate, monitor the evolution of this knowledge, consolidate new knowledge into the company's knowledge structures.
The pertinent knowledge management principles that are recognised and derived out of these analyses and which could be used as a basis to contrive a knowledge management framework are[l}:
1.
• • • • •
monitor changes affecting this type of knowledge, adapt to new procedures to respond qUickly to these changes by assimilating and consolidating these knowledge changes.
Identify and resolve knowledge-related problems, Preserve the company's knowledge assets, Promote knowledge transfer, knowledge sharing, and knowledge utilisation, Promote knowledge growth and assimilate new knowledge into the company's knowledge structure, Align knowledge assets towards company's objectives.
Fig. 1 shows an overview of this framework. A knowledge audit exercise scrutinizes the skills and knowledge required to perform a specific task. It identifies what knowledge lack which cause problems, what knowledge should be preserved and what knowledge are necessary for transfer and sharing.
Q3. Is the problem due to knowledge or skill deficiency?
Kaowledce preservadoD
The task is considered important and critical if failure to perform the task results in opportunity or business loss which can be any of the following or their causes and consequences:
Kaowledce CroMb aDd a..lmlIadoD
KHwledce lraDlfer a.d Ibarl_C
Kaowledce aUpmeDt
• • • • •
• (b) (c)
Fig. 1 The Knowledge Management Framework The outcome of a knowledge audit exercise represents the knowledge structure of a task. The knowledge structure of a task is the way in which the knowledge elements are built with which a set of actions is generated to perform the task. This concept is illustrated in Fig. 2.
(d)
(e)
financial loss, failure to secure a contract, slower response, demotivating behaviour, conflicts.
Conduct a knowledge audit exercise on the task. Evaluate the quality of the knowledge in terms of their validity and currency. Identify knowledge gaps by comparing the knowledge structure of the task with the knowledge available with the knowledge worker. Suggest possible solutions.
The framework offers short-term solutions and long-term solutions. Short-term solutions are applied when the problem needs immediate attention. The short-term solutions in order of importance are:
Heuristic
Knowledge Audit
c>
• • •
seek help from other departments, commission a consultant/vendor, a hybrid of the above solutions.
The long-term solutions could be any of the follOWing: Fig. 2 The concept of knowledge structure • When new knowledge are assimilated and changes in existing knowledge are detected, the knowledge audit exercise updates these changes in knowledge relating to knowledge-related problems, knowledge preservation, and knowledge transfer and sharing. Depending on the nature of the task, expert systems could be a solution to these three functions. The availability of the knowledge structures could be exploited by aligning existing knowledge and bringing in new knowledge to meet the company's objectives. When all the knowledge management functions are fully deployed and operational, it is assumed that the framework would ultimately provide a competitive knowledge advantage for the company.
I. IDENTIFY AND RESOLVE KNOWLEDGE-RELATED PROBLEMS
• • • • •
form groups of experts consisting of individuals from other locations (expert pool), provide remedial training for a replacement knowledge worker, impose the creation of a knowledge document oh existing knowledge worker, capture the knowledge in an Expert System, research the problem, commission a consultant.
' t
Fig. 3 shows the framework for resolving knowledgerelated problems.
:
Knowledge avaiJIIble
Q
Knowledge gap
Q
rS-'R-O-R-r.-_-TE-R-M~ SOLUTIONS
Cj~~ LONG-TERM SOLUTIONS
The framework set to resolve knowledge-related problems as follows: (a)
Identify the existence of a knowledge-related problem by asking the follOWing three questions Fig. 3 Resolving knowledge-related problems
Ql. What is the problem?
Q2. Is it important and critical?
203
11. PRESERVE TIlE COMPANY'S KNOWLEDGE ASSFI'S 1. Provide training for knowledge workers The requirement for these exercises should be approached as follows: (a) (b)
(c)
Knowledge gllp
Y
• • • •
~.
presef'Wllion ' ~
Y
KNOWLEDGE DOCUMENT
Knowled(e
Knowled(e
presen'tlJum
presef'Wllion
Update the knowledge structure of the corresponding task to indicate a knowledge gain.
Ill. PROMOTE KNOWLEDGE TRANSFER, KNOWLEDGE SHARING, AND KNOWLEDGE UTILISATION The framework approaches the transfer, sharing and utilisation of knowledge through the follOWing activities: (a)
A knowledge document is a collection of a knowledge worker's notes on his experiences in performing his job. The idea of this document is to capture all his knowledge about the performance of his job. This document should contain deSCriptions of the:
•
~
"'" ;"OwledK,e
Fig. 4 A framework for knowledge preservation
in-house company training, vendor's training, other training institutions.
2. Impose the creation of a knowledge document on a knowledge worker
• • • •
\::S
n
V
~
Compare the knowledge structure with the knowledge of the knowledge worker. H there are knowledge gaps, provide a formal levelling up or remedial training program for the knowledge worker through: • • •
:' ': ,.;' I Knowledge lIVIUltzbk
EXPERT SYSTEMS
necessary skills reqUired to perform the tasks, pertinent knowledge applied to accomplish the tasks, procedure, tools or noteworthy materials used, reports, papers, letters, and any documents produced, decisions made to accomplish the tasks and the reasons for making those decisions, sources of information and knowledge referred to, internal and external interactions made, problems faced and how they are resolved, things that have been learned after the completion of the tasks.
It should be emphasised that the creation of a knowledge document should be imposed on the holders of jobs which require expertise and should not involve jobs which are purely procedural in nature such as the clerical and administrative jobs.
Identify the task that would yield competitive and long-term benefits for the company by asking the following three questions: Ql. Does the task require special skills? Q2. Is the knowledge required to perform the task easily available? Q3. Does failure to perform the task without these skills and knowledge results in opportunity or business loss?
(b) (c) (d)
Conduct a knowledge audit on the task. Evaluate the quality of the knowledge in terms of its validity and currency. From the knowledge structure, implement a knowledge transfer and sharing scheme through:
• •
•
knowledge link via communication systems such voice or electronic mail or distributed intelligent agents. knowledge circulars such as knowledge documents, directives, newsletters. other knowledge transfer platforms such as seminars, conferences, and developmental training programs.
3. Capture the knowledge in an Expert System
'g
Knowledge
A solution which has been applied by many organisations for the preservation of expert knowledge is to capture that knowledge in an expert system. A fairly large number of concepts and strategies has been proposed by researchers in the artificial intelligence community for the deployment of expert systems within organisations. Fig. 4 outlines the framework for preserving the company's knowledge assets through remedial training, creation of knowledge documents and deplOying expert systems.
Clteek IIl11idity
and c"rrency
KNOWLEDGE TRANSFER .,.A-, & SHARING SCHEMES
~
n V
I
- ,,
-y
Fig. 5 Knowledge transfer and sharing
204
IV.
(a)
PROMOTE KNOWLEDGE GROWTH AND ASSIMILATE NEW KNOWLEDGE INTO THE COMPANY'S KNOWLEDGE STRUcruRE
• • •
The growth of knowledge within a company is conjectured to be a function of:
•
• • •
Establish knowledge network with other knowledge sources such as:
experiences with unfamiliar or new problems, research and development, applications of new technology, access from external sources.
(b)
(c)
1. Experiences with unfamiliar or new problems (d) Changes or obsolescence in existing knowledge or absence of knowledge results in the emergence of unfamiliar or new problems. Problems which are unfamiliar to knowledge workers need new knowledge inputs. The framework set to address unfamiliar problems as follows: (a) Deploy an expert to solve the problems. (b) Compare and contrast the knowledge documents and the knowledge structures of similar tasks with the problems at hand and check for discrepancies. (c) If there is a knowledge gap, apply the short-term or long-term solutions. (d) When the problems are resolved, update the knowledge structures and documents to indicate a knowledge gain.
research and academic institutions, knowledge bases, databases of research papers, journals and magazines.
Identify and conduct researches on tasks that are associated with knowledge-related problems, and knowledge which are crucial for transfer and sharing. Consolidate the new found knowledge by resolving knowledge-related problems and sharing the knowledge. Verify and validate the outcomes of these researches and update the relevant knowledge structures.
3. Applications of new technology The management and assimilation of knowledge reqUired due to the applications of new technology within a company is recommended as follows: (a) (b)
Fig. 6 presents the framework for the assimilation of new knowledge derived from experiences with unfamiliar problems.
Identify the tasks that are required to be performed with the new technology. Conduct a knowledge audit to build the knowledge structure of these tasks.
Resolve knowledge-related problems
RESEARCH & DEVELOPMENT
~ Knowledge
\,r-l-.I network
Knowledge transfer and sharing schemes
~----~~
U~~
knowledge structure/document
Fig. 7 Knowledge growth and assimilation through R&D
Fig. 6 Knowledge from unfamiliar problems
(c)
2. Research and Development
(d)
The availability of the knowledge structures of important tasks could be explOited to identify the domains in which further research could be conducted to:
(e)
•
(f)
•
improve the performance of tasks, resolve problems leading to costs savings in operation and maintenance.
The framework, shown in Fig. 7, recommends the approach to knowledge growth through research and development as follows:
205
Determine knowledge deficiencies by comparing with the knowledge structures and knowledge documents of similar tasks, if any. If there are knowledge gaps, acquire new skills and knowledge through levelling up or remedial training and collaboration with vendor's experts. Assimilate these new knowledge through knowledge preservation and knowledge transfer and sharing. Monitor the evolution of the new knowledge
Fig. 8 displays the framework for the growth and assimilation of knowledge through the applications of new technology.
Strategic Knowledge
:~<~ • •
':iT
~.·.; 3 ; ••
".
':#'
AUgn
Q
,~.
A Division
Fig. 8 Knowledge assimilation through new technology
Executive Knowledge Structure
Fig. 9 The concept of Knowledge Alignment 4. Access from external sources
The SfARK concept could be expanded further by integrating all the Executive Knowledge Structures of other divisions and their corresponding strategic knowledge to build what is called the Business Knowledge Structure (BKS) shown in Fig. 10. The Business Knowledge Structure then represents the skills and knowledge of the company which assist in the achievement of the company's objective.
The framework suggests the following general guidelines for the consolidation of new knowledge: Determine whether the new knowledge is relevant or is perceived to be relevant to the company's objectives. (b) Detect knowledge requirements. (c) Access the required knowledge. (d) . Consolidate these knowledge by updating the knowledge structures or building new knowledge structures. (a)
In reality, there are many objectives that need to be achieved to realise the company's goal. If the SfARK concept is applied to the other objectives, a collection of Business Knowledge Structures (BKSs) is obtained. The collection of Business Knowledge Structures is called the Corporate Knowledge Structure (CKS). The existence and use of the skills and knowledge of the Corporate Knowledge Structure help to realise the company's goal. This concept is shown in Fig. 11.
V. ALIGN THE KNOWLEDGE ASSETS TOWARDS THE COMPANY'S OBJECrIVES 1. The Strategic Alignment and Reintegration of Knowledge (STARK)[lJ
StraJegic
Usually the jobs in a department are subdivided into specialised tasks which are performed by knowledge workers. The SfARK concept attempts to align the knowledge structures of these tasks and reintegrate them with those from the other departments such that the division's objective can be achieved. It involves the follOWing activities: Translate the company's objective into divisional objectives, (b) Each division then identifies the tasks it has to perform in order to meet its assigned objective, (c) Align the knowledge structure of these tasks to build an Executive Knowledge Structure (EKS), (d) Equipped with the skills and knowledge, deploy knowledge workers to perform these tasks, (e) Monitor and control the execution of these tasks.
,~~
Executive Knowledge
StrIlCllln
206
1------1
f------I
Division A
Division B
Division C
D Integrate
(a)
Fig. 9 shows the concept of knowledge alignment within a division of the company.
~ j~:;;.'ij . -0 ';;l!J
Knowledge
Business Knowledge
StruCllln
Monitor
Q Fig. 10 The concept of Business Knowledge Structure
Division's
Objective
I .. Business Knowledge Structure
the management of knowledge assets which reside in the head of knowledge workers are either non-existence or limited in their capabilities. New tools would have to be developed to manage the knowledge assets effectively and productively. The tools developed for expert systems are restricted in their applications and are often too complicated to use.
+011". D+0110".+01 )J
Company's Objective
Corporate Knowledge Structure
'\
~
11
0J
Other than the expected outcomes it would produce, other benefits of the framework which are revealed are, it:
r:::>
1". +011-. +011". +01
• • • • •
Fig. 11 The concept of Corporate Knowledge Structure
If the company has more than one goal, then there would be a collection of Corporate Knowledge Structures which helps to realise all the company's goals. Corporate Knowledge can thus be defined as the integration of the strategically aligned skills and knowledge which helps to realise all the company's goals. Fig. 12 shows an overview of the STARK concept originating from the company's objective and building up the knowledge structures.
highlights the importance of strategy planning, puts the achievement of objectives in its proper perspective, accentuates the roles of training and research, induces a learning culture, promotes teamwork.
However, the real benefits of the framework could only be realised if it is successfully implemented, deployed and practised with the full commitment and responsibility of all the members of the organisations.
REFERENCES 1.
Ahmad, MS., Knawledge Management within the Corporate Infrastructure of Tenaga Nasional Berhad, MSc. Thesis, Cranfield University, September 1995.
2.
Soltan, H ., Invest Your Corporate Knawledge Asset, The Return is High, Cranfield University, June 1995.
3.
Mason, D., Corporate Knawledge and its Management, Information 90, Proceedings of the Third International Conference, Aslib, London, UK, 1991, pg. 369 - 374.
4.
Orman, L. V., Knawledge Management by Example, Methodologies for Intelligent Systems. 7th International SympOSium, ISMIS '93 Proceedings, SpringerVerlag Berlin, Germany, 1993, pg. 172-185.
5.
Lucier, R. E., Tawards a Knawledge Management Environment: A Strategic Framework, EDUCOM Review, Vol. 27, No. 6, November/ December 1992, pg. 24 - 31.
6.
Steels, L., Corporate Knawledge Management, IFIP TC12 Workshop on Artificial Intelligence from the Information Processing Perspective - AIFIPP '92. IFIP Transactions A: Computer Science and Technology, Vol. A-27, 1993 p . 91-116.
7.
Hart, S. L., Managing Knawledge in Policymaking and Decision Making, Knowledge: Creation.Diffusion.Utilization, Vol. 8. No. 1, Sept. 1986, SAGE Publications, pg. 95 -107.
8.
Lange, B.M., and Gershman, A., OMNI: A Corporate Knawledge Environment for Collaborative Work, IEEE International Conference on Systems, Man and Cybernetics, Vol. 2, IEEE New York, 1992, pg. 949-953.
Plan
~
L?
Plan
Other
Objectives
Fig. 12 An overview of the Sf ARK concept
3.0
CONCLUSIONS
The Success or failure of knowledge management depends on the:
• • •
commitment and support of top management, involvement and cooperation of managers and other knowledge workers, diligence of a knowledge management team to see it through.
It should be emphasised that while any attempts to manage the knOWledge assets of organisations are welcomed, real SUccess depends on the existence of a technology that could capture, store and use the knowledge effectively. Tools for
207
9.
Candlin, D. B. and Wright,S., Managing the Introduction of Expert Systems, International Journal of Operations & Production Management, Vol. 12, No. 1, 1992, pg. 4659.
10. Dutta, 5., Strategies for Implementing Knowledge-Based Systems, 94/39/ TM, IN5EAD, 1994, France. 11. Kochen, M., Evolution of Brainlike Social Organs in Information for Action: From Knowledge to Wisdom, Manfred Kochen (Editor), Academic Press, London, 1975, pg. 5.
208
A FRAMEWORK FOR THE MANAGEMENT OF CORPORATE KNOWLEDGE by Mohd. Sharifuddin Ahmad Universiti Tenaga Nasional ABSTRACf
real benefits if knowledge is not available to decipher the information.
There is a threat of knowledge erosion occuring within companies when experieced knowledge workers leave the companies through natural attrittion. Although no formal studies have been found to identify the effect of these circumstances, it is thought that the problem could be quite serious.
Earlier attempts of knowledge management have been corroborated by the deployment and integration of expert systems within organisations. This trend is expected to continue when expert systems are coupled with or embedded within information systems and equipped with advanced intelligent capabilities. Attempts are also being made to enable an expert system to operate in real time. The next trend, it seems, is the integration of information systems and expert systems through knowledge network when organisations share information and knowledge for mutual benefits.
To address this problem, a framework for the management of knowlegde within a company is formulated to resolve knowledge-related problems, preserve knowledge, transfer and share knowledge, assimilate knowledge growth and to align critical knowledge towards the achievement of the company's objectives. Copyright © 1998 IFAC
Although expert systems have been deployed to replace the functions which were preViously undertaken by humans, they still could not match the skills and knowledge of humans and their usefulness is limited to very narrow domains. As such, attempts are also being made to manage the knowledge assets of organisations that reside in the head of knowledge workers. However, very few organisations really consider such knowledge as their most valuable assets due to the difficulty of identifying the types of knowledge and measuring their Significance in relation to the advantages they would bring. This problem is further aggravated by the difficulty of preventing the loss of knowledge when experienced knowledge workers leave the organisation taking along years of valuable experience with them.
1. 0 INTRODUcnON Since the beginning of the last decade, there has been an increasingly forceful thrust imposed upon business organisations to increase productivity, reduce lead times, improve product quality, apply lean manufacturing, promote creativity, and respond coherently to fierce global competitions. These phenomena are said to be the results of the information explosion which has been brought about by the application of sophisticated and fast responding information technology by discerning organisations. In fact, it is vehemently expounded in most business management literature that the only way for business organisations to survive in the 19905 is to deploy and make the best and effective use of information technology. Today, information technology is regarded as a crucial lever for the success and survival of an organisation. The concerns of most business organisations regarding the use of information for strategic advantage are corroborated by the proWeration of information technologies deployed in these organisations. The effect of these technologies results in the accumulation of information. The information glut has generated the need for new knowledge to utilise the information as evidenced by the growing number of attempts to harness the knowledge within the organisations. Soltan proposes two formulas which clearly indicate the relationships between data, information and the application of knowledge leading to the generation of a decision[2): Data + Analysis = Information . . .. .. .. . . . (i) Information + Knowledge = Decision . . ... (ii) Equation (i) states that information is produced as a result of analysis on a given data. Equation (ii) interprets that knOWledge is required to process this information to arrive at a decision. Even if an organisation has sophisticated state-of-the-art information systems, they would not bring
201
The problem of knowledge loss is an experience of all organisations, big and small, resulting from the loss of experienced knowledge workers when they leave the organisations. However, most organisations do not find this problem compellingly urgent if failures of performance do not incur high costs to the business as new knowledge workers could be hired to replace the loss or they could prOVide other measures to avoid serious disruption of business activities. The problem becomes a matter of concern when the loss involves an expert, which may pose a serious threat to the business. However, if recurring problems are not addressed, the costs of managing this problem could be astounding. As Soltan puts it, "knowledge mismanagement is costing a company far more than management of information systems." From the review of literature on the strategies for the management of knowledge, the notion of knowledge management is confined to managing the data, information, rules, transaction-oriented systems and existing supporting technolOgies [3], [4]. These literature consider the stores of knowledge in organisations as existing in databases, files, records, reports, minutes, letters, software and peoples' memories. From these considerations, a knowledge mana-
gement environment, framework, activities and architecture are proposed [5], [6]. However, only a handful have been found to suggest strategies for the management of knowledge that reside in the head of knowledge workers and how they should be deployed effectively for the benefits of organisations [6], [7], [8]. Others suggest that the management of knowledge should espouse certain concepts but they fail to give a comprehensive and detailed approach to such concepts [3], [9], [10], [11]. This paper proposes to formulate a framework for the management of the knowledge assets of a company. The knowledge assets to be managed are those that reside in the head of the company's knowledge workers.
The concepts of knowledge audit and knowledge structure are contrived to identify and resolve knowledge-related problems, preserve, transfer and share, and promote the growth of knowledge and consolidate new knowledge into the company's knowledge structure. Subsequently, these are strategically aligned to assist in the achievement of a company's objectives.
2.0 THE KNOWLEDGE MANAGEMENT FRAMEWORK It could be identified, in order of importance, that the knowledge elements of a company are composed of[l]:
• • • •
motor skills, heuristic or tacit knowledge, procedural knowledge, fundamental or basic knowledge.
A motor skill here refers to the ability, talent and craftiness of a knowledge worker to perform a manual task completely and thoroughly. These are the assets that must be preserved, nurtured and shared within the company. It must be the concern of a knowledge management framework to:
abide by in order to perform the tasks required by the company. A knowledge framework should: • •
Knowledge acquired by knowledge workers through formal education and training is called the fundamental or basic knowledge. It is the enabling knowledge which serves as a foundation for the knowledge workers to acquire and utilise more advanced knowledge required for the performance of their jobs. A knowledge management framework should: • • •
(a) (b) (c) (d) (e) (f)
IV. V.
Heuristic refers to the tricks of the trade, rules of thumb, hunches, intuitions, instincts or short cuts which evolve through constant exposure to and prolonged experience in a specific task. It is crucial that a knowledge management framework addresses the management of heuristic knowledge, where possible and feasible, as follows: • • • •
capture it in Expert Systems, capture it in documents, promote the growth and transfer of this knowledge, prevent or minimise the loss of this knowledge.
Procedural knowledge refers to the steps or procedure of performing a specific task. The procedures represent the rules and guidelines with which knowledge workers must
202
Organisational knowledge should be identified, Knowledge should be preserved, Knowledge growth should be fostered, Changes in the knowledge should be monitored, Knowledge should be shared, New knowledge should be consolidated with existing knowledge.
Having derived the principles of knowledge management and the possibility of levering these knowledge assets towards the achievement of the company's objectives, a Knowledge Management Framework is formulated and accorded the follOWing functions[l] :
11. Ill.
identify these skills or the lack thereof, establish a standard for the highest skill level, improvise these skills, prevent or minimise the loss of these skills, transfer these skills.
identify what fundamental knowledge is appropriate, monitor the evolution of this knowledge, consolidate new knowledge into the company's knowledge structures.
The pertinent knowledge management principles that are recognised and derived out of these analyses and which could be used as a basis to contrive a knowledge management framework are[l}:
1.
• • • • •
monitor changes affecting this type of knowledge, adapt to new procedures to respond qUickly to these changes by assimilating and consolidating these knowledge changes.
Identify and resolve knowledge-related problems, Preserve the company's knowledge assets, Promote knowledge transfer, knowledge sharing, and knowledge utilisation, Promote knowledge growth and assimilate new knowledge into the company's knowledge structure, Align knowledge assets towards company's objectives.
Fig. 1 shows an overview of this framework. A knowledge audit exercise scrutinizes the skills and knowledge required to perform a specific task. It identifies what knowledge lack which cause problems, what knowledge should be preserved and what knowledge are necessary for transfer and sharing.
Q3. Is the problem due to knowledge or skill deficiency?
Kaowledce preservadoD
The task is considered important and critical if failure to perform the task results in opportunity or business loss which can be any of the following or their causes and consequences:
Kaowledce CroMb aDd a..lmlIadoD
KHwledce lraDlfer a.d Ibarl_C
Kaowledce aUpmeDt
• • • • •
• (b) (c)
Fig. 1 The Knowledge Management Framework The outcome of a knowledge audit exercise represents the knowledge structure of a task. The knowledge structure of a task is the way in which the knowledge elements are built with which a set of actions is generated to perform the task. This concept is illustrated in Fig. 2.
(d)
(e)
financial loss, failure to secure a contract, slower response, demotivating behaviour, conflicts.
Conduct a knowledge audit exercise on the task. Evaluate the quality of the knowledge in terms of their validity and currency. Identify knowledge gaps by comparing the knowledge structure of the task with the knowledge available with the knowledge worker. Suggest possible solutions.
The framework offers short-term solutions and long-term solutions. Short-term solutions are applied when the problem needs immediate attention. The short-term solutions in order of importance are:
Heuristic
Knowledge Audit
c>
• • •
seek help from other departments, commission a consultant/vendor, a hybrid of the above solutions.
The long-term solutions could be any of the follOWing: Fig. 2 The concept of knowledge structure • When new knowledge are assimilated and changes in existing knowledge are detected, the knowledge audit exercise updates these changes in knowledge relating to knowledge-related problems, knowledge preservation, and knowledge transfer and sharing. Depending on the nature of the task, expert systems could be a solution to these three functions. The availability of the knowledge structures could be exploited by aligning existing knowledge and bringing in new knowledge to meet the company's objectives. When all the knowledge management functions are fully deployed and operational, it is assumed that the framework would ultimately provide a competitive knowledge advantage for the company.
I. IDENTIFY AND RESOLVE KNOWLEDGE-RELATED PROBLEMS
• • • • •
form groups of experts consisting of individuals from other locations (expert pool), provide remedial training for a replacement knowledge worker, impose the creation of a knowledge document oh existing knowledge worker, capture the knowledge in an Expert System, research the problem, commission a consultant.
' t
Fig. 3 shows the framework for resolving knowledgerelated problems.
:
Knowledge avaiJIIble
Q
Knowledge gap
Q
rS-'R-O-R-r.-_-TE-R-M~ SOLUTIONS
Cj~~ LONG-TERM SOLUTIONS
The framework set to resolve knowledge-related problems as follows: (a)
Identify the existence of a knowledge-related problem by asking the follOWing three questions Fig. 3 Resolving knowledge-related problems
Ql. What is the problem?
Q2. Is it important and critical?
203
11. PRESERVE TIlE COMPANY'S KNOWLEDGE ASSFI'S 1. Provide training for knowledge workers The requirement for these exercises should be approached as follows: (a) (b)
(c)
Knowledge gllp
Y
• • • •
~.
presef'Wllion ' ~
Y
KNOWLEDGE DOCUMENT
Knowled(e
Knowled(e
presen'tlJum
presef'Wllion
Update the knowledge structure of the corresponding task to indicate a knowledge gain.
Ill. PROMOTE KNOWLEDGE TRANSFER, KNOWLEDGE SHARING, AND KNOWLEDGE UTILISATION The framework approaches the transfer, sharing and utilisation of knowledge through the follOWing activities: (a)
A knowledge document is a collection of a knowledge worker's notes on his experiences in performing his job. The idea of this document is to capture all his knowledge about the performance of his job. This document should contain deSCriptions of the:
•
~
"'" ;"OwledK,e
Fig. 4 A framework for knowledge preservation
in-house company training, vendor's training, other training institutions.
2. Impose the creation of a knowledge document on a knowledge worker
• • • •
\::S
n
V
~
Compare the knowledge structure with the knowledge of the knowledge worker. H there are knowledge gaps, provide a formal levelling up or remedial training program for the knowledge worker through: • • •
:' ': ,.;' I Knowledge lIVIUltzbk
EXPERT SYSTEMS
necessary skills reqUired to perform the tasks, pertinent knowledge applied to accomplish the tasks, procedure, tools or noteworthy materials used, reports, papers, letters, and any documents produced, decisions made to accomplish the tasks and the reasons for making those decisions, sources of information and knowledge referred to, internal and external interactions made, problems faced and how they are resolved, things that have been learned after the completion of the tasks.
It should be emphasised that the creation of a knowledge document should be imposed on the holders of jobs which require expertise and should not involve jobs which are purely procedural in nature such as the clerical and administrative jobs.
Identify the task that would yield competitive and long-term benefits for the company by asking the following three questions: Ql. Does the task require special skills? Q2. Is the knowledge required to perform the task easily available? Q3. Does failure to perform the task without these skills and knowledge results in opportunity or business loss?
(b) (c) (d)
Conduct a knowledge audit on the task. Evaluate the quality of the knowledge in terms of its validity and currency. From the knowledge structure, implement a knowledge transfer and sharing scheme through:
• •
•
knowledge link via communication systems such voice or electronic mail or distributed intelligent agents. knowledge circulars such as knowledge documents, directives, newsletters. other knowledge transfer platforms such as seminars, conferences, and developmental training programs.
3. Capture the knowledge in an Expert System
'g
Knowledge
A solution which has been applied by many organisations for the preservation of expert knowledge is to capture that knowledge in an expert system. A fairly large number of concepts and strategies has been proposed by researchers in the artificial intelligence community for the deployment of expert systems within organisations. Fig. 4 outlines the framework for preserving the company's knowledge assets through remedial training, creation of knowledge documents and deplOying expert systems.
Clteek IIl11idity
and c"rrency
KNOWLEDGE TRANSFER .,.A-, & SHARING SCHEMES
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Fig. 5 Knowledge transfer and sharing
204
IV.
(a)
PROMOTE KNOWLEDGE GROWTH AND ASSIMILATE NEW KNOWLEDGE INTO THE COMPANY'S KNOWLEDGE STRUcruRE
• • •
The growth of knowledge within a company is conjectured to be a function of:
•
• • •
Establish knowledge network with other knowledge sources such as:
experiences with unfamiliar or new problems, research and development, applications of new technology, access from external sources.
(b)
(c)
1. Experiences with unfamiliar or new problems (d) Changes or obsolescence in existing knowledge or absence of knowledge results in the emergence of unfamiliar or new problems. Problems which are unfamiliar to knowledge workers need new knowledge inputs. The framework set to address unfamiliar problems as follows: (a) Deploy an expert to solve the problems. (b) Compare and contrast the knowledge documents and the knowledge structures of similar tasks with the problems at hand and check for discrepancies. (c) If there is a knowledge gap, apply the short-term or long-term solutions. (d) When the problems are resolved, update the knowledge structures and documents to indicate a knowledge gain.
research and academic institutions, knowledge bases, databases of research papers, journals and magazines.
Identify and conduct researches on tasks that are associated with knowledge-related problems, and knowledge which are crucial for transfer and sharing. Consolidate the new found knowledge by resolving knowledge-related problems and sharing the knowledge. Verify and validate the outcomes of these researches and update the relevant knowledge structures.
3. Applications of new technology The management and assimilation of knowledge reqUired due to the applications of new technology within a company is recommended as follows: (a) (b)
Fig. 6 presents the framework for the assimilation of new knowledge derived from experiences with unfamiliar problems.
Identify the tasks that are required to be performed with the new technology. Conduct a knowledge audit to build the knowledge structure of these tasks.
Resolve knowledge-related problems
RESEARCH & DEVELOPMENT
~ Knowledge
\,r-l-.I network
Knowledge transfer and sharing schemes
~----~~
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knowledge structure/document
Fig. 7 Knowledge growth and assimilation through R&D
Fig. 6 Knowledge from unfamiliar problems
(c)
2. Research and Development
(d)
The availability of the knowledge structures of important tasks could be explOited to identify the domains in which further research could be conducted to:
(e)
•
(f)
•
improve the performance of tasks, resolve problems leading to costs savings in operation and maintenance.
The framework, shown in Fig. 7, recommends the approach to knowledge growth through research and development as follows:
205
Determine knowledge deficiencies by comparing with the knowledge structures and knowledge documents of similar tasks, if any. If there are knowledge gaps, acquire new skills and knowledge through levelling up or remedial training and collaboration with vendor's experts. Assimilate these new knowledge through knowledge preservation and knowledge transfer and sharing. Monitor the evolution of the new knowledge
Fig. 8 displays the framework for the growth and assimilation of knowledge through the applications of new technology.
Strategic Knowledge
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A Division
Fig. 8 Knowledge assimilation through new technology
Executive Knowledge Structure
Fig. 9 The concept of Knowledge Alignment 4. Access from external sources
The SfARK concept could be expanded further by integrating all the Executive Knowledge Structures of other divisions and their corresponding strategic knowledge to build what is called the Business Knowledge Structure (BKS) shown in Fig. 10. The Business Knowledge Structure then represents the skills and knowledge of the company which assist in the achievement of the company's objective.
The framework suggests the following general guidelines for the consolidation of new knowledge: Determine whether the new knowledge is relevant or is perceived to be relevant to the company's objectives. (b) Detect knowledge requirements. (c) Access the required knowledge. (d) . Consolidate these knowledge by updating the knowledge structures or building new knowledge structures. (a)
In reality, there are many objectives that need to be achieved to realise the company's goal. If the SfARK concept is applied to the other objectives, a collection of Business Knowledge Structures (BKSs) is obtained. The collection of Business Knowledge Structures is called the Corporate Knowledge Structure (CKS). The existence and use of the skills and knowledge of the Corporate Knowledge Structure help to realise the company's goal. This concept is shown in Fig. 11.
V. ALIGN THE KNOWLEDGE ASSETS TOWARDS THE COMPANY'S OBJECrIVES 1. The Strategic Alignment and Reintegration of Knowledge (STARK)[lJ
StraJegic
Usually the jobs in a department are subdivided into specialised tasks which are performed by knowledge workers. The SfARK concept attempts to align the knowledge structures of these tasks and reintegrate them with those from the other departments such that the division's objective can be achieved. It involves the follOWing activities: Translate the company's objective into divisional objectives, (b) Each division then identifies the tasks it has to perform in order to meet its assigned objective, (c) Align the knowledge structure of these tasks to build an Executive Knowledge Structure (EKS), (d) Equipped with the skills and knowledge, deploy knowledge workers to perform these tasks, (e) Monitor and control the execution of these tasks.
,~~
Executive Knowledge
StrIlCllln
206
1------1
f------I
Division A
Division B
Division C
D Integrate
(a)
Fig. 9 shows the concept of knowledge alignment within a division of the company.
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Knowledge
Business Knowledge
StruCllln
Monitor
Q Fig. 10 The concept of Business Knowledge Structure
Division's
Objective
I .. Business Knowledge Structure
the management of knowledge assets which reside in the head of knowledge workers are either non-existence or limited in their capabilities. New tools would have to be developed to manage the knowledge assets effectively and productively. The tools developed for expert systems are restricted in their applications and are often too complicated to use.
+011". D+0110".+01 )J
Company's Objective
Corporate Knowledge Structure
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11
0J
Other than the expected outcomes it would produce, other benefits of the framework which are revealed are, it:
r:::>
1". +011-. +011". +01
• • • • •
Fig. 11 The concept of Corporate Knowledge Structure
If the company has more than one goal, then there would be a collection of Corporate Knowledge Structures which helps to realise all the company's goals. Corporate Knowledge can thus be defined as the integration of the strategically aligned skills and knowledge which helps to realise all the company's goals. Fig. 12 shows an overview of the STARK concept originating from the company's objective and building up the knowledge structures.
highlights the importance of strategy planning, puts the achievement of objectives in its proper perspective, accentuates the roles of training and research, induces a learning culture, promotes teamwork.
However, the real benefits of the framework could only be realised if it is successfully implemented, deployed and practised with the full commitment and responsibility of all the members of the organisations.
REFERENCES 1.
Ahmad, MS., Knawledge Management within the Corporate Infrastructure of Tenaga Nasional Berhad, MSc. Thesis, Cranfield University, September 1995.
2.
Soltan, H ., Invest Your Corporate Knawledge Asset, The Return is High, Cranfield University, June 1995.
3.
Mason, D., Corporate Knawledge and its Management, Information 90, Proceedings of the Third International Conference, Aslib, London, UK, 1991, pg. 369 - 374.
4.
Orman, L. V., Knawledge Management by Example, Methodologies for Intelligent Systems. 7th International SympOSium, ISMIS '93 Proceedings, SpringerVerlag Berlin, Germany, 1993, pg. 172-185.
5.
Lucier, R. E., Tawards a Knawledge Management Environment: A Strategic Framework, EDUCOM Review, Vol. 27, No. 6, November/ December 1992, pg. 24 - 31.
6.
Steels, L., Corporate Knawledge Management, IFIP TC12 Workshop on Artificial Intelligence from the Information Processing Perspective - AIFIPP '92. IFIP Transactions A: Computer Science and Technology, Vol. A-27, 1993 p . 91-116.
7.
Hart, S. L., Managing Knawledge in Policymaking and Decision Making, Knowledge: Creation.Diffusion.Utilization, Vol. 8. No. 1, Sept. 1986, SAGE Publications, pg. 95 -107.
8.
Lange, B.M., and Gershman, A., OMNI: A Corporate Knawledge Environment for Collaborative Work, IEEE International Conference on Systems, Man and Cybernetics, Vol. 2, IEEE New York, 1992, pg. 949-953.
Plan
~
L?
Plan
Other
Objectives
Fig. 12 An overview of the Sf ARK concept
3.0
CONCLUSIONS
The Success or failure of knowledge management depends on the:
• • •
commitment and support of top management, involvement and cooperation of managers and other knowledge workers, diligence of a knowledge management team to see it through.
It should be emphasised that while any attempts to manage the knOWledge assets of organisations are welcomed, real SUccess depends on the existence of a technology that could capture, store and use the knowledge effectively. Tools for
207
9.
Candlin, D. B. and Wright,S., Managing the Introduction of Expert Systems, International Journal of Operations & Production Management, Vol. 12, No. 1, 1992, pg. 4659.
10. Dutta, 5., Strategies for Implementing Knowledge-Based Systems, 94/39/ TM, IN5EAD, 1994, France. 11. Kochen, M., Evolution of Brainlike Social Organs in Information for Action: From Knowledge to Wisdom, Manfred Kochen (Editor), Academic Press, London, 1975, pg. 5.
208