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About Knowledge Management

by Dr. Laurence Prusak
 

For the past two decades or so, professional service firms of all kinds have been trying to get their hands around the subject of knowledge and especially how to work with knowledge effectively.  Inspired by consultants, journalists, management writers, etc., there has been a substantial movement to do something about knowledge, which has had a particular appeal to those firms whose knowledge was obviously the source of their wealth-management consulting firms. Law firms led the movement within professional service firms, followed by a host of other knowledge-based firms. We can characterize this movement historically from what these and many other organizations focused on when they initially tried to manage this elusive thing we call knowledge.

The first phase was really directed towards managing information-documents, mostly, renamed and disguised as knowledge. Inspired by technology vendors and some large industrial concerns, this attempt proved seriously disappointing to its practitioners and only lasted a few years, though there are still advocates for it today.

The second phase was more focused on personal technologies, such as the newly-ubiquitous PCs, and assumed that pure connectivity was enough of an impetus to create a knowledge-sharing culture. Much of the current Web 2.0 energy is directed towards these goals. Connectivity by itself, while useful and valuable, can also just produce noise and static. It is no guarantee of any knowledge development or sharing. 

The third and current phase certainly absorbs pieces of these first two attempts, but is much more focused on the "group" or "practice." Its practitioners better understand the essentially social nature of knowledge and how knowledge is organized through groups of people who share tasks, passions, vocabulary, stories, tools, and identities.

However, researchers and practitioners have learned that that no matter what the unit of analysis, there needs to be some specific direction and management for any knowledge activities to really have an impact on the organization. Following are some of these essential elements.

There are three basic things one can do with organizational knowledge: development, retention and transfer. A firm needs to allocate its knowledge resources accordingly, based on which of these activities it wishes to emphasize.

There needs to be a concrete effort to create a knowledge-sharing culture. This is most usefully done by maintaining enforced social norms of cooperation. In other words, fire those who don't share and promote those who do. Signals and symbols from senior management are also crucial for this work.

Talk up the subject and understand that what you know and how that knowledge is used is your only competitive advantage. For many reasons, this fact is still only partially understood in the U.S., but it needs to be actively discussed within your organization if you are going to make any progress in working with this most valuable but elusive resource.

 

Dr. Laurence Prusak is a researcher and consultant and was the founder and Executive Director of the Institute for Knowledge Management (IKM).  He is the author of a number of books on knowledge management, including Storytelling in Organizations: why Storytelling is Transforming 21st Century Organizations and Management, What's the Big Idea? Creating and Capitalizing on the Best New Management Thinking, Working Knowledge, and Knowledge in Organizations. He currently co-directs "Working Knowledge," a knowledge research program at Babson College, where he is a Distinguished Scholar in Residence.