Sensemaking (Organizational Behavior) Research Papers (original) (raw)

Preface In 1999, Ron Shevlin, a senior analyst at Forrester Research, told a conference audience that Knowledge Management (KM) was the hottest thing since reengineering. However, a Forrester Research study had just reported that six out... more

Preface

In 1999, Ron Shevlin, a senior analyst at Forrester Research, told a conference audience that Knowledge Management (KM) was the hottest thing since reengineering. However, a Forrester Research study had just reported that six out of seven companies investing in Knowledge Management were doing so on faith—not even trying to measure the return. At the same time, British Petroleum’s Knowledge Management team, led by Kent Greenes, published the fact that their Knowledge Management program had delivered documented savings of 260millioninasingleyear,andthat260 million in a single year, and that 260millioninasingleyear,andthat400 million more was possible but not yet delivered. Hearing this, Tom Stewart (Fortune, 1999)1 asked, “Nearly $700 million. How’d they do it?” Stewart’s question will be answered in this book.

We present a framework and model that any organization can adapt to increase performance through learning by using Knowledge Management tools and processes. We describe lessons from the application of this and similar frameworks in a variety of organizational settings, from large global financial and professional services firms to multinational oil and mining companies, to a small charity in the voluntary sector. We also describe lessons that the BP Knowledge Management team learned, and suggest a role for human resources (HR) professionals in implementing successful Knowledge Management initiatives.

The BP Knowledge Management team had several important advantages, one of them being commitment right from the very top of the organization. Lord John Browne, CEO of British Petroleum, recognized the need to improve performance by sharing good practices, reusing knowledge, and accelerating learning; and in 1997 he took a key step toward using learning to improve performance by commissioning the BP KM program. Since that time, companies all over the world in every industry have embarked on Knowledge Management implementation projects. Few have had the benefit of support at the CEO level of Lord John Browne;2 some have applied “stealth techniques” at the grassroots level. The intervening years have shown an upsurge in KM activity—innumerable books and Web sites have been published, a KM conference circuit is in place, and every major consulting firm has established a KM practice. But what are the measurable results? Stewart’s question continues to be relevant: “How do you do it?” How do you deliver measurable performance improvement through the management of knowledge? And even more fundamentally, how can you manage knowledge in the first place?

What Is Knowledge Management?
At the beginning of a seminar, conference, or training session, when participants are asked to define Knowledge Management, they often respond that it is the “latest management fad.” Many say that Knowledge Management is an oxymoron. Numerous people believe that knowledge, by definition, cannot be managed. On the other hand, most people agree that all work involves a knowledge component, and that any team uses knowledge, experience, and know-how as a resource in the process of completing any task or project. Students in an executive management program in 2002 at the Graduate School of Business (GSB) at the University of Cape Town in South Africa responded to the question “What does Knowledge Management mean to you?” Their answers are similar to statements heard in other programs in corporate and academic settings around the world. Knowledge Management is:

• What the company knows about competitors, processes.
• Learning from experience.
• Electronic libraries and databases.
• A systematic way of disseminating information and best practices.
• What we need to know, finding it, and using it to add value and get to a higher level of productivity.
• Energizing peoples’ experiences and thoughts to make the organization grow.
• Formulating strategies and implementing them to integrate knowledge or information.
• Effective use of skills and expertise in the organization.
• Exchanging new and old ideas for the growth of the company.
• An enabler to drive continuous improvement in the organization.
• Obtaining external information, customer information, and competitive information
• Communication technology.

It’s clear that there is a range of perceptions about what Knowledge Management is and what it can deliver. What we would like to share with you in this book is our understanding, based on many years of working in this field, our perception of what is distinctive, and how and where it can add real business value. At its heart, Knowledge Management is the systems, procedures, approaches, and culture you put in place to manage one of your more valuable corporate assets— namely, your knowledge (and by knowledge we refer to the knowhow, experience, insight, and capability that allow your teams and individuals to make correct and rapid decisions in support of strategy). Knowledge is a difficult asset to manage, being intangible, fluid, personal, elusive, invisible, immeasurable, and ever evolving. However, many of the other intangible corporate assets—such as safety, brand, reputation, customer loyalty, and so on—are already being actively managed, with positive results. Why not knowledge? Even if the intangible nature of knowledge means it cannot be directly controlled, you can at least manage the systems, cultures, and pathways through which knowledge flows around the organization.