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How to make knowledge management work

The people that knowledge management (KM) is designed to serve may be the ones sabotaging its effectiveness. These “people problems”are likely to render KM efforts obsolete in their organisations, warns Jorina Choy

Knowledge management (KM) is a great concept with good technologies to support it. KM has been described as many things, but the most common and commonsensical definition would be a system that gives workers easy access to company information, which encourages that information to be turned into knowledge.

Ironically, the people that KM is designed to serve may be the ones sabotaging its effectiveness. Worse, if these “people problems” are not dealt with appropriately, they are likely to render KM efforts obsolete in their organisations.

To have a “complete KM system” in the organisation is difficult, said Wahab Yusoff, regional director of enterprise content management software provider Documentum, in South Asia. “The explicit part of KM is the codifying, and there are many IT vendors playing in specific aspects in this space,” said Yusoff.

“The implicit part is capturing best practices, which changes all the time-processes change, data changes, information changes. The big global consulting firms are good at doing this,” he added.

Ng Kim Hung, IT director, Asia Pacific, Exel, a global logistics services provider, is convinced of the benefits of KM, but is sceptical about how it can be executed effectively in an organisation. “You can create the best KM systems but the fact is, the best systems will fail if users are not disciplined enough to use them,” said Ng.

He gave an example: A lot of people like to write e-mails. But when they are asked to update what they have written in a knowledge repository, they are likely to shy away from it. “Every company knows it needs a KM system and it likes one in its organisation,” he said, adding, “But many users still think of a system as helping to run operations and get things done, not so much as for capturing knowledge.”

Cultural barriers

Another obstacle to widespread KM adoption, Ng believes, is the differences in communication methods and languages across different geographies and cultures. “Is English the best communications medium between an account manager in China and a sales manager in Thailand?” asked Ng. “The Chinese account manager really wants to update information in the KM systems, but he can’t express himself well enough in English, and may end up not doing it at all.”

Yong Yun Seong, director, Central Marketing Organisation, Microsoft Singapore, said that technology can help to tackle problems related to language and skills disparities with visual support or common tools.

Process barriers

There are also process barriers, which must be overcome to facilitate the sharing of knowledge, added Praba Nair, director of the Institute for Insights and Innovation, National Computer Systems. This can be done through the establishment of processes and tools to make knowledge creation, capturing and sharing simple. And trust plays a paramount role in the sharing of knowledge.

“People share knowledge if they believe that others will share their knowledge with them in return. The more trust that exists, the more people share,” he said. To deal with the employee lethargy problem, a “knowledge sharing mentality” has to be built within the organisation as part of its culture and values.

In this case, a company’s human resource department plays an important part to ensure that the necessary leadership, recognition and rewards are in place, said Yong.

Organisational barriers

Also key is the role of the management, which should essentially lead by example, added Michael Lie, vice president of e-government and healthcare, CrimsonLogic.

Warwick Holder, consulting leader for organisational complexity and knowledge, IBM Global Services ASEAN/South Asia, suggests that companies link their KM strategy to their organisational goals and IT strategy. “This will allow the knowledge domain to be incorporated as a key part of things,” he said.

An effective KM strategy starts with understanding what knowledge an organisation has through the use of a knowledge mapping programme. After that, a strategy can be developed to address all facets, such as organisational structure, culture, business processes, and technology, according to Holder.

KM can then be extended to the organisation’s business partners, said Lie. For now, Exel is investing in KM in “a small way”, said Ng. It is running Lotus Notes and has an inhouse database system called Connexions to capture customer information. How Exel encourages more employees to use the system is a group-by-group rollout, instead of a “big bang” rollout all at once, so that the necessary cultural and process changes are not forced, but eased in.

Investing in intangible returns

Justifying the return on investment (ROI) for knowledge management (KM) is a hard thing to do, especially when it does not directly yield bottomline contributions within any particular period of time, Warwick Holder said that businesses, to some extent, need to understand that the new competitive advantage in the future will come from intangibles, that is, things that are difficult to value and not usually reflected in the balance sheet. “Accounting is going to face a major dilemma in the next few years, as less than a third of the value of an organisation is recognised via the balance sheet,” he said. “Intellectual capital, brand equity, and human capital are new differentiators. An effective KM strategy addresses these and more.”

Unfortunately, right now, KM is still measured only in terms of revenue contribution, said Wahab Yusoff. Yet, if KM results in better collaboration within and between different company departments, to produce better intellectual property that will contribute to top-line growth, the case for ROI could be a strong one—provided the KM system is properly integrated and the company culture ready to make use of it.

This article first appeared in Asia Computer Weekly

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