KNOWLEDGE

MANAGEMENT.
Checklist 166

» INTRODUCTION

Knowledge management, (KM) is the process of effectively capturing, distributing, and using knowledge so
that everyone within an organisation can benefit from it. KM means having an integrated approach to
identifying, capturing, and evaluating knowledge, as well as the organisational capacity to retrieve and share
an organisation’s information assets in a meaningful way. Knowledge has become a key strategic asset in a
knowledge based economy and every organisation that values knowledge must invest in developing the best
strategy for identifying, developing and applying the knowledge assets it needs to succeed.

Successful knowledge management depends very strongly on good people and good project management.
Information and communication technologies are also very important, since the need to better organise and
exploit knowledge has coincided with continuing advances in enabling technologies. Effective KM requires top
management support and commitment. It is vital to build an organisational culture that is conducive to sharing
knowledge rather than one that condones or even encourages the hoarding of information.

Managing knowledge systematically and professionally can bring many benefits to an organisation. These
include the ability to learn from past failures and avoid repeating them or reinventing solutions which have
previously proved to be inadequate. KM can also be a driver of new ideas leading to the creation of new
products, services and solutions. Better access to and more effective application of knowledge also facilitates
more timely responses to changes in the business and market environment. KM therefore can dramatically
improve the quality of products and/or services and make a direct impact upon costs and on the potential for
organizational growth and expansion.

There are many different approaches to knowledge management including those focusing on project
management, leadership and IT management processes. Good KM involves integrating a KM perspective into
all types of management processes, whether it is HRM, leading people, IT governance, quality management
or project management. This checklist takes a mainly implicit HR perspective and aims to provide an
introduction to key concepts and issues which should be considered when seeking to improve the
management of organisational knowledge.

Components of knowledge managment

Know ledge management can be thought of as having five basic components:

› the capture of experiential knowledge

› the creation of new knowledge and understanding (innovation)
› the storage of data, information and knowledge
› the dissemination of data, information and knowledge
› the measurement of knowledge – intellectual capital.

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» DEFINITION

Knowledge management is the systematic identification, management, dissemination and development of

intellectual assets to benefit an organisation’s business performance. Rather than being a management
strategy in its own right, knowledge management is a perspective which is applied to existing management
processes.

Explicit knowledge can be formally articulated in language or mathematical expressions and presented in
forms such as documents, manuals, reports, procedures, patents, copyright material or policies. Most of what
is called explicit knowledge is in fact information. It can be processed by computers and stored electronically,
in databases, for example, and is relatively easy to transmit to others.

Tacit or implicit knowledge is personal knowledge embedded in people - for example, expertise or intuitive
understanding based on experience or drawn from relationships with customers, suppliers, or others.

Intangible assets include human capital (the knowledge and competence of employees), structural capital
(organisational internal structure) and relationship capital (relationships with customers, suppliers, partners or
others). Knowledge with intangible value creates internal added value for the organisation.

Tangible assets include knowledge or information with a value that can be realised (e.g. a patent or copyright
can be sold). The distinction between tangible and intangible assets largely corresponds to that between
explicit and tacit knowledge.

Knowledge workers are employees who apply the theoretical and practical understanding of given
knowledge areas to produce results for an organisation.

» ACTION CHECKLIST

1. Review corporate strategy

The management of knowledge must be integrated with, and reflect, overall organisational strategy. It cannot
be implemented in isolation. Decide why you want to adopt knowledge initiatives, and remember that
knowledge solutions should be tailored to the needs and objectives of your organisation. What works in one
organisation, market or sector may not be appropriate in another.

2. Assess existing knowledge management processes

An information audit forms a sound foundation for a knowledge audit (See related Checklists below.). A
knowledge audit will pinpoint strengths and weaknesses in current knowledge management processes:
knowledge generation, storage, transfer and usage. It should also consider critical knowledge and
information needed for the future. Good practice can be identified and applied in other parts of the
organisation, although it is vital to take contextual factors into account here. Don’t assume that
knowledge acquired in one context can be applied in another without evaluating its relevance in the
new context. Skills and qualifications can be mapped within the organisation and any gaps in key skills
highlighted and addressed through learning and development. Mapping can also quickly identify
potential project members.

3. Gain management commitment at all levels

The successful adoption of knowledge management strategies requires senior leaders to adopt an
appropriate approach, support its implementation with the significant resources needed to facilitate knowledge
sharing, and overcome any resistance to change. A coherent communication strategy is vital here. Gaining

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the commitment of senior and middle managers is also of critical importance. Identify a group, project or
department as an example of good practice to promote and champion knowledge management within the
organisation.

4. Evaluate the need for culture change

It is vital for managers to create a culture where information sharing becomes embedded in the organisation
over the long term. Culture change can be a slow, difficult process and it can be difficult to persuade people to
share knowledge if they feel it will be advantageous to them to restrict access to it. Any barriers to the
diffusion of knowledge, including the fear or reluctance to share openly, should be addressed and the creation
of incentives considered. For example, recruitment, performance appraisal and rewards can be linked to
individual roles in taking responsibility for and sharing knowledge. More specifically, knowledge management
objectives can be included in appraisal targets. The development of team-based rewards can also help to
avoid or eliminate organisational barriers.

5. Organise and capture sources of organisational knowledge

Explicit knowledge or information, such as patents, technical specifications and training documents, can be
codified and stored in databases. Tacit knowledge, however, cannot easily be put in writing as subtle details
and contextual factors will be lost. An alternative approach is to use computer systems to facilitate contacts
and to help people track down colleagues with the right expertise for a project or information that is useful and
can be applied in appropriate ways.

Web 2.0 tools and extranets can be used to capture information, perspectives, preferences and insights from
outside the organisation, from customers, suppliers and stakeholders.

6. Share knowledge

The importance of a culture of knowledge sharing has already been highlighted. Suitable channels for
knowledge sharing and transfer also need to be in place. Where information can be packaged and re-used,
persuade people to make documents available to others and not to hoard them. Consider appointing an
information analyst to extract non-confidential knowledge from documents and put it into a database. Assist
people in searching databases and re-using information to save time and increase response rates.

Encourage people to find colleagues to help with projects by tapping informal knowledge networks or using
departmental knowledge maps. Knowledge sharing is costly in terms of time and effort, so it is important to
focus on areas where there is a particular need to develop knowledge. This may be done by encouraging
interactions between key knowledge holders, e.g. through:

› face-to-face meetings or video conferencing

› email exchanges and telephone conversations
› job rotation, visits or transfers from one department to another
› changes to the physical and architectural layout of offices and buildings
› the provision of attractive spaces for informal gatherings e.g. canteen, break rooms
› providing good coffee in the break room can be an extremely effective knowledge management
measure.

7. Increase knowledge

Bring external knowledge into the organisation through strategies such as flexible recruitment policies which
will enable the organisation to tap into a wide range of skills, expertise and culturally diverse perspectives. A
process for capturing the knowledge of contractors who bring specialist knowledge into an organisation will
also be required.

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Develop knowledge through strategies such as:

› employee training, job rotation and work shadowing within the company
› organisational learning using both explicit and tacit knowledge
› creativity and innovation
› cross-departmental, cross-site or even cross-organisational teams
› developing a policy for capturing the knowledge of contractors delivering activities or specialist tasks
into an organisation.

The work of Ikujiro Nonaka (see Related thinker below) focuses on the creation of organisational knowledge.
He identified four processes by which tacit individual knowledge may be converted into explicit organisational
knowledge and emphasised the key role of middle managers in bringing together the strategic vision of top
management and the task-centred knowledge of frontline employees. Nonaka stressed the importance of
human interactions and relationships within the process of knowledge creation.

8. Maintain knowledge

Take steps to safeguard tacit knowledge relating to previous experience, projects and decisions, to avoid
knowledge gaps in the future. Ways to achieve this include:

› redeploying employees where possible, rather than making them redundant

› developing managers’ skills in communicating verbally and leading meetings so that knowledge is
transferred more effectively
› developing managers’ ability to develop and train others, so that knowledge is shared
› using exit periods to capture the experiences of those who leave or retire and make the information
available to successors
› maintaining links with retired or redundant personnel, possibly using corporate alumni networks
› valuing employee loyalty and long service.

Improve the retention of knowledge workers by working at the difficult balance between empowerment and
ensuring that corporate objectives are achieved. Make it clear that you support and trust your people,
especially if they work remotely.

9. Protect knowledge

Where possible, protect organisational knowledge by registering patents and trademarks. Build safeguards
into informal information sharing between employees and those from other companies by introducing
operational policies and codes of conduct. Restrictive covenants and ‘garden leave’ clauses in contracts of
employment may be used to minimise the transfer of knowledge in cases where employees leave to work for
competitors.

10. Monitor and measure knowledge

Monitor and measure the impact of your knowledge management initiatives to assess how far the organisation
has met the objectives set.

In some circumstances standard accounting practices, may allow organisational knowledge to be valued as
an intangible asset. A number of alternative methods have been developed, such as Kaplan and Norton's
Balanced Scorecard or Tobin's "Q Value". There is little agreement however on how to put a price on
knowledge. Exceptions to this would be intellectual property and patents as it is easier to put a monetary
value on these knowledge assets.

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any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the
prior permission of the publisher.
» POTENTIAL PITFALLS

Managers should avoid:

› copying other people’s strategies - choose one that suits your organisation
› trying to use too many knowledge solutions – prioritise and select only those that you need
› neglecting the contribution and needs of remote employees and teams
› forgetting legal requirements for data protection and freedom of information which relate to
the retention and storage of information and access to information.

» ADDITIONAL RESOURCES

BOOKS

Personal knowledge management: individual organizational and social perspectives

David J Pauleen, G E Gorman, Farnham, Gower, 2011

Knowledge works: the handbook of practical ways to identify and solve common organizational
problems for better performance, Christine van Winkelen and Jane McKenzie
Chichester: John Wiley, 2011

Knowledge retention: strategies and solutions, Jay Liebowitz Boca Raton Fla: CRC Press, 2009

Managing flow: a process theory of the knowledge based firm, Ikujiro Nonaka, Ryoko Toyama and Toru
Hirata Basingstoke: Palgrave MacMillan, 2008

This is a selection of books available for loan to members from CMI’s library. More information at
www.managers.org.uk/library

RELATED CHECKLISTS AND THINKER

013 Carrying out an information audit

150 Handling information – avoiding overload
047 Ikujiro Nonaka: knowledge creation

INTERNET RESOURCES

Knowledge Management Tools http://www.knowledge-management-tools.net/

KM site covering the theories, frameworks, models, tools, that are relevant to students and practitioners.

WWW Virtual Library on Knowledge Management www.brint.com/km

A collection of resources on KM, includes full text articles, book reviews, web links and discussion.

KnowledgeBoard http://www.knowledgeboard.com/
A global KM community offering discussion, articles, special interest groups and KM events.

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any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the
prior permission of the publisher.
» NATIONAL OCCUPATIONAL STANDARDS FOR MANAGEMENT AND LEADERSHIP

This checklist has relevance for the following standards:

› B: Providing direction, unit 9

› E: Using resources, unit 4,
› F: Achieving results, unit 12

» MORE INFORMATION

e enquiries@managers.org.uk t +44 (01536) 204222 w www.managers.org.uk

p Chartered Management Institute

Management House, Cottingham Rd, Corby, Northants, NN17 1TT

This publication is for general guidance only. The publisher and expert contributors disclaim all liability for any
errors or omissions. You should make appropriate enquiries and seek appropriate advice before making any
business, legal or other decisions.

Revised February 2013

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