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Session 1: Course Introduction

Organizational Management Knowledge Management and Decision Making BBUS 507 Professor Vandra L. Huber, DBA. Session 1: Course Introduction. Agenda. Administrative matters and course objective Course Requirements Exercise: BARNGA Today’s topic: Definitions & Knowledge Management Models.

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Session 1: Course Introduction

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  1. Organizational ManagementKnowledge Management and Decision MakingBBUS 507Professor Vandra L. Huber, DBA Session 1: Course Introduction

  2. Agenda • Administrative matters and course objective • Course Requirements • Exercise: BARNGA • Today’s topic: Definitions & Knowledge Management Models

  3. Administrative Matters • Contact information on syllabus • Office hours: By appointment • Course materials: - Course pack available from Kinkos, Bothell-Everett Highway - Additional materials distributed by me • Honor code issue

  4. Honor Code • Prepared and on time for all simulations • Do not show your confidential case instructions to the other parties. • Do not make up facts or information that materially change the power distribution of the exercise • Do not borrow notes or discuss roles outside of class. • Class discussion stays in class

  5. Attendance/Participation Policy You will be penalized one letter grade on final course grade, if you: • Fail to participate in more than one exercise or case discussion • Arrive after 10 minutes of the beginning of class; • Are unprepared or not present to obtain simulation assignments for the next class (don't ask me to email them to you) • Must inform me of absence 48 hours in advance .

  6. Grading • Class Participation 20% • Professionalism 5% • On time • No complaining or whining • Ethical behavior • Respect for others • Out of Class Project Participation 10% • Qualitative Team Project Survey 5% • Team Project 40% • Project outline 5% • Oral presentation 10% • Final Written Report 25% • 2 Individual Assignments 40% • Knowledge debriefings • Case Analyses

  7. Knowledge Management Basics

  8. Origins ofKnowledge Management

  9. What is knowledge? Knowledge is the combination of data and information to which is added expert opinion, skills and experience, to result in a valuable asset which can be used to aid decision making.”

  10. Four Stages of Learning Stage 1 Data + Relevance + Purpose Stage 2 Information + Application Stage 3 Knowledge + Intuition Stage 4 Wisdom (Tacit Knowledge)

  11. Hierarchy of Knowledge • Skill • Ability to act according to rules which depend on feedback from a non-social environment. • Know-How • Includes skill and is the ability to act in social contexts. • Knowledge • Includes know-how + the ability of reflection. • Implies the ability of know-how within a certain domain and the ability not only to submit to the rules but also by reflection influence the rules of the domain or the tradition.

  12. Test Your Tacit Knowledge • Shut your eyes. Then try to touch the tip of your nose with your index finger. At the same time, concentrate hard on what you are doing and on where your arm is at all times. • Do the exercise slowly. Allow a minimum 20 seconds for it.

  13. Test Your Tacit Knowledge • Now, explain to the person sitting next to you exactly how you did the exercise, describe how you held your index finger, every movement your arm was doing, all different angles, all the way up to your nose. • Was it easy to describe in words how you did the exercise? • Why or why not

  14. Two Types of Knowledge • Explicit Knowledge is articulated in formal language • Grammatical Statements • Mathematical equations • Specifications • Manuals • Tacit Knowledge is personal knowledge embedded in individual experience • Personal beliefs • Emotion • Perspective • Experience • Intuition

  15. Item 2 represents tacit knowledge

  16. What is knowledge management? • "Knowledge Management embodies organizational processes that seek synergistic combination of data and information processing capacity of information technologies, and the creative and innovative capacity of human beings to improve organizational capabilities”

  17. Why Knowledge Management • Because we want superior performance and competitive advantage • For innovation and to avoid decline • To improve quality and customer relations • To increase our ability to manage change • For energized committed work force • To expand boundaries and to engage in community

  18. Competitive Advantage Of the Firm Lies in its… • Ability to create, transfer, assemble, integrate and exploit knowledge assets • Knowing-Doing Gap • Difficulties arise not in accessing knowledge • But in utilizing knowledge

  19. Knowledge Economy In WA Progressive Policy Institute, Washington, D.C. 2002

  20. Knowledge Problem solving non routine problems Smaller Creative Adhocracy High Education No economies of scale Economy of scope in intangible assets Service Servicing Routine Problems Bigger Productive Hierarchy People Intensive Low Education Economies of Scale Knowledge Versus Service HighCustomer Adaptation Low

  21. Tangible Tangible and IntangibleAssets of Knowledge Organization Cash Accounts Receivable Computers, Offices Human Capital Information Capital Organizational Capital Intangible

  22. Models of Knowledge Management

  23. Constraints and Opportunities Knowledge Management Processes Transformations Human Capital Information Capital Organizational Capital Organizational Systems Outputs Satisfied Stakeholders (Customers, Public, Policy Makers) Profitability System Effectiveness Employee Satisfaction /Performance Inputs Stakeholder Expectations Strategy/Vision, Mission, Values Information External Environ ment Business & Economic Environment Social Values/ Community Environment Legal/ Public Policy Environment Competitors Technology

  24. Balanced Scorecard’s Explore Cause-and-Effect Relationships Financial Customer Internal Business Process Intangible Assets ROCE Customer Loyalty Quality Quantity Employee Skills

  25. Sources Formal and informal Networks Internal and External Acquisitions Process of Knowledge Creation and Innovation Which Firm Operates Uses Quality of Problem Solving/ Decision Making Individual and organization’s ability to absorb information and turn it into know how Outcomes Innovation Market/ Financial Performance New organizational knowledge flows from activities and decisions

  26. Total Systems Model Vision Strategy Leadership Human Capital Organizational Capital Information Capital

  27. Human Capital Knowledge Professional Knowledge • Rules • Programs • Manuals Organizational Knowledge • Strategy Making • Marketing • Human Resources • Accounting

  28. Personal Mastery • To learn, grow, and achieve personal mastery that fuels and provides substance to all learning organizations is the basic human need. • No organization can truly be a learning organization without its individual members being free to learn.

  29. Human Capital High Low Professional Knowledge Low Organizational Knowledge High

  30. Informational Capital Systems • Collecting knowledge • Organizing knowledge • Distributing knowledge • Securing/Protecting knowledge Databases • Harvesting Data • Storing Data • Divergent – Free to all • Convergent – Reviewed by experts Networks • Intranet • Internet • Global

  31. Informational Capital Database Subsystems • Allows managers and employees to share the right information in a timely and efficient manner Organizational Language Subsystem • Allows understanding of the meaning of things • Decoding & Codifying into usable data for others • Systematic language that allows people to recognize the deeper meaning Networks • Retrieve and acquire information and knowledge from internal and external sources Transfer Subsystem • Transfers information between individuals or creates new knowledge

  32. Four Fold Focus • Generating • Identifying desired content proactively • Getting people to contribute ideas. • Evaluating based on contributions • Organizing • Selection and refinement of material • Distillation of material • Chunking data into knowledge objects • 7 plus or minus 2 tidbits of information • SME review, certify & bless material

  33. Four Fold Focus • Developing • Organized so it can be represented, retrieved and used • Navigational tools, user interfaces, • Position and linkages among elements • Divergent versus convergent processes • Difusing and Distributing • Insuring its use internally and externally • Training and rewarding • Choice between “push” or “pull” systems

  34. Organization Capital The capacity to manage human intellect -- and to transform intellectual output into a service or a group of services embodied in a product – is fast becoming the critical executive skill of this era James Brian Quinn

  35. Organizational Capital Corporate Brand • Image • Reputation Culture • Organizational • Global Leadership • Development • Strategic Focus Teamwork • Integration • Knowledge Sharing

  36. Culture • A shared set of enduring meanings, values and beliefs that characterize an organization, national, ethnic, and other groups and orient behavior. • Includes: • Behavior Patterns • Values and Norms • Rules, Concepts and Assumptions

  37. Process of Knowledge Creation Knowledge Individual Social Care High Low George von Krogh, California Mgt Review, 1998

  38. Leadership • Having a definitive leadership brand • Embedding formal and informal leaders through the organization (Up, down and across) • Establishing development programs for leaders

  39. Alignment • Individual actions are directed towards achieving high level objectives • Understanding of strategy • Sense of urgency • Clear line of sight between vision and behavior and reward • Empowerment

  40. Teamwork (knowledge sharing) • Development of communities of practice • Ensuring communication of best practices • Common global system of knowledge sharing • Integration of employees

  41. Concluding Thoughts

  42. Knowledge Nuggets • All organizational learning (knowledge) is leveraged in delivering business advantage to the customer • Knowledge Management focuses on Intangible Assets: • Human Capital • Informational Capital • Organizational Capital “Learn Once, Use Anywhere!”

  43. Knowledge Nuggets • Tacit Knowledge is critical and resides most often in the heads of individuals. • Knowledge is enmeshed with its use. • The flow of knowledge is as important as the stock of knowledge.

  44. Knowledge Nuggets • Experimentation is pivotal to knowledge generation • Technological should not be substituted for human interaction • A fundamental intermediate purpose of knowledge management is to create a shared context

  45. Knowledge Nuggets • Knowledge management requires organizational commitment. • Planning and decision-making • Internal customer service • Technology • Financial • Time • The knowledge life cycle consists of multiple stages: • Knowledge Generation • Knowledge Organizing • Knowledge Generating • Knowledge Diffusing • Knowledge Reusing

  46. Hmmm… Do You Agree or Disagree? • Knowledge never can be transferred. We can only transfer information.

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