codification strategy in knowledge managementcodification strategy in knowledge management

storing them in the electronic repository for people to This approach allows many people to search for and retrieve codified knowledge without having to contact the person who originally developed it. Knowledge is codified using a people to documents approach: knowledge is extracted from the person who developed it, made independent of that person and reused for various purposes. Access Health provides a prime example of the benefits that come from reusing codified knowledgein this instance, software algorithms. Introduction . the team tapped into a worldwide network of colleagues' Recently, though, I have found that they are trying to push cookie-cutter solutions. the last five years, they have developed elaborate ways to At performance reviews, consultants are evaluated along five dimensions, one of which is their contribution to and utilization of the knowledge asset of the firm.. HBR Learnings online leadership training helps you hone your skills with courses like Digital Intelligence . WebPremising on the conversion of explicit knowledge to explicit knowledge, this generation of KM primarily relied on codification strategy. Because knowledge is the core asset of consultancies, they were among the first businesses to pay attention toand make heavy investments inthe management of knowledge. (1999, in Armstrong, 2006), there are two approaches to knowledge management: codification strategy and the personalization strategy. The strategic management of knowledge requires that organizations realize the role of knowledge as a strategic resource and capitalize on using knowledge Those systems were put together from 40,000 possible configurations (competitors typically offer only about 100 configurations), which means that each configuration was used on average 275 times. Strategy consulting firms such as Mckinsey and Bain focus on a personalization strategy. Consultants, we found, do not take a uniform approach to managing knowledge.

Incentives to stimulate knowledge sharing should be very different at companies that are following the personalization approach. Selecting the wrong knowledge management strategy can severely limit these top performers power.

WebThe codification strategy opens up the possibility of achieving scale in knowledge reuse and thus of growing the business. They call this the personalization strategy. expertise relevant to this particular problem. staff member who helps codify and store documents. Naturally, people-to-documents is not the only way consultants Only strong leadership can provide the direction a company needs to choose, implement, and overcome resistance to a new knowledge management strategy. The two strategies are not unique to consulting.

the personalization approaches. They then approach those people directly. In the process of developing a unique growth strategy, an enterprise resource planning system. Do you compete by offering highly customized services or innovative products? e-mail. How does knowledge that resides in the company add value for customers? The center also hires senior, nationally recognized clinicians who often bring teams of people with them. The Journal of High Technology Management Research, Codification and tacitness as knowledge management strategies: an empirical exploration, https://doi.org/10.1016/S1047-8310(00)00043-2. in the, How Acquire the ability to decipher and use data available across multiple industry sectors in the economy including health, energy, manufacturing and finance. WebThe authors call this the codification strategy. Strategy consulting firms offer customers a very different kind of value. Codification is creating an awareness of a collection of knowledge whether it is around databases or storage systems. When we talk about knowledge, we need to distinguish between two types: They should encourage the heavy use of e-mail and electronic discussion forums. To make person-to-person communication easy, a teams members are all located in the same area of the hospital. The Memorial Sloan-Kettering Cancer Center opted for a people-to-people knowledge management strategy to create 17 disease-specific teams. management documentation in the repository. We started by looking at management consulting firms. Management consultancies like Ernst & Young, Mckinsey and Bain use a wide variety of technologies to help them implement their Knowledge Management efforts. You create value for customers by tackling unique problems that dont have a clear solution at the outset. What others like Armstrong (2012) call explicit and tacit knowledge in the codification strategy is carefully codified and stored in databases. In fact, the level and quality of employees contributions to the document database should be part of their annual performance reviews.

In addition, his team found programming documents, Consultants retrieve codified knowledge without having to contact the person who originated it. In a globalized and increasingly competitive economic People need incentives to participate in the knowledge sharing process. We'll show you how to build a knowledge base (public or private) in minutes. Your people rely on tacit (not easily codified) knowledge such as scientific expertise and industry insights to do their work. Bains management eventually developed an entirely new system, but the failed approach wasted time and money. Some companies automate knowledge management; others rely on their people to share knowledge through more traditional means. Representation of knowledge so that it can be "reused" either by an individual or an organization. Peter Novins, a partner at Ernst & Young, puts it like this: We try to commoditize the expertise in one area as fast as possible and move it to scale and reuse, which benefits both the client and the company.. When we initially looked at how consulting companies manage knowledge, we found that they all used both the codification and the personalization approaches. codification strategy. but the purpose of the systems is not to provide knowledge Top-quality customized advice and treatment to patients. These are collaborative workspaces designed to allow teams to share documents, libraries, schedules and files. had been with Bain for 12 years, knew several partners with When we initially looked at how consulting companies manage And this is smoothly carried out through Models of Knowledge Management.

The reuse of knowledge saves work, reduces communications costs, and allows a company to take on more projects. But members of the new guard had little interest in working on commodity-like reengineering projects. four to six. from colleagues promptly; by creating directories of experts; and By contrast, the personalization strategy relies on the logic of expert economics. Strategy consulting firms offer their clients advice that is rich in tacit knowledge. Customers use it to place orders, suppliers to fill orders. Blenko, who had been with Bain for 12 years, knew several partners with expertise relevant to this particular problem.

Organizations can stay ahead of the competition by implementing a knowledge management strategy and model. She left voicemails with them and also checked Bains people finder database for more contacts. In a market that grew 20% annually from 1994 to 1996, CSC Indexs annual revenues slipped from $200 million to an estimated $150 million. geographic and product-line expertise, a broad understanding of The true Introduction There is a growing body of research in the current literature that examines the influence of knowledge management on innovation results of firms (Donate & Guadamillas, 2011; Gloet & Consider this example.

Ralph Poole, director of Ernst & Youngs Center for Business Knowledge, describes it like this: After removing client-sensitive information, we develop knowledge objects by pulling key pieces of knowledge such as interview guides, work schedules, benchmark data, and market segmentation analyses out of documents and storing them in the electronic repository for people to use. This approach allows many people to search for and retrieve codified knowledge without having to contact the person who originally developed it. Ernst & Young have pursued a codification strategy for their Knowledge Management efforts they have devised elaborate ways to codify, store, and reuse knowledge. Many consultants can be assigned to a project; big projects will have a high ratio of consultants to partners. That coordination requires the leadership of the general manager. But the issue is sometimes complicated by two additional concerns: the existence of multiple business units and the commoditization of knowledge over time. They focus on dialogue between individuals, not [12] Personalization strategy focuses instead on transferring, communicating and exchanging knowledge by utilising information technology. in the Harvard Business Review, March-April 1999. shared not only face-to-face but also over the telephone, by

Give Smart: Philanthropy That Gets Results. WebA knowledge management (KM) strategy is a specific plan to help your organization manage information, data, and knowledge for the benefit of your organization and any stakeholders. For help with the Because the knowledge is contained in electronic repositories, it can be employed in many jobs by many consultants. Xerox, for example, once attempted to embed the know-how of its service and repair technicians into an expert system that was installed in the copiers. Since knowledge management as a conscious practice is so young, executives have lacked successful models that they could use as guides. What is Tacitness strategies keep organizational knowledge tacit in order to prevent flows of knowledge to competitors. As the CEO of a major U.S. company told us, I have been using a particular consulting company for over a decade now. In some companies, the strategy centers on the computer. We call this the personalization strategy. Similarly, firms that rely on codification have run into trouble by overinvesting in person-to-person systems.

describes it like this: "After removing client-sensitive

If so, emphasize personalizationexperts sharing knowledge through face-to-face contact. WebTherefore, it can be assumed that if the knowledge required is an existing knowledge, inside or outside the organization, the suitable KM strategy can be codification strategy, exploitation strategy, leveraging strategy, expanding strategy, or Accelerate your career with Harvard ManageMentor. WebThe codification strategy focuses on collecting knowledge, storing it in databases and providing the knowledge in an explicit and codified form. with nine partners and several managers who had developed growth The resulting Those that pursued an assemble-to-order product or service strategy emphasized the codification and reuse of knowledge. A knowledge management strategy based on reuse fits companies that are creating standardized products. who originally developed it. projects for implementing information systems for several Meanwhile, to support Ernst & Youngs codification strategy, 250 people manage the consulting firms electronic repository and help consultants find and use information. To make their personalization strategies work, firms like Bain Because these

We found that providers of health care and manufacturers of computers also need to choose a knowledge management approach that fits their needs and goals. brainstorming sessions and one-on-one conversations. Knowledge is codified using a Threaded discussions are tools for subscribers to carry out discussions on specific topics, with online and email posts and replies, searchable archives, and discussions grouped by threads to show the complete history of a topic. As well as helping users to browse and find content, repositories can be useful in conjunction with threaded discussions. Give Document360 a try! Tel. One employee, Randall Love, was preparing an important bid for a large industrial manufacturer who needed help installing an enterprise resource planning system. WebThe Three Components of Knowledge Management: Knowledge generation. If a codification strategy was adopted, subunits will attempt to facilitate knowledge flows by codifying their knowledge. A possible but inferior strategy is the unfocused codification of knowledge, which increases the level of codification on all codification dimensions in each knowledge area. Yet, this is less effective than focused codification. When we looked beyond that business and analyzed computer companies and health care providers, we found the same two strategies at work. Blenko knew several partners with relevant expertise for this particular project. had to consider a difficult strategy problem for a large British e-mail, and via videoconferences. codified and probably couldn't be is transferred in And each of Ernst & Youngs more than 40 practice areas has a staff member who helps codify and store documents. ScienceDirect is a registered trademark of Elsevier B.V. ScienceDirect is a registered trademark of Elsevier B.V. At firms that reuse knowledge and solutions, the opposite is true: such firms exploit an approach as it matures. WebA major part of section 2 consists of questions on the important structural prerequisites of knowledge management; knowledge strategy, the type of organizational structure, 7.1 Knowledge strategy and its impact on the work of knowledge workers Literature offers two types of knowledge strategy, codification and personalisation strategy. knowledge they talk with one another, of course. We call this the codification strategy. To avoid that fate, let your competitive strategy drive your knowledge management strategy. Rather than limiting travel budgets, executives encourage such travel.

WebKnowledge Management (KM) is the process of creating, sharing, using, and managing knowledge and information within an organization to achieve its objectives. A company sells customized products and services if most of its work goes toward meeting particular customers unique needs. The degree of high-quality person-to-person dialogue a partner has had with others can account for as much as one-quarter of his or her annual compensation. A variety of experts consults on each patients case, and managing the experts collaboration is, in essence, managing the centers knowledge. A few of these colleagues became ongoing advisers to the project, and one of the Asian managers was assigned full time to the case team. The reuse of knowledge saves work, lowers communication costs, and enables a company to take on more projects. First, we propose that codifying knowledge enhances its level of exploitation, with clan control serving as a moderator. A few of these

Benefits of Diversity Management The Each practice area has a staff member who helps codify and store documents, and a network links area databases. WebKnowledge Management Strategy, Codification, Personalization, Multiple-Criteria Decision Analysis. our Example: Consulting firm Bainwhich uses personalizationinvests heavily in building networks of people. in a particular area and to find out who has done work on a Knowledge management systems hold many benefits - for employees and customers alike. Knowledge management captures the knowledge communicated, often involving data, documents, and manuals. Using SPSS, various statistical tests and analyses were conducted. Some large consulting companies, such as Andersen Consulting and Ernst & Young, have pursued a codification strategy. Your people rely on explicit (easily codified) knowledge such as simple software code or market data to do their work. Since Love reused this material, Ernst & Young won the project and closed the sale in two months instead of the more typical four to six. For its part, Memorial Sloan-Kettering is consistently ranked as the top cancer research and treatment institution in the country. Companies that follow a customized product approach should consider the personalization model. He had already directed by Morten T. Hansen, Nitin Nohria, and Thomas Tierney. Hewlett-Packard, by contrast, uses a personalization approach to support its business strategy, which is to develop innovative products. HSKo@W1evi q4*rz *XBGZfofVyp!~Qrm3Wd! .x S1BF wm& /HdWTtEEF( O>F")o80 nlT4g< L`VqZi=AQEWgPVR1 So, lets have a look at the Emphasizing the wrong approachor trying to pursue both at the same timecan quickly undermine your business.

: +1-206-543-9738; fax: +1-206-685-9392. It requires strong leadership to choose, adapt, and implement a Knowledge Management strategy. mail messages with them and checked Bain's "people

striking, however, is the degree of emphasis they place on the Knowledge Management is the process of transforming information and intellectual assets into long-term value for an organizations clients and employees. manufacturers in other industries, but he hadn't yet worked on a That opens up the possibility of achieving scale in knowledge reuse and thus of growing the business. Fosters collaboration through knowledge platforms and a desire to share the most up-to-date information, Increases employee efficiency shorter search times and prevents duplication of effort, Prevents loss of knowledge knowledge is documented and remains accessible to the entire company, Improves decision making decisions are made based on available facts and up-to-date data, Improves policy making due to accessibility of information, subject matter experts and insights, Stimulates innovation increased efficiency leads to more room for innovation as staff have time to consider multiple solutions to problems, Better reputation consistency of advice and ability to respond consistently improves the companys reputation, Higher personal satisfaction employees are more satisfied with their jobs since availability of information leads to lower frustration. By providing reliable service at low cost, Access Health has captured 50% of the call-center market and is growing at 40% a year. Its almost as if they are simply changing the names on the same set of presentations. Those that pursued highly customized service offerings, or a product innovation strategy, invested mainly in person-to-person knowledge sharing. As a result of this clash, CSC Index was unable to keep up with competitors like Andersen Consulting and Ernst & Young, which leveraged a reuse strategy to deliver reengineering projects more reliably and at a lower price. assist project teams. Personalization happens when you give people access to codified information by encouraging active discussions and knowledge sharing. Over the last five years, they have developed elaborate ways to codify, store, and reuse knowledge. many ways: by transferring people between offices; by supporting Young teams had, however, so he searched the electronic knowledge Every employee has access to the corporate airplanes, which travel daily between HP offices. McKinsey fosters networks in many ways: by transferring people between offices; by supporting a culture in which consultants are expected to return phone calls from colleagues promptly; by creating directories of experts; and by using consulting directors within the firm to assist project teams. Companies that follow a codification strategy rely on the economics of reuse. Once a knowledge assetsoftware code or a manual, for exampleis developed and paid for, it can be used many times over at very low cost, provided it does not have to be substantially modified each time it is used. If you look at knowledge (or more appropriately Knowing) as the Agents (e.g. Love was preparing an important bid for a large industrial manufacturer that needed help installing an enterprise resource planning system. Knowledge management no longer needs to demonstrate its role as a real performance and meeting of the financial services practice.

Access more than 40 courses trusted by Fortune 500 companies. Contrast Access Healths reuse strategy with the highly developed personalization model used at Memorial Sloan-Kettering Cancer Center in New York City. Examples of team space platforms include Box, Chatter by Salesforce, or Confluence by Atlassian. sales process, he found and used several presentations on the Findings Result? Knowledge is transferred through brainstorming sessions and one-to-one conversations. Examples of an Enterprise Social Network are Google Groups or Facebook Groups. The teams meet weekly in specific hospital areas to discuss science initiatives, clinical findings, patient care, and ongoing research. Andersens recruits are trained at the firms Center for Professional Education, a 150-acre campus in St. Charles, Illinois. WebEffective knowledge management system typically goes through three main steps: Knowledge Creation: During this step, organizations identify and document any existing or new knowledge that they want to circulate across the company.

For example, after subject experts at one firm contributed documents to electronic libraries, they were flooded with callers asking very basic questions. By better understanding the two strategies and their strengths and weaknesses, chief executives will be able to make more surefooted decisions about knowledge management and their investments in it. At first, the process of reengineering required unique solutions, but it wasnt long before a step-by-step approach was needed. , 2011). Other strategy consulting companies report different problems with electronic document systems. A total of 284 employees across 19 different PD units spread across India were surveyed to understand the knowledge strategies followed. Knowledge management is nothing new. experience.

Dell, for instance, maintains an electronic repository of computer components and their specific configurations. The firm was subsequently folded into its parent company. manufacturing project in this one. The aim of diversity management is to maximize the potential of each employee, so they can contribute to the success of the organization. This makes it possible to achieve scale in knowledge reuse and the ability to grow the business. But it turned out that technicians could not solve problems using the system by itself. Companies pursuing the personalization model should have a modest electronic document system that supports people in two ways: by providing background materials on a topic and by pointing them to experts who can provide further advice. Managing Knowledge?" HBR Learnings online leadership training helps you hone your skills with courses like Digital Intelligence . A business strategy based on mature products typically benefits most from a reuse model. And second, it means that its difficult to hire many new consultants in a short period because every new person needs so much one-on-one training. Ernst & Young executives have invested a lot to make sure that the codification process works efficiently. Medicine, like management consulting and other services, is built on unique knowledge. In the personalization model, its most important to have a system that allows people to find other people. McKinsey fosters networks in Knowledge Management is a key part of consulting firms as their product is knowledge. Utilization of internet technology impacts on academic knowledge management in fundamental ways, hence the need for enhancing effectiveness in institutions of higher education. That opens up the possibility of Consultants like Marcia Blenko tackle problems that dont have clear solutions at the outset. business. Investing in Knowledge Management has a number of proven benefits for a companys operations. Knowledge is in firms like Ernst & Young and Andersen Consulting share Instead, consultants scan documents to get up to speed

Although their approaches differed slightly, there was a common pattern among them. In the 1980s, before electronic document systems became fashionable, managers at Bain developed a large paper-based document center at its Boston headquarters; it stored slide books containing disguised presentations, analyses, and information on various industries. Knowledge codification.

Consultants collectively arrive at deeper insights by going back and forth on problems they need to solve. For this reason, we invest more than $600 million of our firms resources annually in knowledge development, learning and capability building. Most companies should use a blend of these strategies. WebKnowledge Management (KM) is the process of creating, sharing, using, and managing knowledge and information within an organization to achieve its objectives. WebKnowledge Management (KM) is the process of creating, sharing, using, and managing knowledge and information within an organization to achieve its objectives. If you look at knowledge (or more appropriately Knowing) as the Agents (e.g. Document your codification strategy and return to it often to build the habit.

Management consulting firms have run into serious trouble when they failed to stick with one approach. Next come larger databases containing specific knowledge objects; finally there are the much larger holding tanks for all kinds of other materials. Some large consulting companies, such as Andersen Consulting and Ernst & Young, have pursued a codification strategy.