What are you doing about Knowledge Management?
August 4, 2008
In Foresight 2020, a report from the Economist Intelligence Unit on Corporate trends, Knowledge Management was singled out as a critical corporate issue.
Knowledge management. Running an efficient organisation is no easy task but it is unlikely on its own to offer lasting competitive advantage. Products are too easily commoditised; automation of simple processes is increasingly widespread. Instead, the focus of management attention will be on the areas of the business, from innovation to customer service, where personal chemistry or creative insight matter more than rules and processes. Improving the productivity of knowledge workers through technology, training and organisational change will be the major boardroom challenge of the next 15 years.
So what is Knowledge Management (KM). Simply put, there are two types of knowledge. Tacit knowledge is often known as “expert knowledge”, (this is what is stored in our brains), which is often difficult to explain and intangible. Then there is “explicit knowledge,” which is tangible and can be codified in books, manuals and specifications. Tacit knowledge is vital to the success of any organization. Knowledge Management is the process of capturing, organizing and distributing this knowledge from many stakeholders in a manner that yields competitive advantage and value for the organization.
KM has a major business issue in the past few years as millions of baby boomers are planning to retire over the coming decade. Millions of baby boomers turned 60 in 2005, those who haven’t already retired are certainly planning to do so soon. When they leave, the knowledge they acquired over the course of their long careers leaves with them – unless companies take the initiative to capture the knowledge stored in their brains.
Here’s what some organizations are doing –
| COMPANY |
INITIATIVE |
| Procter & Gamble and Eli Lilly | Formed YourEncore, creating a pool of retired employees that each company could call upon for temporary help |
| John Deere | Regularly hires back retirees to teach, lead projects and participate in product development. |
| Quest International | To transfer knowledge to younger employees, senior experts are given responsibility for two or three junior application specialists. Quest uses this “buddy approach” to make sure veteran specialists guide younger colleagues and help them gain experience |
| Northrop Grumman, Aerotek, Inc., Hewlett-Packard Consulting and Integration Japan | Have integrated communities of practice (CoPs) into their knowledge management repertoire. These CoPs meet regularly in person and on-line. Older and younger workers share current information, best practices, and personal stories of success and failure. And they ensure the survival of tacit knowledge – knowledge that cannot be codified but is based on years of experience on the job and can be transmitted only from person to person. |
| Jet Propulsion Laboratory (JPL) | Uses storytelling for a different type of knowledge retention. Since early 1999, monthly storytelling sessions have been held in JPL’s library. These sessions, which usually are videotaped, often bring NASA veterans back to recount what it was like being part of old missions. This effort is intended to help socialize newer employees into the JPL culture and to connect them with the lab’s history and mission of “doing what no one has done before.” |
Adapted from “The Boomer Exodus: Ready to Pass the Torch?”, Alice Graves
While these forward looking companies both recognize the coming knowledge loss and are taking action, they are too many who are not.
Many U.S. organizations are failing to capture critical workforce knowledge and experience from older employees facing retirement, and few organizations are transferring that knowledge to newer employees, according to the results of a survey released by Accenture.
The survey of more than 500 full-time U.S. workers between 40 and 50 years of age found that nearly half (45 percent) of respondents’ organizations do not have formal workforce planning processes and/or tools in place to capture their workplace knowledge.
For those companies in the 45% here is a worthy read. It is time to get those geezers and millennials collaborating.
Piercing The Corporate Veil
August 1, 2008
Publicly traded companies are extremely careful about what information they release to the public. There is an obvious need to protect proprietary information. However there are a number of sites that help peer past the “corporate veil”. Yes, big companies like to show their good side, but some have misused the extensive power they have to do downright nasty deeds.
I just found a new site Glassdoor that permits employees and former employees to post comments about their companies. Registration is free and permits you to post your views.
You get top management ratings, salary information for positions in the company and company reviews. This is an unusual peek inside of the company. One caution there is always the possibility that disgruntled employees may do a dump. While I haven’t done an extensive analysis, the CEO ratings seem to be in line with the companies ratings on “Best Of” lists.
Another interesting site is Crocodyl.org (Collaborative Research On Corporations). Free registration is required. The input pool is larger than the Glassdoor, “Our aim is to stimulate collaborative research among NGOs, journalists, activists, whistleblowers and academics from both the global South and North in order to develop publicly-available profiles of the world’s most powerful corporations.”
The site has rich content and detailed reports on companies. It also has research tools and a whistleblower section. Another example of the Internet providing an information source for exposure of good and bad company practices.
Seems that the new David just got his cyber sling to battle with corporate Goliaths.
Spirituality And Business Oh Really?
July 31, 2008
Yes really -
Dozens of companies — from Coca-Cola to Microsoft — are becoming more “faith-friendly” as they welcome the spirituality of their employees, allowing groups to meet for Bible study or to discuss business ethics with a religious twist. The Centers for Disease Control and Prevention in Atlanta has a Christian Fellowship Group, and the management at Bear Stearns, a Wall Street finance house, endorses and funds a weekly Torah class. Faith at the office. Why not? USA Today, 07347456, JUL 30, 2007
The subject hit the mainstream press in 1999 with a cover story in BusinessWeek –
The article indicated that the “largest driver of this trend is the mounting evidence that spirituality minded programs in the workplace not only soothe workers’ psyches but also deliver improved productivity.” The magazine quoted one business professor as saying: “Spirituality could be the ultimate competitive advantage.”
Since publication of the article two developments that accelerated the movement toward workforce spirituality — new generations at work and the 9/11 tragedy. The new generations, to their credit, are not willing to sell their souls to the company. They want more meaning for their work and they are passionate about a balanced work/life.
9/11 caused a seminal change in workers priorities. It caused people reconsider their priorities and to focus on values, family, friends and faith. According to Dr. David W. Miller, Executive Director, Yale Center for Faith & Culture and an Assistant Professor (Adjunct) of Business Ethics at the school,spirituality-at-work movement is still in its early stages and companies are uncertain how to respond. This trend seems to have legs since Patricia Aburdene, futurist and author in her book, Megatrends 2010, she identifies “spirituality in business” as one of the top seven megatrends of the coming decade.
As might be expected, some entrepreneurs have responded to the trend and launched websites. Perhaps the most prominent is BeliefNet.
It is inclusive of every religion and is content rich. Inspirational readings, blogs, community and more all related to spiritual matters. I just don’t get how the horoscope fits in. Oh yes, there are ads. After all the site was funded by venture capitalists and was bought in 2007 by Fox Entertainment Group.
If you are looking for resources about applying spirituality visit Workplace Spirituality.
This is a non-commercial site but there are useful articles. A additional good site is Yale University Ethics and Spirituality in the Workplace. A worthy read is the first download from the Conference Board.
Now go out and get the Spirit.
Use Your Website to Promote Your Culture
July 29, 2008
Some of my posts touched on the importance of Corporate Cultures. Culture affects how employees behave. It also has an influence on how the company is perceived by external stakeholders. So making your Culture visible is imperative and an effective method is to simply use your website.
Some of the “Best Companies” lists published by magazines, consultants and other sources are useful sources of competitive intelligence to get started. However, “Best Company Cultures” ratings are virtually non-existent. I was able to find one in Canada. It is Waterstone Human Capital’s Canada‘s 10 Most Admired Corporate CulturesTM . The 2007 winners are –
1. WESTJET AIRLINES LTD. www.westjet.com
2. FOUR SEASONS HOTELS INC. www.fourseasons.com
3. BOSTON PIZZA INTERNATIONAL. www.bostonpizza.com
4. ROYAL BANK OF CANADA. www.royalbank.com
5. YELLOW PAGES GROUP CO. www.ypg.com
6. MAPLE LEAF FOODS INC. www.mapleleaf.ca
7. MANULIFE FINANCIAL CO. www.manulife.com
8. PUROLATOR COURIER LTD. www.purolator.com
9. TIM HORTONS INC. www.timhortons.com
10.TORONTO DOMINION BANK FINANCIAL GROUP www.td.com
Step one would be to visit the websites of the top rated companies to get some ideas on how to organize your Culture section. Visit the top company, WESTJET and you will see the essential ingredients -
You need to post a short description of the Culture statement, mission vision and values. You could stop here but anything that reinforces these items should be included.
If you visit Toyota Motors, a company that appears on various “Best Company” lists, you find a more glitzy and subtle approach. TOYOTA MOTORS
There are some issues with the Toyota approach, the essential ingredients not as explicit as WESTJET. You have to search to find any mention of culture. I finally found a culture statement buried in Environment Section . Toyota has a good story to tell, they just need to flaunt it.
The lesson learned is that if you want to display your Corporate Culture, keep it focused and make it easily visible.
Best Corporate Reputations
July 24, 2008
There is no shortage of lists for Best Companies — Best Companies For Working Mothers, Employees, Corporate Citizenship, Corporate Responsibility and on. I’ve followed these lists since they give you a peek into what is going on in the companies on the lists. They provide a cheap method for competitive intelligence.
Then I started to think about which of these lists are themselves “the best”. After some reflection, I decided to take a closer look at Corporate Reputation ratings –
“Corporate reputation should be considered as much more than simply a brand emblem in the marketplace. Rather, it is a window to the fundamental character of a company and its leaders and as such is relevant to all stakeholders…” Harvard Professor Stephen Greyser
Corporate Reputation Ratings
|
INDEX |
CANDIDATES |
MEASURES |
| Reputation Institute | ‘most visible companies’* |
|
| Harris Annual RQ | 60 Most Visible Companies* |
|
| Fortune – Most admired | Fortune 1000, Global 500 |
|
* AKA Big Companies
Now let’s look at the top 5 companies for each index.
|
Reputation Institute |
Harris Annual RQ | Fortune – Most admired |
| Toyota Motor | Apple | |
| Johnson & Johnson | Berkshire Hathaway | |
| IKEA | Intel | General Electric |
| Johnson & Johnson | General Mills | |
| Tata Group | Kraft Foods | Toyota Motor |
Kudos to Google, Toyota and Johnson & Johnson. They all appear on at least two of the indices.
All three Corporate Reputation ratings are comprehensive in terms of measures that comprise their indices. These are perhaps the most in-depth assessments of corporate practices. In addition, they measure the companies impact on most stakeholder groups. My only concern is that the focus is on large companies. Too bad because smaller companies are often more agile in applying innovative business practices.
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