Picking Investments in Knowledge Management Olivier Serrat

2010

The views expressed in this presentation are the views of the author/s and do not necessarily reflect the views or policies of the Asian Development Bank, or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this presentation and accepts no responsibility for any consequence of their use. The countries listed in this presentation do not imply any view on ADB's part as to sovereignty or independent status or necessarily conform to ADB's terminology.

The Limitations of Traditional Metrics

What can be measured is not necessarily important, and what is important cannot always be measured.
There is a lack of systematic and comprehensive assessment tools to prioritize return on investments in knowledge management. The lack of assessment tools may owe to:

The difficulty in demonstrating direct linkages between investments in knowledge management and organizational performance. The miscellany of possible knowledge management initiatives, which calls for both quantitative and qualitative approaches.

Common Traps
When prioritizing investments in knowledge management, common traps lie waiting:
Delaying rewards for quick wins; Using too many metrics;

Implementing metrics that are hard to control; and

Focusing on metrics that tear people away from business goals.

A Purposeful Medley of Insights

A purposeful medley of insights can help pick investments in knowledge management to cover:
A time management approach to full agendas that focuses on importance and urgency; Generic features of a portfolio of knowledge management initiatives;

Ways to map knowledge management initiatives by knowledge agent, form of knowledge, and core knowledge activity; Four broad aspects that sustain innovative organizations;

A Purposeful Medley of Insights

Five areas of value creation in knowledge products and services;
Ways to locate knowledge management initiatives in an options space; A multi-staged review process to underpin knowledge product and service development; and An approach to strategic management that balances the financial perspective against others.

Eisenhower Matrix
High

Quick fix
Urgency

Now!

Low

Drop it

Schedule time

Importance

Low
Note: Dwight Eisenhower is the originator of the matrix.

High

Source: Stephen Covey. 1989. The Seven Habits of Highly Effective People: Restoring the Character Ethic. Simon and Schuster.

Knowledge Management and Investment Features

Time to Impact

Risk High Expanding or Defending Medium Low

Building

Exploring Strategic Objective

Source: Adapted from Amrit Tiwana. 2000. The Knowledge Management Toolkit: Orchestrating IT, Strategy, and Knowledge Platforms. Prentice Hall.

Mapping Knowledge Management Investments

Identify Intra- and InterOrganizational Domain
Tacit
Business Intelligence

Create

Store

Share

Use

Data Warehouse

Explicit Tacit
Benchmarking Communities of Practice Innovation, Synergies, Creativity

Group

Internet

Explicit

Tacit

Individual

Competencies, Employee Learning and Development Yellow Pages

Explicit

Source: Adapted from Charles Despres and Danile Chauvel. 2000. How to Map Knowledge Management. In Mastering Information management, edited by Donald Marchand and Thomas Davenport. Prentice Hall.

Innovative Knowledge Product and Service Development

Organizational Culture Ability to Execute and Completeness of Vision

Superior Client Value

Organizational Structure

Knowledge Products and Services Development

Source: Adapted from Simon Knox. 2002. The Boardroom Agenda: Developing the Innovative Organization. Corporate Governance: International Journal of Business in Society. Vol. 2 No. 1: 27-36. Emerald Group Publishing Limited.

Value Creation in Knowledge Products and Services

Process Focus

Innovation Focus

Client Focus

Value

Financial Focus

Human Focus

Source: Paul Iske and Willem Boersma. 2005. Connected Brains-Question and Answer Systems for Knowledge Sharing: Concepts, Implementation, and Return on Investment. Journal of Knowledge Management. Vol. 9, No. 1: 126-145. Emerald Group Publishing Limited.

Value-to-Cost Ratio
< 1.00
Project A

1.00
Low

> 1.00
Project B

Project C

Project D

Project E
High

Volatility
Source: Adapted from Amrit Tiwana. 2000. The Knowledge Management Toolkit: Orchestrating IT, Strategy, and Knowledge Platforms. Prentice Hall.

The Knowledge Product and Service Development Process

Client Insights Testing Development Launch

Cost

Client Insights Concept Clearance Ideas Search

Evaluation
Go
Stop

Time
Source: Adapted from Simon Knox. 2002. The Boardroom Agenda: Developing the Innovative Organization. Corporate Governance: International Journal of Business in Society. Vol. 2., No. 1, pp. 27-36. Emerald Group Publishing Limited.

Balanced Scorecard
Financial Perspective
What is important to our shareholders?

Client Perspective
How do clients perceive us?

Learning and Growth Perspective

Are we innovative and ready for the future?

Business Process Perspective

Which internal processes can add value?

Source: Robert Kaplan and David Norton. 1992. The Balanced Scorecard: Measures that Drive Performance. Harvard Business Review. January-February: 71-80.

Matching Tools to Competence

Competence is the
state or quality of being adequately or well qualified to deliver a specific task, action, or function successfully.

specific range of knowledge, skills, or behaviors utilized to improve performance.

Today, sustainable competitive advantage derives from strenuous efforts to identify, cultivate, and exploit an organization's core competencies, the tangible fruits of which are composite packages of products and services that anticipate and meet demand.

Matching Tools to Competence

Core competencies are integrated and harmonized abilities that provide potential access to markets;
create and deliver value to audiences, clients, and partners; and

are difficult for competitors to imitate.

Core competencies depend on relentless design of strategic architecture; deployment of competence carriers; and commitment to collaborate across silos. Core competencies are the product of collective learning.

Competencies for Knowledge Management and Learning

In the age of competence, one must learn before, during, and after the event. Knowledge solutions lie in the areas of:
Strategy Development Management Techniques Collaboration Mechanisms Knowledge Sharing and Learning Knowledge Capture and Storage

Competencies for Knowledge Management and Learning

Strategy Development
A strategy is a long-term plan of action to achieve a particular goal.

Behavior and Change

Emergence and Scenario Thinking

Institutional Capacity and Participation

Knowledge Assets Marketing Organizational Learning Partnerships and Networks of Practice

Competencies for Knowledge Management and Learning

Management Techniques
Leadership is the process of working out the right things to do. Management is the process of doing things right. Branding and Value Complexity and Lateral Thinking

Linear Thinking
Organizational Change Talent Management

Competencies for Knowledge Management and Learning

Collaboration Mechanisms
When working with others, efforts sometimes turn out to be less than the sum of the parts. Too often, not enough attention is paid to facilitating effective collaborative practices. Communities of Practice and Learning Alliances Collaborative Tools Leadership

Social Innovations
Teamwork

Competencies for Knowledge Management and Learning

Knowledge Sharing and Learning
Two-way communication that take place simply and effectively build knowledge.

Creativity, Innovation, and Learning

Learning and Development Learning Lessons Dissemination Knowledge Capture and Storage Knowledge leaks in various ways at various times. Knowledge Harvesting Reporting Technology Platforms

Knowledge Management Initiatives in ADB

Strategy 2020 identifies Knowledge Solutions and Partnerships as two of five drivers of change. Knowledge Management in ADB moves ADB to improve its organizational culture, management systems, business processes and information technology solutions, communities of practice, and learning and development mechanisms.
Enhancing Knowledge Management under Strategy 2020: Action Plan (2009-2011) delivers knowledge solutions and knowledge services from four strategic thrusts.

Enhancing Knowledge Management under Strategy 2020: Plan of Action (2009-2011)

Sharpening the Knowledge Focus in ADB's Operations (Add value at regional, country, and project levels)

Empowering the Communities of Practice (Collaborate for knowledge generation and sharing)

Strengthening External Knowledge Partnerships (Align and leverage external knowledge)

Further Enhancing Staff Learning and Skills Development (Enhance opportunities for staff to learn)

Clarifying Knowledge Management and Learning Strategies

Enhancing Knowledge Management under Strategy 2020: Knowledge Management Results Framework (20092011)
Integrating Knowledge Management into Project Design and Implementation Developing a Taxonomy of ADB's Knowledge

Exploring the Knowledge Management Agenda that Key ADB Documents Promote
Encouraging Reference to the Learning for Change in ADB Book Producing the Learning in Development Book

Sharpening the Knowledge Focus in ADB's Operations

Conducting the Most Admired Knowledge Enterprises Survey Conducting the Learning for Change in ADB Survey Conducting the Survey of Demand for Knowledge Products and Services Through RMs Generating Knowledge Solutions and Producing the Knowledge Solutions Compendium

Empowering Communities of Practice

Overseeing and Monitoring CoPs Preparing Highlights of the Annual and Triennial Sector and Thematic Reports and the CoP Accomplishment Report Improving Knowledge Sharing and Enhancing Communication Among CoPs Further Enhancing Staff Learning and Skills Development in CoPs Continuing the Work of the Community of Interest in Knowledge Management and Learning Reviewing and Rationalizing the Terms of Reference of the Knowledge Management Coordinators

Empowering Communities of Practice

Empowering Communities of Practice

Strengthening External Knowledge Partnerships

Drafting Guidelines for Knowledge Partnerships
Sponsoring and Producing Knowledge Showcases Engaging in Knowledge Sharing Activities with External Audiences Closing TA 6295-REG: Establishment of Regional Knowledge Hubs

Further Enhancing Staff Learning and Skills Development

Delivering Face-to-Face and Designing Online Learning for Change Primers
Organizing Presentations on Recent Developments and Tools in Knowledge Management and Learning

Organizing Short-Term Staff Exchanges with other Development Institutions

Further Enhancing Staff Learning and Skills Development

Delivering the Knowledge Management and Learning Series

Promoting Knowledge Management and Learning

Building and Enriching ADB's Living Archive Devising a Sector and Thematic Aggregator Conducting Surveys to Solicit Improvements to Web pages and Assess the Usefulness of Knowledge Products Expanding the Knowledge Management and Learning Web pages

Promoting Knowledge Management and Learning

Promoting Knowledge Management and Learning

Updating ADB InFocus Materials on Knowledge Solutions and Communities of Practice Contributing to the ADB Annual Reports 2009 and 2010 Developing IT applications and enhancements for Knowledge Management Center products Managing RSDD's Web pages Managing Key Documents and Contacts Databases Developing Internal and External Marketing Platforms and Channels

Promoting Knowledge Management and Learning

Promoting Knowledge Management and Learning

Producing Knowledge Management and Learning Tools and Collaterals

Building a Knowledge-Centric Organization

Extending and Sustaining Knowledge Management and Learning Full Implementation

Pilots and Measures

Change Management

Information and Communication Technologies Awareness Strategy

Organizational Design, Culture, and Learning Target Areas

Communities and Networks of Practice and Learning Alliances

Knowledge Taxonomy

Benchmarking

Knowledge Management Center

Olivier Serrat
Principal Knowledge Management Specialist Knowledge Management Center Regional and Sustainable Development Department Asian Development Bank
knowledge@adb.org www.adb.org/knowledge-management www.facebook.com/adbknowledgesolutions www.scribd.com/knowledge_solutions www.twitter.com/adbknowledge