Friday, July 3, 2009

Knoweldge Management as a Change Management Strategy

Knowledge Management (KM) has slowly made a mark in the American business landscape. Although it seems that the European Pacific Rim companies are finding greater value in the concept. Some in the business world have deemed Knowledge Management a lofty ambition that may not be a practical pursuit in today’s economy. Others are seeing the value of capturing the pertinent knowledge resident in the minds of their workforce realizing that due to attrition, some of this information will be gone forever when the worker walks out the door. Most of the prominent thinkers in the KM arena have focused their attention to a specific piece of the KM lifecycle. Larry Prusak, Tom Davenport and Nonaka and their general concepts have since been taken over by those seeking to explore and exploit specific techniques to sharing or codifying knowledge that benefits their organizations with repeatable, sustainable information. And while this deeper exploration is important to the evolution of KM as a legitimate business practice, the case for corporate strategy is still an important one to make.
The practice of KM encompasses all of the information a company uses to make decisions and achieve strategic goals and objectives. Sometimes this information is still between the ears of the employee who understands it. How do you leverage this information to improve your organization’s competitive position? How do you make this accessible to the whole organization in an actionable format? First the categories of information available must be explained, including both structured data in databases, data warehouses and data marts and unstructured data such as word processing documents, Web pages and electronic mail messages.

Tacit and explicit expressions of what we know, but don’t always record-
Knowledge in is between the ears – what then of the very important information that is never recorded anywhere? What becomes of the 30 plus years of information, business intelligence and intellectual capital that reside in the mind of the worker who is accepting the gold watch and walking out the door? This very valuable business intelligence must be extracted and codified so the business does not lose the ability to capitalize on the experiences and knowledge of its workforce – past, present and future.

Codification of that “working” knowledge provides an important central repository for the collection, analysis, and replenishment of the information important to the strategic success of an organization. However the tools are only as useful as the process and culture allow them to be. Do you codify all intellectual capital of all knowledge workers in your organization? While there is merit to extracting every nugget of information that may benefit your organization it would prove to be a logistical jumble of information that may or not be of any benefit in the long run. However, tying this collection effort to the high priority of meeting the strategic goals and objectives of the organization will give collection efforts purpose and focus.
Is the effort worth the return? What is the business advantage to managing organizational knowledge?

Management Advantages
How often are previously made decisions redundantly made or time spent investigating if anyone has addressed the issue before? Keeping all the structured data that backs up an analysis plus the actual documentation, such as word-processed documents, email trails, etc., together via a content management solution. Strategic planning starts with understanding what decisions have been made in the past, the outcomes of those decisions and the current competitive environment. Time to make a decision is an important factor in the success of any business. Having all of the information accessible from one place is cuts down on the time it takes to progress through the Knowledge Process.

Human Factors Consideration
How do you access this wealth of knowledge that resides “between the ears” so to speak? There are two challenges to this issue. The first and the more challenging issue has nothing to do with technology. It is cultural. Organizations generally compete internally as much as they compete externally. Budget dollars, FTE’s, the favor of the CEO are all examples of the stakes within an organization. What then gives one functional area the edge over another? The advantage comes from the intellectual capital that resides within their work groups. Knowledge is power and internal power traditionally reaps the benefits due only to a few highly competitive survivors. Unfortunately, this type of energy better serves the organization when turned outwardly at industry competitors. So, how do you get the sharing of knowledge for the benefit of the organization to happen? The only way to achieve this shift in the cultural paradigm is to institute a change management program that encompasses the processes and culture of the organization and propels and compels the people to make the necessary changes to achieve the competitive goal. Part of the change management effort may involve process redesign as the tools and technology create opportunity to explore new areas of the business that were untouchable before due to the workload. Positioning this as an opportunity rather then a threat will ease the change for the workforce and create enthusiasm around the opportunity to create new prospects for their business.

KM as a Change Management Strategy
Successful change management strategy depends on the management of corporate knowledge assets. The competitive landscape of a global economy is information dependant. Knowing your markets, customers and high value products or services depends on good information, both in structured and unstructured form. Being able to leverage and interpret that information is a key factor in the success of a business in the 21st century economy. The components of KM have been practiced in business for decades. However, pulling all the pieces together into a management strategy to capture corporate intellectual and information assets is where the value is or will be realized.

Sunday, May 31, 2009

Change Management Strategies: Know Yourself!

Knowing yourself, your limitations, weaknesses and strengths provides an advantage when considering the ability to share and use information effectively. The same is true with an organization made up of people. Knowing the culture of the organization is an indicator of corporate personality. Collectively, the organization's personality dictates how it will adapt to a change in its environment. Once determined, the correct change management path can be prescribed and information sharing can propel the business value of uncovered knowledge beyond expectations. The synergy experienced by a free flow of relevant information has great impact on your organization's ability to leverage its information assets.

An organization's culture environment is comprised of several dimensions. Some of this dimensionality will have a more direct influence than the others on any substantive change. These dimensions are Organizational Integration, Learning Culture and Organization Temperament. When taken into account along with the demographics of an organization, an effective change management plan and messaging can be developed that will assist in an organization in moving forward with change, rather than being stuck in the chaos of miscommunication and uncertainty. We will examine Organizational Integration and look at the others in future posts.

Three dimensions reflect the level of integration within organization. These dimensions are 1. Level of interaction with others. The term ‘others’ refers to both other organizations and groups within Organization as well as co-workers. 2. Level of process awareness. This dimension examines the level of understanding each respondent believes to have regarding other work areas functions, processes, objectives, goals and whether these items are discussed freely and regularly. 3. Management Involvement. This dimension refers to the interaction and effectiveness of those employees who hold a management position at the organization.

Level of interaction with others
Overall, the majority of the respondents believed that they understand which other functional areas are involved in their processes. This dimension examines whether co-workers know the other functional areas involved in their work processes; whether they only understand the work goals and objectives of other functional areas. More importantly do these cohorts understand to a very strong degree the problems and difficulties of co-workers and visa verse. This dimension allow explores work processes inhibited by "siloed" functional areas and organizational hierarchies.

Level of process awareness
Overall, do co-workers or those employed in the same organization, but in different groups have an awareness of other's business processes and of the interactions with their own processes. Can they communicate with co-workers in other groups about process issues that affect both parties? Also, do other co-workers understand each other's functional area’s goals and objectives. Within their own departments, can action and work plans can be discussed freely and openly to a large degree and can they change a work process that is not working effectively.

Management Involvement
Overall, is management involvement supportive of the work efforts? Lack of management communication inhibits work processes. The organization must carefully communicate its vision, core capabilities and key success factors to the employee population. Leadership priorities can inhibited work success when pet projects and other initiatives run counter to the objectives of the organization. Management's responsibility is to set the vision, guide the organization and ensure qualified resources are available to achieve the mission.

Friday, May 15, 2009

Managing Change in a Changing World

"That is the way we do things around here." Have you ever heard that phrase when trying to affect positive change in your organization? It really doesn't matter how far-reaching the scope of your change. It doesn't matter if it is a technology implementation, a deferral from the tried-and-true market strategy or simply a change in a scheduled meeting. The ability of your organization to share knowledge and information is predicated on the cultural temperament of your organization and its pace of change. New technology and the ability to analyze complex sets of information for the purpose of decision support have introduced constant change into the business environment. If the culture of an organization is not taken into consideration, changing the manner in which information is exchanged is an uphill climb.

What Really Comprises an Organizational Culture?
Culture is a multidimensional enigma that envelops the organization. Every member of the organization contributes to the culture in some manner. The history, style of leadership, structural stability, level of work-force empowerment and the ability to adapt to a changing environment all contribute to the culture of an organization. Shaping the culture to face changes in the marketplace and environment depends in part on the ability for the organization's leadership to implement the guiding vision and mission. Every action taken must align with these vision and mission statements that express why the organization exists and how it will corporately conduct itself.

History and Background of Organization
An organization’s history and background are the foundation that can be built upon or a barrier to overcome. Some of the attributes to consider are:
The age of your organization. Many well-established companies are slow to change. If they have lasted for more than 50 years, then why do things differently? Conversely, newer organizations tend to sway in the winds of change and haven’t established roots deep enough to know how to react to new situations.

The origins of your organization. Is your firm a conglomeration of many other smaller entities or a single-site manufacturing firm? There are considerations attached to either scenario. It is important that the history of your organization is known. When the pressure of a change situation is applied, old social norms can pop up. Understanding the origins assists in devising change management strategies.

Leadership Style
How the executives and senior management interact with the rest of the organization sets the tone of an organization’s culture. Granted, these leaders cannot single handedly change the culture. (Unless they fire everyone and start from scratch, not a likely scenario.) However, their leadership style dictates how they interact with their direct reports and the general employee population. These interactions send messages that have an impact on information sharing. Is the CEO sharing information? Does the average employee know the financial health of the company or the markets to be focused upon? Leadership style typically breaks down into two main categories:

Command and Control – Task orientation tends to be the marquee of the command and control leadership style. Micromanaging the direct reports by telling them what to do, how to do it, when it should be done, by whom and where it should take place exemplifies high task-related behavior. There is only one-way communication with the exception of clarifying questions to make sure the objective is understood completely.

Delegating/Empowering – Relationship orientation tends to be more facilitative and communicative. This leadership style depends on the synergy of the group to determine the best course of action. The behaviors exhibited included facilitation, listening, supporting and mentoring the other employees so that the best possible course of action can be created together. Employee buy-in is of great importance to this leadership style.

Know Yourself
Knowing yourself, your limitations, weaknesses and strengths provides an advantage when considering the ability to share and use information effectively. The same is true with an organization made up of people. Knowing the culture of the organization is an indicator of corporate personality. Collectively, the organization's personality dictates how it will adapt to a change in its environment. Once determined, the correct change management path can be prescribed and information sharing can propel the business value of uncovered knowledge beyond expectations. The synergy experienced by a free flow of relevant information has great impact on your organization's ability to leverage its information assets.

We will be reviewing the dimensions of an organization's culture over the next few posts to continue to understand how to manage change in our ever rapidly changing world.

Wednesday, April 8, 2009

Business Lessons from Passover

Interesting Passover information
Did you know that only about 20% of the Israelites left with Moses? About 80% stayed in Egypt according to Rabbi Daniel Lapin. Before the exodus, about the same percentage actually slaughtered the lamb and put the blood on the doorpost thereby saving their own first born, Fear of offending the Egyptians kept the others from follow through. He also said the Hebrew word for Egypt means “trouble”. He also said that ancient Jewish wisdom says that the waters of the Red Sea didn’t part until the Israelites were up to their necks in the water. So, don’t be afraid to leave your current trouble and step out in faith.

So what can we take away from this as a business person operating in our own time of trouble?

1. Take the first step.
Don't let fear of what is going on around you keep you from doing what needs to be done. In these uncertain times, particularly with the media buzzing 24/7 about the falling sky, its easy to be paralyzed with fear. Don't let it happen. If you study the captains of industry in troubled economic times of past, they moved rather than stayed put when the economy was stressed. Don't be afraid. Interestingly, for you Christian business people, the Christian bible (old and new testament) states to "Fear Not" 365 times. One time for each day of the year.

2. Follow Through.
Once you take that first step in perhaps developing a new service, expanding to a new market or expanding your current offerings, then follow through! Nothing happens if you don't stay the course. And, (pardon the sports metaphor), don't quit on 3rd and goal! Dig down deep and keep focused on where you are going. Most people focus on the event that will turn their situation around and don't follow through to the end state they desire. The event may be a meeting with a highly desired client or winning a bid. The event is just the gateway. The end state (promise land if you will) is the goal. Don't lose sight of the goal.

3. Take action.
Now can you imagine what the Israelites were thinking a that water lapped up on their faces? When we watch Charlton Heston in the 10 Commandments, that Red Sea is parting way before any one's feet are moist. Well, apparently that's not the way it happened. Stepping out in faith to achieve a goal is uncomfortable. Today's business environment is uncomfortable. However, nothing will happen to change the current state of your affairs unless you take action, get into the water and start walking. START WALKING! If there is a God in heaven, (AND THERE IS)the waters will part. If you are uncomfortable you are headed for change. Change is the state of human existence.

Have a blessed Easter and Passover holiday. May the Lord God Jehovah bless you and keep you. Move forward in business and be open to all God has in store for you.

Wednesday, January 7, 2009

Happy New Year and God Bless You in 2009!

Its time to freshen your outlook and gain perspective on the new year. As you enter this new span of time, take stock in where you are today and where you would like to be this time, next year.

1. Set some goals: A new year offers a time to re-evaluate your current state. Define a vision for the end of 2009 and set some goals to achieve them.

2. Change your approach: Make your goals S.M.A.R.T. That stands for Stated, Measurable, Attainable, Reasonable and Time-bound. Goals are completed within a time frame. Objectives encompass many goals.

3. Set one self-improvement goal for 2009 that you can accomplish. Don't overwhelm yourself. An example of a good self-improvement goal would be to read one book a quarter, cut out sugar soft drinks from your diet or clean out your basement or garage by the advent of summer.

My prayer, yes prayer, for you is to enjoy the life God gave you this year. Don't let the American media depress you on a daily basis. Their biased anyway!

Monday, September 29, 2008

What measures should small businesses take to weather this economic downturn?

Chad Moutray, Chief Economist for the U.S. Small Business Administration posted this question on Linkedin.com. First and foremost, small business, which accounts for 80% of the US economic base, should not be discouraged! But, you do need to be a savvy business person. See my recommendations below:

As a small business owner that employs 10 people and a business consultant, there are a few key steps any small business person should take to weather this economic storm:

1. Cut the fat. This is the hardest thing for a small business person to do because close relationships with vendors and employees make this very personal. However, the health of the business depends upon keeping operations as lean as possible. The one area that should not be cut is marketing. However, scrutinize where your marketing budget is being spent. Are you really getting any response from that yellow pages advertisement? Figure out where you are getting return on your dollars spent and focus your spending on these marketing channels.

2. Focus your time and energy. Are you really creating benefit by attending Chamber and service club events? This is the time when you need to focus your energy in events that your potential clients attend. Get back to the basics of your business and mind your schedule.

3. Take a good look at your financial situation and make necessary changes. This is usually the last activity a small businessperson wants to spend time on and would much rather spend time on getting their product or service out the door. However, these three areas are crucial to your financial health:
a. Understand your profit margin on every unit produced by your company, whether it is by hour of service or each widget manufactured or assembled. This is the time to get the exact truth of your profit margin

b. Analyze your P&L statements weekly if not daily and make necessary adjustments. For example, we have looked at whether it is more cost efficient for our company to reimburse at the Federal mileage rate or allow employees to fill up their gas tanks. Be creative and make sure the business is gaining an advantage by what ever you chose to do.

c. Pay down debt if you are able and negotiate with your creditors to reduce interest rates and payment terms. Everyone in business knows its tight right now. Cash flow is one of the hardest issues for a small business. The credit crunch makes short term borrowing even harder to accomplish. If small business owners and vendors can work out suitable terms among themselves, it will help ease the impact of bank’s inability to serve your needs.

4. Visit your community banks and see if there are programs for financing for which you qualify. Even though we are in a credit crunch, and truthfully, most small businesses are not eligible for loan programs anyway, don’t give up on keeping a tight connection with your banker. Look for a conservative institution! Our problems started with lending institutions playing fast and loose with their assets. The conservative institutions are weathering this storm. Stick with them.

Above all, don't let the media drag you into a depression! They make their money on sensationalism. Stay focused on your core business value proposition. If you need assistance in determining what that is, get in touch with me and I'll help you figure it out.

Wednesday, June 11, 2008

The Workforce in America

Aren't you tired of people telling you that Americans don't want to work? I know that there are the few people who have an entitlement attitude or those who are physically, mentally or emotionally unable to work. But, the epidemic of non-workers described by the media and our elected officials in order to justify the use of undocumented workers (they used to be called illegal aliens), is a slap in the face to the American spirit and culture.

When my ancestors emigrated from Europe, there were no questions as to whether they would follow the rules. There was a process for entering the United States of America and if you wanted to stay, you followed the process, no exceptions. We are now faced with a societal mentality and culture that wants to make an exception for everyone who enters, regardless of the means. Not all of my fellow citizens want to make these exceptions for altruistic reasons. We have to ask if the politicians who support amnesty are looking for votes. This is short sighted. Eventually, this depletes the tax base from both sides of the equation, revenue and expenses, because the tax revenue is depleted and the cost of services rises because we are forced to take care of illegal families who require health care, food, education and housing subsidies. Believe me, they are receiving more than the tax-paying US born citizenry.

And what of the business people employing undocumented workers? These business owners are using these people like slave labor; paying them little money and offering no benefits. This action sets an unrealistic expectation for price for clients and consumers and sets an un-level playing field for competition. Meanwhile, the business owner who is not paying their fair share of taxes, Workman's compensation and other benefits makes more money for him/herself and causes legal businesses to suffer and leave the marketplace, so its not good for the local economy.

The American worker must stand up for what is rightfully theirs and make their voice heard. Insist that the laws of the land are enforced as written. If they are unclear, force your politicians to make them clear. This is a great country to live in, but it should be great for everyone, most importantly the law-abiding citizens. Do your part and take a stand on this issue. Its time.