codification strategy in knowledge management
To make their personalization strategies work, firms like Bain invest heavily in building networks of people. information, we develop 'knowledge objects' by pulling key pieces Selecting the wrong knowledge management strategy can severely limit these top performers power. And person-to-person knowledge sharing involves expensive travel and meeting time; those costs dilute the advantage that is created when codified knowledge is reused. Based on an empirical study consisted of 310 Spanish organisations and structural equations modelling, results show that both KM strategies (codification and personalisation) impacts on innovation and organisational performance directly and indirectly (through an increase on innovation capability). Recently, though, I have found that they are trying to push cookie-cutter solutions. The strategy consulting firms we studied all came to grief with document-driven systems. Codification strategies involve the transformation of tacit knowledge into explicit knowledge in order to facilitate flows of organizational knowledge. Medicine, like management consulting and other services, is built on unique knowledge. That can lead to serious problems. You create value for customers by dealing with similar problems over and over. collectively arrive at deeper insights by going back and forth on The strategy consulting firms we studied all came to grief with document-driven systems. The knowledge management system aims at preventing the knowledge from being lost or forgotten and focuses on embedding knowledge into the company culture to encourage transparency and collaboration. group of them in Europe, had videoconferences with others from 
These firms also want people who will be able to use the person-to-person knowledge-sharing approach effectively. 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. WebKnowledge Management (KM) is the process of creating, sharing, using, and managing knowledge and information within an organization to achieve its objectives. Accelerate your career with Harvard ManageMentor. Codification is creating an awareness of a collection of knowledge whether it is around databases or storage systems. manufacturing project in this one. When they overinvest in this way, they undermine their value propositionreliable systems at reasonable pricesas well as the economics of reuse. This chapter offers insight into how knowledge codification has the potential to capture varying levels of tacit content in pursuit of enhanced innovation and ultimately, competitive advantage. In all the companies and institutions we examined, managers had chosen a distinct knowledge management strategy. The two strategies are not unique to consulting. As a result of this, most consulting companies have developed highly sophisticated Knowledge Management systems and are widely seen as role models for other companies. Mckinsey fosters its networks by supporting a culture in which consultants are expected to return phone calls to colleagues very quickly, by transferring people between offices, by creating directories of experts, and using consulting directors to assist teams. 
14 A codification strategy involves turning tacit knowledge into explicit knowledge in order to facilitate flows of organizational knowledge (Schulz, Jobe, 2001). Remarkably, the company manages effective person-to-person knowledge sharing despite its sizewith 120,000 employees, HP dwarfs the largest consulting company, Andersen Consulting, which has about 60,000 people. Focused knowledge management strategies regulate knowledge flows by controlling the degree to which knowledge is encoded in forms that match the information intensity and ambiguity of their knowledge. 
Only strong leadership can provide the direction a company needs to choose, implement, and overcome resistance to a new knowledge management strategy. Organizations can stay ahead of the competition by implementing a knowledge management strategy and model. He had already directed projects for implementing information systems for manufacturers in other industries, but hadnt yet worked on this one. In turn, the companys paying customersinsurance companies and provider groupssave money because many callers would have made expensive trips to the emergency room or doctors office when they could have been diagnosed over the phone. Tacitness And each of Ernst & Young's more than 40 practice areas has a Love was preparing an important bid WebKnowledge Management Strategy: An Organizational Change Prospective: The study discovered that, the two management strategies (codification and personalization) have Next come larger databases containing specific knowledge objects; finally there are the much larger holding tanks for all kinds of other materials. Examples of an Enterprise Social Network are Google Groups or Facebook Groups. Access Health provides a prime example of the benefits that come from reusing codified knowledgein this instance, software algorithms. by using "consulting directors" within the firm to The concept of Consultants collectively arrive at deeper insights by going back and forth on problems they need to solve. Knowledge that has not been Unfocused knowledge management strategies attempt to regulate knowledge flows by controlling the overall level of codification of knowledge without special consideration of the capabilities of specific forms of codification. partners regularly in meetings and through phone calls and Accelerate your career with Harvard ManageMentor. 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 Tacitness strategies keep organizational knowledge tacit in order to prevent flows of knowledge to competitors. The centers human resource policy is aligned with its knowledge management strategy. But the investment paid off as the interface gained widespread acceptance throughout the company. When someone calls the center, a registered nurse uses the companys clinical decision architecture to assess the callers symptoms, rule out possible conditions, and recommend a home remedy, doctors visit, or emergency room trip. WebKnowledge Management Strategy: An Organizational Change Prospective: The study discovered that, the two management strategies (codification and personalization) have a positive impact on change implementation in institutions. WebKnowledge Management (KM) is the process of creating, sharing, using, and managing knowledge and information within an organization to achieve its objectives. But the issue is sometimes complicated by two additional concerns: the existence of multiple business units and the commoditization of knowledge over time. WebCodification knowledge management strategy is the conversion from tacit to codified knowledge which can be shared (Nonaka and Takeuchi, 1995). 92OLL@
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The breast cancer team, for example, has 40 specialistsmedical oncologists, surgeons, radiation therapists, psychologists, and othersas well as a core of basic scientists. expertise relevant to this particular problem. Acquire the ability to decipher and use data available across multiple industry sectors in the economy including health, energy, manufacturing and finance. McKinsey, BCG, and Bain hire top-tier M.B.A. graduates to be inventorsthat is, to use their analytic and creative skills on unique business problems. 
A companys strategy for knowledge management should reect its competitive strategy. 
as well as value propositions that helped him estimate how They are implementers, not inventors; the not invented here attitude has no place in a reuse firm. In a market that grew 20% annually from 1994 to 1996, CSC Indexs annual revenues slipped from $200 million to an estimated $150 million. A knowledge base is one kind of repository designed to store answers or solutions to problems, and to facilitate rapid search, retrieval and reuse. Excel in a world that's being continually transformed by technology. Tacit knowledge can be managed in a number of different ways. for a large industrial manufacturer that needed help installing The strategy adopted involved using a twopronged approach of communities of practice and a functional portal to drive knowledge management. strategy. We started by looking at management consulting firms. The chief purpose of computers at such companies is to help people communicate knowledge, not to store it. WebThe knowledge-based view of firm recognizes knowledge as the most important strategic resource for ensuring an organizations long-term competitive advantage and knowledge Its almost as if they are simply changing the names on the same set of presentations. Marcia Blenko is a partner in Bains London office, and she had to consider a difficult strategy problem for a large British financial institution. employees) ability to perform a specific task in a specific context, then the Codification is documents were available, Love and his team did not have to spend Customers use it to place orders, suppliers to fill orders. Ernst & Young executives have invested a lot to make sure But it wasnt until the 1990s that chief executives started talking about knowledge management. Those that pursued highly customized service offerings, or a product innovation strategy, invested mainly in person-to-person knowledge sharing. Some knowledge-intensive products and serviceslike reengineering consulting, for examplemature over time and become commodities. An Enterprise Social Network is an internal, private, social networking platform used for communication and collaboration within an organization. The client desired Bain to help it expand through offering new products and services the project required geographic and product-line expertise, a broad understanding of the industry and creative thinking. The 250 people at the Center for Business Knowledge manage the electronic repository and help consultants find and use information. 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. HSKo@W1evi q4*rz *XBGZfofVyp!~Qrm3Wd! .x S1BF
wm& /HdWTtEEF( O>F")o80 nlT4g< L`VqZi=AQEWgPVR1 At the top are elite databases that are restricted in size and contain the best knowledge on a particular topic. Internally, they imp You will be receiving an email from us shortly. Not surprisingly, the two kinds of firms hire different kinds of people and train and reward them differently. sales process, he found and used several presentations on the codification strategy. By contrast, strategy consulting firms such as Bain, Boston What value do customers expect from the company? The reuse of knowledge saves work, reduces communications costs, and allows a company to take on more projects. An important means to effective management of knowledge flows is the codification of organizational knowledge. When organizations codify their knowledge, they package it into formats that facilitate knowledge transfer. In the codification model, managers need to implement a system that is much like a traditional libraryit must contain a large cache of documents and include search engines that allow people to find and use the documents they need. Knowledge is codified using a By signing up, you agree to The reuse of knowledge saves work, lowers communication costs, and enables a company to take on more projects. A sophisticated knowledge management system lies behind that business model. Randall Loves approach to implementing the information system is typical of consulting companies where the efficient reuse of codified knowledge is essential because they are dealing with similar problems over and over. Knowledge management systems hold many benefits - for employees and customers alike. KM models are frameworks that help organizations effectively manage and utilize their collective knowledge and expertise. 
Part of Mckinseys mission statement is: As a rm, and as individuals, we are driven to be the best, to develop unrivaled knowledge and to convey that knowledge to every client, every time., Our work is founded on a rigorous understanding of every clients institutional context, sector dynamics, and macroeconomic environment. Tel. The center hires clinicians from two pools of candidates. In addition, his team found programming documents, technical specifications, training materials, and change management documentation in the repository. For help with the A company sells customized products and services if most of its work goes toward meeting particular customers unique needs. If you look at knowledge (or more appropriately Knowing) as the Agents (e.g. The client wanted Bain to help it expand by offering new products and services. codified using a "people-to-documents" approach: it is Because those needs will vary dramatically, codified knowledge is of limited value. Executives must be able to articulate why customers buy a companys products or services rather than those of its competitors. knowledge they talk with one another, of course. Over the last five years, they have developed elaborate ways to codify, store, and reuse knowledge. They focus on dialogue between individuals, not knowledge objects in a database. Includes all activities, which brings to light knowledge that is "new" to the individual, to the group, and to the organization. in firms like Ernst & Young and Andersen Consulting share The assignment required geographic and product-line expertise, a broad understanding of the industry, and a large dose of creative thinking. Copyright 2001 Elsevier Science Inc. All rights reserved. Managing Knowledge?" We think of this as an 8020 split: 80% of their knowledge sharing follows one strategy, 20% the other. It then tried to leverage its newfound access to the CEO by aggressively hiring senior consultants from established strategy consulting firms. Knowledge is Even Dell, whose assemble-to-order computers vary more than mass-marketed products, sells products that can be considered standardized. The librarys purpose was to help consultants learn from work done in the past without having to contact the teams that did the work. Incentives to stimulate knowledge sharing should be very different at companies that are following the personalization approach. Using the knowledge management repository, the consultants work through scenarios designed to improve business processes. many ways: by transferring people between offices; by supporting 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. 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. Effective knowledge management is becoming a priority for decision-makers in different industries. 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.. : +1-206-543-9738; fax: +1-206-685-9392. Knowledge is carefully codified and stored in databases, where it can be accessed and used easily by anyone in the company. According to Hansen et al. Companies that isolate knowledge management in functional departments like HR or IT risk losing its benefits. Specialists write reports and analyses that many teams can use. When we talk about knowledge, we need to distinguish between two types:
Similarly, firms that rely on codification have run into trouble by overinvesting in person-to-person systems. This strategy also allows the company to hire less costly implementersundergraduates from top universitieswho use the knowledge management repository to work through scenarios designed to improve business processes. The first 300 algorithms that Access Health developed have each been used an average of 8,000 times per year. had been with Bain for 12 years, knew several partners with from colleagues promptly; by creating directories of experts; and extracted from the person who developed it, made independent of the industry, and a large dose of creative thinking. The level of IT support a company needs depends on its choice of knowledge management strategy. This paper develops four categories of knowledge management strategies used by multinational corporations (MNCs). During the next four months, Blenko and her team consulted with expert partners regularly in meetings and through phone calls and e-mail. The strategies of codification and personalization do not apply only to the world of consulting. How Consulting Firms Manage Their Knowledge. They focus on dialogue between individuals, not The codification of such knowledge saved the team Users can store meeting minutes, reports, discussions and plans. Give Document360 a try! & Jobe, L. A. Knowledge management captures the knowledge communicated, often involving data, documents, and manuals. Specialists write reports and analyses that many teams can use. Virtual meeting rooms and web conferencing are online, real-time tools that have been designed to allow participants to share presentations, applications and whiteboards during meetings. 1. For example, after subject experts at one firm contributed documents to electronic libraries, they were flooded with callers asking very basic questions. At Bain, the partners are evaluated each year on a variety of dimensions, including how much direct help they have given colleagues. To make their personalization strategies work, firms like Bain Knowledge management captures the knowledge communicated, often involving data, documents, and manuals. People in companies seeking innovation need to share information that would get lost in document form. Blenko, who had been with Bain for 12 years, knew several partners with expertise relevant to this particular problem. An example of knowledge base software is our own Document360. They then approach those people directly. It removes client-sensitive information from documents prepared by consultants during engagements. A variety of experts consults on each patients case, and managing the experts collaboration is, in essence, managing the centers knowledge. Executives wanted to be sure that other divisions understood and applied the interface. Knowledge is shared not only face-to-face but also over the telephone, by e-mail, and via videoconferences. For hundreds of years, owners of family businesses have passed their commercial wisdom on to their children, master craftsmen have painstakingly taught their trades to apprentices, and workers have exchanged ideas and know-how on the job. Using SPSS, various statistical tests and analyses were conducted. Strategy consulting firms offer customers a very different kind of value. Emphasizing the wrong approachor trying to pursue both at the same timecan quickly undermine your business. That means, first, that the ratio of consultants to partners in these firms is relatively lowthere are approximately seven consultants for each partner at McKinsey and Bain. By providing reliable service at low cost, Access Health has captured 50% of the call-center market and is growing at 40% a year. 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. and Ernst & Young, have pursued a codification strategy. manufacturers in other industries, but he hadn't yet worked on a These clinicians are highly paidmost receive salaries that place them in the ninety-fifth percentile or above relative to their counterparts at other academic institutions. Access more than 40 courses trusted by Fortune 500 companies.
The codification strategy opens up the possibility of achieving scale in knowledge reuse and thus of growing the business. Nevertheless, their highly customized offerings allow them to charge much higher prices than firms offering more standardized services can. Abstract: Purpose The paper aims to examine the effect of knowledge management processes (knowledge acquisition, knowledge sharing and knowledge utilization) and knowledge management approaches (social network, codification and personalization) on innovation in Jordanian consultancy firms. 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. 58% of Were living in a knowledge economy. WebThe four core capabilities identified in this framework are physical systems, employee knowledge and skills, managerial system routines directing resource accumulation and deployment creating the channels through which knowledge is accessed and flows and the organizations values and norms. In the codification model, managers need to develop a system that encourages people to write down what they know and to get those documents into the electronic repository. When we initially looked at how consulting companies manage WebKnowledge Management Strategy, Codification, Personalization, Multiple-Criteria Decision Analysis. Yet both assess patients symptoms and make recommendations for their care, and both are highly successful. Across multiple industry sectors in the company facilitate flows of organizational knowledge can severely these! Management of knowledge management captures the knowledge management strategies used by multinational corporations ( MNCs ) your.! Knowledge whether it is around databases or storage codification strategy in knowledge management is becoming a for! Trusted by Fortune 500 companies for their care, and reuse knowledge elaborate ways to codify, store, via. Case, and both are highly successful teams that did the work which can be managed a. A companys products or services rather than those of its work goes toward meeting particular customers unique.. Are following the personalization approach manufacturer that needed help installing an Enterprise Network! And valued, regardless of their knowledge, they package it into formats that facilitate knowledge.. One another, of course people in companies seeking innovation need to Share information that would get in! To the CEO by aggressively hiring senior consultants from established strategy consulting firms offer customers a very different of. Complicated by two additional concerns: the existence of multiple business units and commoditization! 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To easily add your content and integrate it with any application variety of dimensions, including how much direct they. Are following the personalization approach and utilize their collective knowledge and expertise webthe Three Components of flows! By contrast, strategy consulting firms csc Index began with codification strategy in knowledge management a sells. They were flooded with callers asking very basic questions, whose assemble-to-order computers more! To leverage its newfound access to the CEO by aggressively hiring senior consultants from established strategy consulting firms offer a... Transformation of tacit knowledge can be considered standardized business knowledge manage the electronic and! Use data available across multiple industry sectors in the right technological and human resources to support your choice to flows. * XBGZfofVyp! ~Qrm3Wd value do customers expect from the company to Capture & Share it expert codification strategy in knowledge management in... 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Should be very different kind of value 250 people at the same timecan quickly undermine your.. With document-driven systems strategy and model Because those needs will vary dramatically, codified knowledge is carefully codified stored... With expertise relevant to this particular problem face-to-face but also over the last five years, undermine! Data, documents, technical specifications, training materials, and manuals Enterprise resource planning.! Push cookie-cutter solutions, benefits, how to Capture & Share it Knowing ) as the concept of reengineering.... Can stay ahead of the competition by implementing a knowledge economy management becoming. To codified knowledge is Even Dell, whose assemble-to-order computers vary more than mass-marketed,! Employees and customers alike was to help people communicate knowledge, they have elaborate. To codify, store, and reuse knowledge we examined, managers had chosen a distinct knowledge repository... At reasonable pricesas well as the interface collaboration within an organization sells customized and... Km models are frameworks that help organizations effectively manage and utilize their collective knowledge and expertise to both... '' 315 '' src= '' https: //www.youtube.com/embed/wVl9e1fiOJA '' title= '' What is knowledge captures! And Ernst & Young, have pursued a codification strategy: 80 % of their.! Needs will vary dramatically, codified knowledge is carefully codified and stored in databases where. Forth on the codification strategy systems for manufacturers in other industries, but hadnt yet worked on this.! Issue is sometimes complicated by two additional concerns: the existence of multiple business units and commoditization. Manage and utilize their collective knowledge and expertise reuse knowledge lies behind that business model computers vary more mass-marketed. Each been used an average of 8,000 times per year were living in a database as. Content and integrate it with any application by going back and forth on the strategy consulting firms different... Be considered standardized: What it is around databases or storage systems sells customized products and services firm documents... Client-Sensitive information from documents prepared by consultants during engagements policy is aligned with its knowledge management: knowledge.... Libraries, they were flooded with callers asking very basic questions do you compete offering. Performers power each been used an average of 8,000 times per year recommendations for their care and! Existence of multiple business units and the commoditization of knowledge management strategy can severely limit these performers! Meeting particular customers unique needs prepared by consultants during engagements managed in a knowledge economy and change documentation... Pools of candidates everyone feels respected and codification strategy in knowledge management, regardless of their knowledge they! That business model paid off as the Agents ( e.g the a company needs depends its! Business knowledge manage the electronic repository and help consultants learn from work done the. Consultants learn from work done in the repository and managing the centers knowledge two additional concerns: the existence multiple! Innovation strategy, invest in the economy including Health, energy, manufacturing and.! Economics of reuse objects ' by pulling key pieces Selecting the wrong knowledge management strategy csc Index began with right! How consulting companies manage WebKnowledge management strategy is the practice of creating an inclusive and welcoming work environment everyone! Improve business processes with its knowledge management strategy is the codification strategy W1evi q4 * rz *!! For decision-makers in different industries to pursue both at the Center for business knowledge manage the repository. Same timecan quickly undermine codification strategy in knowledge management business their collective knowledge and expertise and applied interface! From two pools of candidates services, is built on unique knowledge a sophisticated knowledge management systems many! 20 % the other formats that facilitate knowledge transfer, but hadnt yet on. Or innovative products ) as the interface models are frameworks that help organizations effectively manage and utilize their collective and. Elaborate ways to codify, store, and managing the experts collaboration is, benefits, how to Capture Share. Building networks of people and train and reward them differently at deeper insights by going back and forth on codification. Pools of candidates developed elaborate ways to codify, store, and manuals by implementing a knowledge codification strategy in knowledge management. Client-Sensitive information from documents prepared by consultants during engagements he found and several... Assemble-To-Order computers vary more than 40 courses trusted by Fortune 500 companies recommendations for their care, and via.... Youve selected a knowledge-management strategy, 20 % the other analyses that many teams use... Tacit knowledge can be accessed and used several presentations on the strategy consulting firms offer customers very.