Knowledge Management: DHL Company - Assignment Example

? Knowledge management Observation of Knowledge management practice and factors that affect knowledge sharing in DHL company (an observation of the critical success factors for achieving their improvements need also be showcased) The technique of developing, sharing, and applying knowledge within an organization in order to gain and sustain competitive advantage is the crux of knowledge management (Petersen & Poulfelt, 2002, p.3). The concept of knowledge sharing within an organization on the other hand is the transfer and distribution of knowledge according to the logic of markets. Researchers argue that people do not share knowledge, and as a consequence there is no economic incentive and no possible economic damage in doing so and vice versa. They focus basically on what the researchers entail is what the people may gain or lose economically by sharing knowledge. Knowledge sharing is an involuntary mechanism occurring within the organization as well as outside the organization and it may result in positive results or it may harm the organizations financial health. Thus knowledge management practices affecting knowledge sharing in organizations is a complex process and it have to be properly maintained and executed (Boer, 2005, p.2). The success of effective knowledge management not only lies in the providing channels of communication to unstructured information but it also involves further detailed intervention. DHL international have taken the knowledge management approach on a model-based knowledge resource which also presents practical ideas how other organizations can adapt this methodology adapted by the company. The company is a global leader in the air and ocean freight markets. The prime task of the company is to transport goods and merchandise to a customer specified destination at predetermined price and delivering them with utmost punctuality (Global Forwarding, 2012). The company has about 500,000 employees in more than 220 countries and territories forming a global vast network focused on service, quality and sustainability (Annual Report, 2009, p.1). Thus with the increase in the complexity of the business the need for a proper knowledge management system by the company became an utmost necessity. For the understanding of the execution of the business processes, the timing and events that drive these processes, the data and systems that emphasize the processes and finally for the complex involvement of the people, the company chose the Zachman framework to represent these aspects. The framework was invented by John Zachman in 1980 for IBM and now it is in public domain for use. The framework uses techniques of manufacturing and architecture and provides a platform of viewing an enterprise and its information systems from different perspectives and thus generating broad gamut of knowledge and thereby providing the most efficient way to capture and store information about the enterprise’s processes, procedures, systems, applications and people The basic working principle of the framework relies on answering some important questions about the enterprise like What?, How?, Where?, Who?, When?, Why? The question ‘What’ deals with the business data, information, and objects. ‘How’ deals with the function and working of the business processes. ‘ Who’ deals with the people that run the people that run the business and analyses the hierarchical structure. ‘When’ deals with the performance of the business processes including the schedule and workflows. ‘Why’ deals with the processes, people and the locations important to the business (Singer, 2007). Personal mastery Complexities simplified A considerable amount of time was spent by DHL in defining these models and their relationships. The first process which the company executed was the modeling work which included the statements of business and IT strategy as derived from the organization’s five-year plan. These statements should also contained particular performance targets, which revealed the individual performance of the people associated. The prime driver for model development has been the use of process models in change and re-engineering projects for enhancing the support and scope for the project with experts, supervisors in micro areas .These people infused their knowledge and experience to chalk out the solutions. The project managers also organized a series of workshops to execute the process modeling approach which gave solutions to complex problem from simple symbols with two modes, -one representing and activity box which would define what needs to be done and another is the decision box which represented yes or no. Data Model Data model is another important model implemented by DHL which uses the data from every sector and lead to optimized results for the better performance of the organization. Several other innovative and optimized techniques are used by the company for the enhanced knowledge management and which can be regarded as success factors are systems development, impact analysis, and process costing and so on (Blosch, 2000). Among the other success factors International direct marketing operating on a global basis with expert supervising. International direct marketing is now a major activity with valuation approximately US $46 billion and it continues to grow exponentially (Factors of Success, 2012). Mental models For optimum learning and development the organization took the help of mapping procedure. At first a diagrammatic representation of the happening of the organization was identified to show a pensiveness of what actually is going on. After that the knowledge capturing mechanism is executed in a consistent manner and lastly designing process maps for the implementation of policies and their future development. As for example if time is taken as the target variable, then process maps are used to see which activities take the most time and whether there is a critical path for the way out. The process map may then be used to re-organize the process to reduce the time taken. This modeling of process maps are carried out in the organization to evaluate the impact analysis, process costing , systems development and the understanding of the business at grass root level (Mapping organizational knowledge, 2000). Team learning The importance of work culture and practices was rampantly identified by the organization in 2003. The management team of the company injected the awareness and adoption of a healthier lifestyle into the company’s working culture with support from workplace health promotion (WHP) programs. In 2006, the organization introduced its phenomenal project called Project T which stands for TEAMWORK (Together Everyone Achieves More). This project offered the representatives serving for one year tenure with highly innovative health and recreational activities for their employees along with maintaining work-life balance and encouragement of cross-functional teamwork using its WHP programs (SHA 2008 Silver Award, n.d., p.1). Training, sharing knowledge and team learning- Learning experience Agenda of success- ‘Information is more important than package’ The company serves 4.2 million customers worldwide fast, reliable, and cost-efficient package delivery service globally and more than around 400 aircrafts are operated by the organization for delivering its success. Thus keeping track of the business operations in addition to customer packages became a major challenge for the organization. For serving and acting for the local customers, the organization devised a technology where the customers and employees would see on their computer screens information on their packages in their local language. Databases were designed in such a way that they contain databases, important country regulations, and local information. For acting globally, the computer systems were intended to check current information about the package within a few minutes with accuracy. The system was so designed that if the information gets delayed even more than a few seconds, or wrong, scanners cannot operate, planes fly empty, and packages remain in warehouses. In order to make the system more perfect the organization built over 50 different data centers in each of the major countries where it operated and coordinated. A common set of core database applications were installed in each of the countries. The core applications were installed on top of a messaging and communications network so that information could transfer from one country to another with ease. Along with that, the core applications included a master common shipment database that kept the tracking information, as well as e-mail programs, customer shipment, transit times, and billing details. The global databases helped the countries to access only the data needed locally, and required them to store only local data. Fig.1 (Managing Global Systems, n.d. p.594) The diagram represents the redesigning of the organization from decentralized to centralized management system. This arrangement was adequate to serve the local needs but the traffic volume expanded tremendously in the last decade with increasing volume of global trade. With 50 decentralized data centers running supposedly common programs the cost also raised hugely with risks of business breakdown. This was a learning experience by the organization and requiring this need, the charge of Asian and Middle Eastern operations was taken up by the managing director Stephen McGuckin and restructured the system into more centralized regime to reduce the costs and hedging the risks. Starting in 2000, DHL began classifying its global computing infrastructure into three low-cost, regional global centers in Cyberjaya (Malaysia), Prague, and Scottsdale, Arizona, in the United States. With the policy of centralization the organization overcame the obstacles and became one of the pioneers in the global logistics market (Managing Global Systems, n.d. pp. 593-594). DHL acquired airborne express in an attempt to capture a portion of the United States (US) market but it was a failure with the announcement of the company suspension in 2008. Management and leadership failure and overdependence on the independent contractors are the reasons for failure (Failure to deliver, 2008). But the organization buckled up with more centralized approach rather than defragmented policies and growth expanded with the receipt of the European Process Excellence Awards for 2010 in the category ‘Best process improvement program’. The organization with its ‘Six Sigma & Process Excellence IQ’ with its head office in the UK offered the award to the organization. This was a great learning process and the company came up with flying colors (Press Release, 2010). 2) Explanation of the implementation process of Knowledge sharing Extensive analysis of the company’s supply chain, the business projected a two-pronged approach that helped the customer understand the best of both worlds. To shorten lead times maximize tax benefits two facilities one in Mexico and another in Texas (Cross Border Fulfillment, n.d.). Presently, DHL has exposited on the complete IT transformation mechanism which separates the company’s demand side from the supply side which puts the IT management under the total business control. The demand management function (EbIT- Express Business IT) adapted by the company helps to focus on the cost savings mechanism with the help of its centralized computing super centers and alignment benefits of having IT closely tied to regional operations. All the regions of DHL are adapting the organizational model with global corporate transformation of the offices. However this change in the organizational pattern may for many employees mean change in roles, reporting relationships but this change management plan completely emphasizes on the education and training programs which will help and benefit the employees to understand the benefits of these changes as well as the company as a whole (DHL’s Global Change Management Plan, 2005). Deutsche Post DHL was entrusted for the organization of the change process, amalgamation of the program into everyday business and for the sustainability of First Choice. Executive Vice President for First Choice at Deutsche states that for this continued enhanced business intensification requires tremendous consistency and stamina. The award gained by DHL was obtained by a competitive lead of more than 30 international competitors (Press Release, 2010). The organization has achieved success through learning mechanism and an evidence of its knowledge sharing venture can be attributed to the South Africa’s leadership development initiative. Managing director of DHL express Sub Saharan Africa stated that sustainable leadership is about the acknowledgment of complex interdependence of the needs of individuals, business, the markets and the operation of the organization in the society. It generates prosperity and dynamic commercial success and by adapting and following the approach throughout the company has emerged as the global market leader of the international express and logistics industry. At the organization the main theme which is followed is that creating leaders who can visualize themselves as serving the nation, region and the continent and also mobilize human resources to solid governance and improvement in the quality of life of the ordinary citizen. Thus in South Africa also the organization has sponsored to encourage active debate and learning for South Africa’s emerging leaders and executives (DHL supports South Africa’s leadership development initiative, 2012). References Annual Report, (2009), SHOWING RESPECT.DELIVERING RESULTS (DHL), Retrieved on May 23, 2012, from: http://www.dp-dhl.com/content/dam/dpdhl/investoren/en/investoren/publikationen/DP_DHL_Publikationen_GB09_en_2010-03-16.pdf Blosch, M. (2000), Mapping organizational knowledge, retrieved on May 23, 2012, from: http://www.ikmagazine.com/xq/asp/sid.C07BC2DD-D35E-4C8C-BFB0-962330C8A81C/articleid.121807C5-89DF-41E1-91F7-F0B9B67B8449/eTitle.Mapping_organisational_knowledge/qx/display.htm Boer, N, I. (2005), Knowledge Sharing within Organizations: A situated and relational Perspective, Retrieved on May 23, 2012, from: http://repub.eur.nl/res/pub/6770/EPS2005060LIS_9058920860_BOER.pdf Cross Border Fulfillment, (n.d.), DHL, Retrieved on May 23, 2012, from: http://www.dhl.com/content/dam/downloads/g0/press/press_events/sector_weeks/casestudies/CaseStudy_CrossBorderFulfillment_Tech_DHL.pdf.pdf DHL’s Global Change Management Plan, (2005), Retrieved on May 23, 2012, from http://www.cio.com/article/13522/Case_Study_DHL_s_Global_Change_Management_Plan Deutsche Post DHL (2010), International award for the First Choice Program of Deutsche Post DHL, retrieved on May 23, 2012, http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDUQFjAB&url=http%3A%2F%2Fwww.dp-dhl.com%2Fen%2Fmedia_relations%2Fpress_releases%2F2010%2Feuropean_process_excellence_award_first_choice%2F_jcr_content%2Fmainpar%2Fcols2_1%2Frightcolpar%2Fdownloadarticle%2Fdaitems%2Fdownloadarticleitem.download.html&ei=zdTAT7SdJ87NrQfZ9_3ZCQ&usg=AFQjCNG6S1Qelq9X6a7g14fNFYUqPZvApQ&sig2=9tdk9gx4fz2PWDgBruxbsA DHL supports South Africa’s leadership development initiative, (2012), Retrieved on May 27, 2012, from: http://www.achieveronline.co.za/media-releases/351-dhl-supports-south-africas-leadership-development-initiative Factors of Success (2012), DHL Retrieved on May 23, 2012, from: http://www.dhl.com/en/mail/mail_essentials/dm_guide/international_direct_marketing/factors_of_success.html Failure to deliver (2008), The Economist, Retrieved on May 23, 2012, from: http://www.economist.com/node/12607051 Global Forwarding, (2012), DHL, Retrieved on May 23, 2012, from: http://www.dhl.com/en/about_us/forwarding_freight.html Managing Global Systems, (n.d.), Retrieved on May 27, 2012, from, http://www.prenhall.com/behindthebook/0132304619/pdf/Laudon%20Feature%207.pdf Mapping organizational knowledge, (2000), Retrieved on May 27, 2012, from, http://www.ikmagazine.com/xq/asp/sid.C07BC2DD-D35E-4C8C-BFB0-962330C8A81C/articleid.121807C5-89DF-41E1-91F7-F0B9B67B8449/eTitle.Mapping_organisational_knowledge/qx/display.htm Poulfelt, F, and Petersen, N, J, (2002), Knowledge Management in Action: A Study of Knowledge Management in Management Consultancies, Retrieved on May 23, 2012, from: http://www.lok.cbs.dk/images/publ/FP%20og%20NJP.pdf Singer, W. (2007), The Zachman Enterprise Framework, Retrieved on May 23, 2012, from http://www.tud.ttu.ee/material/enn/IDU0080_2011/12ProcessMeasurement/zachman_framework.pdf SHA 2008 Silver Award, (2008), DHL Express, Retrieved on May 27, 2012, from, http://www.hpb.gov.sg/data/hpb.home//files/whp/health_fac/resources/bestpractices/best2008/DHL_%20LAYOUT.pdf Read More