Knowledge Management for Competitive Advantage - Essay Example

Knowledge Management for Competitive Advantage The modern day organisation operates essentially in the public sphere. This implies that its level of competitive advantage is connected with its knowledge management process and the competence level demonstrated by this process. In this context, knowledge management may be defined as the process of transmitting information regarding various quarters within the organisation’s operational sphere to the relevant parties within and outside it. This is an important process owing to the fact that the public today wants to know details about the organisation in order to show any level of interest in it. This assumption also caters to the employees and recruits who want full information regarding the work culture as well as the broad policies within the organisation. (Dominique et al, 2001)1 This paper will seek to study the various aspects attached to the field of knowledge management in case of a specific case study. This case study will revolve around a company called International Management Consultants (IMC). In this regard, I will place myself as a report writing expert who will submit a report to the CEO of the firm as regard the analysis of their existing policies and how these should be structured and revamped to form an effective knowledge management system and culture within the organisation. (Payne, 1996)2 Chapter 1: The Company - International Marketing Consultants This is a fictitious company that has been built for structuring a competent knowledge management system. To start with, it ahs been assumed that this company has a poor knowledge management system. This information has been gathered from brief interviews with the CEO and other officials within the company. Based in the UK since 1998, this firm operates in the following two arenas: Chapter 1.1: Operative Areas Business Transformation: this includes a class of services aimed at carrying out relevant research and applying the interpretation of the data emanating from the same in order to transform the company and render exponential growth to its operational effectiveness. Systems and technology consultancy: this includes working with private as well as public companies and corporations to source and provide information regarding financial services, energy, government and public services, manufacturing and telecommunications, among many others, so as to promote the scope for strategic partnerships between the public and private corporations. Chapter 1.2: Knowledge Base – Operational Context IMC has grown from strength to strength in order to show sustainability. It now operates in countries like US, Middle East, Asia Pacific and Europe with an employee scale of over 1800 people. As far as the scope of knowledge management goes, this information has various dimensions in terms of factors that influence the scope and process of knowledge management. These factors are as follows: Source: Skyrme (1999)3 This diagram helps us focus on the contextual elements of knowledge management that may be applied to the case of IMC. These elements further help in codifying information through a focus on knowledge centres which helps in garnering intelligence throughout the organisation. Chapter 2: Role of Technology: Codifying Information According to the elements demonstrated in the above diagram, the operational context for knowledge management is one that follows a strategic approach. The guidelines for following the same within this particular organisation are as follows: (Payne, 1996) Converting localised efforts into more integrated efforts on the global front: for this, the company requires to coordinate the flow and transmission of information in a more fluid way so as to transform the local efforts into global one. Departmentalisation of efforts: there must be a series of departments that coordinate the knowledge management process and transmit the relevant knowledge to relevant parties. Categorisation of parties: this refers to the process of categorising the parties like supplies, creditors, bankers, customers and the society in general so as to assess the need for each and thus decide on the kind of information to be transmitted. Standardisation of activities: there needs o be a set standard for assessment and evaluation according to which the activities and their various elements must be broken up and rated. These ratings must then define the exact way of doing each element of the overall activity. This will help contribute positively to the overall information and image transmitted about the organisation to the outside world. Investigative approach: all the knowledge and information shared within the organisation must be context of an analytical and critical approach towards the problem so as to find a suitable connection between all activities. This will lead to more foolproof management of the knowledge base within the organisation. Better personal networks: having a better personal network system that spreads across the various offices that the company has in different parts of the globe will promote the procurement and use of formal as well as informal information. This will lend authenticity and credibility to the operations that take place on the basis of this knowledge. (Bernstein, 1997)4 These elements can be used in the codifying process to replicate the following blue print for knowledge management: Source: Skyrme, 19995 Chapter 2.1: Result Oriented Approach With the elements in the above blue print, it is easy to visualise a knowledge management system or model that adheres to the following factors: (Dominique et al, 2001) Easy Applicability: this refers to an application of model along the lines of an easy and systematic manner. This will the transmission process a more smooth flowing one that will naturally to all employees within the organisation. Connectivity: this kind of a model will help the employees and managers connect and link all the activities so as to put up a coordinated front especially where pressures for deadlines and the generation of coherent knowledge is concerned. Credibility: with a strong focus on points like giving the right kind and right amount of information to the right people, this kind of a model will lend a certain amount of credibility in its ability to tie all departments within the organisation together for a stronger organisation of data and knowledge that flows into and from various corners of the same. Quality: the application of such a model will lay the framework for qualitative knowledge and its management, which in turn will support the cause of quality in all the activities attached with the exchange of this knowledge and information. This will help raise the standards and the quality of the work culture within the organisation. (Bernstein, 1997) Smooth progression: the activities within the organisation will progress smoothly, almost blending into one another when a fool proof model for knowledge management has been developed and implemented. Chapter 3: Application within IMC With a base of highly qualified and skilled professionals who are experts in their fields, International Management Consultants (IMC) are in the constant business of generating opportunities in the areas of employment, knowledge and intellectual capital. As far as knowledge management goes, for IMC this starts at a point where the evolution of its knowledge points or centres begin. This company needs to start knowledge management at the very source of the building of intellectual capital because this will dictate the quality of knowledge that will continue to thrive within the organisationThis information must be processed and filed by the relevant department to find the scope for motivation so as to bring out the best in terms of building potential within the organisation is concerned. (Bernstein, 1997) In this regard, the knowledge categories must immediately be initiated into a model of knowledge management that replicates the one actually followed, so as to find how they fare in that kind of an environment and the areas that they need to work on. The knowledge within the organisation comes primarily from its intellectual and human capital. This capital further helps decide what the environment and work culture within the organisation will look like. Therefore, it is imperative to help the knowledge management model and the employee potential or competency interact with each other at a level where they may positively influence each other. This will decide on the future course of actions, through a sub surface integration of the personal and organisational goals. (Hislop, 2005)6 For effective knowledge management, it is imperative to have a certain amount of working knowledge regarding the operations of the company in various parts of the globe. (Dominique et al, 2001) This will help create the scope to achieve competitive advantage through a focus on communication and knowledge centres. Chapter 3.1: Role of Knowledge Management Factors – Leadership Perspective The knowledge management structure defined above will help create a certain kind of culture. Further, these factors discussed above will have a wide role to play in the model employed in IMC depending on the quality of the workforce and the ability they show for rising above their diversities and integrating the best points of the same, to come with a systemised form of knowledge management that will flow from one country to another. In this case, the role of leadership is a crucial one. The leader or manager needs to communicate effectively so as to render a tone of authority and authenticity to the knowledge that is being shared. This in turn will help integrate the personal goals of the employees with the organisational ones. The role of leadership in this case has its foundations in professional efficiency. The first, and most basic ingredient of professional efficiency which fits in neatly with time bound activities, is to know the general direction in which one is moving. This involves thorough knowledge regarding the following: Personal goals Organisational goals (Newell et al, 2002)7 This forms the criteria of knowing where one is going. Before taking on any objective – whether professional or personal – it is important for the employee to know where his or her intellect and knowledge base fits in, with regard to the organisational goals. This will help the employee understand how to further the organisational goals so as to further the personal ones. (Little et al, 2005)8 The latest trends in this case are in the form of specialised knowledge engineers and mangers that create entire structures and cultures thereafter for organisations and their employees to follow. (Morey et al, 2002)9 Also, it will help the company lay down the specific standards and norms according to which knowledge must be allocated and channelled for optimum utilisation of resources. In this context, IMC needs to depend on the sheer diversity of its workforce in order to overcome various difficulties like culture and governmental practices, through a focus on the knowledge base it develops. The knowledge base should be managed effectively the knowledge management system as well as the departments that procure and use this knowledge. (Bernstein, 1997) The primary skills that will be required in this field will include the building of a knowledge base regarding the countries that they operate in as well as sharing this knowledge with each other. Further, there needs to be an emphasis on individual activities like documentation and content management of the independent profiles and portfolios of the offices in these countries. This knowledge must be processed to generate a standardised form of content that must emanate from every office. This will create the scope for better leadership practices. The most important point here is to link these individual offices with each other so as to have a systematic flow of information which will promote quality and coherence in its knowledge as well as the management system adopted to handle the same. In this regard, there is a need for greater efficiency which can be brought about by the reinvention of its knowledge management patterns and activities in general. This will promote a general feeling of belonging within all offices of the company around the world. Further, the company needs to focus on the utilisation of skills and knowledge of its marketing and other experts who can train the current employees and spread the culture of imparting and sharing knowledge within the organisation. This is owing to the fact that despite a poor knowledge management system, this company has a good base as far as it expert panel and potential thereof is concerned. (Skyrme, 1999) Conclusion It has been assumed for the benefit of developing a perfect knowledge management model, that the International Marketing Consultants is a company will a low quality knowledge management system. This not only presented me with the scope to study how the diversity of the company in terms of operational areas can be sued in its benefit, it also exposed me to the potential of the information acquired from the various countries it operates in, and how this information may be processed for various activities like gaining clients, or even an upper hand as far as top level operation in context of governmental policies are concerned. (Dominique et al, 2001) In this context, knowledge management demonstrated the potential as a management system to integrate the interests of the varied employees of the company so as to carry out relevant training and development and add to their existing base of experts and thus serve as a positive contribution to its intellectual capital. Knowledge management in this regard has been seen as an innovative and standardised form of management of the plethora of information that passes the corridors of this organisation everyday, when it comes to the systematic use of the same for the achievement of long term goals. (Bernstein, 1997) References: Dominique (ETD) Foray, John R. De La Mothe (2001) Knowledge Management in the Innovative Process. Springer. L. Payne (Aug, 1996) Making Knowledge Management Real at the National Security Agency. Knowledge Management in Practice. C. Bernstein (1997) Global Sharing of Consulting Knowledge. AAAI Spring Symp. Knowledge Management, AAAI. Hislop, D. (2005). Knowledge management in organizations: A critical introduction. Oxford: Oxford University Press. Little, S., and Ray, T. (eds) (2005). Managing knowledge: An essential reader. (2nd ed). London: Sage. Morey, D., Maybury, M., and Thuraisingham, B. (eds) (2002). Knowledge Management: Classic and contemporary works. Cambridge, MA and London: MIT Press. Newell, S., Robertson, M., Scarborough, H. and Swan, J. (2002). Managing knowledge work. Basingstoke: Palgrave. Skyrme, D.J. (1999) Knowledge networking, creating the collaborative enterprise. Oxford: Butterworth-Heinemann. Skyrme, D. J. (1999) Knowledge Management Solutions - The IT Contribution. David Skyrme Associates Limited Read More