Knowledge Management Strategy - Case Study Example

Knowledge management strategy (KM) Name Name of the institution 15 October 2015 Executive Summary A powerful Knowledge Management improves the organization’s productivity, as the staff becomes more committed to their work. At Nestle Australian Limited Company, KM is viewed as one major component of the company’s success. In today’s world of business, there two types of approaches that are used in developing KM programs (Bhatt, 2002). This includes the bottom-up approach and top-down approach. On the other hand, implementing KM inappropriately will result in creation of gap regarding the company strategy and knowledge management. Therefore, this paper focuses on exploring and discussing the application and the analysis of KM strategies at the Nestle Australia limited Company. Table of Contents KNOWLEDGE MANAGEMENT ANALYSIS OF NESTLE AUSTRALIA Introduction Over the past years, organizations are facing endless increasing challenges. The challenges are either brought by the change in the marketplace or the nature of the workplace. Therefore, many organizations are focusing on applying Knowledge Management (KM) so as to address these encounters (Maier, & Remus, 2003). The initiative of applying of KM in the organization usually starts with the development of the Knowledge Management strategy. Besides, for an organization to be successful in applying KM strategy, the organization should not only focus on highlighting high-level goal. But then again, it should focus on identifying the major needs and requirements within the company and delivers the framework to be used in addressing such needs and requirements. As such, as one of the most successful organization across the globe, Nestle Limited Company have embarked the application of the KM strategy so as to achieve its significant objectives. In this context, the company has identified the need for applying Knowledge Management strategy as an approach to ensure company growth and as well attaining its benefits. Knowledge Management will mainly address issues such as communication, employees, supporting innovations among others (Maier, & Remus, 2003). At Nestle Company, there has been substantial in each department regarding the process of implementing the KM strategy. Furthermore, the application of KM field at the Nestle Australia Limited Company benefits the company in different ways. As such, the company is in the position to increase customer satisfaction, retain its values in the market, allow the employees to learn effectively and obtain an improved return on people’s investment. Therefore, the prime objective of this essay is to explore and discuss the application of KM strategy at the Nestle Australia Limited Company. Background of Nestle Australia Limited Company. Www.wordpress.com; (2015) Nestle Australia Limited Company, is a public organization that is one of the best-managed organization in Australia. Moreover, the company focuses on the manufacturing of the food products in Australian industry (Kose, 2007). The main source of the company’s source is from the production and the sale of the human food product. Consequentially the company has been ranked among the top 200 manufacturing company in Australia. The company mainly focuses on manufacturing of food product such as infant food, milk, prepared drinks among others. Reflecting on the structure of the company, Nestle Australia Limited Company is led by the chief executive, who works together with a team of dedicated senior and junior employees. The executive manager is assisted by the senior managers, junior managers and other employees who work in the organization. Also, the leadership structure of the company comprises of the supervisors and administrators. The company has several departments, such as the human resource, supply chain department, health department, and the production (Www.wordpress.com, 2015). These departments work through incorporating their ideas so as to ensure that the company achieves its vision, mission, and objectives. Furthermore, since the formation of the Nestle Australia Limited Company, its general vision as stated at (Www.wordpress.com, 2015), is to be the global number one company regarding the sale of the food product. Additionally, the company vision is to be the leader in the manufacturing of the food products both in Australia the across the world. On the other hand, the company’s mission is to supply food product that are good for the human health. Moreover, to achieve this mission the company has executed plans that are intended in supplying the segment with nutritious food product (Honeycutt, 2008). Above all, the Nestle Australia Limited Company objectives are derived with the company’s visions and missions. As it is outlined (Honeycutt, 2008), Nestle Company operate with the purpose of understanding the new trends in the market. Also, with the use the new technological trend in processing the sale of its products and as well to ensure the company continues operating in the competitive market of food products. On the other hand, the company operates with the goal of monitoring its progress and improves the mutual relationship with the customers. As such, it is clear that company’s vision, mission, and objectives are factors that are compatible with the general operation of the Nestle Company Therefore, for the Nestle Australia Limited Company, to achieve its intended goal the company has recognized the need to incorporate its operation together with the KM techniques. Evidently, in any organization, KM is seen as a factor that will make the company flourish and gain a competitive advantage in the market. Besides, Nestle Australia Company relates its operation with KM techniques at any level of operation (Www.wordpress.com, 2015). Importantly, as the Nestle Company relates its operation with Knowledge Management, the company is in a position of creating valid visions and able to come up with new ways of building and creating new knowledge. The approach and methods used in developing KM strategy To start with Knowledge Management can make an organization identify opportunities for savings, improve in its whole operation and attain competitive advantage in the market. For Nestle Australia Company, embarking KM will only be beneficial to the organization since it will enhance, improved communication, innovation and as well as the better ways of implementing decisions (Hall, 2006). Although, there have been several successful Knowledge Management approaches and methods, there are also some which tend to make the company fail. The approaches are supported by a complete model of KM practices. The major approaches that Nestle Australian Company can use in developing its KM strategy are the bottom-up approach and the top-down up approach. The top-down approach The technique is rather different in comparison to the bottom-up approach. In this case, the research only focuses on the organization, as the findings are used in recognizing the focus of the KM initiative in the business (Kose, 2007). As such, in this approach several activities are usually reflected, that is, the things designed to achieve the organization goal. The bottom-up approach in developing KM In this case, the research is carried out into the activities that include the company’s employees as they are involved in the business operation. Each of these highlighted techniques that are used in developing KM, there strengths that are related to the success of KM program. Therefore, in this situation of Nestle Australian Company, the most effective or rather a positive approach for the organization is the bottom-up approach. The approach outlines the major needs of the employees and issues (Hall, 2006). As the findings suggest the things and issue affecting the workers, they are then dealt with through KM initiatives. Moreover, the holistic model of bottom-up approach focuses on analyzing the activities that are associated with the employee thus it can be taken as the effective technique in developing KM at Nestle Australian Company. Steps followed in the bottom-up approach 1) To start with, the initial step in this approach was to categorize the key employees within the Nestle Australian Company. Importantly, the employees identified should be the one who contributing in making the organization more valuable. In particular, the employees who are involved in essential business accomplishment. 2) Secondly, the other step was to carry out an analysis regarding the needs of the chosen employees. As such, this was done by conducting a complete and holistic employee’s need analysis. 3) After identifying the group and carrying out a complete analysis, the next step was to supplement the research to the top management of the company (Hall, 2006). The planning documents can also be useful in determining KM strategy in any business. 4) In this step, the needs were categorized. Identifying of the needs in this step was based on the previous step that is the findings and the recommendation from step two and three. 5) Lastly, with the findings and then the recommendations, it was time for implementing the strategic initiatives (Hall, 2006). Consequentially, the effective Knowledge management is approaches and methods are selected at this stage. Data collection The method that was used in the process of data collection was the questionnaire. As such, key employees at the Nestle Australian Company were presented short questioned that were written in a paper, and they later presented the answers to the question asked (Www.wordpress.com; 2015). The research focused mostly on the employees working in the manufacturing department and as well as the management. The questionnaires mainly focused on testing the current situation of KM strategy at the Nestle Australian Company. Some of the questions that were written down for the employees to present answers included; how often do the different leaders of the company share their knowledge with the junior workers. Besides, the questionnaire sheet or papers also tackled the issue of sharing of ideas within different company’s sections so as to promote knowledge. However, in carrying the data collection there some encounters. The key limitations included, unattended questions, missing of some questionnaires and irrelevant answers that were did not relate to the KM. Application of KM strategy on Nestle Australian Company Integrating the KM strategy with the management models is one of the promising activities that make a business succeed. In this case, the company will mainly focus on the knowledge that implies on the existing workers, the structure of the company and the competence of the organization (Www.wordpress.com; 2015). Therefore, for the case of Nestle Australian Company, its current status has been as a result of embarking Knowledge management. As such, Nestle Australian Company has solely identified the advantage of embracing KM strategy. The company has embraced the KM strategies in different ways such as, investing in the culture, people, technology, and structure as ways of implementing KM in the organization. For Nestle Australian Company, applying KM strategy is not an easy task. However, the company has managed to implement KM strategy in its operation. This has been done through establishing programs that are set for management of the knowledge. Additionally, KM strategy at Nestle Australian Company has been implemented or rather applied for the company preparing for the occurrence of any change (Leblanc, Cameron, & Thomson, 2015). With the company being in apposition to identify the tools to manage KM, it has been simpler for the organization to focus on the staff’s needs, culture and be able to handle any change in the structure. Nevertheless, research conducted by the company’s management showed that as Nestle Australian Company has successfully applied KM strategy there is a wide knowledge management gap in the company. Strategic and knowledge gap analysis of Nestle Australian Company A knowledge strategy is designed through a clarified business strategy that contains a unique value. Therefore, strategic and knowledge gap analysis can be categorically be evaluated by the position of the business reflecting Knowledge Management. Also, the gap can be analyzed by considering the needs of a company in the future basing it on the organization purpose and mission and vision (Scott, Tear, & Davis, 2006). At Nestle Australian Company, gap analysis as a tool has been categorically being identified by reflecting the size and shape of the KM strategy that is currently being undertaken in the organization. Additionally, before carrying out the gap analysis task, it is necessary for the Nestle Australian Company to have reliable information that will be used in reflecting the current and the future of the organization. Also, the team conducting the task of gap analysis should be in a position to identify the target. Where the Nestle Australian Company wants to be Cultural infrastructure Nestle Australian Limited Company has focused on maintaining a healthy culture in the coming days. The company has a vision of establishing a culture that will promote knowledge sharing among the staffs (Leblanc, Cameron, & Thomson, 2015) to better understand, the company has embodied a culture that is knowledge driven in manufacturing quality food products that are healthy for human consumption. The culture has helped the company in maintaining its KM programs. Operational Infrastructure Having a manageable structure in an organization is one of the vital factors that a company can have against other competitors. For the case of Nestle Australian Company, the company wants to have an organization structure that is transformable. In this context, the organization will be in a position of maintaining knowledge sharing programs in the organization. Additionally, a readjustment structure will be essential to the organization as it will be able to adopt any change that may occur in the business. Technological infrastructure In today’s world of business, the success of the organization is highly related to use of information technology. Also, technology plays a vital role in enhancing effective KM in any business. In this situation, Nestle Australian Company wants to be in a position carrying its function through selected configured automation tools. This will enhance effective knowledge management programs. Where the Nestle Australian Company is now Cultural infrastructure Currently, Nestle Australian Company is at a creative position. Its culture can be observed as a positive culture as the company has showed that it has the capability in maintaining and developing its Knowledge Management. The culture of Nestle Australian Company is characterized by employee’s motivation and promotion. The culture treats the employees of the company is the key component in the success of the company (Scott, Tear, & Davis, 2006). Operational Infrastructure Currently, the structure of Nestle Australian Company is mainly focusing on creating awareness of knowledge management in the company. The company uses experts or specialist in creating the aspect of cross-discipline within the organizations department. As a result, staff at each department are aware of the fact that knowledge management is an essential component in the business. Technological Infrastructure In today’s operation Nestle Australian Company, there is clear indication of technology improvement. The company has established a more advanced team that deals with the issue of technology in case of technological failure (Leblanc, Cameron, & Thomson, 2015). This has been done by ensuring that the company utilizes the technology tools in the right way. Consequentially, this has led to the creation of systems that enables knowledge management. The Knowledge Gap/ Strategic Gap In recap, from the above explanation it is clearly observable that there is a knowledge gap between the current status of Nestle Australian Company and where the company intends to be in the future. This is observed in terms of the future Company purpose, vision, and mission. The knowledge gap is based on the cultural, operational and technological infrastructure (Maier, & Remus, 2003). Focusing on the cultural infrastructure, there is a clear gap regarding the current and the future of the organizational culture. In the current situation, the culture is focusing on maintaining knowledge management during that of the coming years the company focuses on promoting the culture so as to enhance knowledge management programs. On the other hand, reflecting the cases of technological and operational infrastructure, there is a clear KM difference between the current state of Nestle Australian Company and the future of the company (Gao, & Bi, 2013). In terms of technological infrastructure, the knowledge gap note in the company regarding the technology tools that are implemented currently and that company want to apply in the coming years. Lastly, in terms of operational infrastructure the gap between where the company is now and where it wants to be has increased. This has been dues to different ways in implementing the KM programs. Recommendations of Nestle Australian Company From the discussed analysis, it is clears that implementing a complete KM can be an impressive task for any business. The program can be seen as a way for Nestle Australian Company to avoid risks and receives adequate returns. However, there is also an indication of the gaps between the strategy and the knowledge management programs in the company (Maier, & Remus, 2003). For a company to have KM strategy that enhances organization efficiency and better decision making, the company should apply different strategies. The strategies implemented should be reflected on the three for of organizational infrastructure. Technological infrastructure Focusing on the issue of the KM, programs at the Nestle Australian Company, the company should impose and develop a system that is supported technologically. Improving technology of the company will be essential because Nestle Company will be in a position to achieve its objective of maintaining and supporting its information (Maier, & Remus 2003). Also, implementing the infrastructure will make the company associate several departments such as, the manufacturing department, the technology department, and the HR department. Henceforth, incorporating this department will enhance effective distribution of the Knowledge Management programs. Operational infrastructure For an effective implementation of KM programs, the organization should pay much focus on integrating different departments in the organization. Effective knowledge management will include separation of the duties, and involving the customers in the operation of the business (Coakes, Willis, & Clarke, 2008). As a result, this will enhance proper ways of sharing knowledge within the employees and the investors. Cultural infrastructure For the success of the company, endowing the positive culture will be necessary. This will be achieved through understanding and embracing positive values and briefs in the company (Maier, & Remus, 2003). A Positive culture that is related to KM programs will enhance effective Knowledge Management with the organization. More so, another strategy that can be implemented in diminishing the gaps will be through organization promoting a culture that is interactive in the organization. Closing statement As companies continues emphasizing or apprising on their staff on the suitable management approaches, Nestle Australian Company have also been at the edge of offering the same statements to its employees. These management approaches include KM, which provide the company with the ability to improve its performance. To build best approaches such as KM, a company should follow some guidelines and steps so as to ensure the best practices. Developing Knowledge management in a company will be an essential task for the management of the company as it will help in shaping the culture, making the department share information and enhance the growth of technology. More so, implementation of KM strategy will make an organization have solution for the problems in the company and operate effectively. 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