Relationship between Project Management and Knowledge Management - Research Paper Example

Relationship between Project Management and Knowledge Management Table of Contents Table of Contents 1 1- Introduction 2 3- Knowledge Management 3 4- Project Management 4 5- Knowledge Management a need of Project Management 6 The term “knowledge management” is not a fresh concept because prosperous corporations have for all time made use of intellectual assets and identified their importance. However, these attempts were not orderly or organized, and also they did not make certain that knowledge attained was dispersed and distributed properly for highest organizational advantage. Furthermore, sources for instance, IBM, Forrester Research, and Merrill Lynch guesstimate that more than 80% of an organization’s knowledge assets are not kept in relational databases, however are kept in, spreadsheets, word documents, e-mail, and presentations on individual computers (Turban, Leidner, McLean, & Wetherbe, 2005, p. 451). 6 According to Jalote (2009), knowledge management offers an excellent support to the project management. Through this managers can be able to track business and corporate records and also other information regarding business operations. The majority of business projects are unsuccessful because of different reasons those can be (Jalote, 2009): 6 6- Knowledge Management Practices 8 7- Project Management Challenges and KM Opportunities 8 8- KM Facilitating PM Communication 10 9- Organizational Learning through KM 10 10- KM and PM basic relation 11 11-KM in Project Management areas 12 11.1- Planning 12 11.2- Organizing 13 11.3- Controlling 13 11.4- Leading 14 12- Knowledge management trends 15 13- Conclusion 15 14- References 16 1- Introduction In this age of the digital economy that is purely based on effective business knowledge as well as the vital intention is strengthening the corporate performance. In addition, at the present, the business or corporate strategy is moving from the organization of assets or materials to the information resources management. Furthermore, the customary competitive situation of corporate divisions is foundational on their capability of taking efficient and effective decisions. Therefore, it could be concluded that learning and knowledge management frameworks are vital for an organization to recognize efficient use of the organizational assets. Knowledge management (KM) entails the activities such as organizing, collecting and distributing knowledge that is gathered in some definite time period for the intention of enhancing and augmenting a business’s competitive edge (E-articles, 2009). And project management is paradigm of implementing the tools, concepts, and techniques for handling and completing projects (Leseure & Brookes, 2004). The present age is considered as the age of information technology; therefore, effective management of resources and organizational information is the fundamental pillar of the contemporary business. This paper presents a detailed analysis of the different aspects of project management and its association with knowledge management. This paper will outline some main areas of the business project management and knowledge management in combination and their mutual handling for the effective business and corporate management. 3- Knowledge Management Data are set of unprocessed facts representing events taking place in organizations or the physical environment prior to they have been structured and managed into a structure that people can recognize and utilize. On the other hand, information is collection of data that have been transformed into a form that is helpful and functional to human beings (Laudon & Laudon, 1999, p. 7; Norton, 2001, p. 4). Finally, the collection of data and/or information that have been structured and processed to offer experience, understanding, learning, and skills as they apply to a current problem or function is known as knowledge. In addition, the data that are processed to retrieve significant suggestions and to reveal past expertise and experiences offer the beneficiary with organizational knowledge, which is very useful and valuable (Turban, Leidner, McLean, & Wetherbe, 2005, p. 51). Knowledge management (KM) is a technique that helps corporations recognize, choose, systemize, distribute, and convey valuable and functional skills or information that belong to the corporation’s memory as well as normally exist inside the corporation in a formless style. In addition, this forming of knowledge helps in efficient and effective decision making, strategic planning, problem solving and dynamic learning. However, the focus of knowledge management remains on recognizing useful knowledge, and maintain the knowledge in a suitable way so that it becomes easy to maintain its worth with recycle, and it could be distributed in an effective manner. Furthermore, by means of contemporary information technology and a supportive organizational environment, an organization can convey its whole knowledge and organizational memory to deal with any issue at any time and anywhere in the world. Therefore, for the success of organizations, knowledge, in the form of capital, must be transferable among persons as well as it must be developed continuously. In addition, knowledge regarding problem solving can be maintained, in this way, knowledge management can encourage or support organizational learning, leading to more knowledge development (Turban, Leidner, McLean, & Wetherbe, 2005, p. 451). 4- Project Management When we talk about the principles and techniques of the project management we frequently relate them with the management of people (i.e. workers, staff). However, the management of people comprises the tasks such as, establishing the objectives that business unit will achieve, planning the number and type of personnel who will work to accomplish these objectives, managing the personnel, inspecting their performance of the roles and jobs assigned them, and lastly bringing a close to their efforts. But, these methods and principles also apply to the projects. In addition, the project management is a process and a collection of methods based on the accepted principles of management employed for estimating, planning, and controlling work activities for accomplishing desired objectives in due course, according to specification, as well as within the available resources (Gray & Larson, 2006; Wysocki, Robert, Beck, & Crane, 2000). According to Leseure & Brookes (2004), the aim of effective project management is to implement four fundamental procedures of project management. The initial is about the effective planning that is about making a decision in advance what a project will achieve and also well as deciding the accurate steps to achieve it, and recognizing the when to start and finish every project step. Then we move for systematizing the utilization of the resources effectively and efficiently as executing the project plan. In the next step we determine and control how effectively our project plan is started and implemented. At this stage we lead in project management scenario for encouraging personnel for achieving the project objectives (Leseure & Brookes, 2004). 5- Knowledge Management a need of Project Management The term “knowledge management” is not a fresh concept because prosperous corporations have for all time made use of intellectual assets and identified their importance. However, these attempts were not orderly or organized, and also they did not make certain that knowledge attained was dispersed and distributed properly for highest organizational advantage. Furthermore, sources for instance, IBM, Forrester Research, and Merrill Lynch guesstimate that more than 80% of an organization’s knowledge assets are not kept in relational databases, however are kept in, spreadsheets, word documents, e-mail, and presentations on individual computers (Turban, Leidner, McLean, & Wetherbe, 2005, p. 451). According to Jalote (2009), knowledge management offers an excellent support to the project management. Through this managers can be able to track business and corporate records and also other information regarding business operations. The majority of business projects are unsuccessful because of different reasons those can be (Jalote, 2009): Unlimited and incremental growth of business projects scope Lack of significant schedules Miscommunications among business personnel Poor team building skills for any business activity or project management Poor analysis and taking of business requirements Impractical estimates Impracticable corporate operation plans Unclear explanation of business goals According to Lierni & Ribiere (2008) different methods can be applied to resolve above given causes of project failure. Sometimes, businesses need to have knowledge properly arranged according to procedures, resources, and schedule so as to obtain the “correct knowledge” to the “exact individual(s)” at the “correct time” to assist and diminish project expenditure and timetable, to improve project return-on-investment (ROI) and to boost project quality. In addition, the return-on-investment is attained through enhanced risk management offered by knowledge management. And also, the business risk management is the way through which doubts are progressively controlled to strengthen the possibility of meeting project goals. Furthermore, the efficient management of this insecurity is reliant upon the “knowledge” as well as “convenience” in the knowledge collection. However, the process of business knowledge management facilitates a project group to diminish rework as well as trim down the time that is required to plan overall project. Furthermore, offering “proper knowledge” to the “exact individual(s)” in “correct time” is necessary, for the successful completion of a project. Therefore, it will be helpful in achieving the project's objectives as well as increasing project ROI (Lierni & Ribiere, 2008). Accoding to Lierni & Ribiere (2008) business knowledge could be outside for example this could be collected from the people who are outside the organization. Normally, this kind of business knowledge exists in books, journals, magazines, etc. In addition, business knowledge can as well be collected internally for example the knowledge that is produced inside the organization, mainly by means of experimentation and experience. According to Jalote (2009), normally the fundamental intention of the knowledge management inside a business is to organize, handle, and supervise the interior knowledge of the corporation. This increases the experiential knowledge and focus in the knowledge factory model, moreover this is predicts at the top ranks of the capability maturity model (Jalote, 2009). 6- Knowledge Management Practices Knowledge management practices in business and project management can be explained as an observable organizational activity that is linked to corporate operational and business areas management. Here Zack, McKeen, & Singh (2009) have identified four main dimensions of knowledge management practice those were included in literature that come into view to relate to business performance: (Zack, McKeen, & Singh, 2009) Knowledge management offers the capability to locate as well as share obtainable knowledge Knowledge management offers the capability to experiment and produce new business knowledge Knowledge management presents a culture that gives confidence to project management and business knowledge sharing and creation Knowledge management offers a view for the over corporate strategic value of knowledge as well as business personnel learning. 7- Project Management Challenges and KM Opportunities Hovland (2003) has outlined that project management can be defined as, the implementation of “business information”, tools, expertise, and procedures for fulfilling the project needs. The relationship between project and knowledge is described as “seller” and “buyer” those are the two major groups connected through some project management procedures. In this scenario “Buyer” means the buyer of services and goods from a business. Similarly, “seller” outlines the supplier of services and goods to a business (Hovland, 2003). A majority of challenges regarding project management associated to their knowledge management difficulties to separate proceedings in the evolution and progress of their corporation’s environment. Some important procedures are given below: Downsizing as well as additional large re-organization projects Stoppage of a long-term association from a supplier Removal of a whole project team High turnover Potential business growth The executive divisions that make use of the knowledge management are embedded in their customary work practices as well as business values offer an important transformation in managerial environments. In this scenario similar expansion, the creation of the additional formal and explicit initiatives in terms of managing corporate knowledge and homeostatic knowledge management stability are the real solutions through knowledge management initiatives. Despite the fact that, knowledge management is a plan for re-establishing or supporting good performance those are linked and concerned with the adoption of a technology-driven structures and proper program that can direct to an “administration of business knowledge”. In other words, organizational administration is concerned with the risk of “over-managing” the business conditions and ultimately being counter-productive. The main patterns from this discussion we have are two main challenges of organization knowledge in a business project environment are: the combined accumulation of knowledge; and the administration of implicit outline of knowledge (Leseure & Brookes, 2004). 8- KM Facilitating PM Communication According to DeTienne & Jackson (2001), knowledge management offers the capability of sharing the information to make possible the business and management communication across the corporation’s boundaries. In addition, through knowledge management the whole business activities, operations, projects work jointly to facilitate everybody to be the best they can do (DeTienne & Jackson, 2001). As DeTienne & Jackson (2001) stated that corporate knowledge managers need to come across with specific knowledge management tools as well as strategies that will facilitate information sharing among business and project personnel. Because, by helping the entire kinds of business and project communication, organizations would be able to pay less attention to their knowledge stock and they would be able to put additional concentration on the additional significant elements of knowledge flow (DeTienne & Jackson, 2001). 9- Organizational Learning through KM McElroy (2002) stated that knowledge management offers an explicit connection between project knowledge management and organizational learning (OL). Organizational learning has involved an enormous sustainable advantage in corporate projects management and business by offering a capability to learn and react faster than competitors. However, the main goal of knowledge management is to strengthen a corporation’s capability to carry out operations, to learn, and to learn well in sustainable way. Knowledge management offers the corporate and project management control that spot lights on organizational learning. In other words, knowledge management is an execution strategy intended for organizational learning. Organizational learning and knowledge management movement have a great deal to gain through implementing this union of thinking and corporate department information grouping to a single place. We can say that knowledge management is employed to clarify a vision of corporate and management learning (McElroy, 2002). 10- KM and PM basic relation Lytras & Pouloudi (2003) stated that knowledge management is associated with the history of human beings, in other words, it was born with the birth of a first human. In addition, using this knowledge qualitatively and positively in accomplishing the preferred objectives are the best qualities of humans in the ordinary situation. Therefore, this resource is a versatile phenomenon in the management of business or in a corporation (Lytras & Pouloudi, 2003). According to Lytras & Pouloudi (2003), the fact of knowledge management is examined by outlining typical stages, which describe utilization of knowledge in a definite corporation. In addition, in an organization’s atmosphere these tasks should be like a wide network of politics, manners and associations. Furthermore, an additional aspect is reality, which supports understanding of reusable knowledge objects. In addition, the proficiency, knowledge, skills, earlier experiences, and fixed business knowledge are simply a small number of instances of resources that are helpful in the development of business knowledge. In addition, in a corporation these attributes are extremely vital. Furthermore, participation in a number of projects is not a procedure that has an ultimate solution or a goal. However, continuous procedures of knowledge creation and capabilities of efficient actions are needed in a business infrastructure where the business achieves knowledge from contribution in projects. In addition, unluckily, contemporary business divisions make use of this direction. However, their restricted adjustment to make use of knowledge as an asset and use of hard learning techniques become a challenging task (Lytras & Pouloudi, 2003). 11-KM in Project Management areas This section will discuss some main areas of the project management and their relation to knowledge management: 11.1- Planning In project management, planning entails carrying out significant tasks such as developing statement of work, work breakdown structure, scheduling, risk management and estimating time and costs. In this scenario project manager constructs the knowledge management scheme as well as its beneficiaries. According to knowledge management viewpoint, the client belongs to user community. In addition, understanding the ambiguity close to knowledge management, the project planning can be handled in an excellent way and prevent from various confusions adjoining the knowledge management efficiency as well as actions for carrying out particular jobs. In case of estimating business project time and expenditures the actual value of an ultimate knowledge management operation is utilized in estimation of the time and expenditures. It offers the rank of granularity that permits for “rollups” to diverse points of monitoring and tracking (McElroy, 2002). 11.2- Organizing In project management having high-quality plans is essential however little utilization devoid of a framework to implement them. As McElroy (2002) stated tha in project management and organizing we are having of a lot of factors, like that responsibility matrix, team organization, meetings, software and project guide or help manual. In addition, effectively managing a team and building a group of people (project team) are not sufficient. In this scenario knowledge management is very helpful regarding the project management for identifying a clear reporting and responsibilities associations (McElroy, 2002; Field & Keller, 2007). 11.3- Controlling In scenario of project management controlling engages carrying out four basic actions those are: (Kerzner, 2006) 1. Business project status collection as well as assessment 2. Tracking and monitoring of project phases and actions 3. Carrying out the contingency planning regarding effective risk management 4. Re-planning According to Gold, Malhotra, & Segars (2001) in all above outlined business project management areas the main things are status collection and corporate data on schedule, cost and quality. After that managers convert these business statistics into information using the knowledge management operations. These are the more meaningful business statistics that offer business management and administration a better opportunity regarding effective management and organization of the project activities and operations. In addition, from the knowledge management prospective of the project we need assessment and status of the business system those are critical. In case of risk management, monitoring, tracking business goods status we need effective and on time business information. The application of the knowledge management approach is the best choice for handling these issues (Gold, Malhotra, & Segars, 2001). 11.4- Leading In the project management, leading involves motivating people to attain the business or project aims and objectives. To lead any project we involve following aspects regarding effective management of the project: Communicating Offering a vision Upholding direction Motivating Forming a team Being loyal According to Gupta, Iyer, & Jay E. Aronson (2000), in effective project management leading happens all through the business project life cycle. In business project management offering a vision without effective knowledge, analysis and business practice makes the overall project failure. Therefore, we need to carry out detailed research and analysis of the different project factors. In this scenario the paradigm of knowledge management offers better business data analysis, communication among business personnel, and greater evaluation of the business background. All these factors lead to effective formulation of business strategy and better management of project (Gupta, Iyer, & Aronson, 2000). 12- Knowledge management trends According to Gupta, Iyer, & Jay E. Aronson (2000) the adoption and implementation of new knowledge management techniques facilitate corporations and projects through the collapse of time-space limitations because of novelty in telecommunications tools. These modernisms have not immediately helped in sharing business information across whole business, on the other hand approximately made it very important for the sustained endurance and development of an association. There are presently two main developments in knowledge management regarding effective management of business and organizational projects (Gupta, Iyer, & Aronson, 2000): Determining the intellectual capital of a business: Augmenting capacity ratios/indexes as well as corporate standard Knowledge mapping: Holding knowledge achieved through individual and distributing it all through the corporation and management , generally by means of information technology 13- Conclusion This paper has presented a detailed analysis of the relationship between project management and knowledge management. From above discussion, we can say that knowledge management has become an important part of project management. In this paper we have discussed, how knowledge management helps in different phases of the project management. With the emergence of new information technology, knowledge management has become the essential part of each area of the corporate. In addition, with the help of knowledge management, the business management and project management have become easier and effective. Now management can take faster and effective decisions regarding the better management of the projects. This research has offered a deep analysis of the knowledge management and project management relationship and joint functions. I hope this will offer a deep insight into overall areas of the both paradigms. 14- References DeTienne, K. B., & Jackson, L. A., 2001. Knowledge Management: Understanding theory and developing strategy. An International Business Journal incorporating Journal of Global Competitiveness Volume 11 Issue 1, pp. 1 - 11. E-articles. (2009). 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Available at: http://docs.google.com/viewer?a=v&q=cache:PwckqeZ_yN8J:www.odi.org.uk/resources/download/143.pdf+relationship+between+project+management+and+knowledge+management&hl=en&gl=pk&pid=bl&srcid=ADGEESiQmqrUtjTky_LISrAP_0CqrvnmuRpH01CZireqFuJDFR9-oyjmKUAP5AMeFlNZ [Accessed 10 January 2010]. Jalote, P., 2009. Knowledge Infrastructure for Project Management1. Available at: http://74.125.153.132/search?q=cache:bF7d3MO6kFAJ:www.cse.iitk.ac.in/users/jalote/papers/KnowledgeMgmt.pdf+Project+management+and+knowledge+management&cd=7&hl=en&ct=clnk&gl=pk [Accessed 10 January 2010]. Kerzner, H., 2006. Project management: A systems approach to planning, scheduling, and controlling. New Jersey: John Wiley & Sons. Laudon, K. C., & Laudon, J. P., 1999. Management Information Systems, Sixth Edition. New Jersey: Prentice Hall . Leseure, M. J., & Brookes, N. J., 2004. Knowledge management benchmarks for project management. Journal of Knowledge Management Volume 8 Issue 1, pp. 103 -116. Lierni, P. C., & Ribiere, V. M. (2008). The relationship between improving the management of projects and the use of KM. VINE Volume 38 Issue 1 , 133-146. Lytras, M. D., & Pouloudi, A., 2003. Project management as a knowledge management primer: the learning infrastructure in knowledge-intensive organizations: projects as knowledge transformations and beyond. The Learning Organization Volume 10 Issue 4, pp. 237-250. McElroy, M. W., 2002. Second-Generation Knowledge Management. Available at: http://www.macroinnovation.com/images/Second-Generation%20KM.pdf [Accessed 10 January 2010]. Norton, P., 2001. Introduction to Computers, Fourth Edition. Singapore: McGraw-Hill. Turban, E., Leidner, D., McLean, E., & Wetherbe, J., 2005. Information Technology for Management: Transforming Organizations in the Digital Economy . New York: Wiley. Wysocki, R. K., Robert, Beck, J., & Crane, D. B., 2000. Effective Project Management, 2nd Edition. New York: Wiley. Zack, M., McKeen, J., & Singh, S., 2009. Knowledge management and organizational performance: an exploratory analysis. Journal of Knowledge Management Volume 13 Issue 4, pp. 392-409. Read More