5 Strategy
Scenario 1. If an organization so far has applied an exclusive market-oriented strategy, then external determinants such as customers’ demands, the organiza-
5.3 Success factors, barriers and risks
5.3.1 Success factors
Clear economic benefits. The establishment of a “knowledge controlling” is required that coordinates goal setting (planning) and goal assessment, e.g., on the basis of the intellectual capital approach in order to show that a KM initiative really is worth the investment223.
Exact vision and language. Terms such as knowledge, information, learning, knowledge base or organizational learning are subject to interpretation. A KM ini- tiative should define these terms with respect to the organization’s knowledge- related goals so that the perspective on what is and what is not knowledge manage- ment is clearly communicable within the organization.
Effective aids for motivation. Incentive systems have to be installed that reward an improvement of the organizational knowledge base. This is especially true for immaterial incentives, such as additional training for effective knowledge provid- ers or “elite” communities for the organization’s experts.
Appropriate process orientation. The integration of KM activities into the orga- nization’s business processes is an important factor as an effective and efficient handling of knowledge requires it being part of the organization’s daily routine.
However, Davenport/Prusak (1998) warn not to exaggerate the definition, descrip- tion and standardization of knowledge processes as one might miss the essence of knowledge: the creativity that generates ideas and inventions.
ICT and organizational infrastructure. ICT can be the enabling factor in a KM initiative. There are also limits to its use and the installation of a good platform does not guarantee success. A good organizational infrastructure is regularly con- nected with a separate organizational unit or position that coordinates the initiative.
Stable knowledge structures. Knowledge structures (ontologies) are required to enable participants to search and navigate the abundance of (documented) organi- zational knowledge. Successful KM initiatives thus require a well-documented, stable knowledge structure. Knowledge itself is not stable, but dynamically evolves, though. Therefore, organizations have to allow a certain amount of flexi- bility in the evolution of their knowledge structures in order to avoid rigid and out- dated knowledge structures.
Redundant channels for knowledge transfer. Knowledge is shared and distrib- uted with the help of multiple channels, e.g., personal interaction in the cafeteria, telephone, email, newsgroups, bulletin boards, business TV, video conferences, documents. The transfer of redundant knowledge with the help of several channels supports the learning process. New communication channels introduced with KMS should not be seen as replacements for existing channels, but as aids to improve the effective and efficient use of the existing channels.
223. See also chapter 8 - “Economics” on page 395.
Continuous participation of employees. As with the implementation of most organizational and ICT instruments, participation of employees helps that the solu- tions are well received by the employees so that motivation to cooperatively use the new ICT and organizational instruments is high. In the case of KM, several ini- tiatives seem to show a pattern of “emergent” strategy where employees generate KM-related ideas, develop an initial solution (e.g., within a community that dis- cusses KM) which in turn gets management attention and support.
The author coordinated a case study concerning success factors of KMS at sd&m AG, a software and system house based in Munich that is one of the pioneers in the application of KMS in Germany224. In a series of personal interviews with sd&m’s knowledge manager as well as five selected participants of sd&m’s KMS, those factors were elicited that were important for the successful implementation of KMS in the case of sd&m (see Table B-6).
224. See Wäschle 2001, 47ff and 76ff, see also Box B-9 on page 396 where sd&m is described.
TABLE B-6. Importance of success factors at sd&m success
factor impor-
tancea description holistic, inte-
grated and standardized approach
o sd&m’s KM initiative has a bias towards a technology-oriented perspective, though a knowledge-oriented culture and the organi- zational infrastructure are well established. This is not surprising as sd&m is a technology company. Leadership, economic or reor- ganization issues are underrepresented.
knowledge- oriented cul- ture
+ + Repeated surveys of employeesb have shown that sd&m employ- ees have an exceptionally positive attitude towards knowledge sharing. sd&m paid a lot of attention to its organizational culture when implementing its KMS.
management support
+ The board of executives has supported the KM initiative with a substantial budget for a separate organizational unit. Lower man- agement levels (i.e., project managers) in most cases give a good example for the use of the KMS.
clear economic benefits
- Economic success of the KM initiative is assessed on the basis of success stories, subjective assessments as part of regular surveys of employees and crude measures for KMS usage (e.g., number of accesses, actuality and extent to which skills profiles are voluntar- ily provided and maintained by employees). There is no system- atic approach to determine the economic benefits quantitatively.
exact vision and language
+ + sd&m devoted a lot of effort to set up a clear and communicable vision for its KM initiative and to define the terms used (e.g., knowledge, knowledge broker, skill). These are documented explicitly within the organization’s KMS. The interviewees were committed to the vision and shared the language.
effective aids for motivation
- - sd&m does not believe in incentive systems for KM. There are almost no explicit incentives that aid motivation for knowledge sharing which, according to the interviewees, do not play a role in knowledge-related behavior. sd&m’s positive knowledge-ori- ented organizational culture rewards knowledge sharing, though.
appropriate process orien- tation
o Knowledge processes are loosely coupled to sd&m’s business processes (project management). KM is explicitly integrated in the kick-off and touch-down phases of the project processes.
Apart from this simple integration, knowledge processes are nei- ther described, nor communicated within the organization.
ICT and orga- nizational infrastructure
+ + The KM initiative is well supported by KMS that can be accessed by every employee. The organizational infrastructure is realized as a well-funded separate organizational unit that coordinates the KM initiative, maintains the KMS and monitors their usage and acts as knowledge broker.
stable knowledge structure
+ sd&m identified three stable core components of its knowledge structure: employees, projects and organizational units. Apart from this core structure, the ontology is decentralized so that all employees can flexibly extend the knowledge structure. The structure is centrally reviewed and reorganized regularly.
redundant channels for knowledge transfer
o sd&m’s skills data base supports locating experts and initiating communication between employees. Also, the sharing of codified knowledge is improved as knowledge brokers evaluate and refine documented knowledge. sd&m does not support additional chan- nels, e.g., expert networks, communities, newsgroups.
continuos participation of employees
+ + The idea for sd&m’s KM initiative was created within a group of employees and immediately found support from management.
sd&m employees have always shared in the development of the KM initiative through an organization-wide brainstorming pro- cess, workshops, regular surveys and personal participation.
a. Importance was subjectively assessed on the basis of a multi-item questionnaire as well as documentations of sd&m by the author and by Wäschle (2001, 88ff). A five- point scale was used extending from -- (very low importance) to ++ (very high impor- tance).
b. The surveys were administered by a professional consultant specialized in employee surveys on the basis of an electronic questionnaire. Response rates were regularly above 90%.
TABLE B-6. Importance of success factors at sd&m success
factor impor-
tancea description