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Proceedings of the 3rd European Conference on Intellectual Capital

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Theodora Ngosi et al.<br />

Sec<strong>on</strong>d, <str<strong>on</strong>g>the</str<strong>on</strong>g> management <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> KM infrastructure aims to address operati<strong>on</strong>al excellence.<br />

Importantly, it encourages specialisati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> KM efforts, creating unique applicati<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge<br />

assets and implementing performance management systems for enhancing employee skills (Kulkarni<br />

& Freeze, 2004).<br />

Third, leadership styles are adapted in specified target areas (NASA, 2004). A capabilities audit can<br />

be c<strong>on</strong>ducted, which will show positive KM experience and less<strong>on</strong>s up<strong>on</strong> which build tangible<br />

recommendati<strong>on</strong>s. Executives can <str<strong>on</strong>g>the</str<strong>on</strong>g>n, develop capability roadmaps anchoring high-level decisi<strong>on</strong>s<br />

about strengths and opportunities that can be developed to improve leadership styles.<br />

Level 5-Optimising<br />

In this final level <str<strong>on</strong>g>the</str<strong>on</strong>g> organisati<strong>on</strong> drives l<strong>on</strong>g-term c<strong>on</strong>tinuous improvement as strategic decisi<strong>on</strong>s.<br />

The organisati<strong>on</strong> can focus attenti<strong>on</strong> <strong>on</strong> CBBs <str<strong>on</strong>g>of</str<strong>on</strong>g> governance and c<strong>on</strong>tinuous improvement.<br />

Governance <str<strong>on</strong>g>of</str<strong>on</strong>g> KM is still regarded phenomen<strong>on</strong> (Zyngier et al., 2004). We adopt <str<strong>on</strong>g>the</str<strong>on</strong>g> IT governance<br />

perspective (Weill & Ross, 2004) that: when <str<strong>on</strong>g>the</str<strong>on</strong>g> organisati<strong>on</strong> has an established KM infrastructure,<br />

governance implies that senior executives understand how <str<strong>on</strong>g>the</str<strong>on</strong>g>y can fulfil <str<strong>on</strong>g>the</str<strong>on</strong>g>ir obligati<strong>on</strong>s for<br />

resp<strong>on</strong>sible leadership in strategic decisi<strong>on</strong>s regarding KM; managing all dimensi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> KM in relati<strong>on</strong><br />

to organisati<strong>on</strong> functi<strong>on</strong>s, structures and process. Important dimensi<strong>on</strong>s that can ground <str<strong>on</strong>g>the</str<strong>on</strong>g> essence<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> governance and c<strong>on</strong>tinuous improvement are alignment and best practices.<br />

C<strong>on</strong>tinuous improvement is part <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> integrated KAM infrastructure that is supported by a knowledge<br />

policy and knowledge strategy, both <str<strong>on</strong>g>of</str<strong>on</strong>g> which are aligned with <str<strong>on</strong>g>the</str<strong>on</strong>g> overall business strategy. This<br />

alignment ensures compatibility between governance mechanisms, exploitati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> valued knowledge<br />

assets, and <str<strong>on</strong>g>the</str<strong>on</strong>g> use <str<strong>on</strong>g>of</str<strong>on</strong>g> IT. In line with Chan et al. (2006), alignment leads to more focused and<br />

strategic use <str<strong>on</strong>g>of</str<strong>on</strong>g> key elements such as IT and processes, which in turn, lead to c<strong>on</strong>structive c<strong>on</strong>tinuous<br />

improvements. Governance mechanisms can be less structured to overcome problems such as<br />

coordinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge in different organisati<strong>on</strong> locati<strong>on</strong>s. Best practices blend seamlessly in <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

KM infrastructure to enhance a universal knowledge life cycle. Internal and external benchmarking <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

best practices assists <str<strong>on</strong>g>the</str<strong>on</strong>g> organisati<strong>on</strong> with <str<strong>on</strong>g>the</str<strong>on</strong>g> development <str<strong>on</strong>g>of</str<strong>on</strong>g> breakthrough performance.<br />

4.3 Increasing maturity<br />

Based <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> key capabilities identified above and discussi<strong>on</strong>s with domain experts we have<br />

developed a guideline and activities for transforming organisati<strong>on</strong>s towards a higher KM maturity<br />

level. Key activities to transform an organisati<strong>on</strong> from <strong>on</strong>e maturity level to <str<strong>on</strong>g>the</str<strong>on</strong>g> next are summarised in<br />

Table 2, and can be broadly described with four phases: initiate, expand, incorporate and sustain.<br />

Table 2: Levels for transforming organisati<strong>on</strong>s KM maturity<br />

Level Maturity transformati<strong>on</strong>s activities<br />

1 to 2<br />

Define key aims <str<strong>on</strong>g>of</str<strong>on</strong>g> KM and a high level KM roadmap.<br />

Identify and priorities a small number <str<strong>on</strong>g>of</str<strong>on</strong>g> subsequent programs.<br />

Initiate<br />

Ensure communicati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> KM aims, challenges and roadmap to all employees.<br />

Develop a detailed KM roadmap and identify major programs.<br />

Assign roles that facilitate <str<strong>on</strong>g>the</str<strong>on</strong>g> effective implementati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> KM roadmap and<br />

2 to 3<br />

programs.<br />

Develop a knowledge culture through change programs.<br />

Expand<br />

Embed a knowledge life cycle in KM programs, incorporating suitable performance<br />

measures, procedures and standardised evaluati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> project results.<br />

Develop, implement and manage knowledge repository/library.<br />

C<strong>on</strong>duct employee surveys, and feedback discussi<strong>on</strong>s.<br />

3 to 4<br />

Incorporate<br />

4 to 5<br />

Sustain<br />

Measure and communicate <str<strong>on</strong>g>the</str<strong>on</strong>g> impact <str<strong>on</strong>g>of</str<strong>on</strong>g> KM activities and <str<strong>on</strong>g>the</str<strong>on</strong>g> impact <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge<br />

assets <strong>on</strong> business performance.<br />

Define an integrated KM infrastructure.<br />

Maintain, c<strong>on</strong>tinuously assess and improve KM infrastructure supported with<br />

knowledge policy and knowledge strategy both <str<strong>on</strong>g>of</str<strong>on</strong>g> which are aligned with <str<strong>on</strong>g>the</str<strong>on</strong>g> overall<br />

business strategy.<br />

Ensure regular communicati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> KM activities and benefits.<br />

Embed measures that mature knowledge capabilities; measure knowledge assets. and<br />

determine how to focus <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> exploitati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> knowledge and intellectual capital for market<br />

value.<br />

309

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