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Combining Knowledge and
Change Management at Consultancies
Péter Fehér, Budapest University of Economic Sciences and Public
Administration, Hungary,
pfeher@informatika.bke.hu |

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1.
Introduction
Knowledge
became strategic resource of organisation, as the basis of competitive
advantage. Since the mid 1990s, knowledge management (KM) has been
developed into a strategic practice of knowledge-intensive companies.
Several
theories exist to create a framework of knowledge management activities.
Early models concentrated on one subtask of KM activities by an
explanatory approach (Heisig, 2002). In the past few years the
development and justification of integrated, holistic frameworks have
started. These models present not only the dominant KM processes, but
also their environment and influence factors.
Tissen et al
(1998) identifies the operative level of knowledge management beside
strategic level. At operative level, human actors and knowledge
distribution systems are connected, while the goal of strategic level is
to synthesise the relationship among the business strategy, knowledge
workers and supportive organisational structures and processes.
Wiig (1999)
concentrates on the strategic level, and identifies 4 strategic
approaches of knowledge management efforts that are rarely combined. The
four areas are the information management/information technology
(IM/IT), intellectual asset, people and enterprise effectiveness focus.
The IM/IT and people focused approaches clearly determine the used tools
and solutions, while the other approaches are open for every
possibility.
In the model
of Stankosky (1999) the internal and external success factors of KM are
identified. Based on Bixler (2002) all of the presented 4 factors have
to be implemented in order to provide successful knowledge management
practice. Researches emphasise the role of supportive IT solutions,
organisational structures and processes, leadership, climate and
business culture and organisational learning possibilities. Similarly
Lai and Chu (2000) analysed the influence factors of knowledge
(especially distribution) processes. The research identified technology
as the most powerful factor, but the different management solutions
(metrics, incentive system, leadership, values and culture) are also
important.
The common
of the holistic models is the combined analysis of different KM tasks
and possible influence factors. Rubenstein-Montano et al (2001)
emphasised the importance of the system thinking approach, in which case
KM efforts have to support business goals.
1.1
Socio-technical roots of KM
There is an
endless discussion about the role of technologies (especially IT) in
knowledge management between researchers and practitioners. While
Daugherty denies the determinative role of technologies, Michael J.
Turillo argues for the basic role of it (Hildebrand, 1999). Some
researchers are trying to synthesise the different opinions, by
emphasising the importance of technologies, but also pointing out that
technology itself is not able to create working processes and behaviour
(Junnarkar and Brown, 1997; Gubley, 1998, Bőgel, 1999).
Based on
partly this discussion Sveiby (1998) identified the human-focused and
IT-focused KM approaches. In a research of consultancies Hansen et al
(1999) realised the practical appearance of these approaches in KM
strategies that were identified by personalisation (emphasis on
face-to-face knowledge sharing) and codification strategies (emphasis on
using IT and representation efforts). The research presented, that
consultancies have to concentrate either on the strategies, and efforts
of equal combination can lead to failure.
The research
of Truch and Bridger (2002) presented, that organisations, which have
successfully implemented knowledge management practice used a
combination of personalisation and codification strategies. Other
authors also argue that combined strategies effect higher efficiency (Wiig,
1999; Adelmann and Jashapara, 2003), and pose the question whether this
obligatory choice is only the specialty of consultancies? Or, having
both side right, organisations have to start with either strategies, and
later they are developing the other side, and achieving the balanced
practice?
The
combination of technological and organisational solutions has an origin
of labour researches in the 1950s, when the Tavistock Institute studied
the English coal-mining industry, in which there were problems with
productivity after introducing new technologies (Trist, 1978). The
research presented, that using technological solutions is not
independent of human and social aspects. The problem is that both
technological and social sides ignore each other, while the combination
is required. Rubenstein-Montano et al (2001) argues for the importance
of system thinking approach of knowledge management practices, where
every factor is counted. The question is, whether the theory of
socio-technical systems is also working in the case of modern technology
supported KM practices?
1.2
Change management and KM
In the
research of Tavistock Institute the introducing of new technology has
strong impact on the organisation, working life and excepted behaviour.
Knowledge projects are also changing organisations: introducing a
knowledge management practice requires the change of daily routine,
behaviour, and often the processes and organisational structures.
Therefore, it is required to take the theories of change management into
consideration. There are several researches that analysed the different
approaches and success factors of changes.
The
classical research of Kotter (1995) analysed the possible failure
factors of change processes, and identified 8 steps of the change
management process. The required condition is the feeling of urgency for
change that is able to start the change process by giving power to step
out of the status quo. The other steps are the followings: forming a
good team (supportive coalition), create a vision of change, communicate
the vision, remove obstacles, change fast (create short term wins),
consolidate results and keep on changing while embedding changes into
culture.
Employees
usually resist change, because they have to give up the usual processes
of work and behaviour, and they have to form a new personal contract
with the organisation. In order to achieve the commitment of employees,
executives must define new terms of employment relationship in 3
dimensions (Strebel, 1996): formal dimension (job description, tasks and
processes, relationships, compensation), psychological dimension (equity
of work and compensation) and social dimension (unwritten rules,
values). Employees have to be persuaded to accept the changes in these
dimensions, otherwise they will resist, block the changes or leave the
organisation.
The changes
of the environment pressurise organisations for renewal, adaptation, but
in continuous change employees become exhausted, that can destroy
organisations. Abrahamson (2000) the approach of dynamic stability, in
which organisations change by little steps, based on the development of
existing practices and processes.
Hirschhorn
(2002) suggests, that change processes should be organised not as one
big task, but divided into three tightly linked but still different
approaches: the political approach includes the coalition forming and
change of the organisational structure; the marketing approach involves
key employees and listens their ideas, and the military approach
provides the attention and the commitment of managers by building
insurgent initiatives. These approaches should run simultaneously in
order to achieve success.
To summarise
the recent researches of change management, beside the important role of
managers of organisations to conduct change, the importance of the
employees themselves increased. Especially in the case of knowledge
intensive companies, knowledge workers want to be part of decisions and
changes, they want to understand the reasons and possibilities (Kim and
Mauborgne, 2003; Tampoe, 1993). To involve employees, the role of fair
communication and trust increases, and by achieving the support of
employees, culture is more likely to change.
2.
Research framework
For
successful competition, based on the knowledge assets of an
organisation, the conscious management of this strategic resource is
required (Zack, 1999). Knowledge management strategy of organisations
defines the utilisation of knowledge required for supporting and
accomplishing organisational strategy (von Krogh et al, 2000). It
includes the goals of knowledge management together with the tools,
methods and approaches to accomplish it.
Developing
knowledge management practice of an organisation can be based on either
the threats of external factors (increasing competition, better practice
of competitors, etc.) that pressurise the behaviour of the organisation
or internal initiatives that provides opportunities to be the best in
the market, or to prepare proactively for future threats. Knowledge
management strategy consists of either external factors or the internal
possibilities of organisations (Zack, 2000). Nonaka and Toyama (2003)
argue that a knowledge management strategy is the reflection for the
internal possibilities and external position of an organisation.
Knowledge
management processes can characterised by their purpose: assessing and
mapping knowledge assets (Stewart, 1997; Sveiby, 1997; Klimkó, 2002),
leverage knowledge (sharing, transfer and use – Szulanski, 1996;
Weggeman, 1999) or developing knowledge (creating new knowledge,
organisational learning – Nonaka and Takeuchi, 1995; Argyris, 1992;
Pemberton and Stonehouse, 2000).
Knowledge
management strategies can be developed based on different approaches:
existing knowledge of organisation can be exploited or new knowledge can
be acquired and developed (von Krogh et al, 1994; Hedlund, 1994;
Volberda, 1996); personalisation or codification (Hansen et al, 1999);
conservative or aggressive strategies (Zack, 1999). Earl (2001) and
Klimkó (2001) organised the different approaches into schools.
Independently of the used approach, knowledge management strategy of an
organisation has to appear in organisational and technical architecture
(Zack, 1999).
Technological solutions provide the possibility of effective management
of codified (store, process, transfer) knowledge. Information and
communication technologies (ICT) decrease the barriers of knowledge
sharing and transfer (Hendriks, 1999). Although IT solutions (knowledge
management support systems - KMSS) have a key role of supporting KM
practices, management understanding of their possibilities and limits is
also required (Liebowitz, 2001). There are several possibilities to
support KM processes: creating knowledge by data-mining systems (Fayyad
and Stolorz, 1997); discovering knowledge by intelligent agents (Malone
et al, 1997); supporting cooperation, coordination and communication (Gábor,
1997); using knowledge repositories (Simon, 2001) or applying expert
systems (Liebowitz and Beckman, 1998).
The several
possible supportive factors of organisational solutions are widely
discussed in the general management, and KM literature. Researches
presented, that even each of the general management factors can have
affect to KM practices: Organisational structure can be a barrier of
effective use of KM efforts, therefore conscious reorganisation, new
structures and new roles are required (Spender, 1996). Human resource
management activities have to face the more important selection of
valuable and appropriate employees, the different motivation factors of
knowledge workers, and also the increased requirements of the management
(Woodruffe, 1992; Tampoe, 1993). Banks (1999) emphasises the importance
of the supportive culture of KM processes, which hardly have to be based
on trust (Huemer et al, 1998). Guns (1998) argues for the role of
leadership, the role of the managers, their behaviour that employees can
follow, and what is able to motivate them.
In order to
measure the effectiveness of any practice or process, a well-defined
measurement system is required, with feedback possibilities (Ahmed et
al, 1999). Measurement can include the monitoring of performance
indicator, analysis of process effectiveness, questioning workers in the
KM system.
Reviewing
the literature of Knowledge Management several factors can be
identified, which has impact of the effectiveness of KM activities
(figure 1.). Lai and Chu (1999) identify them as knowledge influences,
Handzic and Jamieson (2001), likewise Chauvel and Despres (2002) name
them as enablers of knowledge management activities.
Based on the
presented research framework this paper analyse, which of the presented
factors have impact on knowledge management practices in consultancies
and what is their relationship with each other, with special regard to
the technology-management relations. The paper explores the connection
between supportive factors of change management and knowledge management
practice, in order to discover whether the factors those are required
for change projects are also required for continuous KM practices.

Figure
1: Enablers of KM - Research framework
3.
KM practice development at
consultancies
This study
is part of a research, which examines the knowledge management practice
of some consultancies in Hungary. Consulting companies are typically
knowledge-intensive organisations, transferring external knowledge to
their customers by providing solutions (Apostolou and Mentzas, 1999).
Consultancies sell the expertise and knowledge by their well-educated
employees, which are based on the past experience, competence and
knowledge of newly hired employees, and newly gained experiences from
accomplished tasks at the customers. Consultants not only provide
knowledge for customers, but also develop the knowledge base of their
own companies by processing experiences. Consultancies were not only the
pioneers of popularisation of the idea of knowledge management, but also
the first investors to knowledge management solutions for themselves (Wiig,
1997).
In this part
two consulting companies are presented, which have been selected by
their characteristics. The selection of organisations is not accidental:
these companies used radically different approaches to introduce their
KM practices. Although there are similar companies, the presented
organisations have some unique and interesting features. Information
gathering has been accomplished by personal interviews of members of
organisations, observation and document analysis. Owing to the request
of organisations for anonymity, names are altered. During the
presentation of cases, the different aspects of organisations are
compared and later discussed.
3.1
Overview of the researched cases
Both
companies are dominant players of Hungarian IT and Management consulting
sector, and therefore they are competitors of each other.
IT-Consult
is an international consulting company, of which IT-consulting
department at the Hungarian office were examined, that provides
different IT and management solutions (information and e-business
strategy, IS audit, selection, etc.), beside classical consultant
activities. The organisation is the result of the merger of two
international consulting companies in the middle of 1990s. One of the
former companies was among the pioneers introducing their own KM system,
and this – mainly technological – approach became the basis of the
common system of the unified organisation. The goal of knowledge
management practice is to support the project works, and the personal
education.
The history
of MR Consulting started like many of the privately owned
consulting companies. It was founded just before the merger of
IT-Consult, with around 10 experienced employees and with a charismatic
leader, who formerly worked for international consulting companies – now
competitors. The organisation focuses on the IT and Management
consulting activities (strategy, system development, selection), and it
is a viable competitor of IT-Consult. Over the years the company became
a dominant player of the Hungarian market with over 100 employees. The
vision of the founder was an open, tolerant culture, where employees can
count on each other. The goal of the not totally conscious knowledge
management approach is to share experience based knowledge to support
the work of each others.
3.2
KM strategies
In the case
of IT-Consult one of the two merged companies started to develop its
knowledge management practice in the mid-1990s. In its approach, the
organisation standardised and centralised the processes. The knowledge
management approach was characterised by a very intensive use of
technological solutions: building centralised knowledge base, to support
the geographically dispersed employees by providing the possibility to
log in to the global network.
Both before
and after the merger, it was highly important to consciously manage the
knowledge assets of the company. By having a knowledge management
program, this company was among the pioneers involved knowledge
management to their daily, operative practice. Having a KM practice
provided the possibility to strengthen the competitive status of the
organisation. The knowledge base stored the formalised experiences of
employees, detailed project and tendering information, and external
information about markets, industries, tendencies and solutions,
provided by international researchers.
The
knowledge management practice was not so conscious in the case of
MR-Consulting: starting from the foundation, the company relied on the
expertise of its employees. Almost all of the employees of the new
organisation had experience at consulting companies and had outstanding
personal skills and competences. Because of the starting size of the
company, personal knowledge sharing was the most efficient solution:
everybody knew not only everybody, but also the work they were doing.
Over the
years of expansion this approach was applied generally, coordinated by
the HR department. Personal communication and knowledge sharing had
priorities. The management of MR Consulting knew, that expertise was
required to be a viable competitor on the local market, and later on the
international market, and emphasised the development of every employees.
3.3
Technological issues
IT-Consult
has built a central knowledge base that is in fact a centralised
document management system, using the very popular Lotus Notes
solutions, and accessible through intranet from every part of the
company, and also for executives even from outside. In this system
databases store industry, market and service specific project and
personal experience, solutions. Beside international information,
regions and even countries have also local information. Databases are
searchable by different conditions and refreshed regularly. Employees
receive information about the continuous renewal of databases.
Because of
the followed approach of MR-Consulting, there was no heavy investment
into technological solution. Projects were partly documented in
structured directories on a central server of a company, but it was only
reachable in the HQ office. There were also some prepared templates to
support the tendering process. Unfortunately the widest information
source, the access to the Internet was restricted to employees: the
company gave preference for using the existing external knowledge.
3.4
Organisational issues
3.4.1
Organisational structure
As a common
practice of consulting companies, both analysed organisations have a
project-oriented organisational structure. Although the hierarchical
structure of them builds up as the carrier way of employees (junior and
senior consultant, manager and partner – or similar equivalent
positions) the project structure is temporary, and partly independent.
IT-Consult
organised its basic structure as a matrix organisation: groups of
services and groups and industries. In the case of MR Consulting neither
this matrix solution, nor any formal grouping solution did not exist.
Since the beginnings, the company acted as a big family, without formal
divisions.
While
IT-Consult emphasised the formal presence of KM activities in the
structure, MR Consulting had neither formal supportive, nor
co-ordinating unit. In MR Consulting every KM related task belonged to
the HR department, based on the nature of the tasks. IT-Consult
organised a central knowledge group, to support KM activities by
structuring and developing existing knowledge, and providing training
possibilities. The task of this group was the promotion of the use of
the KM solution.
The only
supportive solution in MR Consulting was rather communication than
structural solution: in order to have the actual information about
ongoing projects and works, weekly/2- weekly organisational meetings
were conducted. The role and effectiveness became questionable, because
the number of employees was increased and participation became
voluntary.
3.4.2
Culture
Although one
of the most basic values of IT-Consult is the importance of knowledge
and knowledge sharing, this value was rather noticed in the Hungarian
office. Employees accepted the use of the knowledge base, but they have
no motivation to submit new documents, formalised experiences. As in
many other companies, spending time with formalisation of documents was
rather like punishment than accepted and honoured work.
Having a
knowledge-base provided an easier possibility of work: employees
searched and find the required documents, and used these documents to
create their own documents. It was easier just to “copy and paste”
parts, than process the information combined by personal ideas and
experience to provide a unique and tailor-made solution. This behaviour
is very common although not everybody does it: “To start a new work,
the easiest way is to check past works, finished projects. It is quite
common to rewrite or to specify old documents, which is simpler [than
creative work]. Personal ideas used in the work, but personal
experiences sometime have the impact. This process is the combination of
existing sources, but the result is unique”, argues an employee.
In the case
of MR Consulting, the above mentioned problem does not exist, because
there is no common knowledge base, and possibility for stowaway
behaviour. The basis of the culture is openness. The HQ is a huge
open-plan office, where parts are separated by glass-walls, but except
executive there are neither personal offices, nor stable desks or
computers. Therefore employees can work surrounded by other persons
every day, that supports knowledge sharing, although employees on same
project are working together.
Not only the
office, but also employees have openness: if an employee has a problem,
he is free to ask every other person (even an executive), and surely
will receive answer or help. This kind of behaviour, as value deeply
embedded in the organisational culture that supports true knowledge
sharing. Because of the expansion of the company, a lot of employees are
working outside of HQ office, and not often visits at all, that make
this personal communication with the required persons hard, even
impossible.
3.4.3
Leadership
Executives
of the Hungarian department of IT-Consult accept the knowledge
management solution, and they are satisfied, and ready to promote it. It
is a common belief, that the technological solution solves everything,
therefore there is no need of additional heavy management commitment.
Although executives encourage employees to use the system, there is no
monitoring of use, or transparent support.
Comparing to
this passive behaviour, MR Consulting CEO is a very charismatic and very
committed person, likewise other executives. Openness and open offices
are not only empty phrases for employees, but a living practice.
Employees can see this behaviour and they are ready to follow it.
Although executives are always ready to help, to provide support, they
are also the persons, who resist changes.
3.4.4
Human research management
As at many
big, international companies, the fluctuation rate is rather high in
IT-Consult, and it is the continuous danger of loosing expertise and
required skills. “This is a sensible problem for our company”,
realised an employee. IT-Consult recruits new employees from
universities, mainly fresh graduates with good abilities in learning and
adaptation. Employees are developed by group trainings and through
e-Learning solutions. The promotion of employees based on hierarchical
and self-assessment, but the carrier way is either promotion or leaving
the company (up-or-out solution), that provides a very hard internal
competition and encumbers cooperation.
People at MR
Consulting believe in life-long employment, and the fluctuation rate is
lower than at other consulting companies. The organisation is looking
for fresh graduates and also for experts. One very important condition
of offering a job is the acceptance of the existing organisational
culture. Employees are developed continuously by having a more
experienced mentor, but also with tailor made trainings. Promotions are
based on very detailed 360° appraisal solution, but there is no direct
pressure for compulsory advancement. There are very valuable employees,
who do not prefer the management carrier way (to become manager or
partner), but there is a possibility to have a carrier as experts.
3.4.5
Motivation
Neither of
the companies has additional incentive system to motivate their
employees to use the available knowledge management solution. In the
case of IT-Consult it is not even part of the performance appraisal, and
there is no measurement. The motivation is only the challenging job,
honour of society and experience. MR Consulting offers an open culture,
in which the basic value is knowledge sharing. Beside this, personal
behaviour, and openness and knowledge sharing is measured in performance
appraisal, and basis of advancement.
3.5
Performance analysis
Neither of
the presented companies have a conscious performance monitoring solution
for the knowledge management processes that is a main problem. The miss
of process assessment and feedback generates a long-term problem: the
solutions can be wrong or can become outdated without control or review.
In the case of IT-Consult, the employees realise the problems relating
to the KM processes, but there is no direct platform or channel to give
feedback. In the case of MR Consulting, the charismatic, but less
flexible leader could be a barrier of faster, comprehensive development.
Because the presented KM solutions are successful at present, there is
no motivation the deeply change the system, and the miss of performance
analysis is a long-term problem that will arise years later.
4.
Synthesising change and
knowledge management
The analysed
cases are presenting pure codification and personalisation strategies
(table 1). During the development and use their KM solutions, problems
were identified at both companies, and harder pressure to change. In
fact, problems were not easy to identify, because there was no
monitoring and assessment system for KM applied in either companies.
Despite of every problem, both companies are absolutely successful in
competition, and has good image among customers.
The history
of IT-Consult is started with a change: a merger. The merger was a
several year long process by integrating the business, organisational
and IT systems, customer-base and provided services. This change was
initiated at the top, and the highest levels of the merging
organisations were committed, and employees also accepted it as an
answer to the market pressures. The change continued by the firm wide
introducing of the central knowledge management system (knowledge-base).
In this case, although the local management was committed, this
commitment was not transparent enough to act, and employees were not
involved into the introduction process. Even, this solution was
centrally developed and the introduction was centrally conducted,
therefore employees in the local office did not feel, that this solution
belongs to them. The change process of introducing the KM system did not
defined new formal terms of employment in any dimensions (cf. Strebel,
1996), therefore employees did not feel high pressure to change, while
the only effort was the marketing campaign of the central KM group.
Another possible problem was the overlapping changes of merger and
introducing company-wide KM. Despite of every problem, employees believe
and accept that the existing KM system is good, but they do not see how
they can be the part of it, and there are no signs and support to show
them.
Table
1: Comparing cases
|
|
IT-Consult |
MR-Consulting |
|
KM Strategy |
Codification
Exploit
Internal and
external knowledge
Pioneer
Voluntary |
Personalisation
ŕ
Combined
Exploit
Internal
knowledge
Follower
Pressured |
|
Organisational issues |
|
|
|
- HRM |
High level of
fluctuation
Selection of
fresh graduates with ability of learning
E-learning,
group trainings
“Up-or-out”
promotion
Hierarchical
and self-appraisal |
Low level of
fluctuation
Selection both
graduates and experts
Personalised
internal and external trainings, mentoring
Alternative
carrier-way for experts
360° appraisal |
|
- Motivation |
No incentives
Challenging job, experience, honour
of society
Not part of performance appraisal |
No incentives
Motivation by leadership and culture
Part of performance appraisal |
|
- Structure |
Projects
Groups of Industry and Service
Matrix |
Projects
Organisation as a family
No formal divisions |
|
- Culture |
Knowledge sharing is ”monkey on the
shoulder”
Workplace relationships |
Strong culture – behaviour patterns
Knowledge sharing based on openness
and trust
Off-work relationships |
|
- Leadership |
Passive managers |
Charismatic CEO, and openness of
management |
|
Technological Issues |
Intranet
Document management |
Central directories of HQ office
(Competence map) |
|
KM Performance analysis |
No |
No |
|
Change processes |
Change: introducing company-wide
KM
Wish of better working KM
practice
Marketing campaign
No new terms of employment
Passive management commitment
No involvement of employees
Overlapping changes |
Change: developing KM practice
External and internal factors to
change
Initiated by employees
Passive opposition of management
|
The KM
practice of MR Consulting was stable for many years. But as the company
expanded old solutions became harder to perform: face-to-face
communication is hard if the expert of a problem should be searched
among over 100 employees, even if most employees are in HQ office only
for a few hours a week. Although there was the constant need for
knowledge change, the existing system could not provide the same
efficiency, as before. MR Consulting was changing, but was not
consciously changed. Originally formulated processes and organisational
structure is not suitable any more for a bigger company, and employees
realised it during their daily activities. Changes initiated in the low
level of organisation in order to develop new solutions, but there was
no central coordination of these activities, and any initiative was
judged separately. One initiative was to develop the internal IT system
of the company, and beside the project controlling system the roots of a
future expert competence map solution was developed.
MT
Consulting had to face stronger competition during recession, and as the
company realised the bigger and bigger need to maintain its critical
knowledge more effectively, after heavy arguments in the management the
organisational structure changed: the technological and management
consulting profiles was formally separated, under different management
and divisions of services were created. In these organisational forms
the formerly less respected experts had a bigger role. The management
had to realise, that the half-conscious management of knowledge is not
enough any more, further steps are required. The daily use of competence
map and the collection and codification of existing internal knowledge
started. MR Consulting applied suitable organisational solutions to
support personalisation KM strategy. The practice is dominated by an
extremely strong and deeply embedded organisational culture. It is
questionable, that this culture is able to support another approach,
because in the case of codification solutions, there are no direct
feedback and honour from colleagues that could be a lowering factor of
motivation for knowledge sharing. These changes were mostly conducted by
the lower level of organisation, but supporting employee initiatives was
already part of the organisation, although it was not common to change
the principles of the company.
In both
cases there is a strong barrier the lack of using conscious change
management in order to support new and changing knowledge management
processes. The applied change management solutions are not exactly
efficient, there are several barriers in both cases (lack of management
support, lack of feedback, lack of employees involvement, etc). Until
now, the presented companies are successful; therefore there is no
motivation of deeper changes. The danger of this comfortable behaviour
is that the reactive solutions could be more expensive and difficult. In
the case of MR Consulting, the firs slowly changes were indicated by
external factors, which is already an example of this danger.
5.
Conclusions
Both
companies had very characteristic KM approach. Either of the companies
concentrated mostly on one side of the presented framework (figure 1),
while neglected the investment of the other side of the model.
IT-Consult has a very strong codification strategy, and realised it by
using a well developed IT solution. Unfortunately there was no focus on
organisational issues. MR Consulting is almost the inverse: although the
personalisation approach of managing knowledge was only half-conscious,
the supporting organisational solutions were almost perfect: knowledge
sharing culture, open leadership, good HR politic and motivated
employees.
In order to
remain competitive and to have a more efficient (or at least suitable)
KM practice, it seems that both companies need higher emphasis on the
other side of the model. These enablers are able to support other
solutions. The expansion of KM enablers is a change process and it is
focusing on the less used side of the model, which could have the risk
of neglecting the already good working solutions. At the time of the
research, both companies were successful, therefore the applied KM
strategies were successful, but there are hidden problems in the working
of KM practice, that were explores in this research, and that could
endanger the long term efficiency.
5.1
Review of research framework related to
cases
Hansen et al
(1999) argued for the compulsory option of codification and
personalisation strategies. These cases present that it is easier to
start a KM practice by using only one strategy and focusing on one side
of the research framework, while it is hard and risky to involve the
alternative approach. The cases also present that neglecting other
solutions, or only just neglecting the other side of the model is not
suitable for long-term.
Using the
codification approach means emphasis on technological solutions, but as
the experience of socio-technical systems presented, organisational
factors are also important. IT-Consult needs to concentrate on
organisational solutions (culture, behaviour, HRM) in order to support
existing practice that can lead to stronger communication and
cooperation between employees, which are the roots of personalisation
approach. Using the personalisation approach means emphasis on
organisational solutions, especially personal communication, culture and
trust, but technological solutions can even support this strategy, e.g.
by using knowledge maps. MR Consulting needs to develop IT solutions in
order to support geographically dispersed employees, which are unable to
communicate in an effective way. It is clear, that the rule of
socio-technical system is true in these cases: even if a company
concentrates on technological solutions, it has to create the
organisational background of the usability.
5.1.1
Assessment
The
different enablers in the research framework are usable to analyse
different cases, in order to compare them, how these enablers have been
used, and what is their impact. The presented two cases allowed to
understand and deeply explored the working of these enablers, as
required in an explanatory research.
There are
also several problems in the change management practice of
organisations. First of all, neglecting the principles of change
management: managers are not committed, not really leaders of changes,
not involving employees. Leadership and cultural change are basic
factors of change processes that are also basic enablers of KM
activities. Without good change management, there are also problems with
knowledge management activities: factors, that are important to change
the organisation, later are required to support KM activities.
In the
presented cases, companies have successfully developed their initial
knowledge management program, those were successful for several years.
However it has to be realised that old solutions are not last forever,
and without the help of conscious change management, these achievements
could be lost.
Companies
have to be prepared to change the already deeply embedded solutions,
that can be another problem factor. Heavy concentration on one solution
makes almost impossible to open for another approach, and by expanding
the KM approach (and practice) employees will not retain old solutions,
but instead replace them with the new one. Organisations, which are open
to other approaches, and which are developing their own practice in
order to be able to expand it, have more possibilities to a successful
change of their KM practice.
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