The business environment has changed. Sharper competition requires organizations to exhibit greater effectiveness in their operations and services and faster creation of new products and services—all hallmarks of the knowledge economy. Up until now, most of the knowledge management literature has focused on technology, systems, or culture. This book moves to the next stage, to focus on the people—the knowledge workers themselves. Noted expert Karl Wiig synthesizes recent research findings in cognitive science and related fields to describe how people actually work. He focuses on how people learn, remember, make decisions, solve problems and act—in general, how knowledge relates to work behavior. By understanding how people work, managers can improve effectiveness to gain competitive advantage.
ACKNOWLEDGEMENTS ix
PREAMBLE xi
FOREWORD xiii
CHAPTER 1 – COMPETING IN THE GLOBAL ECONOMY REQUIRES EFFECTIVE ENTERPRISES 1
Premise 1-1: The Global Economy Demands Excellence The Competitive Enterprise Example
The Global Economy Challenge
The World Requires Us to Change
KNOWLEDGE INTENSIVE WORK
The Misunderstanding of Knowledge-intensive Work
Knowledge-Intensity
WORK IS BECOMING INCREASINGLY COMPLEX
Complex Work Creates Greater Value
THE SIX MAJOR CHALLENGES
FOUR MANAGEMENT INITIATIVES
Enterprise Effectiveness Requires Good Intellectual Capital Assets
EXAMPLES OF STRUCTURAL INTELLECTUAL CAPITAL
THE ROLE OF KNOWLEDGE WORKERS
CHAPTER 2 – THE EFFECTIVE ENTERPRISE
Premise 2-1: Individual Actions Lead to Overall Enterprise Performance
Premise 2-2: Effective Enterprise Behavior Leads to Success
The Proactive and Decisive Company Example
Management Philosophy
Management Choices
Knowledge-Related Practices and Actions
Resulting Behavioral and Cultural Traits
The Company’s Business Results
What Does It Mean for the Enterprise to Be Effective
GOOD ENTERPRISE PERFORMANCE RESULTS FROM EFFECTIVE PERSONAL ACTIONS
EFFECTIVE ENTERPRISES RELY ON BROAD AND DEEP KNOWLEDGE
WHAT IS SUCCESSFUL ENTERPRISE PERFORMANCE?
EXTERNAL AND INTERNAL ENTERPRISE EFFECTIVENESS
SUCCESS AND KNOWLEDGE-INTENSIVE WORK
THE IMPORTANCE OF INFORMATION TECHNOLOGY
Productivity Is Not Always What We Expect!
DIFFERENT KINDS OF PRODUCTIVITY
VALUE CREATION AND PRODUCTIVITY
A Systemic Model of Enterprise Performance
CHANGING ENTERPRISE PERFORMANCE TAKES TIME
Characteristics of the Effective Enterprise
SIX SUCCESS FACTORS FOR THE EFFECTIVE ENTERPRISE
1. Management Philosophy and Practice
2. Deliberate and Systematic Knowledge Management
3. Knowledge and Other Resources
4. Motivation and Personal Energy
5. Opportunities
6. Permission
SIX BEHAVIORS OF THE EFFECTIVE ENTERPRISE
1. Ethical, Safe and Approachable Behavior
2. Effectiveness-Seeking Behavior
3. Consistent and Durable Behavior
4. Employee Engagement Behavior
5. Stakeholder Supportive Behavior
6. Competitive Behavior
Successful Performance Is Durable
Performance Is a Function of Many Factors Acting Simultaneously
The Intellectual Asset Management Mentality
Building and Exploiting Intellectual Capital Assets Are Important
People Adopt New Mindsets!
CHAPTER 3 – ACTIONS ARE INITIATED BY KNOWLEDGEABLE PEOPLE:
PEOPLE MAKE DECISIONS AND ACT USING DIFFERENT KINDS OF MENTAL FUNCTIONS
Premise 3-1: The “Machinery of the Brain” Is a Useful Beginning
Premise 3-2: The Mind-as-Machine Metaphor Does Not Cover Everything
The Personal Reasoning Example
Have We Misunderstood How People Think, Make Decisions and Act?
THINKING, REASONING AND KNOWLEDGE
Associations and Biases Govern Our Actions
Information Is Not Knowledge!
On Information, Knowledge and Discontinuity
GOOD REASONING MATCHES KNOWLEDGE AND INFORMATION
KNOWLEDGEABLE AND INFORMED DECISIONS DELIVER PERFORMANCE
GOAL-DIRECTED REASONING RELIES ON GOALS, INFORMATION AND KNOWLEDGE
Personal Knowledge Is Built from Mental Models
ON MENTAL MODELS
MANY MENTAL MODELS ARE BASED ON METAKNOWLEDGE
The Importance of Metacognition
The Importance of Implicit Learning
The Personal and Enterprise Knowledge Evolution Cycle
The Needs to Increase People’s Knowledge
KNOWLEDGE REQUIRED TO ACT EFFECTIVELY
Examples of Approaches to Develop Mental Models in People
CHAPTER 4 – MENTAL AND STRUCTURAL REFERENCE MODELS
Premise 1: People Imitate Prior Behavior
Premise 2: Organizations Reenact Past Practices
The Personal Memory Example
Mental Model Preview
Personal Reference Models
Reference Models Are Stories!
Why Are Stories Important?
IT IS ALWAYS HARD TO GRASP THE WHOLE COHERENTLY
STORIES ARE UNSURPASSED FOR EFFECTIVE COMMUNICATION
WE RELY ON STORIES TO TACKLE NEW PROBLEMS
STORIES HELP US LEARN BETTER
STORIES AND MENTAL SIMULATIONS
Organizational Reference Models
LEADERS CREATE POWERFUL REFERENCE MODELS
CHAPTER 5 – A KNOWLEDGE MODEL FOR PERSONAL SITUATION-HANDLING
Premise 5-1: Situation-Handling Requires Actions
Premise 5-2: Good Situation-Handling Is the Result of Effective Actions
Personal Situation-Handling: A Customer Service Example
Introduction to Personal Situation-Handling
THE GENERAL CONTEXT
The Knowledge-Based Situation-Handling Model
THE CUSTOMER SERVICE EXAMPLE REVISITED
The Four Tasks of Situation-Handling
SENSEMAKING AND SITUATIONAL AWARENESS
Sensemaking
Situational Awareness
DECISION-MAKING/PROBLEM-SOLVING AND ACTION SPACE AND INNOVATION CAPABILITY
Decision-Making
Single-Stage and Multi-Stage Decision-Making
Mental Simulations
Problem-Solving
Action-Space
Innovation Capability
IMPLEMENTATION AND EXECUTION CAPABILITY
Implementation
Execution Capability
MONITORING AND GOVERNANCE COMPETENCE AND PERSPECTIVES
Monitoring
Governance Competence and Perspectives
The Expert and the Novice: When Situations Are Not As First Believed
Story-Based Reference Models Provide Situation-Handling Knowledge
TOPIC DOMAIN KNOWLEDGE
The Mental reference Models in Situation-Handling
Understanding Adjacent Operations
THE RELEVANCE OF GENERAL AND WORLD KNOWLEDGE
CHAPTER 6 – ENTERPRISE SITUATION-HANDLING
Proposition: Individual Situation-Handling Actions
Lead to Consolidated Enterprise Behavior
The Enterprise Situation-Handling Example
The Situation
Information Gathering
Sensemaking
Understanding the Situation
Decision-Making/Problem-Solving and Action-Selection
General Aspects
Introduction to Enterprise Situation-Handling
The Four Enterprise Situation-Handling Tasks
SENSEMAKING AND SITUATIONAL AWARENESS
Sensemaking in the Enterprise
Enterprise Situational Awareness
DECISION-MAKING/PROBLEM-SOLVING AND ACTION SPACE AND INNOVATION CAPABILITY
Enterprise Decision-Making
Enterprise Problem-Solving
Enterprise Action Spaces
Enterprise Innovation Capabilities
IMPLEMENTATION AND EXECUTION CAPABILITY
Implementation in the Enterprise
Enterprise Execution Capability
MONITORING AND GOVERNANCE COMPETENCE AND PERSPECTIVES
Monitoring in the Enterprise
Enterprise Governance Competence and Perspectives
Enterprise Situation-Handling Has Many Levels
The Importance of the Situation-Handling Model
ENTERPRISE SITUATION-HANDLING MODEL INSIGHTS
WHY SHOULD WE BE CONCERNED WITH DETAILS?
Chapter 6 Appendix: Action Program Details of the Enterprise Situation-Handling Example
CHAPTER 7 – PEOPLE-FOCUSED KNOWLEDGE MANAGEMENT IN DAILY OPERATIONS
Premise 7-1: Knowledge Drives Enterprise Performance
Premise 7-2: Knowledge Must Be Managed
Premise 7-3: Effective Knowledge Management Must Be People-Focused
Premise 7-4: Six Factors Determine Personal Knowledge-Related Effectiveness
The Vigilant Knowledge Company Example
New Generation Knowledge Management
NEW GENERATION KNOWLEDGE MANAGEMENT IS DIFFERENT
NEW OPPORTUNITIES REQUIRE NEW EFFORTS AND DIRECTIONS
New Generation Knowledge Management Perspectives
DELIBERATE AND SYSTEMATIC KNOWLEDGE MANAGEMENT
New Generation Knowledge Management Foci
The Bar Has Been Raised – NGKM Implications
STARTING THE KNOWLEDGE MANAGEMENT PRACTICE
Problems with Conventional Knowledge Management
NEW GENERATION KNOWLEDGE MANAGEMENT CHALLENGES
Knowledge-Related Mentality and Corporate Culture
THE ENTERPRISE CULTURE
FOUR KEY KNOWLEDGE MANAGEMENT THRUSTS
THE POWER OF ROLE MODELS, EXAMPLES AND PRACTICES
Making Everybody Understand
UNDERSTANDING THE ENTERPRISE DIRECTION AND CONTEXT
THE SERVICE PARADIGM
Knowledge-Related Effectiveness and Efficiency
KNOWLEDGE EFFECTIVENESS AND EFFICIENCY
Knowledge Effectiveness
Knowledge Efficiency
KNOWLEDGE MANAGEMENT EFFECTIVENESS AND EFFICIENCY
Knowledge Management Effectiveness
Knowledge Management Efficiency
CHAPTER 8 – PEOPLE-FOCUSED KNOWLEDGE MANAGEMENT EXPECTATIONS
Premise: People-Focused Knowledge management Supports Global Excellence
The Global Leader Example
What Future Knowledge Management Business User May Expect
The Business Environment Is under Pressure
SUCCESS RELIES UPON KNOWLEDGEABLE BEHAVIOR
EXPECTED KNOWLEDGE MANAGEMENT DEVELOPMENTS
THE CHANGING WORKPLACE
Knowledge Will Be Bought and Sold
Societal Side-Effects
We Are Far from Finished!
New Enterprises and Integrative Management
Objectives of Integrative Management
In Complex Businesses, Better Practices Are Required
Intellectual Work Is Indeed Complex
HOW DO WE IMPLEMENT INTEGRATIVE MANAGEMENT?
Final Thoughts
OUR PRESENT DIRECTION
THE SOCIETAL CONUNDRUM – WHAT SHALL WE DO?
APPENDICES
APPENDIX A – EXAMPLES OF KNOWLEDGE MANAGEMENT ANALYSIS TOOLS
Knowledge Assets Mapping
Knowledge Flow Charting and Analysis
Knowledge Management Benefit Assessment
Knowledge Diagnostics
Critical Knowledge Function Analysis
Knowledge Vigilance Survey Approaches
APPENDIX B – EXAMPLES OF KNOWLEDGE MANAGEMENT PRACTICES AND INITIATIVES
Knowledge-Supported Mentality and Culture Changes
Knowledge-Supported Enterprise Strategy Implementation
Transfers of Expert Concepts to Other Practitioners
Expert Networks
“Town Meetings” and Knowledge Cafés
Options for Sharing and Spreading Expertise
Intelligent Performance Support Systems (IPSS)
APPENDIX C – MEMORY AND KNOWLEDGE CATEGORIZATIONS
Human Memory Organization
Personal Knowledge
Structural Knowledge
Domains of Knowledge
Types of Knowledge
GLOSSARY
REFERENCES AND RECOMMENDED READINGS
INDEX
Biography
Karl M. Wiig