Boardspan Library

Knowledge Management & The Boardroom

by Colin Coulson-Thomas


How a company manages its corporate know-how and theknowledge of its people can have a significant impact upon growthand development. When knowledge management is discussed in the boardroom what are the key questions that a director should ask?Should directors challenge contemporary approaches? If knowledge management is not on the boardroom agenda should it be?A five-year investigation led by the author suggests that boardsshould be concerned.

Many knowledge management initiatives have been excessively general and overly complex, and they have notdelivered hoped for benefits. Encouragingly, a more affordable routeto better results has been identified, but a change of emphasis isrequired. A board needs to ensure that a company's management isembracing what is required rather than defending past practices.This article presents some key findings from the investigation's report Transforming Knowledge Management  which sets out amore focused, flexible and affordable approach that can quicklyimpact upon performance, deliver multiple objectives and provideclear benefits for companies and corporate stakeholders. Thereport suggests a new approach to corporate leadership which putsmore emphasis upon ensuring that people are engaged and provided with better support.

CHANGING THE FOCUS OF KNOWLEDGEMANAGEMENT
How affordable and flexible are the approaches which have beenadopted? Directors should question the cost-effectiveness of knowledge management initiatives. More effort has often beendevoted to implementing them than measuring their impacts. Data,information and knowledge collected is not always relevant or accessible as and when required. Some approaches also require'culture change', while requirements and priorities can changeduring implementation.

'Traditional' approaches can require significant upfront investmentin capturing and storing information and knowledge covering a wide range of activities. Much of what is assembled is often 'commodity knowledge' available to competitors. It does not differentiate or represent a source of competitive advantage.   It might not be  relevant to new priorities, challenges or opportunities. Past initiatives have often been expensive, time consuming anddisruptive. Better and faster results may need to be achieved withlimited budgets and with existing people, structures and cultures.  

Does the focus of knowledge management in your company needto change? Many organisations are also capturing and sharing thewrong sort of knowledge. Knowledge of how best to undertake particular tasks and confront specific issues can be more importantthan general understanding, especially so in relation to key jobsthat deliver key objectives sought by the board.

A switch of emphasis is required from 'knowledge about things' to'knowing how to do things', and from the storage of knowledge toits access and use. Directors should question whether theknowledge management team is serving the needs of C-suiteexecutives or helping front-line work-groups to excel. Themanagement team may need to switch is attention from 'top-down'motivation and management to 'bottom-up' support and key work-group performance.

UNDERPINNING RESEARCH & EXPERIENCE
The author's underpinning research has identified critical successfactors for important activities such as winning business. Twentystudies found a clear distinction between how 'winners' (topquartile performers when those examined were ranked in order of results achieved) and bottom quartile 'losers' tackle key jobs. Oncedetermined, critical success factors and winning ways can beexplained and/or built into work processes and various forms of  performance support.

Has sufficient effort been devoted to capturing and sharingknowledge of how to excel at key tasks? 

The evidence suggests there is considerable potential to boost the performance of even the work-groups in the top quartile of attainment. For example, in relation to winning competitive bids,those in the top quartile of achievement were only very effective atless than a half of the identified critical success factors. The performance of every organisation examined could be improved.

Knowledge-based performance support - whether simple paper checklist, mobile phone application or multi-media tool - canenable average performers to emulate 'superstars', and that thiscan be done by working with the groups and teams one has, i.e.without needing to replace people, or change attitudes, culturesor values. A board needs to ensure that management provides the people of an organisation with the tools to do what is expected of them. Performance tools can address identified issues, help people to do difficult jobs and boost the achievements of average performers.

KNOWLEDGE MANAGEMENT AND PERFORMANCE
Knowledge-based performance support addresses deficiencies of 'traditional' knowledge management and delivers additional benefits. It is relatively easy to adopt and its implementation doesnot require a change of systems or structure. Its focus can be uponkey work-groups, it can embrace channel and supply chain partners, and it represents an affordable route to a high performance organisation. It can also be personalised and adapt to changing requirements.

Performance support can build confidence and understanding, andmay be easy to disseminate to business partners in multiplelocations. Directors should ensure that the support provided to people for whom they are responsible is current and relevant. Thiscan be ensured by appropriate social networking and automaticupdating when users are on-line. People can be helped to cope withchange. Building checks into tools can help to ensure quality and compliance.

In comparison with costly and protracted alternatives, performancesupport can be quickly adopted to address particular problems. It can be provided in ways that best meet the needs of those to be helped,and can evolve as requirements change, new issues emerge, andadditional funding becomes available. Applications can supportmobile activities and new ways of working and learning, deliveringcommercial success for organisations and personal satisfaction for individuals.

A board could encouraging the more strategic use of performancesupport. The unit costs of providing help fall with larger communities of users. Once set up, the cost of downloading,duplicating or otherwise sharing a support tool can be minimal. Asocial networking facility can encourage knowledge sharing.Automatic updates can help to keep support current.

RESPONSIBILITY FOR KNOWLEDGE-BASED SUPPORT
Directors and the CEO should think carefully before allocatingknowledge management responsibilities. Past initiatives have often been implemented by IT professionals and led by the chief technology officer. If a board feels there needs to be more focus on particular jobs that contribute to priority corporate objectives thenothers may need to be put into the driving seat.

While implementation may be delegated to management, a boardshould ensure its priorities are observed. Adoption involvesassessing important roles and tasks; identifying steps in work  processes that have the greatest impacts; and ensuring that people inthese 'key' and demanding jobs are enabled to excel by providingthem with appropriate performance support that captures and sharescritical success factors and what high performers do differently, and helps them to succeed.

Directors should question whether new challenges could be handled by existing people if they were better supported. Hiring peopleand/or using external consultants to support innovation or new offerings can be expensive, especially where developments occur ona regular basis. Dipping into the external market as a freshrequirement arises can be costly. It may also not be practical if acompany wishes to launch a new offering at the same moment intime across a global market place.

SUPPORTING BUSINESS DEVELOPMENT ANDNEW INITIATIVES
A company may not necessarily need expensive new hires in order toexpand. Knowledge-based support can be much more cost effectivethan options such as external recruitment. It can enable existing people to understand, sell and support a new product or service andhelp customers to responsibly innovate and buy. Prospects canassess new options that better meet their needs. They can feel incontrol and may order more than when sales staff are present.

Some boards champion innovation. Performance support is particularly suited to launching new products and initiatives.Details and animations and images showing new offerings in usecan be quickly communicated around the world. Automatingroutine tasks frees up time for differentiation and tailoring that may justify a price premium, or for addressing implementation issues.

Knowledge-based performance support can provide a solid basefor future sales, service and corporate communications. In additionto speeding up adoption and cutting costs, it can reducecommercial, regulatory and quality risks. The ability to presentinformation in different formats can enhance understanding andthe assimilation and application of new knowledge.

REDUCING RISK & ENABLING COMPLIANCE
Ensuring compliance is a concern of many boards. Knowledgeworkers and professionals often operate in areas that areintrinsically risky and where non-compliance with relevant policies, laws, regulations, rules and guidelines can have seriousconsequences. Performance support can help people to identify,assess and address risks, and take consistent, fair and compliantdecisions. It can build trust, competence and confidence.

Risk-aversion can be counter productive. It can increase the chanceof more effective options and approaches being overlooked. Adesire to avoid risk may actually result in missed opportunities toachieve significant savings and deliver substantial increases in productivity and performance. The right knowledge-based supportcan liberate, facilitate innovation and enable responsible risk taking.

Performance support can help to ensure compliance and achieve adirect impact upon 'front line' behaviour and measurable outputs.When unfamiliar situations arise and re-skilling is required, performance improvements are therefore easier to measure than isthe case with 'traditional' approaches in areas where costs - for example of training - are easier to determine than the benefits.

24/7 LEARNING SUPPORT OF KNOWLEDGE WORKERS
A balance has to be struck between performance today and future potential, and between support of a selected few and 'helping themany'? Many companies try to equip perceived high fliers for future roles. Knowledge-based performance support can help people to both excel today and tackle whatever might beencountered tomorrow. It can complement or replace 'traditional'approaches to mentoring and training, and provide assistance toscattered communities, as and when required.

Personal coaching and/or mentoring larger numbers of people can be a challenge. Performance support can overcome scalability barriers and cost-effectively provide good practice, and up to dateand personalised help to people throughout an organisation, andinternationally, on a 24/7 basis. Those supported can learn fromeach use, enabling them to remain current.

Are people in different locations and when out of the office and onthe move receiving adequate assistance? Performance support is aform of 24/7 and on-demand mentoring. It can take help that is provided to a few and make it available to large numbers of people,wherever they might be, and whenever assistance is required.Individual users can benefit from the advice of not just one person, but many - if not a galaxy - of superstars, each of whom may excelin particular areas.

Knowledge-based performance support is especially relevant to the problems confronting many public services. With staff costsrepresenting a high proportion of total expenditure and the time ittakes to train new professionals, performance support can make the best of available resources and deliver multiple outcomes in a practical and cost-effective way. People usually see better support ashelpful and implementation can be manageable, affordable and achievable.

COMMUNICATING AND BUILDING RELATIONSHIPS
Are mutually beneficial relationships being forged with keystakeholder groups? Performance support can have a significant and beneficial impact on corporate communications and engagement.24/7 support can be provided when and wherever required. Deliverycan be via a laptop, palmtop, mobile phone, or via the internet, andintegrated with web communications and social networking.

Customers are often unaware of the impacts of their buyingdecisions upon themselves, others and the environment. Sales and purchasing support tools can show buyers the implications of different courses of action, and enable them to select the optionwhich has the least harmful effect. They can increase the performance of key work-groups such as front-line sales teams,account managers, service and customer support staff, and make iteasier for people to take difficult buying decisions.

Many people and boards would like to address challenges such assustainability and climate change, but they lack a practical way of doing so. Performance support represents a flexible and cost-effective way of demonstrating corporate social responsibility andquickly impacting upon behaviour. In doing what they feel is theright thing people can benefit themselves, their supplier and the planet. Corporate performance, and employee and customer satisfaction can all gain. 

‘NEW LEADERSHIP’
'Top-down' and 'all encompassing' central initiatives can beexpensive and time consuming. They can result in more complexand inflexible solutions that take much longer to have an impactupon performance than 'bottom-up' applications of performancesupport to address particular problems and burning issues.Knowledge-based tools can impact relatively quickly upon keycorporate objectives and can be used to both increase performanceand generate additional external income.

Boards should favour approaches that deliver multiple objectives.Traditional 'top-down' leadership practices in many companies arenot delivering the advantages which a change of emphasis andfocus could bring. 'New leadership' and a 'bottom-up' approach tocreating high performance organisations and achievingsimultaneous progress on several fronts are required.

Knowledge-based performance support, whether simplechecklists or more complex tools, offers financial, scalability,flexibility and sustainability advantages over 'traditional' options.Relevant and current support can be provided wherever help isneeded, at a place of work, out of the office, or on the move. Userscan benefit from the advice of whoever has the most relevant andeffective way of addressing problems that arise at each stage of acomplex task.

CONCLUSIONS
Contemporary approaches should be challenged. A board should be vigilant when proposals for new knowledge, talent or changemanagement programmes are received. An initiative that does notoffer a quick payback, multiple benefits and a high ROI, or whoseresults are difficult to measure, should be questioned. It may not befocused, use contemporary tools, or be justified. 

Directors should question whether the approaches of high performers have been captured in a form that enables them to beaccessed by others whenever and wherever required, and shared,utilised and developed. They should ensure that people and teamsdelivering key corporate objectives are engaged and appropriatelysupported.

Performance-focused knowledge support could improve theimplementation of board policies, ensure compliance, reduce risk, boost productivity, avoid trade-offs and more quickly deliver multiple objectives. It could also enable corporate leaders to set people free to innovate and bespoke responses to the changingrequirements of customers and other stakeholders.

 

Republished from Academia.edu with permission from the author, Professor Colin Coulson-Thomas, a member of the business school team at the University of Greenwich and Director-General of IOD India for UK and Europe Operations.

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