Improve Your Profits With Knowledge Management

By Carole Nicolaides
Posted Monday, August 23, 2004

Knowledge Management? Have you heard of it? Knowledge Management is a new business practice that deals with all aspects of organizational knowledge. The purpose is to attract and retain top talents and to meet the challenges that the competition in our new “Knowledge Economy” brings. It involves discovering, capturing, organizing, relating, sharing and generating organizational knowledge that will eventually foster an innovative working environment and increase business value. There is a wealth of organizational knowledge in most companies about how to do things better. Yet much of it fails to reach the people who need it, and at the time they need it. Sometimes it is even covered over by a mass of less relevant information, or even outdated information.

At other times, people simply do not care to share knowledge or the best practices among each other. Too much politicking and mistrust comes along. Organizations that still haven’t instilled or promoted a healthy knowledge sharing environment risk lost market opportunities, cost, and confusion - even risks to safety.

Are your people wasting time searching for solutions when someone else has already found an answer? Are they failing to do things the way customers expect? Are teams within the same organization making the same errors, instead of learning from the experience of others? Is time being wasted by employees protecting what they know instead of applying what they know? If so, then you should reevaluate to see how your business can benefit from a Knowledge Management initiative.

Knowledge Equals Success

In industry after industry, success comes to the companies that have the best information or wield it most effectively. It does not necessarily come to the companies with the best balance sheets. The successful companies in today’s Information Era are the ones that recognize the value of its “intellectual capital” and harness it wisely.

Microsoft, Oracle and other companies did not become successful simply for their numbers. It was the collective information, the knowledge and the wisdom of these companies that distinguished them from other very rich companies such as Sears. It was their “intellectual capital” and the smart use of this power.

The crucial issue is discovering and nurturing your intellectual capital. Intellectual capital is the sum of everything everybody knows in a company that gives it a competitive edge. Basically, intellectual capital is the company’s collective brainpower. It encompasses the knowledge, training, intuition, intellectual property, experience, information, shared learning, collaboration with its partners, customers, suppliers etc. It is hard to identify and harder yet to deploy effectively. But once you find it and recognize its value YOU WIN.

However, appreciating and nourishing intellectual capital, demands more than a theoretical perspective. It requires an immediate and practical action plan focused on learning and mastering new management approaches that will maximize your organization’s collective brainpower. This, in turn, means identifying your business goals, developing and harnessing your staff’s true potential and sustaining their support.

Initiating a FREE Knowledge Exchange

Facilitating the free exchange of knowledge and encouraging people to contribute to Knowledge Management programs is often a challenge. Have you noticed that employees don’t want to “cross train”? Often a sharing of knowledge is perceived as a threat to job security.

There is a way to overcome this roadblock. New ways of leading, working, and thinking must be practiced until they become habitual. Creating an environment that fosters security, friendliness and cooperation is imperative.

Where Do I Start?

Reconnect with your peers and managers. Build a strong foundation that is constructed with values such as mutual trust, creativity in the workplace, encouragement of making mistakes by undertaking new ventures, and awakening the leadership potential in everyone.

Become a “coach”. Coach people in improving self-awareness - who they are, their unique hidden talents, how to unlock their untapped potential. Coach people to look at all choices that usually surround them. Assist people in finding out what is truly important for their business objectives - what activities bring the best results? Also, address how to avoid wasting time in activities that do not work well and do not generate a lot of value. By creating such a workplace, you are well on your way to opening the previously blocked channels of knowledge. When everyone participates freely in the business – without fear for loss of job security – the outcome is overwhelmingly better.

This Mistake Always Leads to Failure

Most enterprise resource programs fail because of the typical patterns that are associated with them. Users feel pressured into using a system that the information technologies (IT) department decided would work, not one that is necessarily best for the employees.

Technology is a tool, not an end in itself. Technology should support the sharing of knowledge through a smooth exchange. The implementation of Knowledge Management programs are less likely to fail if the IT group works with a Knowledge Management Coach. This Coach acts as a partner that oversees the project with a different “eye” than that of just focusing on meeting deadlines. Because there is an independent nature and disassociation from the IT group (or any other group in the organization) communication between the Coach and team members improves. A Coach (or a trained Knowledge Management consultant) is better equipped to explain the true potential of implementing these new programs and how they can be of benefit to everyone in the organization without offending.

Knowledge Management – Only the Beginning

Knowledge Management programs are wonderful for support. They are not meant to be the means to an end. Knowledge Management is best suited for use in supporting concrete business goals. With goals firmly in place, the efficiency of your on-going Knowledge Management program will flourish. Knowledge Management is truly an excellent way to get all members of the business working together – focusing on singular, long-term goals. With a program such as this incorporated into your overall, permanent business plan, the results will be a better working environment and increased profits.

About the Author
Carole Nicolaides is President of Knowledge Innovation Group who offers customized business and personal coaching-consulting services in the areas of Knowledge Management, Leadership Development and Organizational Learning. Subscribe to Carole's FREE EZine at newsletter@kminnovation.com or visit her at (http://www.kminnovation.com) to book your FREE coaching session.