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Knowledge Management

A Total Value Added process.

By Paddy Norton

Since the first democratic elections in 1994, South African companies have been under intense pressure to democratise and empower the workplace. As a result knowledge management has become an increasingly popular management tool.

WHAT IS KNOWLEDGE MANAGEMENT?

Knowledge management is a management discipline that treats intellectual capital as a management asset. It relies on the skills, talents and competencies of all its people to ensure a company's success.

Research indicates that some 40 percent of the information about a company and its operations is not found on paper or in databases but in the heads of employees. Knowledge management is a strategic management tool which seeks to release the creativity in individuals and teams in a manner which adds value to all of the company's operations - in particular its profitability and returns on investment.

PRINCIPLES OF KNOWLEDGE MANAGEMENT

• Recognising the difference between involving people and employee involvement. Involving people ensures that all people throughout the company are included in those aspects of the business they can influence and are fully informed about those aspects they cannot. Employee involvement merely involves employee representation in a formal communication process (e.g. Works Committees)

• Getting on with it. The truly democratised and empowered companies do not theorise, debate or concern themselves with the logistics involving people---they just get on with it---at all levels—all of the time.

• Communicating goals, objectives and targets. It is imperative that employees are involved in this process and that they are made aware of the company's progress, regardless of whether it is good or bad.

• Transparency and visibility. All employees have a right to know the condition of their company at all times. This includes financial, operations, marketing and sales, quality, personnel etc.

• Displaying of accurate real time information. This practice is highly valuable as it focuses the employees and teams responsible for providing accurate information and statistics with increased awareness to do just that as well as providing employees and teams with accurate information and statistics to calculate forecasts with defined accuracy. This means that companies will be able to forecast their financial and operational positions in relation to predetermined budgets and targets on an almost daily basis.

KNOWLEDGE MANAGEMENT AND ORGANISATIONAL SKILLS

Organisational culture must be taken into account when developing knowledge management initiatives. The process will be flawed if it does not address cultural aspects of the company. These include values, attitudes and principles that stem from an organisation's leadership structure and filter down the chain of command. Behavioural changes are necessary for knowledge management to work, particularly in South Africa where previously disadvantaged employees were not encouraged to participate in decision making or the sharing of information.

Many of the world's most successful companies use recognition and incentive schemes to encourage new behaviour which support the knowledge management system, such as coming forth with information, suggestions and ideas for improving the company's performance.

DOES MY COMPANY NEED A KNOWLEDGE MANAGEMENT PROCESS?

Ask yourself these questions to see whether you need to consider a knowledge management process for your organisation:

• Do I know if I have been profitable before I receive my month end accounts?

• Can I accurately forecast my profit at month end on day one of the month?

• Do I have a daily account of my banking position?

• Do I have a daily account of my production output?

• Do I have a daily account of my production rejects?

• Do I have a detailed marketing and sales plan for the current/next month?

• Have I identified key operational, financial, and strategic objectives?

• Do I know the details of all my outstanding debtors?

• Do I know the status of all key customer deliveries?

• Do I know all of my customers’ complaints within 24 hrs?

• Is the above information displayed in a transparent manner for all of my employees?

Paddy Norton is an independent consultant specialising in Knowledge Management, Change management, Black Empowerment Equity transactions, Commercial management, Claims management and training, Executive recruitment. He was the driving force behind the turnaround of one of South Africa's largest engineering companies. You can contact him on  2731 7654224 or Email  nort@mweb.co.za

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