Working Knowledge: How Organizations Manage What They Know <BR>

Working Knowledge: How Organizations Manage What They Know
By Thomas H Davenport and Laurence Prusak

Review by Shonna Froebel

Premised on the belief that knowledge is becoming increasingly important as more companies differentiate themselves on the basis of what they know that their competitors do not, this book presents knowledge as a unique asset that can generate increased returns and ongoing advantages. Moreover, using knowledge resources can actually increase knowledge assets.

The authors carefully distance knowledge management from the technology that is used to transfer knowledge. In terms of knowledge management, technology is a pipeline and storage system that emphasizes human needs.

The book starts by differentiating "data", "information" and "knowledge", and offers one of the best definitions of knowledge I've yet seen: "a fluid mix of framed experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information. It originates and is applied in the minds of knowers. In organizations, it often becomes embedded not only in documents or repositories but also in organizational routines, processes, practices and norms."

Noting that people change information into knowledge through comparisons, consequences, connections and in conversation, the authors state knowledge can and should be evaluated by the decisions or actions it produces.

The book cites common pitfalls, such as ignoring the dynamics of markets, underestimating the value of talk, and emphasizing knowledge creation rather than borrowing. Among the opinions and suggestions it offers:

For knowledge management to be successful, the people who share knowledge should be rewarded through performance evaluation and compensation systems. If knowledge sellers don't get what they think their knowledge is worth, they'll hoard it and not share it. A pricing system based on reciprocity, reputation, altruism and trust must be established.
Hierarchy and formal education are not good indicators of where knowledge resides. Organizational charts are often a poor guide to company knowledge, as are formal education credits.
Managers often ignore undocumented and tacit expertise and undervalue the importance of talk as a means of transferring knowledge. Knowledge transfer decreases in companies that discourage "watercooler talk" and casual meetings.
Employees who are too busy working to take the time to learn things that will help them work more efficiently are not growing.
A company that professes to value knowledge but discourages talking or reading on company time is sending mixed messages.
Knowledge does not have to be created within the organization or department. The most useful pieces of knowledge often come from outside sources and are used in a new way.
A little creative abrasion can help people view things in new ways. People are capable of making great leaps in intuition while simultaneously clinging to the details of petty, unproductive routines.

The authors emphasize relevance over completeness and discount "making knowledge generally available" as an appropriate goal for knowledge management. More specific aims are necessary, they write, and employee surveys can be useful starting tools. Espousing that knowledge management is part of everyone's job, they point out that knowledge management will fail if it is the responsibility of one staff group only.

A key message of this book is that a successful knowledge management project can contribute to an organization's economic value, as well as higher morale and corporate coherence.