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‘Knowledge Management’ and the Consulting Industry.

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‘Knowledge Management’ and the Consulting Industry
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Page 1: ‘Knowledge Management’ and the Consulting Industry.

‘Knowledge Management’ and the Consulting Industry

Page 2: ‘Knowledge Management’ and the Consulting Industry.

The Consultant

Once upon a time there was a shepherd tending his sheep at the edge of a country road. A brand new Mustang screeches to a halt next to him. The driver, a young man dressed in an Armani suit, Cerrutti shoes, Oakley glasses, TAG wrist watch and a Bhs tie gets out and asks the shepherd, ‘If I guess how many sheep you have, will you give me one of them?’ The shepherd looks at the young man, then looks at the sprawling field of sheep and says, ‘Okay.’ The young man parks the car, connects his notebook and wireless modem, enters a NASA site, scans the ground using his GPS, opens a database and 60 Excel tables filled with algorithms, then prints a 150 page report on his high tech mini printer. He then turns to the shepherd and says, ‘You have exactly 1,586 sheep here.’ The shepherd answers: ‘That’s correct, you can have your sheep.’ The young man takes one of the animals and puts it in the back of his vehicle. The shepherd looks at him and asks: ‘Now, if I guess your profession, will you pay me back in kind?’ The young man answers: ‘Sure.’ The shepherd says, ‘You are a consultant.’ ‘Exactly! How did you know?’ asks the young man. ‘Very simple,’ answers the shepherd. ‘First, you came here without being called. Second, you charged me a fee to tell me something I already knew. Third, you do not understand anything about my business ... and I’d really like to have my dog back.’

Page 3: ‘Knowledge Management’ and the Consulting Industry.

What is ‘consulting’?

• The Collins English Dictionary reveals that to consult is to make oneself available to give professional advice, especially at scheduled times and for a fee. The term ‘consult’ originates in the medical profession. There a consultant is a physician who is asked to confirm a diagnosis; or it is a physician (or surgeon) who holds the highest appointment in a particular branch of medicine or surgery in a hospital. The consultant is therefore someone – mostly a specialist – who is asked to give expert advice or information.

Page 4: ‘Knowledge Management’ and the Consulting Industry.

The management consultant

• The management consultant is a special breed of consultant. • Personification of the knowledge economy; • Anti-thesis to Ford’s assembly-line worker. • Symbolises the ‘future’ of work: not dirty, not heavy-duty, not manual, not

monotonous, not de-skilled, not de-humanized, not badly paid; but flexible, creative, international, demanding, cross-cultural, well-paid, technologically advanced, fun.

• The idol of today’s working world; it is one of the main ‘drivers’ of the business of business education

• Accenture, PricewaterhouseCoopers (PwC), Cap Gemini Ernst & Young, McKinsey & Co., Bain & Co., The Boston Consulting Group and Mercer (to name but a few) are the archetypal companies of today’s global ‘informational’ capital, which attract the ‘highest calibre’ graduates.

Page 5: ‘Knowledge Management’ and the Consulting Industry.

InterCon

• German subsidiary of a global management and technology consulting company

• The IKM project• Virtual project team• IT

Page 6: ‘Knowledge Management’ and the Consulting Industry.

Strategy• CAsStrategy• CAs

Operational Processes•CAs

Operational Processes•CAs

Information Management•CAs

Information Management•CAs

People• CAsPeople• CAs

GMTs (Industries)GMTs (Industries)GMTs (Industries)GMTs (Industries)

Telecom & Media

Telecom & Media

Consumer Goods

Consumer Goods ChemicalsChemicals Life

SciencesLife

SciencesFinancial ServicesFinancial Services EnergyEnergy Transport/

TourismTransport/ Tourism

Automotive / EngineeringAutomotive / Engineering UtilitiesUtilities

etc.etc.

USAUSA

FranceFrance

UKUK

GermanyGermany

Dis

cip

lin

esD

isc

ipli

nes

Dis

cip

lin

esD

isc

ipli

nes

PoAsPoAsPoAsPoAs

Supplier

Networks

Electronic

Business

Euro

Transformation

Knowledge-

Management

ERP (Standard

Software)

Customer

Relationship

Management

Service Offerings

Organisational Structure of InterCon

Page 7: ‘Knowledge Management’ and the Consulting Industry.

Project Knowledge CaptureProject Knowledge CaptureAt ProjectAt Project StartStart BeforeBefore ProjectProject EndEnd

Access to KnowledgeAccess to Knowledge

Feedback and RewardsFeedback and Rewards

updates KBase

updates KBase

updates KBase

updates KBase

finalize knowledge

capture report, copy to PKC, PM, GMT/Disc, CoE, CA, PoA KC

finalize knowledge

capture report, copy to PKC, PM, GMT/Disc, CoE, CA, PoA KC

at project end, hands over project archive to local Info Centre

at project end, hands over project archive to local Info Centrereview

KCapture report and

together with stream leads,

identify ‘Best in Class’

GMT documents

review KCapture report and

together with stream leads,

identify ‘Best in Class’

GMT documents

KeyKeyRolesRolesGMT KCGMT KC

GMT Knowledge Champion

PMPM

Project Manager

PKCPKC

Project Knowledge Champion

GMT KSGMT KS

GMT Knowledge Specialist

CoE, CA, PoA, CoE, CA, PoA, Discipline Discipline

Knowledge Knowledge SpecialistSpecialist

CoE, CA, PoA, CoE, CA, PoA, Discipline Discipline

Knowledge Knowledge ChampionChampion

ALLALL

StrategicStrategicDirectionDirection

KBaseKBaseMaintenanceMaintenance

CoE, CA, CoE, CA, Disc., GMT Disc., GMT

Expert Team Expert Team and KSand KS

Define and communicat

e the strategic

knowledge management objectives

and set expectations at all levels

e.g. at yearly KM

conference in

September, Capabilities

Councils and other leadership meetings

Define and communicat

e the strategic

knowledge management objectives

and set expectations at all levels

e.g. at yearly KM

conference in

September, Capabilities

Councils and other leadership meetings

Quarterly meeting with GMT/Disc. to filter non

relevant documents out, identify gaps and discuss

expectations to fill the

gaps. Update CD-ROM copies

of Tool Boxes and KBases.

Quarterly meeting with GMT/Disc. to filter non

relevant documents out, identify gaps and discuss

expectations to fill the

gaps. Update CD-ROM copies

of Tool Boxes and KBases.

Projects access knowledge via:• the COMPASS (intranet which provides world-wide access to the KBases), • CoE, CA, Discipline, GMT Expert Teams and KCs (whose main role is to help develop, capture and disseminate knowledge), and • Knowledge Specialists (who act as a global point of contact and answer specific, complex requests for information on a case by case basis, throughout project duration).

Make Knowledge Management part of the feedback and reward loop:• 360o expectation and feedback exchange for knowledge capture• Reward most innovative and ‘best in class’ contributions.

Internal knowledge management involves a number of actors at all stages of the project life cycle

review documents and allocate

to the relevant

(GMT, CoE, CA, Disc.) KBases

updates P&P

Database

updates P&P

Database

Contacts PM to identify

PKC and KS

Contacts PM to identify

PKC and KS

identifies PKC and

accountable KS

identifies PKC and

accountable KS

sends “KC Pack” and

GMT KBase CD-ROM

sends “KC Pack” and

GMT KBase CD-ROM

completes P&P

form andforwards to

KS

completes P&P

form andforwards to

KS

fills in KCapture report and

sends to KS

fills in KCapture report and

sends to KS

define and communicate knowledge

capture approach and set

concrete capture

expectations with team

define and communicate knowledge

capture approach and set

concrete capture

expectations with team

abstract and sanitize best documents and send to

KS

abstract and sanitize best documents and send to

KS

Involvement of all project team members is critical to

achieving our objectives

GMT, CoE, CA and Disciplines KC and experts play a key role in assessing

innovations and best in class contributions.

In the case that the PM identifies a KS other than the GMT KS, please refer to

Panel 16 to see how the KCapture process changes.

A joint conference call for small projects

and an on-site expectation session for large projects is

suggested

A joint conference call for small projects and an on-site knowledge capture session for

large projects is suggested

Page 8: ‘Knowledge Management’ and the Consulting Industry.

Capturing knowledge from projects involves the following principles...

Project Knowledge CaptureProject Knowledge Capture

updates KBaseupdates KBase

updates KBaseupdates KBase

finalize knowledge

capture report, copy to PKC, PM, GMT/Disc, CoE,

CA, PoA KC

finalize knowledge

capture report, copy to PKC, PM, GMT/Disc, CoE,

CA, PoA KC

at project end, hands over project archive to local Info Centre

at project end, hands over project archive to local Info Centrereview KCapture

report andtogether with stream leads,

identify ‘Best in Class’ GMT documents

review KCapture report and

together with stream leads,

identify ‘Best in Class’ GMT documents

KeyKey RolesRolesGMT KCGMT KC

GMT Knowledge Champion

PMPM

Project Manager

PKCPKC

Project Knowledge Champion

GMT KSGMT KS

GMT Knowledge Specialist

CoE, CA, PoA, CoE, CA, PoA, Discipline Knowledge Discipline Knowledge

SpecialistSpecialist

CoE, CA, PoA, CoE, CA, PoA, Discipline Knowledge Discipline Knowledge

ChampionChampion

review documents and allocate to the relevant (GMT, CoE, CA, Disc.)

KBases

updates P&PDatabase

updates P&PDatabase

Contacts PM to identify PKC and

KS

Contacts PM to identify PKC and

KS

identifies PKC and accountable

KS

identifies PKC and accountable

KS

sends “KC Pack” and GMT KBase

CD-ROM

sends “KC Pack” and GMT KBase

CD-ROM

completes P&Pform and

forwards to KS

completes P&Pform and

forwards to KS

fills in KCapture report and sends

to KS

fills in KCapture report and sends

to KS

define and communicate

knowledge capture approach and set concrete

capture expectations with

team

define and communicate

knowledge capture approach and set concrete

capture expectations with

team

abstract and sanitize best

documents and send to KS

abstract and sanitize best

documents and send to KS

Involvement of all project team members is critical to achieving our objectives

GMT, CoE, CA and Disciplines KC and experts play a key role in assessing innovations and best in class contributions.

• The GMT KS contacts the PM, offers Knowledge Management coaching

• The Project Manager (PM) identifies the Project Knowledge Champion (PKC) and the Knowledge Specialist (KS) that will be accountable for capturing the projects knowledge

• The accountable KS will usually be the GMT KS. However, if a project is largely Discipline/CA/CoE driven (for example, IM Discipline), then the appropriate Discipline/CA/CoE KS should become the accountable Knowledge Specialist (The above process assumes the GMT KS is selected; Please see next slide for Discipline and A&D examples)

• If the PM can not identify a KS, the GMT KS is selected automatically

• GMT KS sends ‘Knowledge Capture’ Pack and GMT KBase CD-ROM

• Exchange and documentation of Knowledge Capture expectations• GMT KS and other appropriate KS, PM, PKC and other project members exchange

concrete knowledge capture expectations which are documented in the KCapture report (Please see appendix for a template)

• A joint conference call for small projects and an on-site expectation setting session for large projects is suggested

• PKC sends KCapture report to GMT KS who forwards it to other KS (Discipline, CA, CoE)

• The GMT KS ensures that the People&Project Summary is submitted by the PKC

• The GMT KS ensures that the case history, case study and project archive is captured from the project

• Selection of ‘Best in Class’ documents• The Knowledge Capture report should be reviewed

• All project members (under the leadership of PKC) review all relevant documents and select most innovative and other ‘Best in Class’ GMT as well as Disc./CA/CoE documents

• GMT, Discipline, CA and CoE Knowledge Specialists, Knowledge Champions and other experts can be consulted to identify ‘Best in Class’ documents

• A one-day Knowledge Capture session with all relevant KS is suggested for large projects; a joint conference call should be organised for KCapture from small projects

• The KCapture report is updated by the PKC and sent to GMT KS

• All identified ‘Best in Class’ documents are abstracted (in English) by the project members and submitted to the GMT KS who is forwarding relevant documents to other Knowledge Specialists (according to KCapture report)

• All KS review the submitted documents and update their Knowledge Domains accordingly

• The Knowledge Capture report is finalized by all involved KS (under leadership of GMT KS) and forwarded to the PKC as well as copied to the PM and all relevant Knowledge Champions

PrinciplesPrinciples

At ProjectAt Project StartStart BeforeBefore ProjectProject EndEnd

In the case that the PM identifies a KS other than the GMT KS, please refer to Panel 16 to see how the

KCapture process changes.

A joint conference call for small projects and an on-site expectation

session for large projects is suggested

A joint conference call for small projects and an on-site knowledge capture session

for large projects is suggested

Page 9: ‘Knowledge Management’ and the Consulting Industry.

Filtering relevant documents ensures higher quality content in the Knowledge Base

Relevant project Relevant project documents are documents are

collected throughout collected throughout the projectthe project

Relevant project Relevant project documents are documents are

collected throughout collected throughout the projectthe project

All project members All project members (under consultation (under consultation with appropriate KS with appropriate KS

and/or KC) determine and/or KC) determine whether document whether document

should be submitted should be submitted or identify any next or identify any next

stepssteps

All project members All project members (under consultation (under consultation with appropriate KS with appropriate KS

and/or KC) determine and/or KC) determine whether document whether document

should be submitted should be submitted or identify any next or identify any next

stepssteps

No

No

Include document in ‘Best in Include document in ‘Best in Class’ document pack and submit Class’ document pack and submit

to GMT KSto GMT KS

Include document in ‘Best in Include document in ‘Best in Class’ document pack and submit Class’ document pack and submit

to GMT KSto GMT KSYes

No

Yes Yes

All project members All project members (under the (under the

leadership of PKC) leadership of PKC) review all relevant review all relevant

documentsdocuments

All project members All project members (under the (under the

leadership of PKC) leadership of PKC) review all relevant review all relevant

documentsdocuments

No

YesHow

do we value the importance of the

doc for the CA, CoE, GMT, PoA or Disc.?

Is document an addition or build

to an existing document or technology?

Is document a new application of

an existing tool or technology?

InnovativeInnovative

Key

Basic

Project Members must select the ‘Best in Class’ project documents and abstract them. One day on-site knowledge capture session together with Knowledge Specialists is suggested for large projects.

Project Members must select the ‘Best in Class’ project documents and abstract them. One day on-site knowledge capture session together with Knowledge Specialists is suggested for large projects.

Page 10: ‘Knowledge Management’ and the Consulting Industry.

This is the detailed workplan for Knowledge Capturing

0. Setup0.1 Technical infrastructure

- Get organized quickly! Chose the easiest way to transfer files to your machine. Use disks if necessary.1. Data Mining

1.1 Data Transfer- copy all files into directory A, copy them one-by-one to directory B and rename according to standards

1.2 Keep Track of files- use Excel-sheet to identify and categorize every file. Be very exact with this XLS-sheet!

2. Structuring2.1 Project plan

- have the project lead or workstream leads make a draft or use a presentation on this issue, define topics- get them to identify important files and assign them to topics, mark files without topic for later use

2.2 HMTL-structure- use templates as much as you can, keep to standards, involve leads with design

3. Prototyping3.1 Graphics

- convert ppt-files to jpg’s, map them, define topic HTML-file names- create the topic-HTML files

3.2 HTML-templates- add client logos, change colors, but stick with the standards!

4. Encoding4.1 HTML-files

- check XLS-sheet for gaps, have leads fill them in or set marks- use mail-merge feature from Word, view file and save each file with correct filename (tedious, but critical)

5. Refining5.1 Abstracts and Keywords

- have authors write up some keywords where necessary, add purpose information when apropriate5.2 Test, test, test the structure, links and assets

6. Production & Presentation

Page 11: ‘Knowledge Management’ and the Consulting Industry.

Knowledge Capture on Project XXX

WorkstreamArea of

Knowledge CaptureWhat Aspects

are Novel & WhyRelevant for which unit

Proposed Capture

Date

Project

“A”KS“A”

To be filled out by Project team To be filled out by KS teamActual

Capture

Date

KBases/Homepages

Page 12: ‘Knowledge Management’ and the Consulting Industry.

Knowledge Domains of GMTs, Disciplines/CAs and CoEs will have the following basic structure

Introductions, Points of View, Training Material, Case Studies, External ReadingsIntroductions, Points of View, Training Material, Case Studies, External Readings

BDBDBusiness Business

DevelopmentDevelopment

BDBDBusiness Business

DevelopmentDevelopment

A&DA&DAnalysis & DesignAnalysis & Design

A&DA&DAnalysis & DesignAnalysis & Design

RDRDResults DeliveryResults Delivery

RDRDResults DeliveryResults Delivery

Industry issuesIndustry issues

Conferences and seminar presentations

Conferences and seminar presentations

Marketing materialMarketing material

Competitor intelligenceCompetitor intelligence

Client referencesClient references

What we findWhat we find

Proposal examplesProposal examples

People and faculty

People and faculty

A&D/ impact case studiesA&D/ impact case studies

Project designProject design

Program managementand monitoring

Program managementand monitoring

Benefits caseBenefits case

ChecklistsChecklists

Tools/ methodologiesTools/ methodologies

Best practicesBest practices

Program management and monitoring

Program management and monitoring

H2 guide and toolsH2 guide and tools

Benefits trackingBenefits tracking

Page 13: ‘Knowledge Management’ and the Consulting Industry.

01 Read me first• Process of Knowledge capture• Contacts and Experts• Current Live project portfolio

01 Point of Views:• InterCon’s point of view on a given industry or methodology, i.e.

some perspective is brought to the document rather than a recitation of facts/steps• Often, but not always, a short document (15-20 pages)• includes “what we finds”

02 Detailed Industry Overviews:• Detailed overview of a specific industry• Same content as Point of View, but more detail and more emphasis on analysis• In-depth description of industries (major players, industry structure, critical success

factors)

03 Marketing Support Materials:• Quality material to share with clients during business development and other client

communication activities, including:• Capability brochures/statements • Conference presentations• Horseblankets/whitepapers• Proposals/proposal letters• Red issues (selling issues for a given client/industry)• RFP (Request for Proposal; as InterCon uses the term typically a detailed response to

a client’s Request for Proposal on a given project)

• What we finds (common issues in a given industry or function within an industry)

04 Training Modules:• Training-focused documents to guide InterCon and client team members in applying

methodology or in understanding an industry including:

• Competency overview/training objectives• Detailed methodology approach; details implementation steps• Critical success factors• Issues/challenges, lessons learned• Tools/diagnostics required

05 Key Tools & Diagnostics (Industry specific):• For each diagnostic/tool relevant to methodology• How to apply/use tool, expected results, detailed steps• Sample panel set for presenting to client/steering committee• Actual diagnostic tool of survey, spreadsheets, interviews, etc.., and sources for vendor

tools• Any scoring spreadsheets or resources who can assist

06 Industry Examples/Approaches:• Documents developing during the course of a project, outlining how InterCon plans to

conduct work and what deliverables will result or the final deliverables themselves. Includes:

• As Is/interview findings• A&D business cases• Charters• Issues/challenges, lessons learned• Final reports/deliverables• Implementation plans• Project designs/approaches• RD executive updates• Strategic recommendations• Value chains• Workshop items

07 Case Studies• Documents detailing what work InterCon conducted on behalf of a client including

points such as the background of the project, what we found, what we did and what we are looking forward to.

08 Benchmarking Studies/Approaches:• Benchmarking documents may contain metrics (specific figures, e.g. 23 widgets per

fortnight), processes (e.g. ACME utilises concurrent engineering to get gadgets to market faster and with fewer defects), or both.

09 Competitor Profiles/Approaches:• Documentation referencing how competitors apply methodology• Other ‘names' for methodology• Industry experience• Lessons learned

10 External Reading List:• Abstracts of important books and articles relevant to methodology• Include accurate source for each (title, author, date, journal title and page numbers if

appropriate)

Content for Industry Homepages

Page 14: ‘Knowledge Management’ and the Consulting Industry.

H2 get from an unstructured heap of project filesto a fully operational Intranet structure in 5 days

Task Timetable Description Deliverables

1. Data Mining

2. Structuring

0. Setup

3. Prototyping

4. Encoding

5. Refining

6. Production

Connect to local systems

Collect all files fromproject

Define project plan, assign files to topics

Design Internet pages and logical structure

Create HTML-files,create links

Improve abstracts,review keywords

Produce finalizedVersion, Presentation

Mon Tue Wed Thu Fri

Technical infrastructurein place

All files renamed and catalogized, XLS-sheet

Key areas defined,XLS-sheet updated

HTML-structure and links defined

HTML-files created andlinked into structure

All abstracts finalized with keywords

Finished Intranet Knowledge Base

Page 15: ‘Knowledge Management’ and the Consulting Industry.

Task 0 - Setup

Requirements

External Inputs

Obstacles

Actions Deliverables

Lessons Learned

Never underestimate the time it takes to set up a system in a foreign environment!

- fully equipped hardware- complete set of software- information on infrastructure- disks, laplink-cable, modem- telephone and modem line

- room to work- access to systems- User-ID, password

- incompatible HW/SW- no system access- limited access to shared resources

- set up computer, check modem connection- estimate best data transfer method- check data transfer and compatibility- get info on what material to obtain- check availability of shared resources

- solution of major IT obstacles- independently operational system- hard-/ software checks- scope of data transfer defined

Page 16: ‘Knowledge Management’ and the Consulting Industry.

Task 1 - Data Mining

Requirements

External Inputs

Obstacles

Actions Deliverables

Lessons LearnedSome files exist in older version. Make sure you have the newest one! Check in all disks and sources available.

- connection to network OR- laplink connection- other data media

- access to systems- User-ID, password- list of required files

- incompatible HW/SW- no system access- limited access to shared resources

- transfer data- rename files according to standards- create XLS-sheet with file information

- all files copied and categorized- XLS-sheet updated and complete

Page 17: ‘Knowledge Management’ and the Consulting Industry.

Task 2 - Structuring

Requirements

External Inputs

Obstacles

Actions Deliverables

Lessons Learned

A good design of the project plan improves the categorizing of the files.

- agreement on project scope- support from project leads

- draft of project plan- defined topic areas- ideas on design

- project lead not available- too many files undefined

- design project plan graphics- define HTML-structure- design HTML-template pages (abstracts)

- design of project plan graphics- design of HTML-structure- design of HTML-pages- updated XLS-sheet

Page 18: ‘Knowledge Management’ and the Consulting Industry.

Task 3 - Prototyping

Requirements

External Inputs

Obstacles

Actions Deliverables

Lessons LearnedCreating graphics for internet pages takes time. Don’t try to get perfect images.

- OK for project plan design

- workstream leads- projects leads

- complexity too high- integration cannot be visualized

- create project plan graphics- create HTML-map and links- create HTML-template

- HTML-structure operational- project plan map complete- HTML-templates finalized

Page 19: ‘Knowledge Management’ and the Consulting Industry.

Task 4 - Encoding

Requirements

External Inputs

Obstacles

Actions Deliverables

Lessons LearnedKeep a tracker on missing or faulty links. Also watch out for double references and changes in target links.

- structure and design MUST be ready and approved- XLS-sheet complete- HTML-templates approved

- OK for design and structure

- gaps in XLS-sheet might be forgotten

- use Word mail-merge feature to create all HTML-abstracts- test structure and links

- all HTML-pages and links created- programming completed

Page 20: ‘Knowledge Management’ and the Consulting Industry.

Task 5 - Refining

Requirements

External Inputs

Obstacles

Actions Deliverables

Lessons Learned

Never underestimate the time it takes to set up a system in a foreign environment!

- project team should check the quality and structure

- builds from project- test runs

- incompatible HW/SW- no system access- limited access to shared resources

- identify weak abstracts and enhance quality- have team members test the system- wrap up missing ends

- solution of major IT obstacles- independently operational system- hard-/ software checks- scope of data transfer defined

Page 21: ‘Knowledge Management’ and the Consulting Industry.

Task 6 - Production

Requirements

External Inputs

Obstacles

Actions Deliverables

Lessons LearnedIn order to deliver a CD-ROM, you have to keep to deadlines. Don’t overengineer the abstracts!

- all activities around designing and encoding are finished and approved- all links are checked, all files are accessible

- approval of work

- files have been updated

- update XLS-sheet to finalized version- remove template and design files- check for viruses- burn complete set on CD-ROM

- presentation for project team- CD-ROM with contents

Page 22: ‘Knowledge Management’ and the Consulting Industry.

Knowledge and IT

• Swan et al. (1999) have found in a review of the knowledge management literature that in 1998 nearly 70 per cent of knowledge management related articles appeared in information systems and information technology literatures.

• “Knowledge management is much more than technology, but ‘techknowledgy’ is clearly a part of knowledge management” (Davenport and Prusak, 1998: 123).

• “The mere existence of knowledge somewhere in the organization is of little benefit; it becomes a valuable corporate asset only if it is accessible, and its value increases with the level of accessibility” (ibid.: 18)

• Expert systems, artificial intelligence, desktop videoconferencing, hypertext systems such as intranets and knowledge maps.

• The purpose of harnessing knowledge is, of course, clear: to turn knowledge into a valuable corporate asset, which will help to increase the competitive advantage of companies.

Page 23: ‘Knowledge Management’ and the Consulting Industry.

Knowledge and Intellectual Capital

• “The formation of the discourse on intellectual capital is predicated upon the assumption that the traditional double-entry bookkeeping system is not able to reflect emerging realities. It is an inadequate tool for measuring the value of corporations whose value, it is claimed, lies mainly in their intangible components.” (Yakhlef and Salzer-Mörling, 2000: 20)

• Today, it is argued that company assets not only include material artefacts, properties and financial assets, but also employees’ and organisational knowledges, which explicitly reside in people’s heads and are tacitly embodied.

• Some knowledge management writers have therefore called for the development of new systems, that would enable a more adequate valuation of companies’ assets, and provide tools for exploiting existing tacit and explicit knowledge bases more effectively (see, for example, Brooking, 1996; Edvinsson and Malone, 1998; Lynn, 1998; Nahaphiet and Ghoshal, 1998; Roos et al., 1998; Stewart, 1998; Zeleny, 1989).

Page 24: ‘Knowledge Management’ and the Consulting Industry.

Tacit Knowledge

• Know something ‘in theory’ and ‘practical common sense’ (Spender, 1996). • In many world languages this distinction can be made more explicit, e.g. wissen and

kennen, savoir and connaître. • ‘know-what’ and ‘know-how’. • ‘knowing about something’ and ‘knowing through direct experience’ (King, 1964) or

‘knowledge about’ and ‘knowledge of acquaintance’ (James, 1950). • While experience is directly related to ‘know-how’, ‘know-what’ is the result of “systematic

thought that eliminates the subjective and contextual contingencies of experience” (Spender, 1996: 49).

• Blackler (1995): embrained, embodied, encultured, embedded and encoded.• Spender (1996): conscious (explicit individual knowledge), objectified (explicit

organisational knowledge), automatic (preconscious individual knowledge) and collective (practical, context-dependent organisational knowledge).

• “[T]he quintessential knowledge-creation process takes place when tacit knowledge is converted into explicit knowledge. In other words, our hunches, perceptions, mental models, beliefs, and experiences are converted to something that can be communicated and transmitted in formal and systematic language.” (Nonaka and Takeuchi: 1995: 230-231, italics added)

Page 25: ‘Knowledge Management’ and the Consulting Industry.

The Knowledge Commodity

• “The commodity reflects the social characteristics of men’s own labour as objective characteristics of the products of labour themselves…It is nothing but the definite social relation between men themselves which assumes here, for them, the fantastic form of a relation between things.” (Marx, 1976: 164-165)

Page 26: ‘Knowledge Management’ and the Consulting Industry.

Commodity Fetishism

“The mysterious character of the commodity-form consists therefore simply in the fact that the commodity reflects the social characteristics of men’s own labour as objective characteristics of the products of labour themselves, as the socio-natural properties of these things. Hence it also reflects the social relation of the producers to the sum total of labour as a social relation between objects, a relation which exists apart from and outside the producers. Through this substitution, the products of labour become commodities, sensuous things which are at the same time supra-sensible or social. In the same way, the impression made by a thing on the optic nerve is perceived not as a subjective excitation of that nerve but as the objective form of a thing outside the eye. In the act of seeing, of course, light is really transmitted from one thing, the external object, to another thing, the eye. It is a physical relation between physical things. As against this, the commodity-form, and the value-relation of the products of labour within which it appears, have absolutely no connection with the physical nature of the commodity and the material [dinglich] relations arising out of this. It is nothing but the definite social relation between men themselves which assumes here, for them, the fantastic form of a relation between things. In order, therefore, to find an analogy we must take flight into the misty realm of religion. There the products of the human brain appear as autonomous figures endowed with a life of their own, which enter into relations both with each other and with the human race. So it is in the world of commodities with the products of men’s hands. I call this the fetishism which attaches itself to the products of labour as soon as they are produced as commodities, and is therefore inseparable from the production of commodities.” (Marx, 1976: 165)

Page 27: ‘Knowledge Management’ and the Consulting Industry.

Knowledge Management and Management Knowledge

• Jackson and Carter write: “Management knowledge…constitutes a relatively homogeneous canon that claims to be able to improve organizational efficiency (and, thereby, profit, though the link is rarely demonstrable), in particular through the adoption of specific techniques for the use of labour. The general objective of these techniques is to enable units of labour to be more productive – that is, to work harder” (1998: 151)

• For Jackson and Carter, management knowledge is thus “an ideologically based canon, biased in favour of an essentially capitalist interest. It functions as part of the techno-mediatic hegemony that sustains this dominant discourse” (1998: 152).

Page 28: ‘Knowledge Management’ and the Consulting Industry.

References

• Swan et al. (1999) ‘Knowledge management and innovation: networks and networking’, Journal of Knowledge Management, 3(4): 262-275.

• Davenport, Thomas H. and Laurence Prusak (1998) Working Knowledge: How Organizations Manage What They Know. Boston: Harvard Business School Press.

• Yakhlef, Ali and Miriam Salzer-Morling (2000) ‘Intellectual Capital: Managing by Numbers’, in Craig Prichard, Richard Hull, Mike Chumer and Hugh Willmott (eds.) Managing Knowledge: Critical Investigations of Work and Learning. London: Macmillan, 20-36.

• Edvinsson, Leif and Michael S. Malone (1998) Intellectual Capital. London: Piatkus.• Zeleny, Milan (1989) ‘Knowledge as a New Form of Capital’, Human Systems Management, 8.• Lynn, Gary S. (1998) ‘New Product Team Learning: Developing and Profiting From Your Knowledge Capital’, California

Management Review, 40(4): 74-93.• Nahapiet, Janine and Sumantra Ghoshal (1998) ‘Social Capital, Intellectual Capital and the Organizational Advantage’,

Academy of Management Review, 23(2): 242-266.• Stewart, Thomas A. (1998) Intellectual Capital. London: Nicholas Brealey Publishing.• Roos, Johan; Goran Roos; Leif Edvinsson and Nicola C. Dragonetti (1997) Intellectual Capital. London: Macmillan.• Brooking, Annie (1996) Intellectual Capital. London: International Thomson Business Press.• Spender, J.-C. (1996) ‘Making Knowledge the Basis of a Dynamic Theory of the Firm’, Strategic Management Journal,

17: 45-62.• Blackler, Frank (1995) Knowledge, Knowledge Work and Organizations, an Overview and Interpretation. Organization

Studies. 16(6): 1021-1046.• King, David (1964) Training within the Organization. London: Tavistock.• Nonaka, Ikujiro and Hirotaka Takeuchi (1995) The Knowledge-Creating Company. Oxford: Oxford University Press.• Marx, Karl (1976) Capital: A Critique of Political Economy, Vol. 1, trans. Ben Fowkes. London: Penguin.


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