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McDermott Consulting
Today,
knowledge is the heart of business. In the knowledge economy, many companies
are discovering that:
they need to change their business model as third world countries begin to
compete in knowledge work, such as software development and engineering;
economies of knowledge (a company’s ability to concentrate knowledge) are as
important as economies of scale;
the ability to compete depends on developing and disseminating knowledge across
teams, geography and business units; and
information technology increases connectivity, but human networks, common
processes and global organizational structures are key to competitiveness.
Designing organizations around the development, concentration, distribution and
flow of knowledge has become critically important.
home
knowledge
organizations
designing
knowledge work
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Richard McDermott
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Designing Knowledge Companies
Designing knowledge companies in today’s highly competitive
knowledge economy is very different from traditional organizational design.
Technology, increased competition in knowledge resource markets, and increased
customer demands on knowledge and professional service companies have put
enormous pressure on organizations to dramatically improve the productivity of
knowledge workers. As a result, traditional processes and structures - and the
assumptions about the nature of expertise that underlie them - are no longer
appropriate. Today, companies trying to increase their effectiveness in using
knowledge need to pay attention to five elements.
Knowledge work processes
Designing knowledge work processes needs to do much more than
simply streamline process steps. It needs to enable professionals to quickly
access standard data and processes, connect with others to think through knotty
problems, identify best practices, and move knowledge rapidly from expert to
commodity so customers can have more information, choice and control over the
delivery of knowledge. This is a very different kind of work process than we
are used to. See Services.
Economies of knowledge
Many companies today reorganize regularly to adapt cost
pressures and market shifts. These reorganization often break the social
networks through which expert knowledge is developed and sustained. By building
organizational elements that support expert networks, such as communities of
practice, innovation networks and centers of expertise, companies can balance
front-end market needs with the need to deepen, sustain and preserve
distinctive expertise. See: Articles. Services
Communities of practice
One of the most exciting developments in business today is
the emergence of communities of practice as a core element of the business. Our
understanding of communities of practice has evolved considerably since we
noticed their importance a decade ago. We now recognize that there are
different types of communities and common elements of healthy communities. See:
Communities of practice. See Articles. Services.
Knowledge sharing culture
Getting people to share knowledge is often much more subtle
than it first appears. A recent study of successful knowledge sharing
initiatives found that culture plays a key role. Rather than trying to create a
new culture or change an existing one, successful initiatives were built on
core values of the organization and matched the style of change that was
successful in the company. See Articles.
Services.
Organizational change
As always managing change is key to implementing any new
organizational structures. Most knowledge management and process redesign
efforts fail, primarily because they fail to understand what’s really involved
in change. But we know a great deal about effective change. Implementing
improvements in knowledge organizations need to be grounded in that body of
knowledge. See Articles. Services.
Effective organizational design in today’s knowledge economy
is very different from organizational design in the past. It needs to
incorporate a deep understanding of the nature of knowledge, how it is
resourced and transformed into product and services, and how people who use it
think and connect.
signature
Richard McDermott
712 Allen Drive, Longmont, Colorado 80503 USA
phone/fax 303-545-6030
e-mail Richard@McDermottConsulting.com
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