According to Peter Drucker (in Post Capitalist Society) knowledge has two principal uses within a firm: to drive innovation; and to improve productivity. (Not exact quote).
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For pharma companies, for instance, the former is easy to quantify on the one hand - discovery costs for new drugs run around a billion dollars, so an incremental improvement in innovation is worth a lot of money. On the other hand it can be difficult to establish a solid connection between KM-related activities and increased innovation. That is not to say there is no relationship, but rather that it can be difficult to prove.
Productivity can be an easier one to claim - due to communities of practice and best practice sharing, for instance, a division general manager could claim an increase in productivity and profit; and be able to point to specific improvements as examples of reuse from other operating units.
A business case is very useful, obviously, in justifying adding headcount in a staff role. Sometimes these business cases are easy to create, other times not - it all depends on the situation, and no two are alike. Again, another area where a good KM strategy consultant could help out (shameless plug).
--- In firstname.lastname@example.org, "Ivan G. Orozco" <orozcoig@...> wrote:
Thanks to all of you providing useful answers.
One final question: In order to justify obtained
future benefits with the involvement of a "Chief Knowledge
Integrator" with a strategic role inside the organization, would it be
convenient to prepare a business plan associated to the fulfillment of this
position? Not sure if it is something suitable.
De: Tom <tman9999@...>
Enviado: mar, octubre 13, 2009 11:22:05 AM
Asunto: [sikmleaders] Re: Chief Knowledge Officer duties
Good question, Ivan - this is one that is often delegated to an IT, HR or Finance executive, when many times it is best addressed at the CEO level. Here's why.
Correctly conceived and implemented the CKO role should be strategic - the objective, in its broadest sense, should be to:
1. understand the link between a firm's mission or strategic intent and the critical knowledge-based resources the firm controls that have the greatest variable impact on accomplishing that mission or strategic intent.
2. become intimately familiar with the critical knowledge-based resources of the firm, and how they are currently leveraged/used to support achieving business outcomes and objectives
3. develop strategies and implementable improvement plans aimed at increasing the level of, or improving the way(s) the firm uses its critical knowledge resources to achieve desired business outcomes.
Some understanding of each of the above would be helpful prior to hiring a CKO, in order to better spec out the desired qualifications for the job. For some firms, data or information may be the knowledge-based resource that could be better leveraged. In other firms social capital, or relationships among employees or between the firm and its customers is the critical resource. And for still other firms the expertise of its employees may be the critical knowledge-based resource that is under-optimized.
The expertise of the CKO you hire should be matched with the situation your firm is trying to address - there are KM generalists out there who have a bit of experience in the various main KM areas, like building communities of practice; establishing content repositories, taxonomies and search; improving collaboration among experts to drive innovation; building customer communities; improving BI capabilities; etc.
Sometimes this becomes a kind of Catch-22 - you don't want to hire a CKO until you better understand the strategic role your knowledge-based resources play in achieving your business strategy; yet you may not have the skill or know-how needed to assess this yourself, and it is something a CKO should be able to do for you. At that point an alternative may be to hire a KM strategy specialist (like me! ;-) who could help you get a better handle on what your critical knowledge-based resources are, in terms of how they support achievement of business objectives, and what the strategic opportunity is to better leverage them. That would provide the initial pointers toward the type of CKO you would want to hire to maximize the likelihood of success on the KM front.
--- In sikmleaders@ yahoogroups. com, "IvanO" <orozcoig@ .> wrote:
currently, I am trying to deploy a KM strategy inside my company (focused in integrating ICTï¿½s products and services). We have discussed that our core business is not technology but the required knowledge to offer products and services. I am complete convinced about the importance of KM strategy but donï¿½t have enough reasons for justifying a CKO position. I appreciate if all of you can provide me with advice regarding previous experiences related to this sort of strategy.
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