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Create a Flexible Corporate Structure to Develop High Performance Leadership in Global Companies

structure

Create a Flexible Corporate Structure to Develop High Performance Leadership in Global Companies

This article portrays a more detailed picture of the effects of flexible structures on knowledge management. This article also indicates that executives can implement structural changes for better leading their companies. This article summarizes my experience as a senior management consultant and is about getting the information needed to be successful in the right hands of executives worldwide.

How Can Flexible Structures Improve Leadership Effectiveness?

A flexible structure is necessary to lead a global organization. This type of corporate structure is at the forefront of the knowledge base and has relative value in organizations throughout North American and the rest of the developed countries. When executives generate flexible corporate structures inspiring innovation and creativity within organizations, they will secure a foothold in an ever-changing hypercompetitive marketplace.

Corporate structure has been defined as a pattern by which organizations can divide their activities and tasks as well as control them to achieve higher degrees of coordination. Corporate structure, therefore, refers to the bureaucratic division of labor accompanied by control and coordination between different tasks in order to develop communication within organizations. 

Corporate structure can be reshaped by executives when they develop knowledge sharing and inspire employees to create new ideas for a better environment among business-units and departments. Sirkka Jarvenpaa and Sandy Staples, prominent authors and scholars in the area of management at The University of Texas at Austin maintain that the informal structure could facilitate new idea generation to build a more innovative climate within organizations. Executives can, therefore, implement structural changes that develop better collaboration among subordinates and managers. 

Centralized versus decentralized decision making is also a topic that management executives must deal with. More emphasis on formalized and mechanistic structures can negatively impact the executive’s ability to exert such changes. On the contrary, a more decentralized and flexible structure may improve departmental and managerial interactions. The mechanical or centralization at the commanding level of leadership impairs the opportunity to develop relationships among managers, business units, and departments. 

Executives can reshape corporate structure to be more effective when the command center of organizations can disseminate information in a decentralized and organic way as opposed to the mechanical and centralized command center. Decentralized structures shift the power of decision-making to the lower levels and subsequently inspire organizational members to create new ideas and even implement them while centralized structures may negatively impact interdepartmental communications and inhibit knowledge exchange.

An empirical study by Wei Zheng, Baiyin Yang and Gary McLean in Texas A&M University affirms that there is a negative impact of centralization on various knowledge management processes such as knowledge acquiring, creating, and sharing among both managers and departmental units. On the contrary, a more decentralized and flexible structure may enable executives in improving departmental and managerial interactions that can lead to identify the best opportunities for investment that potentially leads to improve knowledge utilization processes for companies. Both scholars and executives have acknowledged some form of relationship between corporate structure and the knowledge utilization process. Ergo, executives can positively contribute to knowledge management by building more decentralized structures within organizations.

The key take-away for executives is to facilitate knowledge management by developing a more flexible structure that is considered an essential source for developing relationships. Therefore, if the corporate structure is not completely in favor of supporting knowledge management, executives cannot effectively manage organizational knowledge to improve overall performance and companies cannot be effective. Hence, the key kernel for executives is that corporate structure is a resource that enables organizations to solve problems and create value through improved performance and it is this point that will narrow the gaps of success and failure leading to more successful decision-making.

How Can Knowledge Management Improve Leadership Effectiveness?

The process of knowledge exchange enhances an executive’s capabilities to play the role of an inspirational motivator in their company as it allows them to set desired expectations by recognizing possible opportunities in the business environment. The knowledge exchange also positively contributes to executives developing a more effective vision for their employees, with access to a comprehensive array of information and insights about the external environments. By creating a vision of what is achievable, executives can then integrate knowledge internally to enhance efficiencies in their business systems and processes that align with this vision, as well as to be more responsive to any current market changes. 

To be effective, knowledge integration also requires a continuous process of monitoring and evaluating your internal knowledge management practices, coordinating experts, sharing knowledge and scanning the changes of knowledge requirements to keep the quality of work and produce in-line with market demand. By undertaking knowledge integration activities that incorporate all levels of the company, executives can assess any required changes that will keep the quality of their services at maximum efficiency. Instilling this systematic approach of coordinating company-wide experts also enables executives to propel the role of intellectual stimulation, which creates a more innovative environment within companies. 

Executives are also responsible for curtailing knowledge within companies, as and when it needs to be reconfigured to meet environmental changes and new challenges. Essentially, what worked yesterday or a few years ago has already changed rapidly, and will continue to do so as technology increases in prolific ways.

Knowledge is commonly shared at a global level amongst companies through domestic and global rewards such as the Malcolm Baldridge Award in the United States and the Deming Award in Japan. However, past industry research posits that companies might lack the required capabilities to access and develop this knowledge or decide to decline from interacting with other organizations due to distrust to share or take knowledge. Therefore, expert groups may not have sufficient diversity to comprehend the knowledge acquired from external sources.

However, despite these limitations whether natural or caused, networking with business partners is a key activity for companies to enhance knowledge exchange and should not take an award to be the impetus to initiate interaction. Ergo, networking with external business partners will enhance the effectiveness of leadership, empowering executives to better develop strategic insights for a more effective vision that incorporates the various concerns and values of external business partners.

Ultimately, knowledge transfer amongst organizations improves the effectiveness of learning, which in turn enables executives to empower human resources through creating new knowledge and solutions. Thus, I suggest that networking takes place between organizations in both domestic and international markets to enhance the effective use of management. As executives in senior positions effectively use knowledge management this is likely to improve their leadership effectiveness through increased learning opportunities.  Figure 1 illustrates how flexible structures lead to the improvement of knowledge management and leadership.  

In Conclusion

This article can portray a more detailed picture of the effects of a flexible structure on knowledge management performance. When executives ensure the effectiveness of knowledge management projects they increase control and lesson operational risk. Furthermore, knowledge management constitutes the foundation of a supportive workplace to disseminate knowledge and subsequently enhance the effectiveness of leadership. In fact, a firm’s ability to develop leadership can be highly affected when executives implement knowledge management projects as the primary form of managing people, resources, and profitability.

Executives can now see how they can implement structural changes, which can enable superior knowledge management performance to achieve business objectives and satisfy careers. In addition, this article is set in place to inspire executives to create effective structural changes in order to meet and exceed the challenges of not only today but also what we see as the onset of new advances in the future. The practices mentioned in this article can also represent a complete answer to the need for structural changes in today’s global market environment.

I suggest that scholars take these ideas and continue to conduct research using executives as the focal point so that academic scholarship can meet the needs of managerial implications at the higher echelons of companies worldwide. 

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

techniques

Top 4 Techniques for Leadership in the Ever-Expansive Global Marketplace

Leadership has always been at the forefront of management training. However, the four functions of management depict leadership as one of the four. For instance, Henri Fayol has been posited as the forefather of the functions of management.  He had more than four in his original publication in France which was translated to English in the 1930s.

Leadership, being a strong component of management has manifested itself into the forefront of many executives and aspiring leaders. Today, the question remains, can leaders be made, or do they have to be born leaders to be successful? Before attempting to answer this question, let us agree that leaders can be made and that being a born leader may be an additional attribute of leadership.

Leadership has been highlighted as the behavior indicative of friendship, mutual trust, respect, and warmth. The key to leadership is based upon satisfying basic needs and verbalizing feelings of admiration, respect, and trust toward themselves to meet higher desires through inspiring followers to provide newer solutions and create a better workplace.  Sure, there are critics of this leadership style, but do not let that stop you from implementing it and learning how to master it.

Leadership unfolds results in organizations, influencing employee individual interests to align with institutional interests, and inspiring followers to create new ideas and innovation for effective business outcomes. In fact, a leader treating human capital as an individual quality becomes a role model who is trusted, admired, and respected by followers.

Executives can be made into leaders and leaders can become better at what they do by using the four techniques of effective leadership. These four techniques include:

1. Idealized influence,

2. Individualized consideration,

3. Intellectual stimulation, and;

4. Inspirational motivation.

Executives can use idealized influence when aiming to develop a shared vision and improve relationships with followers. In doing this technique, executives need to take the following actions:

-Instill pride in organizational members for being associated with them.

-Display a sense of power and confidence.

-Go beyond self-interest for the good of the organization.

-Talk about their most important values and beliefs.

-Consider the moral and ethical consequences of decisions.

-Emphasize the importance of having a collective sense of mission.

Executives can use individualized consideration when they would like to concentrate on identifying employee’s individual needs and empowering followers in order to build a learning climate. In doing this technique, executives need to take the following actions:

-Spend time coaching others.

-Consider employees as having different needs, abilities, and aspirations from others.

-Help organizational members to develop their strengths, and provide various formal training programs to improve the performance of duties

Executives can use intellectual stimulation to propel knowledge sharing in the company to generate more innovative ideas and solutions for new and demanding issues that come up constantly in our hypercompetitive economic environment. In doing this technique, executives need to take the following actions:

-Emphasis on the effective coordination among different functional areas, and seek differing perspectives when solving problems.

-Suggest new ways of looking at how to complete assignments, and undertake a comprehensive analysis when confronted with an important decision.

Executives can use inspirational motivation to focus on inspiring people and not just treat them as human assets. This sets a higher level of desired expectations for them. In doing this technique, executives need to take the following actions:

-Talk optimistically about the future

-Talk enthusiastically about what needs to be accomplished.

-Express confidence that the goals will be achieved.

The four techniques of effective leadership mentioned above, when carried out correctly, can present a set of practices for effective leadership. These four techniques of effective leadership represent how an effective leader working in today’s knowledge-based economy can develop and manage intellectual capital in corporations. There are some differences between practical leadership and trait perspective.

The researchers associated with trait perspective believed that a great man or great leader, man or woman, was born to lead and not made into a leader. In contrast, followers can be made into leaders and leaders can become better at what they do by using the four techniques of effective leadership. Therefore, the great man/woman at the topmost levels of organizations can prosper and excel by simply applying the techniques of effective leadership.

One example of great leaders in a highly competitive environment is Steve Jobs, former leader of Apple, who built a highly effective organization through taking a change-oriented leadership approach which highly manifested itself in talent development, organizational structure, and inspiring vision for the future. Jobs generated a shared and inspiring vision for future expansion into global markets. Also, he built a learning climate through identifying intellectual capital and empowering them.

Most importantly, Jobs transformed Apple by attempting to change the basic values, beliefs, and attitudes of followers so that they were willing to perform beyond their previous or originally level specified by Apple in their job description. He also contributed to new products and services to meet dynamic market needs, through inspirational motivation and higher expectations for new and strategic opportunities to meet the needs of customers in the marketplace.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

culture

Develop a Strong Business Culture to Effectively Identify, Satisfy and Retain the Most Talented Employees

Culture is the resource that builds upon the foundations that helps organizations prosper. Edgar Schein, one of the prominent management scholars, describes corporate culture as a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration that has worked well enough to be considered valid, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. Corporate culture is reflected in shared assumptions, symbols, beliefs, values, and norms that specify how employees understand problems and appropriately react to them.

Executives can manifest themselves as change agents who manipulate corporate culture with the aim of improving knowledge management. Organizational culture includes three dimensions of collaboration, trust, and learning. Executives can facilitate collaboration by developing relationships in organizations. Executive can contribute to the cultural aspect of trust, through considering both employee’s individual interests and the company’s essential needs. Also, executives identify the individual needs of their employees and develop a learning culture by intellectually stimulating them to generate new knowledge and share it with others. Executives can, therefore, highly manipulate a firm’s culture to conform to the needs and expectations of strategic goals and objectives.

Knowledge management is enhanced by providing further opportunities and information sharing. Executives can enhance knowledge sharing by providing access to knowledge, and stimulate new ideas and knowledge generation, transfer an individual’s knowledge to other members and departments and improve knowledge capturing, storing, and accumulating, aiming at achieving organizational goals. Executives can propel knowledge sharing in the company to generate more innovative ideas and solutions for new and demanding issues that come up constantly in our hypercompetitive economic environment. In doing this, executives can build a strong corporate culture to share experiences gained by imitating, observing, and practicing.

Executives have found that corporate culture impacts knowledge management through facilitating knowledge sharing throughout all levels of the organization. Corporate culture focuses on defining and recognizing core knowledge areas, sharing organizational knowledge, and scanning for new knowledge to keep the quality of their product or services continuously improving. Therefore, corporate culture is an essential requirement of corporate leaning by which knowledge is shared among people.

Particularly, the three cultural aspects of collaboration, trust, and learning play a critical role in enhancing the effectiveness of corporate leaning. For example, collaboration provides a shared understanding of the current issues and problems among employees, which helps to generate new ideas within organizations. Trust towards their leader’s decisions is a necessary precursor to creating new knowledge. The key is for executives to inculcate a culture of trust and transparency of knowledge sharing within organizations so that information can be found and used instantaneously.

Moreover, the amount of time spent learning is positively related to the amount of knowledge gained, shared, and implemented. Therefore, executives can reshape, and in some cases, manipulate corporate culture to facilitate corporate leaning within departmental and business units of organizations. Executives can now see how corporate culture constitutes the foundation of a supportive workplace to share and synthesize organizational knowledge and subsequently limit the gaps between success and possible failure.

Furthermore, executives have found that knowledge management as modifying behaviors resulting in newer insight and knowledge. Changing the existing behaviors of followers generating new knowledge, and is, therefore, a key factor in improving a firm’s competitive advantage. This is a fact but it happens through the way talented employees are managed by executives. Why is this, you may ask? Because knowledge management is a process that leads to acquiring new insights and knowledge, and potentially to correct sub-optimal or ineffective actions and behaviors that cause companies to spiral out of control.

Executives need to first support this approach for knowledge management because talent management in organizations is the ultimate outcome of the knowledge management by which knowledge is created and acquired. This is done by connecting knowledge with others that want to share successes and failures. This leads to converting acquired knowledge into organizational processes and activities to improve or discontinue processes that either contribute or inhibit success. Many executives see talent management as an outcome of various factors such as knowledge management and a climate inspiring innovation and creativity within organizations. However, a more comprehensive approach needs to be introduced to put together the various aspects of potential contributions to talent management.

Knowledge management requires various processes such as knowledge acquisition, collaboration, dissemination, sharing, generation, and storage to acquire knowledge within an organization. A question remains, how can we establish the relationship between knowledge management and talent management? Well, there are scholars that highlight the strategic role of knowledge management in enhancing the effectiveness of talent management. For example, one scholar by the name of Bayyavarapu in the University of Western Ontario suggests a learning-based approach to talent management to understand how knowledge management is related to various practices of talent management. More importantly, the effective implementation of talent management requires the sharing of best practices and experiences among employees.

Knowledge management improves organizational processes by sharing knowledge that can increase both follower engagement and personal development. Executives can, in fact, enhance knowledge management when they would like to concentrate on sharing knowledge to empower followers in order to build a learning climate. Most importantly, in knowledge management, knowledge is managed through “learning by doing” which is more engaging. Executives around the globe realize that they play a critical role to achieve the best learning climate and for improving knowledge management that creates learning and growing the organization.

Engaging followers and getting them to participate in knowledge management activities is an important part of talent management. Thus, knowledge management positively impacts the effectiveness of talent management through facilitating knowledge sharing by all executives and employees of the organization. Shared knowledge can contribute to the development of a learning organization in which people continuously grow and develop both personally and professionally. Executives require people who are engaged and inspired to meet the demands of day-to-day operations.

For now, executives can develop conducive learning climates that foster collaboration and knowledge management in which knowledge is shared and exploited. Unshared knowledge is like lettuce in the refrigerator—if eaten and shared, everyone enjoys it, if not, it could go bad and not have any use. Executives found that shared knowledge enables companies to improve knowledge management, and that talent management is highly dependent on stimulating continuous learning within organizations. Thus, executives play a crucial role in elevating talent management by enhancing knowledge management to empower employees to pursue organizational goals.

The following figure provides a snapshot of how executives steering corporate culture enhance knowledge management and talent management.

In conclusion, insufficient consideration of the impact of knowledge management on the organization’s talent management has been also exposed. Thus, I suggest that scholars take our ideas and continue to conduct research using executives as the focal point so that academic scholarship can meet the needs of managerial implications at the higher echelons of organizations worldwide.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

corporate

How Global Leaders Formulate and Execute Corporate Strategies to Meet External Challenges

Any organizations have plans going well into the future. Strategic goals spanning five to fifteen years while short-term goals are more tactical and are just as important. Two prominent scholars that are well known in the Academy of Management – one of the largest leadership and management organizations in the world, by the names of Charles Hofer and Dan Schendel see strategy as a “fundamental pattern of present and planned resource deployments and environmental interactions that indicates how the organization will achieve its objectives.” Another scholar, Kenneth Andrew, describes strategy as a pattern of decisions and plans which are directed at interacting with the external and internal environment and effectively and efficiently allocating capabilities to achieve organizational objectives.

There are different typologies of strategies and one typology of these existing typologies that can create better results for companies when compared to others. Much of what I share comes from my experience as a senior management consultant in San Diego, California.

In my experience working with more than 30 Fortune 100 companies, executives consider the four dimensions of corporate strategy including analysis, pro-activeness, defensiveness, and futurity. Analysis strategy is defined, by Venkatraman, as “the tendency to search for problems and their root causes and generates better alternatives to solve them.” When executives analyze strategy, they can create more knowledge and find the best solution using a problematic search of various options. This type of strategy also stimulates companies to apply information systems in their decision-making processes in order to investigate various alternatives and options. Also, executives analyze strategic milestones to meet the goals of employee development.

An analysis strategy can develop opportunities for employee development by assessing current situations in detail. This strategy provides new and more innovative solutions for organizational problems as they arise. To develop this strategy, executives can particularly contribute to the development of a workplace in which there is/are:

-Emphasis on effective coordination among different functional areas.

-Extensive use of information systems to support decision making.

-Comprehensive analysis undertaken when confronted with an important decision.

-Use of planning techniques.

-Effective deployment of management information and control systems.

-Use of manpower planning and performance appraisal of senior managers.

Pro-activeness is a strategy element used by executives who take a proactive approach to search for better positions in the business environment. As executives use the pro-activeness strategy which refers to finding new opportunities and proactively responding to current challenges in external environments, they can enhance their span of control. To cultivate a pro-activeness strategy, executives can contribute to the development of a workplace in which there is/are:

-The constant search for new opportunities.

-Attempt to introduce new brands or products in the market.

-The constant search for businesses that can be acquired.

-More effective expansion of capacities when compared to our competitors.

-Strategic elimination of those operations that are no longer profitable in later stages of life cycles.

Defensiveness recommends undertaking defensive behaviors that manifest themselves in enhancing efficiency and in cutting costs while maintaining continuous budget-analysis and break-even points. Executives can take an offensive approach and in this case, they employ a defensive strategy. A defensive strategy utilizes modifications in order to efficiently and effectively use organizational resources, decrease costs, and control operational risk. Some executives feel that a defensive strategy, while necessary, sets a negative connotation on their span of control. A defensiveness strategic approach, in fact, enhances organizational learning through reusing commercial knowledge. To foster this strategy, executives can particularly contribute to the development of a workplace in which there is/are:

-Regular modifications to manufacturing/service technology.

-Use cost control systems for monitoring performance.

-Use of current management techniques to ensure that we move smoothly at the required level.

-Emphasis on product/service quality through the use of work improvement teams.

Futurity is reflected in the degree to which the strategic decision-making process takes a two-way approach—-an emphasis on both long-term effectiveness and shorter-term efficiency concurrently.  Executives use a futurity strategy to expand the growth opportunities available to companies to close the gap between success and failure. Futurity strategy implements basic studies to identify and actively respond to the changes that occurred in the external environment and provides better outcomes. To create a futurity strategy, executives can contribute to the development of a workplace in which there is/are:

-Specific criteria used for resource allocation which generally reflect short-term considerations.

-Emphasis on basic research to provide us with a competitive edge for the future.

-Key indicators of operations forecasted.

-Formal tracking of significant and general trends.

-Regular analyses of critical issues.

This article summarizes my experience as a senior management consultant and is about getting the information needed to be successful in the right hands of executives worldwide. The key for executives is that by channeling organizational processes into corporate strategy, and employing a supportive strategy that executives can continue to prosper.

Success is, therefore, dependent upon how executives formulate and execute corporate strategy. Executives can now see how they can cultivate an effective corporate strategy, which can enable superior performance to achieve business objectives and satisfy careers.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

knowledge management

Researchers Propose a Model to Better Manage Knowledge and Innovation in Multinational Corporations

With a clear understanding of knowledge management, executives can make more effective managerial decisions. Knowledge management has been evaluated from various perspectives. This variation may differ because knowledge management is understood in many different ways and therefore different scholars focus on different aspects of it and offer several options of managerial application. These perspectives are discussed below.

Taking a Technological Perspective

Executives know that they can take a technological perspective. In this case, the executive understands how knowledge management as facilitating organizational processes and activities uses information technology to organize existing information. Executives have found that knowledge management embraces information technology to convert individual knowledge into valuable resources for their organization. Executives focus on individuals as the major source of knowledge and show how followers tie together so that they can effectively share the storage, transfer, and application of knowledge within organizations. Executives, therefore, see these connections, and the related shared knowledge and memory, as central to the effectiveness of knowledge management.

Taking an Economic Perspective

Executives agree with Doyle McCarthy, who sees society as a product of knowledge. Defining culture as various forms of knowledge and symbols that make up an organization’s culture. However, knowledge is a by-product of culture and knowledge’s role in guiding and facilitating people’s action is key to executive decision-making. Four scholars by the names of Bernard Marr, Oliver Gupta, Stephen Pike, and Goran Roos define knowledge management as “a set of activities and processes aimed at creating value through generating and applying intellectual capital.”

Executives direct practices that create value from intangible organizational resources. For executives, it is clear that the objective of managing knowledge is to add value to organizations. The focus here is that executives consider the fact a firm’s knowledge is positively associated with its outcomes.

Taking a Process Perspective

The process perspective focuses on knowledge flows that executives use through embracing the processes of knowledge management for strategic management decision-making. Managing knowledge is not new, scholars have considered the various processes involved. Executives can look at three-step processes of knowledge accumulation, integration, and reconfiguration. Jang-Hwan Lee and Young-Gul Kim’s model for managing knowledge takes a strategic process-oriented approach and is relevant to executive leadership. Executives build a climate of openness for individuals to exchange ideas. Knowledge is accumulated by creating a new approach to gathering, evaluating, and disseminating information throughout the organizations.

Executives inspire people to create new ideas and develop effective mechanisms to acquire knowledge from various sources such as suppliers, customers, business partners, and competitors. This is similar to a value-chain approach. Executives need to first support this approach for the model to work because they play a strategic role in expanding the knowledge accumulation through applying incentives as mechanisms to develop a more innovative climate and managing effective tools to acquire knowledge from external sources.

Executives then integrate knowledge internally to enhance the effectiveness and efficiencies in various systems and processes, as well as to be more responsive to market changes.

Accumulated knowledge is synthesized to produce higher quality outcomes. Thus, knowledge integration focuses on monitoring and controlling knowledge management practices, evaluating the effectiveness of current knowledge, defining and recognizing core knowledge areas, coordinating expert opinions, sharing organizational knowledge, and scanning for new knowledge to keep the quality of their product or services continuously improving.

Executives can promote knowledge integration by creating expert groups or steering committees to enhance knowledge quality and evaluate knowledge assets. Follower’s diversity of skills and interpersonal relations that is based on trust and reciprocity can improve the performance of group cohesiveness.

Therefore, in the process of knowledge integration, knowledge enters organizational processes and provides valuable contributions to products and services. Executives as leaders steering the organizational strategy facilitate this process, by undertaking initiatives that improve knowledge transfer, thus enhancing the performance of employees and the implementation of effective changes to maintain the quality of products and services. The burden of success when the effective implementation of knowledge integration is concerned is heavily dependent on the capabilities of the organization’s leaders.

Executives must also curtail knowledge within organizations. This knowledge needs to be reconfigured to meet environmental changes and new challenges. At the same time, it should not be leaked to the competition in any shape or form unless agreed upon by senior executives. When executives agree to share knowledge with other organizations in the environment, studies have shown that that knowledge is often difficult to share externally. One reason is that other organizations have too much pride to accept knowledge or are apprehensive to expose themselves to the competition.

Therefore, executives may lack the required capabilities to interact with other organizations, or distrust sharing their knowledge. In addition, just the notion of creating an expert group or steering committee may be shortsighted because such groups may not have sufficient diversity to comprehend knowledge acquired from external sources. On the other hand, executives are aware of networking with business partners is a key activity for organizations to enhance knowledge exchange.

Networking is a critical concern for leaders in this process is developing alliances with partners in external environments. Executives and their expert groups and/or steering committees are the ones who can make final decisions about developing alliances with business partners.   Figure 1 depicts this model of knowledge management.

In Conclusion

There are some executives that like to look at academic journals but unfortunately, the crossover literature has not reached them enough. This article attempts to blend scholarly concepts with real-world applications. This article introduces an applicable model to evaluate knowledge management success. Also, this article provides evidence that knowledge management is used in corporate infrastructure for strategic decision-making.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

information technology

Investing in Technology to Build Knowledge-Based Companies

Executives understand how knowledge management as facilitating organizational processes and activities uses information technology to organize existing information. Information technology plays a crucial role in creating, retrieving, storing and applying organizational knowledge stated by Maryam Alavi and Dorothy Leidner’s MIS Quarterly review.

Executives focus on individuals as the major source of knowledge and show how followers tie together so that they can affect the sharing, storage, transfer, and apply knowledge within organizations. Executives, therefore, see these connections, and the related shared knowledge and memory, as central to the effectiveness of knowledge management.

How Technology Matters?

Executives are well versed today on information technology and usually have a fleet of followers in this department that they can depend on. Sandy Weil, a financial executive, wanted one number when he left the office that determined his value at risk. His technology team delivered and came up with one number called VAR (Value At Risk). Wiel slept much better knowing what risk he faced while running one of the largest financial organizations in the world. He was controlling operational risk and inspiring employees to follow where he leads.

Technology, as one would imagine, is often associated with information and communication dispersed within companies. Considerable alignment between information technology and the knowledge-based view connects the two to develop and disseminate knowledge throughout the organization which, in turn, is an important factor of sustainable competitive advantage.

Executives agree with Robert Grant, who states that knowledge integration is one of the main reasons for the existence of companies. Furthermore, Andrew Gold, Arvind Malhotra, and Albert Segars suggest information technology as an important resource for strategic planning for knowledge integration. Olivier Caya posits that information technology enables knowledge integration by using three possible mechanisms:

1. Impersonal

2. Personal

3. Collective

Executives can use the impersonal mechanism to enact regulations, procedures, and rules aimed at coordinating intellectual capital within organizations. Information technology disseminates protocols among members and allows them to be knowledgeable of their progress toward meeting determined milestones stated in the strategic plans.

The personal mechanism is used by executives to vertically and horizontally exchange knowledge between employees and collective mechanism is used when information technology manifests itself as a synthesizer of ideas and knowledge acquired from multiple organizational members. Thus, information technology encourages people to embark on technological facilities, such as shared electronic workspaces, to provide new ideas and possible solutions for solving organizational problems. As a result, it is viewed that information technology plays a critical role in integrating knowledge and is therefore aligned with the knowledge-based view.

Executives can use information technology as a communication mechanism manifestation and deployment and decision-aid technology. For example, Hsin-Jung Hsieh argues that communication technology provides ways to enhance interactions among members and departments within organizations. This type of technology eliminates the barriers of organizational communications while improving the extent of knowledge sharing and access for all followers at various levels of the organization.

Thus, there is a strong correlation between communication technology and social capital view that sheds light on the development of relationships within organizations to aggregate human capital into social capital so as to provide further information and opportunities for all members. This subsequently creates valuable resources for an organization as a whole.

Furthermore, decision-aid technology develops cohesive infrastructures to store and retrieve the knowledge to enable followers in creating more innovative solutions to problems and managing operational risks. Ergo, information technology supports knowledge by enabling interactions and providing more comprehensive and effective solutions to solve organizational problems.

Unleashing the Power of Knowledge in Companies

Today, technology has changed the business world ten-fold. Every day there is an easier way to process, access, and disseminate information. Technology – now referred to as Information technology – is an internal resource that increasingly facilitates organizational communication and improves the search for knowledge. When executives have people in place to manage information technology, the organization can see increased revenues, better satisfaction by employees and customers, and most importantly enhance their own effectiveness as leaders.

The social capital view supports the idea that knowledge creation is highly dependent on developing organizational communications and interactions. Information technology enables organizations to overcome space constraints in communication, and promotes the depth and range of knowledge access and sharing within companies.  More specifically, communication technologies can be employed to enhance the conversations and knowledge exchanges between organizational members. Scholars such as Andrew Gold, Arvind Malhotra and Albert Segars argue that this knowledge shared through information technology could positively contribute to knowledge integration.

I also introduced executives to what the scholar Robert Grant describes using the knowledge-based view. Highlighting knowledge integration as a major reason for the existence of a company. Knowledge sharing itself can develop more innovative climates and facilitate knowledge creation in organizations. Thus, communication technologies can play a crucial role in improving knowledge creation.

Communication technology is an internal resource that develops and integrates organizational knowledge as the most strategic factor of competitiveness. As executives use expert systems for decision-making, technology becomes a decision-aid. As mentioned earlier, decision-aid technology can be also considered as a facilitator of the knowledge creation process by providing the essential infrastructures to store and retrieve organizational knowledge.

Executives agree with Shahnawaz Muhammed who highlights major functions for information technology and explains that information technology enhances learning and sharing knowledge by providing access to knowledge, and stimulates new ideas and knowledge generation, transfers an individual’s knowledge to other members and departments, and improves knowledge capturing, storing, and accumulating, aiming at achieving organizational goals. Bringing us to the conclusion that information tech has a positive association with knowledge management performance in companies.

In Conclusion

Standing on the shoulders of scholars before us, I indicate that information technology is a major factor for knowledge management success and supports the positive impact of information technology on knowledge management performance.

For executives, this article can portray a more detailed picture of the effects of information technology on knowledge management. Many organizations still implement knowledge management initiatives without sufficient consideration of their technological infrastructures.

When executives ensure the effectiveness of knowledge management projects they increase control and lesson operational risk. I also suggest that a firm’s ability to enhance knowledge management can be highly affected when executives implement information technology. Furthermore, I suggest that scholars take these ideas and continue to conduct research using executives as the focal point so that academic scholarship can meet the needs of managerial implications at the higher echelons of organizations worldwide.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

risk

How Global Leaders Can Manage Knowledge, Risk, and Talent Management

Risk management, according to Karl Wiig, Chairman of Knowledge Research Institute, is an operational approach to represent knowledge management. But, in this case, it seeks to apply organizational knowledge in order to satisfy and exceed employees’ expectations and improve talent well-being.

All executives need to be aware of how to better control risk management, which coincides with talent well-being. To do this, they should understand the mediating role of knowledge management. This may be the answer executives need but may also lack the fundamental fortitude necessary to be an all-encompassing approach to predict talent well-being within companies. Due to this limitation, the focus of this article is based upon the critical role of risk management which allows a rich basis for understanding the mechanisms by which talent well-being is influenced.

Executives see knowledge management as an employee’s capabilities in securing benefits received by joining in risk management. Therefore, talent well-being has been determined as resources accessible through knowledge management to enhance executive operational risk management. One good example, in which Victor Sino, a director of Operational Risk Management at a prominent large organization states that operational risk is a risk of loss due to failed talent well-being, processes, systems, and an external event. Some of these can be controlled by executives and others are risks that have to be factored into strategic decision-making.

Companies were assumed to be defenseless entities against threats, and opportunities happened in business environments that were serendipitous versus planned and organized. Organizational risk management was developed to offset problems before they occur and to adjust or ship resources accordingly in the event of a threat. Executives must recognize problems, and work hard to overcome them. First, executives will need to adopt knowledge management to identify the employee’s individual learning needs and become more inspired them to put extra effort into their work. This can also improve talent well-being through acquiring additional knowledge and developing better relationships with them, and providing newer solutions and creating a better workplace for them.

Operational risk of large corporations is at risk if they can be easily imitated by the competition. Therefore, firm-specific knowledge must be guarded and not shared with the competition. Any leak of such information may expose the organization and increase the operational risk. Thus, the ownership of knowledge, or what I would prefer to call knowledge management, falls under the operational risk category and must be managed and also monitored due to fluctuations in the dynamic economic environment of today. This can improve talent well-being through fostering the dynamic relationships among employees and departments, but most importantly, through satisfying employee needs. When executives have people in place to manage knowledge and embrace risk management, the organization can see better satisfaction with the most talented employees, and most importantly, enhance talent well-being.

Integrating Knowledge Management and Talent Management to Retain the Most Talented Employees

I suggest that both important factors of knowledge management and talent management constitute the foundation of a supportive workplace to reduce operational risk – two major concerns of global leaders today. Talent management is essential for business growth and prosperity while knowledge management, if not embraced, can lead to operational risk. Knowledge management can help organizations identify their inefficiencies in each process, and subsequently, recover them on an instantaneous basis, enabling executives to prevent further operational risk. Adding more manageable control of internal resources and reducing operational risk. Thus, when executives ensure the effectiveness of knowledge management they increase control and lessen operational risk.

Knowledge management utilizes modifications in order to efficiently and effectively use organizational resources, decrease costs, and control operational risk. Knowledge management also develops cohesive infrastructures to store and retrieve the knowledge to enable employees in creating more innovative solutions to problems and managing operational risks. My explanation of this is clearly within the executive span of control and potentially limits operational risk. I designed an approach for executives in large corporations to use talent management coupled with very prominent and useful construct of knowledge management so that the managerial implication is sound, justified, and operational to eliminate the gaps and serve the most talented employees in the organization that exist in the spaces between the lines of the organization.

Knowledge management enhances a firm’s capabilities to decrease the risk of imitation of organizational capabilities by competitors thus, managing operational risk. In doing this, executives that adopt knowledge management develop organizational communications aimed at providing valuable resources for organizations. They also enhance knowledge sharing among organizational members and stipulate knowledge to be shared around the organization. This process can potentially build an effective learning company in which the most talented employees can develop both personally and professionally. Knowledge management could, therefore, positively impact the most talented employee’s retention, through meeting the goals of personal development.

Additionally, executives that employ knowledge management create new ideas and knowledge for innovation through motivating the most talented employees to more innovatively solve organizational problems. Executives today realize that knowledge is the one of most strategic factors for organizations from a competitive standpoint. Knowledge management is a necessary precursor to creating new knowledge and ideas within organizations. The creation of new knowledge is a process and can be essential to identify the most talented employees’ needs and also recognize changes happening in the business environment. Through knowledge management, executives can contribute to identify and meet the most talented employees’ needs which lies at the focal point of executive success.

In conclusion, I suggest that executives embrace knowledge management. Knowledge management influences some of the spans of control of executive responsibility. My primary focus is on one factor (i.e. talent management) but there are many more important components of the managerial function that can be enhanced when knowledge management is embraced. The key here is that there are positive effects of knowledge management on talent management.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

global

Two Ways to Make It Easy to Engage a Global Workforce

I attempt to blend scholarly concepts with real-world applications. I place a great deal of emphasis on the literature of information technology and corporate strategy as two significant indicators for financial success. This article adds to a relatively small body of literature but pays homage to the scholarly contributions. I highlight the direct impact of these organizational internal resources factors on financial performance.

Executives will also see that I expand upon the subject matter of a firm’s internal resources. Insufficient consideration of the impacts of these internal resources on financial performance has been exposed and I attempt to address this concern. This article can portray a more detailed picture of the effects of information technology and corporate strategy on financial performance that have been not placed in a model in the past.

Information Technology

Information technology encourages employees to embark on technological facilities, such as shared electronic workspaces, to provide new ideas and possible solutions for solving organizational problems. Information technology plays a critical role in creating a competitive advantage and is therefore aligned with the resource-based theory.  Information technology is necessary to build high-performing companies and also may be necessary as global market demands are increasingly difficult to adapt and sustain profitability.

Financial performance in global markets is dependent on continuous learning. Corporate learning plays a critical role and is a strategic prerequisite for increasing sales and market share in today’s knowledge-based economy. Effective corporate learning can enable companies to actively respond to environmental changes and customer needs and organizational members’ growth needs. Thus, information technology is a key factor that should be embraced at the senior level of organizations to enable financial performance in globalized markets by building a learning climate and empowering organizational members. In the absence of effective information technology management, companies cannot implement successful plans in order to adapt to today’s global business environment.

Information technology is a key factor to improve financial performance for companies. Earlier studies clearly indicate that effective IT implementation significantly contributes to a company’s’ financial performance. These researches acknowledge that information technology is an important enabler to effectively manage business processes. Information technology can reduce paper-based transactions for companies that can potentially decrease costs and subsequently improve profitability for companies.

Furthermore, it can be seen that information technology enables companies to effectively identify opportunities in an external business environment that leads to identifying the best opportunities for investment that potentially improves financial performance in terms of return on investment. Information technology can also help companies to effectively create more innovative solutions for their organizational problems. More innovative solutions and better ideas can improve the quality of products and services, which in turn increases sales and market share for companies.

Business success for companies in today’s global business environment can be, therefore, achieved when information technology is effectively applied and widely used to achieve a higher degree of financial performance. When information technology can create a learning workplace and inspiring vision for future expansion into global markets, companies will secure a foothold in the ever-expansive global marketplace. Thus, I recommend that executives should consider information technology as a key driver for improving financial performance in today’s hypercompetitive environment.

 Corporate Strategy

Executives view organizational strategy is a sum of objectives, plans, and procedures designed to efficiently and effectively upgrade organizational capabilities and interact with their environment more effectively. In particular, strategy defines a pattern to deploy organizational capabilities and interact with both the internal and the external environment. Executives, therefore, manage their knowledge assets to create new ideas and knowledge aimed at achieving commercial objectives. First and foremost, just as one organization is holding knowledge back from competitors they are following suit. Knowledge could be the most important component of success in this ever-changing technological environment of today. Thus, the organizational strategy is an organizational internal resource affecting knowledge and in most cases, knowledge is the most strategic factor of competitive advantage.

Executives are aware that corporate strategy mainly encompasses four aspects: analysis, pro-activeness, defensiveness, and futurity. Analysis strategy is regarded as the tendency to search for problems and their root causes and generates better alternatives to solve them. Analysis strategy, an academic term that is very applicable to the executive span of control is also concurrently aired in the academic circles of higher education. For instance, the analysis strategy is highly related to firms’ capacity to generate new ideas and knowledge and plays a crucial role in acquiring knowledge. Therefore, I appeal to executives across the globe that analysis strategy could improve the quality of products and services, which can in turn enhance profitability and market share.

I also feel that as executives use the pro-activeness strategy which refers to finding new opportunities and proactively responding to current challenges in external environments, they are also enhancing their span of control. Therefore, the pro-activeness strategy can provide a higher degree of knowledge through developing interactions with external environments. As executives effectively use knowledge management for projects and organizational investments they require a continuous investigation from external business environments. The pro-activeness strategy enables companies to identify changes in external environments and accordingly help them to actively respond to these emerging rapid changes.

Some executives feel that a defensive strategy, while necessary, sets a negative connotation on their span of control. However, it is believed that a defensiveness strategic approach enhances efficiency through cutting costs which in turn increases organizational revenue and company’s financial performance.

Futurity strategy can also enhance financial performance by providing a series of clear guidelines for companies to track future trends in the business environment, and accordingly, conduct “what-if” analysis and allocate organizational resources. My explanation of this is clearly within the executive span of control and potentially limits operational risk. My conclusion for executives is that organizational strategy has a positive association with financial performance. Therefore, I suggest that a firm’s ability to enhance financial performance can be highly affected when executives develop and implement an effective corporate strategy.

In Conclusion

This article may be the answer executives need but may also lack the fundamental fortitude necessary to be an all-encompassing model to predict financial performance. Executives can contribute to meet dynamic market needs, through reshaping a firm’s internal resources (i.e. information technology and corporate) to meet the needs of customers in the marketplace. This article has been focusing on thus far is the needs of companies for enhancing financial success. This article also presents executives with organizational internal resources that can be effectively manipulated to improve financial performance and become more profitable.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

knowledge management

Why Knowledge Management is Important to the Success of Your Company

Executives today are more focused on strategic management decision making due to the hypercompetitive global environment and the public and private sector evaluation and opinion. Executes still wonder where is knowledge and how can it be captured, utilized, and enhanced when it comes to decision-making. Executives found that within organizations, knowledge resides in various areas such as management, employees, culture, structure, systems, processes, and relationships, and its role is to enhance organizational functions.

Executives across the globe have found that knowledge is critical to business success. Knowledge, in of itself, is not enough to satisfy the vast array of changes in today’s organization. Therefore, knowledge management is only a necessary precursor to effectively managing knowledge within the organization.

First executives must understand the concept of organizational knowledge itself. Organizational knowledge cannot merely be described as the sum of individual knowledge, but as a systematic combination of knowledge based on social interactions shared among organizational members. Executives can categorize followers based on their human knowledge which focuses on individual knowledge and manifests itself in an individual’s competencies and skills. Executives, being more conceptual, agree with Haridimos Tsoukas who determines organizational knowledge as a collective mind, and Kiku Jones and Lori Leonard who explain organizational knowledge as the knowledge that exists in the organization as a whole. Most importantly, organizational knowledge is owned and disseminated by the organization.

The key take-away for executives is that knowledge is a resource that enables organizations to solve problems and create value through improved performance and it is this point that will narrow the gaps of success and failure leading to more successful decision-making. The key is for executives to convert individual knowledge into valuable resources to ensure that the knowledge is actually helping the organization grow both professionally for individuals and profitably for all stakeholders.

Companies are increasingly investing in knowledge management projects. But knowledge management in companies is still quite limited. Knowledge management can help companies identify their inefficiencies in organizational processes, and subsequently recover them on an instantaneous basis which enables executives to prevent further operational risk. The question remains. How does knowledge management impact executive success?

Executive success is tantamount to organizational performance and in many cases, their salary is concurrently determined on organizational success. By combining knowledge management and executive success, executives are able to answer the questions necessary to apply knowledge management without having to delve through all the models and theories to find what works well for them and what does not. Knowledge is firstly accumulated by creating new knowledge from organizational intellectual capital and acquiring knowledge from external environments.

This knowledge exchange with external business partners develops innovative environments that can enable executives to create a more innovative climate in companies. The knowledge management process enhances the capabilities of executives to play the role of inspirational motivation, which enables executives to directly set highly desired expectations to recognize possible opportunities in the business environment. The knowledge exchange also positively contributes to executives to develop a more effective vision, including a more comprehensive array of information and insights about external environments.

Executives then integrate knowledge internally to enhance the effectiveness and efficiencies in various systems and processes, as well as to be more responsive to market changes. Knowledge integration focuses on monitoring and evaluating knowledge management practices, coordinating experts, sharing knowledge, and scanning the changes of knowledge requirements to keep the quality of their products or services in-line with market demand. It is apparent that knowledge integration activities can help executives assessing the required changes to keep the quality of both products and services at maximum levels. Furthermore, a systematic process of coordinating company-wide experts enables executives to propel the role of intellectual stimulation, which creates a more innovative environment within companies.

Executives must also curtail knowledge within organizations. The knowledge within organizations needs to be reconfigured to meet environmental changes and new challenges today. What worked yesterday or a few years ago is changing rapidly as technology has increased in a prolific way. Knowledge is globally shared with other organizations through domestic and global rewards such as the Malcolm Baldridge Award in the United States and the Deming Award in Japan. However, past studies have posited that companies might lack the required capabilities or decide to decline from interacting acting with other companies or even suffer the distrust to share their knowledge. Therefore, expert groups may not have sufficient diversity in order to comprehend knowledge acquired from external sources.

Based upon these limitations whether natural or caused, networking with business partners is a key activity for companies to enhance knowledge exchange and it should not take an award to be the impetus to initiate interaction. Ergo, networking with external business partners may enhance executive success, thereby empowering executives to better develop strategic insights to develop a more effective vision incorporating various concerns and values of external business partners.

The knowledge transference among companies itself improves the effectiveness of learning, which in turn enables executives to empower human resources by creating new knowledge and solutions. Thus, I suggest that networking takes place among companies in both domestic and international markets which may lead to enhance the effective use of leadership. Therefore, if executives in senior positions effectively use knowledge management then they may be able to improve executive success through increased learning opportunities.

In conclusion, this article actually investigates the crossover potential of scholarly research and how it can be applied in the organizational boardroom. I offer practical contributions to managers at all levels of the organization. This article introduces a new and dynamic perspective of knowledge management within organizations, and adds to a relatively small body of literature but pays homage to the scholarly contributions. I stress that knowledge is a strategic resource for organizational portfolios.

This article suggests that knowledge management constitutes the foundation of a supportive workplace to improve executive success and reduce operational risk. The key here is that there are positive effects of knowledge management on executive success. I highlight the direct impact of knowledge management on executive success by facilitating important components of performance. When business leaders ensure executive success they increase control and lesson operational risk. In fact, I suggest that if knowledge management initiatives are not completely in favor of supporting organizational processes, companies may become obsolete, taken over, or acquired.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

Knowledge management

The Design and Implementation of Effective Knowledge Management System in Multinational Corporations

Executives agree with Doyle McCarthy, who sees society as a product of knowledge. [1] Defining culture as various forms of knowledge and symbols that make up an organization’s culture. However, knowledge is a by-product of culture and knowledge’s role in guiding and facilitating people’s action is key to executive decision-making.

Knowledge also creates values, thereby fulfilling the strategic functions of “producing and guiding social action, of integrating social organizations, of protecting the identity of individuals and groups, of legitimatizing both actions and authorities, and of serving as an ideology for individuals, groups, classes, and entire nations”. [2] In addition, Thomas Beckman explains that knowledge management is “the formalization of and access to experience, knowledge and expertise that create new capabilities, enable superior performance, encourages innovation and enhances customer value,” [3]  and Bernard Marr and his colleagues define knowledge management as a set of activities and processes aimed at creating value through generating and applying intellectual capital.

[4] Moreover, knowledge management has also been regarded as a “conscious strategy of getting the right knowledge to the right people at the right time and helping people share and put information into action in ways that strive to improve organizational performance”. [5] Executives direct practices that create value from intangible organizational resources. For executives, it is clear that the objective of managing knowledge is to add value to organizations. The focus here is that executives consider the fact a firm’s knowledge is positively associated with its outcomes. This article portrays a more detailed picture of the effects of leadership and organizational factors on knowledge management performance that have been mentioned but not placed in a model in the past. Executives can use the model proposed in this article to improve knowledge management performance in companies.

What Can Executives Take From Previous Academic Research?

Executives that manage knowledge and use it as an important driving force for business success find their organization to be more competitive and on the cutting edge. However, knowledge management implementation in organizations is determined by a set of critical success factors, one of which is the strategic dimension of leadership. For now, executives can develop conducive organizational climates that foster collaboration and organizational learning in which knowledge, as a driver of improved performance, is shared and exploited. Academicians point out that if leaders do not adequately support knowledge dissemination and creation through various mechanisms such as rewards or recognition for employees who create new ideas or share their knowledge with others, knowledge management cannot be successful.

Furthermore, it is safe to say that knowledge management effectiveness can be enhanced today with the use of information technology. Information technology can play a critical role in the success of knowledge management.

For instance, a scholar in Universiti Teknologi Malaysia (UTM) by the name of Kuan Yew Wong highlights the importance of information technology in facilitating knowledge flow and communication. [6] Ying-Jung Yeh and his colleagues at the National Taiwan University of Science and Technology and National Chung Cheng University indicate that the effectiveness of knowledge management implementation is positively associated with using information technology and setting up useful software and systems to enhance strategic decision-making. [7] Effective leaders can, therefore, develop information technology through employing IT professionals and allocating more budgetary resources to share and utilize knowledge within organizations.

Moreover, it is clear that executives around the globe realize that they play a critical role to achieve the best climate and for implementing knowledge management that creates learning and growing the organization. Engaging followers and getting them to participate in leadership activities is an important part of knowledge management practices. Scholars subsequently suggest that success is also dependent upon how executives formulated their organization’s mission, vision, and strategy.

The key is for executives to inculcate an effective strategy, culture and structure so that information can be found and used instantaneously. The fact that executives steer the strategic direction of organizations is indicative of empowering people and making them more responsive to the constant changes in technology, economic fluctuations, and other pertinent and vita changes that occur on a day-to-day basis.

Executives Are Now Introduced to the Proposed Model

Based on an integrated framework of the above ideas and scholarly research, I depict and applicable and reliable model for executives as Figure 1. This framework of the model highlights a relationship between knowledge management, leadership, strategy, culture, structure and information technology. I show the relationships in Figure 1. In Figure 1, leadership has a positive impact on knowledge management which leads to higher knowledge management performance. And finally, better strategy, better culture, better structure and better information technology lead to better  performance.

In Conclusion

This article blends scholarly concepts with real world application and investigates how scholarly research can be applied in the organizational boardroom. Also, scholars see that I expand upon the subject matter of organizational factors. Through introducing a more comprehensive model for implementation, I add to the current and extant literature. In particular, I suggest that if these factors are not completely in favor of supporting knowledge management, organizations cannot effectively implement knowledge management projects and may become obsolete, taken over, or acquired.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

References

[1] McCarthy, E.D. (1996). Knowledge as Culture: The New Sociology of Knowledge, New York: Routledge.

[2] Strasser, H., & Kleiner, M. (1998).  Knowledge as Culture: The New Sociology of Knowledge, European Sociological Review, 14(3), 315-318.

[3] Beckman, T.J. (1999). The Current State of Knowledge Management. In J. Liebowitz, (Eds.), Knowledge Management Handbook, New York: CRC Press.

[4] Marr, B., Gupta, O., Roos, G., & Pike, S. (2003). Intellectual Capital and Knowledge Management Effectiveness. Management Decision, 41(8), 771-781.

[5] O’Dell C., & Grayson C.J. (1998). If only we knew what we know: identification and transfer of international best practices, New York: Free Press.

[6] Wong, K.Y. (2005). Critical Success Factors for Implementing Knowledge Management in Small and Medium Enterprises. Industrial Management & Data Systems, 105(3), 261-279.

[7] Yeh, Y.J., Lai, S.Q., & Ho, C.T. (2006). Knowledge management enabler: a case study. Industrial Management & Data Systems, 106(6), 793-810.