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

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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.

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.