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How Management Consultants Can Fix Knowledge Management

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How Management Consultants Can Fix Knowledge Management

There is a scientific, philosophical, and organizational side to knowledge that executives should at least be aware of in today’s hypercompetitive business environment. Scientific knowledge is objective and manifests itself as provable and verifiable knowledge or truth, while philosophical knowledge clarifies that truth is inaccessible. The key for executives is that organizational knowledge, unlike scientific and philosophical knowledge, focuses on enhancing effective performance. Answering the questions executives often ask: “What works?”

Based on this view, this kind of knowledge empowers the capabilities of an organization, and actively improves its competitive advantage in the marketplace. Executives are already aware that organizational knowledge takes an objective approach and can positively contribute to a firm’s performance. This is why executives care whether knowledge is organizational or not? The simple answer is that if organizational knowledge is not shared and managed, companies may become obsolete, taken over, or acquired. The key is how to use this knowledge, enhance it, distribute it, and capture it.

Every executive is held to the grindstone of maximizing financial and non-financial measures—their careers are tied to company performance measures. Every executive also knows that company performance measures can illustrate whether knowledge management is contributing to bottom-line improvement. This article articulates a different approach and introduces a new perspective of knowledge management by showing how knowledge management consultants can help companies to better manage knowledge, meaning that organizational knowledge is power and can be used as an asset when competing with rivals. This is my experience of working with a team of top-level management consultants around the globe.

Consultants can look at three-step processes of knowledge accumulation, integration, and reconfiguration. This model to managing knowledge reflects a more strategic and practical perspective, as it is process-oriented and most applicable in the context of leading organizations. Consultants know that applying this model is advantageous and good sound strategic implementation. In this model, organizational knowledge is accumulated by creating new knowledge from organizational intellectual capital and acquiring knowledge from external environments. In the process of knowledge accumulation, the exchange of knowledge with external business partners can develop innovative environments.

Consultants can play a strategic role in expanding knowledge accumulation by applying incentives as mechanisms to develop a more innovative climate and managing effective tools to acquire knowledge from external sources. They can particularly develop a workplace which is highly effective in:

-Acquiring knowledge about new products/services within our industry.

-Benchmarking performance with competitors or industry.

-Using feedback to improve subsequent practices.

-Utilizing teams (e.g. committees or management teams) to manage knowledge resources.

-Developing and implementing education or training programs.

-Carrying out a career path program or recruitment program to acquire experts.

-Conducting organizational events (such as a “knowledge contest” or “knowledge fair”) that promote knowledge activities.

Secondly, consultants can improve knowledge integration by facilitating knowledge sharing around the organization. In fact, they can positively impact knowledge integration by creating expert groups and enhancing dynamic relationships among employees and departments and within companies. A systematic process of coordinating company-wide experts will enable companies by developing a more innovative climate within organizations. Further, it can be seen that some qualities indicating a high-performing expert group (such as trust and reciprocity) are highly overlapped with the definition of organizational effectiveness describing organizational capabilities in creating trust and reciprocity. Based on this view, it could be argued that effective coordination of company-wide experts itself can provide a significant contribution to organizational effectiveness, thereby developing a climate that all leaders aim to create. In particular, consultants can develop a workplace which is highly effective in:

-Monitoring or controlling organizational knowledge to keep products or services in line with market requirements.

-Regularly assessing knowledge requirements according to environmental changes.

-Linking the knowledge sharing system using various software and programs.

-Defining “core knowledge” or “core competence” areas.

-Using expert groups to evaluate the quality and effectiveness of organizational knowledge.

-Disseminating organizational knowledge among employees.

-Rewarding individuals or teams based on the quality of knowledge generated.

Thirdly, the knowledge within organizations needs to be reconfigured to meet environmental changes and new challenges. In this process, knowledge is globally shared with other organizations in the environment. Consultants can promote knowledge reconfiguration by improving networking with external sources and developing relationships. Further, they can also inspire organizational members to network with more successful companies. It is evident that networking with external business partners improves effectiveness, thereby providing directions for chief executive officers to develop a more effective corporate vision incorporating various concerns and values of external business partners.

Moreover, it is believed that networking with other companies contributes to the effectiveness of learning, which in turn empowers human resources by creating new knowledge and solutions. Accordingly, the process of knowledge reconfiguration can play a crucial role in enhancing organizational effectiveness. Especially at the corporate level, consultants can develop a workplace which is highly effective in:

-Creating knowledge alliances with suppliers, customers, or other partners.

-Sharing knowledge management visions and goals with external partners (such as suppliers and customers or other partners) to develop collaborative activities, shared goals, and trust-based relationships with them.

-Extending (or linking) knowledge-related policies or rules (measurement, rewards) with external partners (such as customers, suppliers, or other partners).

-Linking our knowledge-sharing system with external partners (such as customers, suppliers, or other partners).

-Facilitating and implementing activities such as conferences, contests, seminars with external partners.

In conclusion, organizational knowledge must be guarded and not shared with the competition. Any leak of such information may expose the organization and increase the operational risk. The three processes of knowledge management mentioned above, when carried out correctly, can prevent further operational risk in today’s knowledge-based economy.

One important dimension that all leaders world-wide can learn from this article is that knowledge management consultants can help clients’ companies to address the current gaps in knowledge management performance and improve their competitiveness in today’s uncertain business environment.

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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.

stress

5 Ways Leaders Can Eliminate Stress and Reboot for Change In 2021

As a challenging year winds down, companies are sifting through what worked and what didn’t as they prepare to reboot for 2021 after dealing with the many difficulties brought on by the pandemic.

And if a business is planning significant changes in its operations in the New Year, the leadership team’s empathy for the workforce is vital in the process, says Joel Patterson (www.JoelPatterson.com), a workplace culture expert, founder of The Vested Group and ForbesBooks author of The Big Commitment: Solving The Mysteries Of Your ERP Implementation.

“Leaders need to be empathetic to help their employees manage stress and stay productive, especially in these unprecedented times,” Patterson says. “The holidays always add stress, but company transitions heading into the New Year, magnified by the uncertainty we all face due to COVID-19, can send that stress off the charts.

“For example, when a company installs new software or makes other major changes in operations and processes, the end-users and middle managers can really feel it as the company tries to ensure those transitions are smooth. Having the human touch from company leadership is critical, as is providing proper training and giving confidence to middle management as their teams implement those systems.”

Patterson offers tips on how leaders can lower stress and keep morale high while implementing changes:

Start with acknowledging the emotional side of change. “There are unexpected twists and turns to any big change in company operations,” Patterson says. “Employees have to adjust to new processes – sometimes after having done things the same way for many years. This learning curve can understandably cause panic. Employees can be resistant to learning how to make it work to their advantage. Leaders need to expect these reactions and develop a plan based on empathy in order to deal with it.”

Know how to listen. “True listening means listening with open ears, open eyes and an open heart,” Patterson says. “It means paying attention to body language, to the tone of voice, to the hidden emotions behind what’s being said. You’ll always gain more from listening than from speaking.”

Know what empathy is. “For a leader, empathy is more than listening and nodding your understanding; it’s understanding that your employees have their own working and communicating styles and a life separate from work,” Patterson says. “In stressful, uncomfortable times like these when change is thrust upon them, you can stay connected with them by making them feel more comfortable. Leaders can begin to do that when they put themselves in their employees’ shoes to better understand things from their perspective.”

Build a culture of psychological safety. Allowing people to feel free to air their concerns and speak their truths during change and upheaval can do wonders for the work culture in the long run. “The foundation becomes stronger because of the trust factor,” Patterson says. “Leaders understand the challenges that exist through the organization, which helps them be more effective in leading their teams through change.”

Emphasize “change energy” over “change fatigue.” “The best organizations understand that there is no endpoint to change,” Patterson says. “Change is for the greater good of continual evolution collectively and individually. Therefore, there are no excuses like being fatigued by change. Instead, leaders need to sell change as a necessary energizer that benefits everyone. Show the workforce how the new systems can work in their favor, not against them.”

“Empathy gives you insight into what others are feeling and thinking,” Patterson says. “At its foundation, empathy informs your decision-making by sharpening your perceptions and intuition.”

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Joel Patterson (www.JoelPatterson.com) is the founder of The Vested Group, a business technology consulting firm in the Dallas, Texas, area, and ForbesBooks author of The Big Commitment: Solving The Mysteries Of Your ERP Implementation. He has worked in the consulting field for over 20 years. Patterson began his consulting career at Arthur Andersen and Capgemini before helping found Lucidity Consulting Group in 2001. For 15 years he specialized in implementing Tier One ERP, software systems designed to service the needs of large, complex corporations. In 2011, Patterson founded The Vested Group, which focuses on bringing comprehensive cloud-based business management solutions to start-ups and well-established businesses alike. He holds a bachelor’s degree in Business Administration from Baylor University.

leader

Global Traders on the Move: Latest Leadership Update

Fullen Dock & Warehouse, a full-service Mississippi River terminal, warehousing, trucking, aggregates supply and logistics company, appointed Greg Hutchison president of the company. In this role, he will be responsible for leading all commercial activities and the operations of the Memphis, Tennessee-based company.

ArcBest, a leader in supply chain logistics, recently announced organizational changes to strategically align certain functions of the Fort Smith, Arkansas-based company’s suite of integrated solutions. Earlier this year, Dennis Anderson was promoted to chief customer officer and is now overseeing all customer-facing functions including sales, marketing, customer service as well as strategy. Danny Loe, chief yield officer, will assume the position of president, Asset-Light Logistics while retaining his yield strategy leadership role. One reason Anderson and Loe may have decided to stay with ArcBest: It has been recognized as one of America’s Best-In-State Employers for 2020 by Forbes and Statista Inc.

OmniTRAX, one of the fastest-growing railroads in North America and an affiliate of Denver, Colorado-based The Broe Group, appointed Mike Brothers chairman of its newly established Audit Committee as part of the company’s strategic growth plan. Previously the responsibility of the entire board, the Audit Committee is now comprised of OmniTRAX board members, Broe family members and management representatives.

Citi Treasury and Trade Solutions has appointed Kanika Thakur as Asia Pacific Head of Trade. Based in Hong Kong, Thakur succeeds Vishal Kapoor, who was named head of Treasury and Trade Solutions for Citi Hong Kong earlier this year.

GoExpedi, an innovative e-commerce, supply chain, and analytics company for industrial and energy maintenance, repair and operations concerns, has named prominent energy executive Noel Connolly senior vice president of Digital Strategy. Houston, Texas-based GoExpedi as boosted its sales team with the additions of Elizabeth Stephens as Director of Business Development covering the Houston region; Dan Farrell, director of Business Development covering Mobile, Alabama; Sammy Steinmark, senior Business Development manager; Jody Coffman, Business Development Manager covering the Dallas/Fort Worth region; John Reyes, Business Development Manager covering the Midland/Odessa region; and Jantz Theriot, Business Development manager covering New Orleans and the Gulf Coast region.

WAGO promoted Clayton Windsor to product manager-DIN rail mount terminal blocks. He has held the position of product specialist for Marking and Tools at Germantown, Wisconsin-based WAGO for the past two and a half years.

Washington, D.C.-based law firm McDermott Will & Emery builds on its international trade footprint with the addition of Joanne Osendarp and Eric Parnes as partners; Dean Pinkert, former commissioner of the U.S. International Trade Commission, as senior counsel; Tim Hruby, Lynn Kamarck, and Alan Kashdan as counsel; and associate Conor Gilligan.

Charles Taylor, the Wilton, Connecticut-based provider of services and technology solutions to the global insurance market, expanded its Marine Technical Services team with the addition of four senior marine surveyors: John Poulson, Sean Murphy, Glenn Walker and Peter Poulson. Also, Lillian Aquilia is now operations manager. They will serve at Charles Taylor locations in New York, Boston, Savannah and San Francisco.

At press time, The International Air Cargo Association (TIACA) was considering candidates for its new director-general role. Essentially the CEO, the director-general will report to the TIACA Board and be in charge of planning and executing new strategy; delivering projects and programs; and financial and operational management of the head office in Miami. Céline Hourcade is currently serving as the TIACA’s transition director.

Tactical Edge, a leading logistics and supply-chain IT solutions company out of San Diego, California, is now sponsoring rising LPGA pro golfer Emma Talley.

The National Marine Representatives Association awarded its 2020 NMRA Maritime Trades Scholarship of $3,000 to Matthew Reynolds of Brohman, Michigan. Established in 2008, the scholarship awards students of excellence who are pursuing a marine industry career.