THE IMPORTANCE OF KNOWLEDGE MANAGEMENT AND ITS IMPACT ON THE COMPETITIVENESS. ARRIAGA ASSOCIATE SPECIALISTS SMEs. Now also in ZARAGOZA, SPAIN Reviewed by Momizat on .   THE IMPORTANCE OF KNOWLEDGE MANAGEMENT AND ITS IMPACT ON THE COMPETITIVENESS In the current environment of high competitiveness, globalization, technological   THE IMPORTANCE OF KNOWLEDGE MANAGEMENT AND ITS IMPACT ON THE COMPETITIVENESS In the current environment of high competitiveness, globalization, technological Rating: 0
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THE IMPORTANCE OF KNOWLEDGE MANAGEMENT AND ITS IMPACT ON THE COMPETITIVENESS. ARRIAGA ASSOCIATE SPECIALISTS SMEs. Now also in ZARAGOZA, SPAIN

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THE IMPORTANCE OF KNOWLEDGE MANAGEMENT AND ITS IMPACT ON THE COMPETITIVENESS

In the current environment of high competitiveness, globalization, technological development, reduced product life and global crisis is key to knowledge management to achieve sustainable success of the company. In this context is really critical to develop the business skills to acquire information, transform it into knowledge, incorporate the company as learning to share and implement it quickly.

This is very important because there is a correlation between knowledge management and business success, including knowledge management and adaptability of the company to changing and challenging environment, where threats can be turned into opportunities.

Thanks to the knowledge companies manage innovation, creating more effective organizational routines, business growth, sustainability, adaptive capacity to the environment, and so on. This provides most successful products, establishing effective distribution channels, access to sources of funding, the support of stockholders, the best team, best customers and suppliers, and so on.

KNOWLEDGE VERSUS KNOWLEDGE MANAGEMENT FOR IMPROVED PROFITABILITY

Most research focuses on existing theoretical knowledge, in its existence and its concept, or how it is acquired, but very little on how to link it to produce superior results in the company and application. There are models that explain how to get the knowledge to provide competitive advantage in business because they involve putting into practice the theories of knowledge, operating models of actual operation. But most lack is how to implement a knowledge management model in the company. There are several problems:

Knowledge management means a management activity and thus depends on the people who run the companies and their leadership style.

Knowledge management is closely linked to the corporate culture is difficult, slow and difficult transformation to promote knowledge management.

The knowledge to be useful must be established in each of the daily activities of the company, both in individuals and in their interaction, which involves the modification of organizational routines and the transformation of individual work by work team as a generalized model, in which efforts are channeled to produce results.

Knowledge management means changing the corporate culture, changing organizational structures, the constant transformation of interaction routines and processes. Result is a constant dynamic organizational structures more complex, matrix, where people have to interact with multiple hierarchies simultaneously, with different objectives can sometimes seem contradictory

Knowledge management is closely related to the management of change, especially if you want to transform an inefficient company that manages the knowledge and want to improve their management.

Knowledge management means improving the learning capacity of individuals and the organization, which involves a process of learning to learn, to overcome obstacles to improve that capacity.

To arrive at an effective knowledge management that impacted performance requires organizational change management A LONG RANGE

Whenever you want to implement a knowledge management that impacts the results we need a far-reaching organizational change that transforms the organization to make it more efficient and competitive. You have to move from a static, hierarchical organization to a much more dynamic and proactive environment. This will be managed by a change in management style, corporate culture, new roles for people, organizational structures, models of teamwork, processes, training, etc..

For example, coordination, teamwork is especially important for the organization to discover and act sensitized about the quality and opportunities for developing new approaches. The creation of innovative high quality, low cost, depend on close coordination between all those involved in its development. For the effort, initiative and cooperation requires coordinated action are required high levels of commitment. For people to identify and solve problems as a team, need new skills, such as knowledge of the company as a whole, analytical and interpersonal relationship. If any of these elements, the process of change will fail.

OVERCOMING OLD THEORIES ON CHANGE MANAGEMENT

Most programs do not work for implementation are guided by a theory of change that is fundamentally flawed. The common belief is that we must begin with the knowledge and attitudes of individuals. Changes in attitudes, the theory goes, lead to changes in individual behavior. And changes in individual behavior, repeated by many people, will lead to organizational change. In this model, change is like a religious conversion. Once people “have become”, there will surely change their behavior.

But what exactly is this theory gets a kick in the process of implementing a change to manage knowledge. In fact, individual behavior is powerfully shaped by the organizational roles people play. Therefore, the most effective way to change behavior is to put people in a new organizational context that will impose new roles, responsibilities and relationships. This creates a situation that, in a sense, force new attitudes and behaviors of individuals.

This is the approach of authors such as Beer, M. Eisenstat, R., SPECTOR, B. (1991) where they discuss in an article entitled “Why Programs Do not Produce Change” and where you wonder why many companies want to change to adapt to the changes do not get it, being a very serious problem that they committed their strategies.

The authors say: “The difficulty with most change programs aimed at the whole company is to solve only one or, at best, two of the many important factors. Just because a company issue a statement of principles about teamwork does not mean necessarily that employees know what teams have to build or how to act within them to improve coordination. A corporate restructuring can change the boxes into a formal organization, but does not provide the skills and attitudes needed to make the new structure work. A performance based pay system can force managers to better differentiate between poor act, but it helps them to internalize new standards by which to judge the performance or actions of subordinates. Not taught how to deal effectively with performance issues. Such programs can not provide the cultural context (models of the roles that can be learned) that people need to learn new skills, so that ultimately fail to create organizational change. “

Similarly, training programs can target the fitness, but rarely change the guidelines for coordinating the company. In fact, the interest generated by a good business training program often caused more frustration when employees return to the job and see their new skills and training are not used in an organization that has not changed.

THE BUSINESS MODEL TO MANAGE KNOWLEDGE WITH SUCCESS. MODEL Bruce Roberson, Nitin Nohria and WILLIAM JOYCE

Two business professors and a former McKinsey consultant in a groundbreaking study of five years duration, involving over 50 academics and business consultants, the authors analyzed 200 management techniques used by 160 companies in a period of ten years . The authors Bruce Roberson, Nitin Nohria and William Joyce in his book “Really Works: The 4 +2 Formula for Sustained Business Success” (Paperback – 2004/11/01) (In Spanish Harvard Business Review vol.81, no. 7 JUL., 2003, P.40-52 (1) 2: Harvard Deusto Business Review, NO.116, SEP., 2003, P.48-60) (2) outline the management practices that are mandatory for performance superior financial: their “4 +2 formula” for success in business. Examples of companies that have achieved varying degrees of success depending on how they applied the formula and suggest ways that other companies can achieve excellence. The 160 companies included in the study, which was called Project Evergreen, were divided into 40 groups. Each consisted of four companies in a specific sector. Based on performance between 1986 and 1996, each company was classified as a winner or descending order. Without exception, companies that outperformed their peers, achieve excellence in what the authors call the four primary management practices: strategy, execution, culture and structure. Also, added to his great skill in those areas, the dominance of any two of the four secondary practices: talent, leadership, innovation and mergers and acquisitions. According to the authors, a company that regularly applies the 4 +2 formula has a than 90% probability of maintaining an outstanding performance. Over a period of ten years, investors in companies that meet these characteristics obtained a yield of 975% compared to the big losers were only 62% in the same period, ie 10 years.

For these authors, there are four main management practices and four secondary management practices to make this possible:

THE FOUR MAJOR MANAGEMENT PRACTICES:

1 .- Strategy. It is essential that the company remains focused on its business strategies and looking for a way to promote a steady growth in core business.

2 .- Implementation. Meet the objectives set and, if possible, exceed them.
In order that their operations are executed with excellence, companies must:

3 .- Culture. We must create a culture that is largely based on performance. Successful companies and organizations have a culture that encourages good performance over any other option and have the courage to confront those who do not perform with excellence.

4 .- Structure. We must promote a flat structure that allows it to be fast and flexible. Successful companies and organizations are quick because they assume quickly the changes necessary to reduce bureaucracy and simplify the work and set up goals: to become faster and easier in everything they do.
While there is no universal model that can be applied to organizations, here are three basic guidelines for structuring a company:

  • Simplify
  • Encourage cooperation, teamwork and information sharing across the enterprise
  • Put the best people where they can best serve

FOUR HIGH MANAGEMENT PRACTICES:

1 .- Talent. L You should keep talented employees and will seek or prepare other. Companies and successful organizations are able to develop their own stars within the ranks of their own employees and have substitutes so that if an executive left, would be replaced immediately by another person without the company suffer too.

2 .- Leadership. Leaders and managers must be committed to the business. Successful companies and organizations have a strong CEO, responsible for raising the performance of the company and have a good team of managers who know the business and passion for the win.

3 .- Innovation. We must create innovations that transform their industry. Successful companies and organizations are agile, that is constantly launched new products and services and anticipate changes in the industry and in the best cases, occur.

4 .- Growth. We must promote growth through mergers and partnerships. Successful companies and organizations generate internal growth, developing the core business, rather than assuming business in unfamiliar areas and are working to finalize partnerships and mergers and tend to prefer small business big business.

Maria Jesus Ruiz de Arriaga

Lawyer, economist

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