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Jann Hidajat Tjakraatmadja SBM - ITB

e-mail:jannhidajat@sbm.itb.ac.id

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Knowledge Management

1. Introduction 2. Learning Organization (LO) 3. Knowledge Management (KM) 4. Knowledge Innovation Management (KIM) 5. The Challenges of LO Implementation in Indonesia 6. Conclusions
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Man power Mind power Population Workplace Explosion Technology Computerization Explosion Robotics Multi careers

Information Explosion

Depletion of Less number Resources Employed Global Market No Constants Growing Underclass

Speed Of Change Changing World KNOWLEDGE ERA


Continuous Learning Analytical Thinking Creative Thinking
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Complexity

Solutions?

Uncertainties
Techno -fear Real Income Job losses Drop 20% Unemployment No Safety Knowledge Management 3 Nets Weakening Social Supports

How to use own Best learning style Self-reliance Wisdom

ORGANIZATION = HUMAN BEING


PHYSIC/BODY =
SYSTEM AND INFRASTRUCTURE

VALUES/CULTURE/ HUMAN BEHAVIOR

SOUL=

TECHNOLOGY/ROAD TO WORK

SPIRIT/CREATION TO LEARN & WORK

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Knowledge Management

Knowledge (tacit and/or explicit knowledge) which are embedded in knowledge workers, is the most important and significant asset.
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a.

Justified belief that increases an entitys capacity for effective action (Ikujiro Nonaka,
Organization Sciences, 1994).

b.

Knowledge is a capacity to act (Karl Eric Sveiby,


The New Organization Wealth: Managing and Measuring Knowledge Based Assets, 1997)

DATA/INFORMATION Know What What is Interesting What interest you?


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KNOWLEDGE Know How What works Useful What help you do your job well ?
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Knowledge Management

1. Knowledge is a main economic resource. 2. Knowledge dissemination is not restricted by space & time

3. Knowledge dissemination is not restricted by rules or regulations


4. Value and product price is determined by knowledge contents embedded in it

5. Knowledge which can be transformed into process/ system (explicit knowledge) is more valuable compared to knowledge in the form of human mind (tacit knowledge)
6. Human capital is a key component to create new innovation which brings value 7. Effective communication strongly affects knowledge flow
(Amidon, 1997)
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Contrast of Management issues:


(Financial Capital)
Performance Measures Structure/ Culture Financial Static $$$ as assets Competitive Market share Distrust of borders Cost/expense Profitability Independence Cause-effect Information processing Data/information Things/warehouse Traditional/Industrial Knowledge/Innovation

(Human Capital)

People/ Leadership
Process Technology

Comprehensive Dynamic Relationships as assets Collaborative Sets of alliances Value-adding Revenue/investment Sustained growth Interdependence Value system Knowledge processing Flow/process

Tacit/explicit knowledge

Debra M.A & Doug Macnamara, 7 Cs of Knowledge Leadership: Innovating our Future , 1996 2/4/2013 Knowledge Management

ECONOMIC
ECONOMIC COMPANY
Philosophy: Company = Activities Collection (Profit for Rich)

vs

LEARNING
LIVING COMPANY
Philosophy : Company = Human Collection (Profit for Life)

(Assets = Non Living Assets)

Economic Machine

Living Machine (Modal = Living Assets)

Mechanic Organization
Economic Value Added

Learning Organization
1. Economic Value Added 2. Spiritual Value Added

LIKE MACHINE
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LIKE HUMAN BEING


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Cant Learn- Peter Senge (1990):


World Class companies, noted in Fortune 500, they have 40-50 years life time average
Knowledge era rely on LEARNING ORGANIZATION
Source: Jan Hidajat Tjakraatmadja and Donald Crestofel Lantu, Knowledge Management dalam Konteks Organisasi Pembelajar, 2006.

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Knowledge Lost
I bring my knowledge died or move to other company

Knowledge era concern about


KNOWLEDGE LOST

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Knowledge Worker?
The most important, and indeed truly unique, contribution of management in the 20th century was the fifty-fold increase in the productivity of the manual worker in manufacturing.
The most important contribution management needs to make in the 21st century is similarly to increase the productivity of knowledge work and the knowledge worker
Peter F. Drucker
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Knowledge era rely on


KNOWLEDGE WORKER

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Living Assets?
1. LIVING or INTANGIBLE ASSETS
(HUMAN BRAIN = Knowledge Machine)

2. NON LIVING or TANGIBLE ASSETS


(Money, Land, Car, Building, etc.)

Knowledge era rely on LIVING (INTANGIBLE) ASSETS


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Macro issues are sensitive but we have neglected people. We must now invest in recruitment and training as priorities. The most critical internal factor is the quality and dedication of the people. This is the only factor that makes a real difference in finding the path to growth. People will define the speed that the company can adapt to change.
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1) Sensitivity to the environment = the ability to


learn and adapt.

2) Cohesion and identity = the ability to build a


community and a persona for itself.

3) Tolerance and decentralization = the ability to

build constructive relationships with other entities, within and outside itself. 4) Conservative financing = the ability to govern its own growth and evolution effectively.
Arie de Geus
No longer is it enough for leaders to manage the resources of an organization - successful organizations will be the ones with outstanding employee relations. - Jack Stack
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1) Knowledge Era requires Learning Organization and Knowledge Management.


2) Learning Organization and Knowledge Management require Knowledge Society. 3) Knowledge Society require Knowledge Worker.

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C O M P E T I T I V E N E S S

SMART

Learning Organization

INOVATION

Innovative Organization

FLEXIBLE

Flexible Organization

QUALITY

Quality Organization

COST

Efficient Organization
60th 70th 80th 90th 2000th
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YEAR
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Knowledge Management

Knowledge Innovation Management

for

Marketable goods and services

Knowledge Management

Innovation Management

Learning Organization
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Process and Technology


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PART-1

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the set of individual, team and organizational processes and skills for creating new knowledge (e.g. work improvement, improvisation, process or product innovation) at all levels and units in an organization and for sharing or transferring knowledge across an organization to those who need it.
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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.


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Coca-Cola Shell Oil First National Bank Corp. Chevron British Petroleum Chrysler Corp. Intel Harley Davidson Toyota Mitsubishi Nokia Sony Samsung LG HP

And many more


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SMART ORGANIZATION
LEARNING DISCIPLINES
KNOWLEDGE

LEARNING FACILITIES

WORKERS

(LEADERS)

LEARNING ENABLER

LEARNING HABITAT
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1. LEARNING FOUNDATION = LEARNING HABITAT: a. A CLIMATE OF TRUST b. LEARNING CULTURE 2. LEARNING ENABLER = LEADERSHIP: a. LEADERSHIP 3. LEARNING FIRST PILLARS = KNOWLEDGE WORKERS: a. MIND SET AND HABITS 4. LEARNING SECOND PILLAR = LEARNING FACILITIES: a. LEARNING SYSTEM 5. LEARNING ROOF = LEARNING DISCIPLINES: a. PERSONAL MASTERY b. SHARED VISION c. MENTAL MODEL d. SYSTEMS THINKING e. TEAM LEARNING
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Focus: Inner Shift Organization


a. Competent Leaders b. Knowledge Workers c. Trust and learning culture

d. Learning skills
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1. Develop Pilot Project:


a. Cross functional team b. Team members attitudes: willing to work, high commitment, high satisfactory, and closed networking.
c. Delivered d. Group informal

2. Implementation steps:
a. R1 = Develop individual learning capability

Personal Mastery

b. R2 = Develop team learning capability - share knowledge skills c. R3 = Develop organizational learning capability

human capital

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(5) Organizational Learning Outcome = Human Capital

Intellectual, Credibility and Social Capital

(5) R3

(3) Individual Learning Outcome = Personal Mastery

Tacit-Explicit new Knowledge

(3) R1

(4) Networking and Diffusion = Shared Knowledge

Enthusiasm and commitment for Learning & Change

Employees involved

(4) R2
(1) Investment in Initiative for Learning and Change

(2) Learning Enthusiasm and Ability


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PART-2

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Knowledge assets?

Sourcing, capturing and deploying How to be managed?

What kind of knowledge should be managed?


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a. KM definition: sourcing and deploying


knowledge assets for better work performance. It includes providing the knowledge worker the right information he/she needs at the right time to do a job well.

b. Explicit Knowledge = documented in print or


audio-visual material or encoded in databases documented or not encoded knowledge.

c. Tacit Knowledge = not articulated, not d. Tacit : Explicit = 80% : 20%


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Knowledge Management Supports Organisational Effectiveness by Providing:


Consistency - especially in customer facing processes Coordination - especially for minimising errors or finding data Compliance - for facilitating accountability Cost Management - by avoiding re-work and redundancy Control - for ensuring timely and best decisions, especially to meet risks and opportunities in the environment AND Intelligence - in sensing changes, risks and opportunities in the environment Innovation - in responding to risks and opportunities Capacity Building - to be able to respond to diverse events Resilience - to be able to recover from adverse events
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Patrick Lambe; Straits Knowledge President, iKMS 30

KNOWLEDGE MANAGEMENT
HUMAN WARE INTANGIBLE ASSETS LEARNING ORGANIZATION HARD WARE MECHANISM (ENABLER)

SYSTEM, ORGANIZATION AND ICT (Process and Technology) 1. SHORT TERM OBJECTIVE: How to become learning

organization habits for continuous creating and acquiring new individual knowledge and transferring it to new organizational knowledge/behavior/actions, to sustain being the intelligence organization

2. LONG TERM OBJECTIVE: How to become world

class organization habits for continuous performance improvement, to sustain being the best 31 2/4/2013 Knowledge Management

1. 2. 3. 4.

Policy and Strategy Organization & Business Process Performance Management Information & Comm Technology

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KNOWLEDGE MANAGEMENT

KNOWLEDGE WORKER + (Mind set & Habits)


1. 2. 3. 4. Mutual Trust Learning Culture Work Competence Leadership
Knowledge Management

PROCCESS and TECHNOLOGY

LEARNING ORGANIZATION
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Knowledge Management
Value Creation Value creation for Workers for Customers

Learning Organization
Value Creation for Stakeholders

Knowledge Worker
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PREMIUM VALUE CREATION


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1.

Effective KM requires hybrids solutions involving both people and technology. 2. KM is highly political. 3. KM requires Knowledge Managers. 4. KM benefit more from maps than models, more from market than hierarchies. 5. Sharing and using knowledge are often unnatural acts. 6. KM means improving knowledge work processes. 7. Access to knowledge is only the beginning. 8. KM never ends. 9. KM requires knowledge contract 10. KM is expensive, but if you dont?
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PREMIUM VALUE CREATION (BETTER WORK PERFORMANCE)


INFORMATION & COMMUNICATION TECHNOLOGY
ORGANIZATION

LEARNING ORGANIZATION
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POLICY AND STRATEGY

PRINCIPLES

INTANGIBLE

ASSETS

Focus: Outer Shift Organization


1. Change Management Strategy. 2. Adaptif system and organization. 3. Information & Computer Technology.

4. Performance System.

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STRATEGI
ASUMSI:

NILAI
BELUM DEWASA

INNER SHIFT
PEMIMPIN
1 ING MADYO MANGUN KARSO MEMBANGUN 4 HABITAT: RASA SALING PERCAYA DAN BUDAYA BELAJAR MEMBANGUN KEDEWASAAN & KETERAMPILAN BELAJAR 5

OUTER SHIFT
CIPTAKAN SUASANA KRISIS 2 STRATEGI PERUBAHAN SISTEM DAN ORGANISASI ADAPTIF MEMBANGUN ICT

3 5 6

STRATEGI: PUSH

PRODUKTIVITAS INTERNAL

7 MEMBANGUN MGT KINERJA INOVASI BERKELANJUTAN PERFORMANCE BASED PAY


37

ASUMSI: STRATEGI: PULL


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SUDAH DEWASA TRANSPARANSI

PEMIMPIN

TUT WURI HANDAYANI


Knowledge Management

PART-3

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The creation, evolution, exchange and application of new ideas into marketable goods and services for: 1. The success of an enterprise

2. The vitality of a nations economy


3. The advancement of society
Debra M. Amidons Innovation Strategies for the Knowledge Economy: The Ken Awakening, 1996

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Issue
Philosophy

Knowledge Management
Knowledge as the asset

Knowledge Innovation Management


Future as the asset

Focus

sharing what we know, such as best practice or transform tacit knowledge to explicit knowledge.
Develop knowledge economy (creative economy)
Knowledge Management

Integrates Knowledge Management with Innovation Management

Goal

Develop livelihood economy

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1st

2nd
as the Asset Link to Business Interdependency Costsharing Matrix Proactive cooperation Project to project basis Data-based

3rd
as the Asset Technology/ Business Integration Systematic R&D management Balancing Risk/Reward Distributed collaboration Structured collaboration Purposeful R&D/ Portfolio InformationBased

4th
as the Asset Integration with customer R&D Accelerated discontinuous global change Productivity paradox Multi dimensional COPs Focus on values & capacity Feedback loops &information persistence

5th

Technology
as the Asset Core Strategy Change factors Performance Structure People Process R&D in isolation Unpredictable serendipity R&D as overhead Hierarchical; funct. driven We/They competition Minimal communication Embryonic

Project

Enterprise

Customer

Knowledge
as the Asset Collaboration Innovation System Kaleidoscopic dynamic Intellectual capacity/ impact Symbiotic networks Self managing knowledge worker cross-boundary learning and knowledge flow

Technology

CUST. RETENTION
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IT as a Intelligent competitive Knowledge weapon Processors CUST. SATISFACTION CUSTOMER SUCCESS

Knowledge Management Debra M. Amidons Innovation Strategies for the Knowledge Economy: The Ken Awakening,41 1996

VI V IV
A B

Future as the Asset


Knowledge as the Asset Customer as the Asset

III
II I

Enterprise as the Asset


Project as the Asset Technology as the Asset
Adapted from Charles Handys Sigmoid Curve

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People Role Technology TechnologyPush Transfer


Skill Dependent

Structure
FunctionallyDriven

Technology Data-Based

Process
Linear Sequential Transactional Dual Communication Mutual Exchange Cross-Functionall Communication ChangeOriented Integrated Interaction Transformational Real-Time Global Learning Symbiotic

Performance Quantitative Tabulations

Technology Market-Pull Exchange Relationship


Dependent

Functionally Interconnected Centralized Command & Control Decentralized Local Autonomy Distributed Network Multiple, Dynamic Modes

Information - based

Qualitative Quid pro quo Qualitative Quid pro quo

Knowledge Exchange

Push-Pull Balance Learning Process Role Definition Accountability Self-Managing System Empowerment

KnowledgeBased

Management

Knowledge

Collective KnowledgeBased Intelligent Knowledge Processors

Productivity Partner Satisfaction Investment Strategy Partner Success

Management

Knowledge Innovation

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Debra M. Amidons Innovation Strategies for the Knowledge Economy: The Ken Awakening, 1996 Knowledge Management 43

1. 2.

Innovation Value System (not value chain = thinking


linier and static) is dynamic and shows all interdependent relationships

Strategic Business Network (not Strategic Business

Units = tend to create isolated islands of knowledge) encourage the flow of knowledge between partners, customers, suppliers, research organization and other stakeholders, including competitors, in the innovation process.

3.

Collaborative (not Competitive = win-lost scenarios)


Advantage win-win situation through symbiotic relationships.

4.

Customer Success (not Satisfaction = meets todays

articulated need) helps identify those future unarticulated needs, the source of growth and future success.
Debra M. Amidons Innovation Strategies for the Knowledge Economy: The Ken Awakening, 1996

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1. Learning culture and trust (learning habitat) problems 2. Organization structure and Performance Management problems.

3. Leadership problems they cant function as an enabler to develop learning habitat and learning facilitator.
4. Macro economic, political and society constraints not conducive.
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1. Bangladesh, Kamboja, Fiji, Iran, Mongolia, Nepal, Pakistan and Sri Langka not yet identified of KM implementation, whether in macro level as well as micro level. 2. Indonesia, Philipina and Vietnam didnt have any national policy or strategy of KM implementation to develop knowledge-based economy. 3. KM in Asian Countries (example): a. Korea vision (e-Korea Vision 2006) b. India Vision 2020: Nation blasting with energy, entrepreneurship and innovation, where knowledge is free. c. Singapore vision 21st century: Knowledge-based society d. Malaysia vision 2020: Knowledge-based Economy e. Thailand vision 2010: Knowledge-based Economic and Society. f. Taiwan vision: KM in Single and Medium Enterprise.
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1. KM is not ICT. Success implementation of KM depend on: 70% people mind set and habits: Soft Skills (Values, Culture, Behavior and Attitude) and Hard Skills (Knowledge and Skills) 30% Process (Policy & Rules; Governance; Business Process) and Technology (IT, Tools and Infrastructure). 2. KM implementation is not a project, but a long journey of shifting (through learning organization), starting from development of people mind set and habits, guided by good leadership.
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3. KM seek Senior Management commitment to:


a. Sends a strong, explicit signal to colleagues that this is a priority for the organization b. Ensures access to the right people for each stage

c. Ensures that effective participation is a priority for your colleagues


d. Participating fully in the KM Strategy Workshop, clarifies where the priorities are, avoids second guessing syndrome e. Increases likelihood of implementation follow through
Patrick Lambe; Straits Knowledge President, iKMS
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4. KM Critical Success Factors:


a. b. c. d. Proper KM education Senior Management engagement and commitment Identification of the critical knowledge areas/assets A shared KM vision and strategy linked to the business objectives A naturally flourishing knowledge sharing culture Robust KM-enabled processes that leverage the knowledge Natural and flourishing knowledge-led communities Enabling knowledge technologies Aligned rewards and recognition Critical knowledge worker skills training & competence development Measures to gauge the business and KM benefits
Ron Young, CEO, CKO, Knowledge Associates International Ltd, Chairman, Young International Ltd

e. f.
g. h. i. j. k.
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5. The foundation for a knowledge economic order has been laid. This is a very different paradigm from previous agricultural, industrial or service economies. The challenge is to determine the integral linkage between human potential and economic performance . 6. The knowledge economy only affords an unprecedented opportunity for creating the future. The answers lie in an effective innovation strategy, redefined according to the flow of knowledge: ideas to prosperity. 7. Increasingly management responsibilities will be viewed as facilitating the learning process, which includes external stakeholders (e.g., suppliers, distributors, alliance partners, customers, and even competitors). How these relationships are managed is far more a matter of collaborative expertise than the competitive skill with which most are familiar.
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8. With the emerging community of innovation practice, it is understood that various practitioners throughout the value system can contribute. Implementation will vary (company to company, industry to industry, nation to nation), but coming to a common understanding of a mutual mission could enable better utilization of financial, technical and human resources. 9. The core premise of the future is collaboration. It does mean that their orientation shifts to one of sharing and leveraging one another for mutual success. In national and global terms, this is described as creating the common good from which all benefit, with true global symbiosis.
Debra M. Amidon Blueprint for the 21st Century Innovation Management, September 1998.
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SMART ORGANIZATION
LEARNING DISCIPLINES
KNOWLEDGE

LEARNING FACILITIES

WORKERS

LEARNING ENABLER

(LEADERS)

LEARNING HABITAT
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1. LEARNING FOUNDATION = LEARNING HABITAT: a. A CLIMATE OF TRUST b. LEARNING CULTURE 2. LEARNING ENABLER = LEADERSHIP: a. LEADERSHIP 3. LEARNING FIRST PILLARS = KNOWLEDGE WORKERS: a. MIND SET AND HABITS 4. LEARNING SECOND PILLAR = LEARNING FACILITIES: a. LEARNING SYSTEM 5. LEARNING ROOF = LEARNING DISCIPLINES: a. PERSONAL MASTERY b. SHARED VISION c. MENTAL MODEL d. SYSTEMS THINKING e. TEAM LEARNING
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a. A CLIMATE OF TRUST is critical for trust to


the free exchange of knowledge/information.

Indicators of MUTUAL TRUST:


1) Well nurtured reliance, which grows from mutual trust and empathy. 2) Well nurtured friendship and sincere communication, which grows from trust and adaptive position. 3) Capable of resolving conflict, which grows from ability to share beliefs and thoughts. 4) Well nurtured ethical openness, which grows from willingness to accept suggestions and ethical critiques.
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b. LEARNING CULTURE: values or beliefs or daily


working habits, which underlies behavior and employee perceptions in the transformation or transfer and combination amongst organizational members or with organizational partners.

Indicators of Learning Culture:


1. Spirit for sharing knowledge, which grows from habits of sharing knowledge. 2. Attitude of respecting customers, which grows from caring of customers and other employees. 3. Tolerance towards different opinions and mistakes, which grows from beliefs that differences and mistakes (unintended) are human traits, which result in experiences (sources of knowledge and creativity and innovation). 4. Spirit of sustainable learning, which grows from beliefs that knowledge quickly increases and can be mastered if we have habits to learn continuously.
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External Environment Spokesperson Direction Setter (Vision)

Present

Future
Change Agent

Coach
(Transformational)

Change Agent

Internal Environment
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a) SYSTEMATIC PROBLEM SOLVING SKILLS: Relying on the scientific method, insisting on data, and using simple statistical tools. b) EXPERIMENTATION WITH NEW APPROACHES: Training in evaluating experiments c) LEARNING FROM THE EXPERIENCES AND PAST HISTORY: Review their successes and failures.

d) LEARNING FROM BEST PRACTICES: Cultivate the art of open and attentive listening.

e) TRANSFERING KNOWLEDGE QUICKLY AND EFFICIENTLY THROUGHOUT THE ORGANIZATION


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INFORMATION TECHNOLOGY: has led many companies to


imagine a new world of leveraged knowledge. Many companies are rethinking how work gets done, linking people through electronic media so they can leverage each others knowledge.

1. E-mail and internet have made it possible for professionals to draw on the latest thinking of their peers no mater they are located. 2. A geologist can compare data on an oil field to similar fields across the globe to assess its commercial potential. 3. An engineer can compare operational data on machine performance with data from a dozen other plants to find the patterns of performance problems. 4. A consulting company set up a best practices data-base with detailed description of projects so consultant around the globe could draw from each others experience. 5. A computer companys systems design group created an electronic library of system configurations so designers could draw from a store of pre-developed components.
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WHY INFORMATION TECHNOLOGY INSPIRED BUT CANNOT DELIVER KNOWLEDGE?


The difficulty in most knowledge management efforts lies in changing organizational culture and peoples work habits.
If a group of people dont already have shared knowledge, dont already have plenty of contact, dont already understand what insights and information will be useful to each other, information technology (IT) is not likely to create it.

Knowledge is experience. Everything else is just information - Albert Einstein


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Individual Learning Stage

Team Learning Stage


Shared Vision Disciplin e (BV)

Discipline

Personal Mastery (PM)

Discipline

Mental Model (MM)

Team Learning
Discipline

(TB)

Systems Thinkin g
Disciplin e (BS)
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Learning Organization Disciplines


continued

1) Personal Mastery: Shared vision comes from

personal vision. Collective commitment to learning comes from individual commitment to learning. An organization that is continually learning how to create its future must be made up of individuals who are continually learning how to create more of what truly matters to them in their own lives.

2) Building Shared Vision: there is no substitution for


organizational resolve, conviction, commitment, and clarity of intent. They create the need for learning and collective will to learn. Without shared vision, significant learning occurs only when there are crises, and the learning end when the crises end.
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Learning Organization Disciplines


continued

3. Working with Mental Models: organizations

become frozen in inaccurate and disempowering views of reality because we lack the capability to see our assumptions, and to continually challenge and improve those assumptions. This requires fostering managerial skills in balancing inquiry and advocacy in organizations that have been traditionally dominated by advocacy. what we learn. The most important learning in contemporary organizations concerns gaining shared insight into complexity and how we can shape change. Systems thinking is about understanding wholes, not parts, and learning how our actions shape our reality.
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4. Systems Thinking: its not just how we learn, but

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Focus?

Develop Inner Shift Organization


a. Develop leaders

b. Develop knowledge workers


c. Develop trust and learning culture d. Develop learning skills
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External Environment Spokesperson Direction Setter (Visionary)

Present

Future
Change Agent

(Transformational)

Coach

Change Agent

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Internal Knowledge Management Environment

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Merci bien Arigatoo Matur Nuwun Hatur Nuhun Matur se Kelangkong Syukron Kheili Mamnun Danke Thank you Terima Kasih
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