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People Focused Knowledge Management. How Effective Decision Making Leads to Corporate Success

Chapter 1
Competing in the Global Economy Requires
Effective Enterprises 1
Premise 1-1: The Global Economy Demands Excellence, 1
The Competitive Enterprise Example, 1
The Global Economy Challenge, 4
The World Requires Us to Change, 6
Knowledge-Intensive Work, 7
The Misunderstanding of Knowledge-Intensive
Work, 7
Knowledge Intensity, 8
Work Is Becoming Increasingly Complex and Valuable, 9
Complex Work Creates Greater Value, 12
The Six Major Challenges, 12
Four Management Initiatives, 17
Enterprise Effectiveness Requires Good Intellectual
Capital Assets, 19
Examples of Structural Intellectual Capital, 22
The Role of Knowledge Workers, 23
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Chapter 2
The Effective Enterprise 26
Premise 2-1: Individual Actions Lead to Overall Enterprise
Performance, 26
Premise 2-2: Effective Enterprise Behavior Leads to
Success, 26
The Proactive and Decisive Company Example, 26
Management Philosophy, 27
Management Choices, 27
Knowledge-Related Practices and Actions, 28
Resulting Behavioral and Cultural Traits, 29
The Company’s Business Results, 29
What Does It Mean That an Enterprise Is Effective?, 29
Good Enterprise Performance Results from Effective
Personal Actions, 31
Effective Enterprises Rely on Broad and Deep
Knowledge, 33
What Is Successful Enterprise Performance?, 34
External and Internal Enterprise Effectiveness, 35
Success and Knowledge-Intensive Work, 36
The Importance of Information Technology, 36
Productivity Is Not Always What We Expect!, 37
Different Kinds of Productivity, 38
Value Creation and Productivity, 39
A Systemic Model of Enterprise Performance, 40
Changing Enterprise Performance Takes Time, 42
Characteristics of the Effective Enterprise, 44
Six Success Factors for the Effective Enterprise, 46
Six Behaviors of the Effective Enterprise, 51
Successful Performance Is Durable, 55
Performance Is a Function of Many Factors Acting
Simultaneously, 58
The Intellectual Asset Management Mentality, 59
Building and Exploiting Intellectual Capital Assets
Are Important, 60
People Adopt New Mindsets!, 61
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Chapter 3
Actions Are Initiated by Knowledgeable
People: People Make Decisions and Act
Using Different Kinds of Mental
Functions 63
Premise 3-1: The Machinery of the Brain Metaphor Is a Useful
Beginning, 63
Premise 3-2: The Mind-As-Machine Metaphor Does Not Cover
Everything, 63
The Personal Reasoning Example, 64
Have We Misunderstood How People Think, Make Decisions, and
Act?, 65
Thinking, Reasoning, and Knowledge, 69
Associations and Biases Govern Our Actions, 72
Information Is Not Knowledge!, 73
The Purpose of Knowledge Is Action; the Purpose of
Information Is Description, 73
On Information, Knowledge, and Discontinuity, 76
Good Reasoning Matches Knowledge and Information, 77
Knowledgeable and Informed Decisions Deliver
Performance, 80
Goal-Directed Reasoning Relies on Goals, Information,
and Knowledge, 81
Personal Knowledge Is Built from Mental Models, 83
On Mental Models, 85
Many Mental Models Are Based on Metaknowledge, 86
The Importance of Metacognition, 87
The Importance of Implicit Learning, 89
The Personal and Enterprise Knowledge
Evolution Cycle, 89
The Needs to Increase People’s Knowledge, 93
Knowledge Required to Act Effectively, 93
Examples of Approaches to Develop Mental Models
in People, 96
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Chapter 4
Mental and Structural Reference Models 100
Premise 4-1: People Imitate Prior Behaviors, 100
Premise 4-2: Organizations Re-enact Past Practices, 100
The Personal Memory Example, 100
Mental Model Preview, 102
Personal Reference Models, 102
Reference Models Are Stories!, 105
Why Are Stories Important?, 107
It Is Always Hard to Grasp the Whole Coherently, 107
Stories Are Unsurpassed for Effective Communication, 109
We Rely on Stories to Tackle New Problems, 110
Stories Help Us Learn Better, 110
Stories and Mental Simulations, 111
Organizational Reference Models, 114
Leaders Create Powerful Reference Models, 115
Chapter 5
A Knowledge Model for Personal
Situation-Handling 117
Premise 5-1: Situation-Handling Requires Action, 117
Premise 5-2: Good Situation-Handling Is the Result of
Effective Actions, 117
Personal Situation-Handling: A Customer Service
Example, 118
Introduction to Personal Situation-Handling, 118
The General Context, 120
The Knowledge-Based Situation-Handling Model, 122
The Customer Service Example Revisited, 125
The Four Situation-Handling Tasks, 126
Sensemaking and Situational Awareness, 127
Sensemaking, 127
Situational Awareness, 128
Decision-Making/Problem-Solving and Action Space
and Innovation Capability, 131
Decision-Making, 131
Single-Stage and Multistage Decision-Making, 133
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Mental Simulations, 135
Problem-Solving, 135
Action Space, 140
Innovation Capability, 141
Implementation and Execution Capability, 142
Implementation, 143
Execution Capability, 143
Monitoring and Governance Competence and
Perspectives, 144
Monitoring, 144
Governance Competence and Perspectives, 147
The Expert and the Novice: When Situations Are Not
as First Believed, 147
Story-Based Models Provide Situation-Handling
Knowledge, 148
Topic Domain Knowledge, 149
The Mental Reference Models in
Situation-Handling, 150
Understanding Adjacent Operations, 152
The Relevance of General and World Knowledge, 152
Chapter 6
Enterprise Situation-Handling 155
Premise: Individual Situation-Handling Actions Lead to
Consolidated Enterprise Behavior, 155
The Enterprise Situation-Handling Example, 155
The Situation, 155
Information Gathering, 155
Sensemaking, 156
Understanding the Situation, 157
Decision-Making/Problem-Solving and
Action-Selection, 158
General Aspects, 159
Introduction to Enterprise Situation-Handling, 160
The Four Enterprise Situation-Handling Tasks, 162
Sensemaking and Its Situational Awareness, 167
Sensemaking in the Enterprise, 168
Enterprise Situational Awareness, 170
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Decision-Making/Problem-Solving and Action Space
and Innovation Capability, 172
Enterprise Decision-Making, 175
Enterprise Problem-Solving, 177
Enterprise Action Spaces, 181
Enterprise Innovation Capabilities, 183
Implementation and Its Execution Capability, 186
Implementation in the Enterprise, 189
Enterprise Execution Capability, 191
Monitoring and Governance Competence and
Perspectives, 192
Monitoring in the Enterprise, 194
Enterprise Governance Competence and
Perspectives, 198
Enterprise Situation-Handling Has Many Levels, 200
The Importance of the Situation-Handling Model, 200
Enterprise Situation-Handling Model Insights, 202
Why Should We Be Concerned with Details?, 204
Appendix: Action Program Details of the Enterprise
Situation-Handling Example, 206
Chapter 7
People-Focused Knowledge Management
in Daily Operations 213
Premise 7-1: Knowledge Drives Enterprise Performance, 213
Premise 7-2: Knowledge Must Be Managed, 213
Premise 7-3: Effective Knowledge Management Must Be People-
Focused, 213
Premise 7-4: Six Factors Determine Personal Knowledge-Related
Effectiveness, 213
The Vigilant Knowledge Company Example, 214
New Generation Knowledge Management, 216
New Generation Knowledge Management Is Different, 218
New Opportunities Require New Efforts and
Directions, 222
Perspectives on New Generation Knowledge
Management, 222
Deliberate and Systematic Knowledge Management, 225
New Generation Knowledge Management Foci, 227
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People Focus, 227
Enterprise Focus, 228
Technology Focus, 230
The Bar Has Been Raised —NGKM Implications, 230
Starting the Knowledge Management Practice, 231
Problems with Conventional Knowledge
Management, 234
New Generation Knowledge Management Challenges, 235
Knowledge-Focused Mentality and Corporate Culture, 237
The Enterprise Culture, 239
Four Key Knowledge Management Thrusts, 240
The Power of Role Models, Examples, and Practices, 240
Making Everybody Understand, 241
Understanding the Enterprise Direction and Context, 241
The Service Paradigm, 242
Knowledge-Related Effectiveness and Efficiency, 245
Knowledge Effectiveness and Efficiency, 245
Knowledge Effectiveness, 245
Knowledge Efficiency, 245
Knowledge Management Effectiveness and Efficiency, 246
Knowledge Management Effectiveness, 246
Knowledge Management Efficiency, 246
Chapter 8
People-Focused Knowledge Management
Expectations 248
Premise: People-Focused Knowledge Management Supports Global
Excellence, 248
The Global Leader Example, 248
What Future Knowledge Management Business Users May
Expect, 252
The Business Environment Is Under Pressure, 254
Success Relies on Knowledgeable Behavior, 255
Expected Knowledge Management Developments, 257
The Changing Workplace, 263
Knowledge Will Be Bought and Sold, 266
Societal Side-Effects, 267
We Are Far From Finished!, 268
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New Enterprises and Integrative Management, 269
Objectives of Integrative Management, 270
In Complex Businesses, Better Practices Are Required, 272
Intellectual Work Is Indeed Complex, 273
How Do We Implement Integrative Management?, 274
Final Thoughts, 276
Our Present Direction, 276
The Societal Conundrum —What Shall We Do?, 278
Appendix A
Examples of Knowledge Management
Analysis Approaches 281
Knowledge Vigilance Survey Approaches, 281
Knowledge Surveys and Knowledge Audits, 283
Knowledge Assets Mapping —Intellectual Capital
Inventorying, 283
Knowledge Landscape Mapping, 284
Knowledge Mapping (K-MAPs), 286
Competitive Knowledge Analysis, 287
Knowledge Flowcharting and Analysis (KFA), 287
Knowledge Diagnostics, 288
Critical Knowledge Function Analysis (CKFA), 289
Knowledge (Management) Benefit Assessment (KBA), 290
Information Technology-Based KM Tools, 293
Appendix B
Examples of Knowledge Management Practices
and Initiatives 298
General Business Focus, 299
Intellectual Asset Management Focus, 299
Innovation and Knowledge Building Focus, 300
Knowledge Sharing and Information Transfer Focus, 301
Information Technology-Based Knowledge Capture and Delivery
Focus, 302
20 Knowledge Management Initiatives and Practices, 303
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Appendix C
Memory and Knowledge Categorizations 312
Human Memory Organization, 312
Working Memory, 314
Medium-Term Buffer Memory, 317
Long-Term Memory, 318
Procedural Memory, 319
Conceptual Memory, 319
Episodic Memory, 320
Semantic Memory, 320
Lexical Memory, 321
Encyclopedic Memory, 321
Priming Memory, 322
Abstract Knowledge Objects, 323
Routines, Operational Models, Scripts, Schemata,
General Principles, and Metaknowledge, 323
Routines, 323
Operational Models, 324
Scripts, 325
Schemata, 325
General Principles, 326
Metaknowledge and Metacognition, 326
Metacognition, 327
Glossary, 329
References, 347
Index, 357
Contents xv
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Karl M. Wiig - 2004

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