IS STRASSMANN’S ‘KNOWLEDGE MANAGEMENT’ AN IMPORTANT METRIC
IS STRASSMANN’S ‘KNOWLEDGE MANAGEMENT’ AN IMPORTANT METRIC
By: Masoud. Noordeh (DBA student)
Abstract
In today’s dynamic business environment, Knowledge management systems facilitate organizational learning and knowledge creation. They are designed to provide rapid feedback to knowledge workers and significantly improve business performance. This paper examines the concept of knowledge management metric from the view point of Paul Strassmann.
Keywords: Knowledge, Performance Management Metric, Knowledge Management.
Introduction
Knowledge management has become one of the major performance management and companies have embraced the concept and invested in systems, people, and information technologies to this purpose. On the other hand, there has been the pressure to move away from the traditional performance management metrics which are considered to be ‘backward looking accounting based performance measurement systems’ that only focuses on traditional cost accounting (Bourne et al. 2000).
Knowledge management has been introduced by Strassmann (1999), Drucker (1995), and others as an important metric for measuring performance. According to Knapp (1998), Knowledge management transfers intellectual capital to value processes such as knowledge creation, innovation, and knowledge acquisition, organization, application, sharing, and replenishment. In addition, knowledge management should specify knowledge management as the movement to reproduce the information environment known to be conducive to successful R&D, rich, deep, and open communication and information access and deploy it broadly across the organization (Koenig, 2012).
To many companies today, lasting competitive advantage can only be theirs if they become knowledge creating companies or learning organizations. Knowledge – creating companies exploit two kinds of knowledge. One is explicit knowledge- data, documents, things written down or stored on computers. The other kind is tacit knowledge- the
By: Masoud. Noordeh (DBA student)
Abstract
In today’s dynamic business environment, Knowledge management systems facilitate organizational learning and knowledge creation. They are designed to provide rapid feedback to knowledge workers and significantly improve business performance. This paper examines the concept of knowledge management metric from the view point of Paul Strassmann.
Keywords: Knowledge, Performance Management Metric, Knowledge Management.
Introduction
Knowledge management has become one of the major performance management and companies have embraced the concept and invested in systems, people, and information technologies to this purpose. On the other hand, there has been the pressure to move away from the traditional performance management metrics which are considered to be ‘backward looking accounting based performance measurement systems’ that only focuses on traditional cost accounting (Bourne et al. 2000).
Knowledge management has been introduced by Strassmann (1999), Drucker (1995), and others as an important metric for measuring performance. According to Knapp (1998), Knowledge management transfers intellectual capital to value processes such as knowledge creation, innovation, and knowledge acquisition, organization, application, sharing, and replenishment. In addition, knowledge management should specify knowledge management as the movement to reproduce the information environment known to be conducive to successful R&D, rich, deep, and open communication and information access and deploy it broadly across the organization (Koenig, 2012).
To many companies today, lasting competitive advantage can only be theirs if they become knowledge creating companies or learning organizations. Knowledge – creating companies exploit two kinds of knowledge. One is explicit knowledge- data, documents, things written down or stored on computers. The other kind is tacit knowledge- the
References: Bourne, M., Mils, J., Platts, K., & Wilcox, M. (2000). Designing, Implementing, and updating performance measurement systems. International journal of operations & production management, 20(7), 754-770. Drucker, P. F. (1995). Managing in a time of great change. New York, N Y: Truman Talley Books/ Dutton. In Fairchild, A. M. (2002). Knowledge Management Metrics via a Balanced Scorecard Methodology. Proceedings of the 35th Hawaii International Conference on System Science. Retrieved on 3/1/2014 from http://www.computer.org/csdl/proceedings/hicss/2002/1435/08/14350243.pdf Knapp, E. (1998). Knowledge Management. Business and economic review, 44 (4), July- September 1998. Koenig, M.D.(2012). What is KM? Knowledge Management Explained. Retrieved on 3/2/2014 from http://www.kmworld.com/articles/editorial/what-is- ... O’Brien, J. A.(2004). Management information systems: Managing information technology in the business enterprise (6th Ed). New York, NY: The McGraw- Hill Companies, Inc. Stewart, T.A. (2001). The wealth of knowledge: Intellectual capital and the twenty first century organization. New York, NY: Double day/ currency. Strassmann, P. (1999). Measuring and Managing Knowledge Capital. Report on knowledge, technology and performance. Retrieved on 3/1/2014 from http://www.strassmann.com/pubs/measuring-kc/