Knowledge Is Money

The wealth of its network is a tangible treasure for the company that knows how to measure it, and whose culture allows it to value the forward motion of self-improvement, and the windfalls of synergy.

We have spent this week outlining exactly how this wealth exists, and operates, and grows. Underlying all the mechanics of collaboration, and the innovation that proceeds inevitably out of it, underlying all the IT headaches of connecting people and their computers together, underlying it all is the money that comes into being in a knowledge economy: the money of knowledge.

All of the striving for agility and competitive advantage that companies are locked into stems from the surge of knowledge across the global markets, and is accomplished essentially through the acquisition and refinement of knowledge.

For proof of this claim, witness:
  • knowledge of the customer is now essential to retention and upselling;
  • knowledge of the vendor and product is easily gained now by the customer through distributed review systems;
  • knowledge of the enterprise status in real time is the competitive grail that drives business intelligence development;
  • agility to act in the face of threat or opportunity requires IT systems that mobilize costly human resource into rapid re-formation;
  • finally, the human resource itself, as the costliest element in the corporate machinery requires instant delivery of explicit knowledge appropriate to the situation of the moment, and in turn carries the enormous potential of tacit knowledge to be surfaced for the enterprise benefit.

Knowledge can’t live on forever tacitly; eventually, to get anything done, tacit knowledge needs to meet up with process.

“The current interest in the tacit aspects of knowledge has diverted attention from the economic significance of its converse, explicit or articulated knowledge, and, by implication, the importance of articulation – the process through which tacit skills and knowledge are made explicit- and codification – the process of rendering articulated knowledge in fixed, standardized and easily replicable form.” – Creating knowledge: the power and logic of articulation

Companies that recognize the value of learning will take their knowledge management systems seriously. Consider Symcor, a company committed to continuous improvement, which some would say is the only effective survival posture. Symcor’s story is told in full at Chief Learning Officer Magazine. Highlights include:

“The objective was to strengthen the integration point between the service desk workforce that receives a customer inquiry and the assignment group workforce that resolves and enhances service.

“Although the information system can handle part of the support for the new customer service process, the technology by itself will not produce the behavior change needed.

“So, Symcor’s ongoing customer experience transformation program also involves a change management and training program.”

To achieve the essential human resource enhancements Symcor has to look beyond technology, and institute team protocols and procedures, that technology then assists. Checks and balances both create and resolve the dynamics of verification.

“The training targets each group’s understanding of the importance of each other’s function, as well as how to make the connection points stronger so customer inquiries do not fall between the cracks. The training assessment and measurement programs explicitly test the knowledge each group has of the other.” – The New Face of Workforce Integration

Symcor’s process shows that its leadership embraces a mature human understanding of the value of people, and the value of knowledge. Because it invests in increasing its human knowledge capital, its agility in the global economy may not always be adequate, but it will always be amenable to adapting.

In a rapidly changing world, workforce training is the new challenge, and also the new opportunity. The solutions are the same in both views. As learning is changing, so too is teaching.

Knowledge sharing is the overarching principle that binds together all the efforts to distil tacit knowledge and to distribute explicit knowledge. The underlying belief is in the value of intellectual capital. The result is a knowledge worker whose value and resources continually increase.

“In the same way, when children (who play computer games in their free time and learn what they’re interested in on the Internet) get to school, they open a traditional textbook, listen to lectures and are totally bored. They don’t internalize learning as it has been done traditionally, and they intuitively recognize its limitations because they have experienced better. They are not learning-disabled. Rather, they recognize that most schools are teaching-disabled. Most workplace training approaches are equally inadequate in maximizing the potential of the learner.” – High-Tech Learning for Low-Tech Employees

We will save for another time an examination of the costs and benefits of knowledge cultivation. Obviously, the gains have to outweigh the losses. Equally obviously, the profitability of the venture enlarges by applying the network effect to the process, and breaking traditional hierarchies of distribution into colaborative efforts with costs are amortized across many resources.

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