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What is knowledge management?

Closely related to training and development is the concept of knowledge
management. This is the systematic and systemized gathering, transfer
and use of the knowledge that exists within and beyond an organization. It
is, in effect, a living library of knowledge resource accessible to all who
need it within the organization and accessible to all genuine stakeholders.

The background

In the mid- to late 1990s as Japan slipped from its position of global trade
dominance, two academics Nonaka and Tacheuchi sought ways to return
to Japanese business a leading edge comparable to that delivered by Total
Quality Management in the three decades following World War II. They
suggested that the “information age” was already past and that just as
information had to go beyond mere data, “knowledge” needed to transcend
mere information (see page xiv). They suggested that the “tacit” informa-
tion within a business (the ideas, creativity, beliefs, expectations, assump-
tions and hunches of its employees), were as important as the “explicit”
information of fact and needed to be captured and used. This initial idea
has now developed to where the “tacit” information concerning employees
is now widened to include the same levels of knowledge concerning cus-
tomers, suppliers, distributors and leading businesses in other sectors.

Business purpose of KM

Fully applied knowledge management enables the firm to:

n Adjust the strategy on a timely basis.
n Anticipate and respond to important customer desires as they

emerge.
n Involve all stakeholders, including suppliers and distributors in the

achievement of the strategy.
n “Leapfrog” competition by implementing and improving on true

“global best practice”.
n Structure large amounts of information for use by disparate work

teams and communities globally.
n Accelerate organizational and individual learning.
n Create a working community committed to “lifelong learning –

just-in-time”.
n Improve processes, practices and workflow.
n Reduce costs while increasing productivity and quality.
n Do away with perceived “information overload”.

206 Key management questions