Knowledge Management and Finance/Accounting

Some of you, who know me, will know that I started out my career in accounting; I have an undergraduate degree in accounting and was going to be a Chartered Accountant.

This is also how I got my start in KM, although it wasn’t called KM then, it was just how you worked—checklists and reusing last year’s files, talking to the staff who had worked on the audit/tax last year. If you had worked on the engagement the year before you were expected to be quicker in the subsequent year(s) because you were familiar with the client and the file.

15+ years into my knowledge management career, I still run into organizations that think that in order to help them better manage their knowledge that I have to be a specialist in whatever their content is, e.g. if it’s a law firm, I have to be a lawyer, if it’s a manufacturer I have to be an engineer, if it’s a hospital I have to be a doctor or a nurse or some other medical professional.

This isn’t always true, there are lots of organizations that understand that KM is a series of processes and activities, largely independent of the content. Organizations that understand having a depth of experience in how to get people to participate in knowledge sharing activities is more important than knowing the knowledge that they are actually supposed to be sharing.

Accounting is accounting is accounting. Yes, there might be some differences from industry to industry or sector, but in the end you are still trying to keep track of the financial resources of the organization, using generally accepted accounting principles.

Knowledge Management is no different. You are just trying to help facilitate the knowledge lifecycle from creation to sharing and management to disposal using a set of generally accepted knowledge management processes.

In both cases it’s important to understand the processes and principles, not the content.

KM Standards vs. Principles

Wow, it’s been a long time since I posted a blog; I’ve been busy working with new clients and I just haven’t had any earth-shattering KM thoughts to share; no ba in my schedule lately.

[Aside: I wrote this for a side-project that I’m working on, so it may eventually appear somewhere in another format.]

There seems to be a lot of talk about KM standards lately, so here are some initial thoughts I had…

What does “standards” mean? According to Wikipedia, standards are “any norm, convention or requirement.”

What does “principles” mean? Again, according to Wikipedia, principles are “a law or rule that has to be, or usually is to be followed, or can be desirably followed, or is an inevitable consequence of something.”

How are they different? Principles are abstract, whereas standards provide something to be compared to/measured against; standards are more tangible.

How are they the same? They can both be used to provide direction, guidance, and/or insight into a situation.

As with everything we have to come to a common understanding, a common lexicon. We have to figure out what terms and ideas mean in our own context and in the context of the organization or group that we are working with.

Does KM need a common lexicon? Yes

Do we need a common understanding of what KM is? Yes

Do we need a common understanding of what isn’t KM? Yes

Should we be inclusive or exclusive? I believe inclusive, knowledge is a system, and it has many interconnected parts, excluding a part means we don’t have an accurate picture of what is happening. If one of the goals of knowledge management is to improve an organization’s efficiency and effectiveness with its knowledge, isn’t  it better to have an understanding of the whole system rather than one pillar of that system. Decision making will be that much better for understanding the system; innovation will be that much more successful for understanding the system. While having a more holistic view may be more challenging it will result in more comprehensive solution; a solution that is more workable and accepted.

Do we need hard and fast Knowledge Management rules to live by? No. Knowledge is a system, an organization is a system. In order to be successful we must be able to adapt to the needs and requirements of each system. There is no one “right” way to “do” KM. KM has to be adjusted to the culture and nature of the organization. There are similarities among KM implementations, but no two implementations are identical, because the needs of each organization are not identical.

KM has to be by design to be successful.

Design thinking is characterized by being purposive; human centered; a balance of analytical and creative; uses abductive reasoning, i.e. inference from best available explanation; and iterative, it uses prototyping and play testing to achieve success.

Here’s how these principles are applied in knowledge management:

Purposive: we look at the organization’s strategy, goals, and objectives and assess how knowledge management best supports those activities. The knowledge management strategy outlines how the organization’s goals and objectives are furthered through the application of knowledge management activities.

Human centered: the best knowledge management implementations consider the people of the organization, e.g. how they work, what makes their work-lives easier, what the culture of the organization is like and works with those requirements to make the organization more efficient and effective in its knowledge processes and activities.

A balance of analytical and creative: KM should be a balance of analytical and creative. It should capture knowledge and make it reusable, but it also needs to leave space, ba, to allow for knowledge creation. This space can look like lots of different things, e.g. giving employees 10% of their time for projects they want to work on/explore, foosball tables, basketball courts, gyms, art/creativity space, and communities of interest; activities that encourage different connections to be made.

Abductive reasoning: this sums up the belief in KM in general. It can be very difficult to prove a causal link between improved knowledge activities and improved organizational performance, metrics and ROI continue to be a significant hurdle for many organizations. However, anyone who has experience with implementing knowledge management successfully knows that efficiency and effectiveness in an organization are improved through the use of knowledge management activities.

Iterative: successful KM starts small and grows. It starts with an over-all strategy and plan, but then moves to pilots, which bring in small parts of the organization, so that lessons can be learned and adjustments made as the people, process, and supporting technology are implemented across the organization.

In conclusion, KM needs principles, a common lexicon, and a common understanding of what is and isn’t KM, but it does not need standards.