Prelims

Joint Enterprise, Mutual Engagement, and a Shared Repertoire

From the outset, the publisher and the editors have established a new and different approach for designing and writing the books. Each text is supported by a team of authors who represent multiple and diverse views of the topic. Each team includes academics, practitioners, and thought leaders. Every author has grappled with the topic in a real-world context. Every author sees the topic differently today than they did when the project began. Over the course of several months, through weekly virtual discussions, the scope and coverage were defined. Through mutual engagement and open sharing, each team developed a joint enterprise and commitment to the topic that is enduring. Every author learned through the discussion and writing process. Each project has resulted in a new shared repertoire. We practiced knowledge management to write about knowledge management. We “ate our own dog food.”

Acknowledgments of Early Support

The series is a massive effort. If there is value in the series much of the credit must go to two individuals – Dr. Elias Carayannis, George Washington University, and Dr. Manlio Del Giudice, University of Rome. It was Dr. Carayannis who first encouraged us to develop a proposal for Emerald Publishers. Of course, this encouragement was just the most recent form of support from Dr. Carayannis. He has been a mentor and coach for close to 20 years. It was Dr. Carayannis who first taught me the importance of aligning knowledge management with business administration and organizational management. Dr. Del Giudice has been generous with his guidance – particularly in setting a high standard for any and all knowledge management research and practice. We are grateful to him for his careful review and critique of our initial proposal. His patience and thoughtful coaching of colleagues is rare in any field. The field will reach its full potential as long as we have teachers and editors like Dr. Del Giudice.

Overview of the Subject Matter

Knowledge management is not a new discipline. Neither is it a new area of practice. Knowledge management has been emerging, evolving, and adapting for close to 60 years now. Over the decades it has drawn from many and diverse fields, including economics, education, computer science, business administration, communication, information science, and sociology. Over the decades, each of these contributing fields has influenced how we see and how we think of knowledge management. In fact, the heart of the field has always been knowledge and people. Seasoned researchers and practitioners have often lamented the “groundhog day syndrome” of knowledge management. We have been unable to break through most of the elementary issues to advance the discipline. To break through this syndrome, organizations need to see how knowledge management provides practical business value. To break through this syndrome, organizations need to know how to move forward to do knowledge management.

Transitioning from an industrial economy to a knowledge economy is the primary business challenge of the 21st century. Knowledge capacity building, knowledge capabilities, and knowledge capital are the critical success factors for a transition. This book walks the reader through what it means to build knowledge capacity, and how to build it at all levels of the organization. The investment in this business challenge pays dividends for the field of knowledge management as well. By walking through these issues from a business perspective, a picture of knowledge management roles, responsibilities, competencies, and proficiencies emerges.

There is no one way to build capacity, to define capabilities, or to identify knowledge capital. There is no one way to define roles, responsibilities, and competencies. Each organization must design solutions that fit their internal and external environments – at a given point in time. The authors provide a framework that any organization can use to design a solution that suits their needs. This is not a short term or an easy task. It is not a task for a single individual. It requires alignment and engagement across the organization. It is not just a checklist or a matter of finding the right argument to convince the CEO to appoint a Chief Knowledge Officer. In fact, it first means understanding some key concepts – capacity building, knowledge functions and capabilities, and knowledge capital. It means getting a handle on how these issues are addressed in the business field, in the field of human resource (HR) management, and in knowledge management.

There are two dimensions to the topic of knowledge management capabilities and competencies. The first dimension focuses on knowledge capital in general and how organizations view and manage their knowledge capital. This dimension is relatively new and is changing rapidly. It addresses what we’ve traditionally referred to as “human resource” and “personnel management.” These changes are fueled by the transition from an industrial to a knowledge economy. To understand these changes, we learn how the economy is changing and what those changes mean for work and workers.

The second dimension focuses on those new capabilities that organizations need to develop to manage this new knowledge capital. Over the past 20 years, these capabilities have been addressed by knowledge management professionals and practitioners. Over the decades there have been many attempts to describe the knowledge management roles and responsibilities an organization should consider in staffing a knowledge management program or project in particular.

This book addresses these two dimensions. The book provides background information and context by referencing the current thinking and research. The book walks through the issues from a practical and applied perspective. The reader can generate a plan for their organization by addressing the issues raised in each chapter.

In the 21st century, organizations need to understand both of these dimensions and create a vision for supporting both in a way that aligns with and supports their business goals. This is a significant challenge. It means understanding how the knowledge economy is impacting the work their organization does, how that change is affecting who does that work, what those workers need to know, and how they work – today and in the future. It also means reviewing how the organization views those workers – are they viewed and managed as “human resources” that support a business process just like supplies and machinery? Or, are they managed as capital investments and sources of knowledge, growth, and innovation for the future? How does personnel management characterize the capabilities of these workers? Does it portray them as technical and behavioral competencies or does it look beyond simple skills and competencies?

The authors represent a wealth of research and experience on all of these topics in a variety of organizations – and organizations at different stages of economic transition. Their combined knowledge includes successes and failures. The common thread running through all of their theoretical and applied work is a belief that organizations should be aware of the changes in progress and the importance of having a plan for managing them.

The topics covered in this book are evolving. The issues covered in the book are not definitive. The authors intend the book to act as a catalyst for future discussions and collaborative learning across organizations. The practical experiences of organizations are essential to the advancement of these topics.

Where the Topic Fits in the World Today

The topics of knowledge organizations, organizational capacity, knowledge capital, work, and workforce management are central to the HR and personnel management.

Economists were the first to perceive the shift from an industrial to a knowledge economy back in the 1950s. They first noted shifts in the national accounts that suggested the concentration of labor, jobs, and gross domestic product was changing to emerging sectors related to information, entertainment, education, and business services. Over the decades, economists noted the shifting balance of financial and physical capital to knowledge capital. Today, this transition is in full swing and the effects are felt by everyone. However, the transition is described at the macro level and in abstract terms. There is a gap in treatment at the micro working level. The authors fill this gap.

There are many references in the media, the literature, and our public conversations about the growing value of intellectual capital. While this is an important topic, it is not well understood – there are misperceptions about what intellectual capital is, who has it, and why it is important. The discourse about intellectual capital is disjointed from the HR management, from labor economics, from workforce development. There is a need to bridge the semantics of these traditionally distinct and sometimes adversarial perspectives and form a common understanding of the challenges of the 21st century knowledge economy. The authors bridge these topics.

The economic changes we are experiencing in the 21st century have a significant effect on these fields. The primary effect is to shift the focus from people as resources hired to support predefined business processes to people as knowledge capital and the primary source of capacity for knowledge organizations. The change calls into question our basic assumptions about how to manage and control people and replaces them with investments that grow knowledge capital. As a first step in the transition to a knowledge economy, organizations must strengthen and expand their capacity for knowledge management and knowledge capital. The authors speak to this topic.

Similarly, there is a rich discussion of capacity building, new organizational capabilities, and individual capabilities in the organizational management world. This rich discourse is disconnected from the discourse around knowledge and knowledge capital in the fields of knowledge management, education, and economics. It is critical to enrich this discourse by expanding the view from the organization as an abstract thing to people as the source of that organizational capacity. The authors connect these issues.

Knowledge management practitioners and professionals have developed a rich body of knowledge around tactics that enable individuals, groups, and organizations to increase their knowledge capabilities. The body of knowledge needs to be exposed to, adopted, and owned by business managers. This rich body of knowledge is the missing piece for building the knowledge capacity of organizations. The authors explain how the facets of knowledge management fill this gap.

Where the Book Fits in the Literature Today

This is the third book in the Working Methods in Knowledge Management series. This book extends the treatment of knowledge capital presented in Book 1 to a practical discussion of the impact on workers, jobs, roles, responsibilities, and competencies. This book provides a context for Books 4, 5, and 6 by laying the foundation for the organizational and individual knowledge capabilities that might be assessed, measured, and audited.

While there is a rich literature on topics such as organizational capacity, knowledge organizations, knowledge economy, knowledge work, intellectual and human capital, this rich literature is fragmented and scattered across several domains. The authors hope to bridge these gaps, create a cross disciplinary discourse, and expose gaps in research into knowledge capital investment strategies.

There is a rich gray literature of case studies, personal experiences, and expert advice on implementing knowledge management tactics and practices. There is a need to relate these discussions to organizational functions and competencies. Additionally, the gray literature is rich with sample strategies for designing knowledge management projects but it is sparse on integrating the basic capabilities into an organizational structure. The authors explain why this is important and suggest a method for integration.

Additionally, the majority of the literature on knowledge management functions and competencies derives from public-sector organizations and agencies where functions and competencies are public knowledge. The authors describe methods which can be leveraged and adapted by any organization without exposing competitive information.

Description of the Target Audience

This text is written for organizational executives who are experiencing and need to transition their organization from an industrial to a knowledge economy. The book is written for business managers who are looking at work and business processes more broadly as organizational capabilities. The book is written for HR and personnel management professionals and practitioners who need to put some practical context around and translate the idea of human capital. The book is written for HR managers whose future role in knowledge organizations will be pivotal or non-existent depending on how they navigate that future. The book is written for knowledge management professionals and practitioners who need to focus on the future and to connect their tactics and activities to the bigger picture. Finally, the book is written for workers who are struggling to understand what work and their jobs might look like in the future.

Structure of the Book

The book is organized into 4 sections and 12 chapters. Section 1 explains the new world of work and workers. Chapters in this section focus on the changing landscape of work, the shift in focus from people as process support resources to people as sources of knowledge capital, and the new capabilities needed to manage knowledge capital. Section 2 provides a deeper discussion of the knowledge capital, knowledge management capabilities, roles, and responsibilities. This section also explains how new these roles and responsibilities translate to knowledge capital attributes and competencies. Section 3 focuses on what the changes mean for individual workers. Developing individual capabilities means growing human capital, structural capital, and relational capital. Finally, Section 4 considers how these changes might affect HR management.

Each chapter is written like a project description. While the authors can explain the knowledge economy, knowledge work, and knowledge capital, we cannot tell you what this means for you or your organization. Only an organization can interpret the change to suit their business goals. Each chapter provides background information on the topic as well as references to additional resources – both theory and practice. Each chapter highlights the thought leaders and practitioners in that topic. Finally, the Appendix provides a high-level project plan that the reader can use as a template for designing their own approach. Each Task and Subtask in the project plan traces back to a chapter in the book.

Section 1. The New World of Work and Workers

• Chapter 1. The Changing Landscape of Work

• Chapter 2. Building an Organization’s Knowledge Capacity

• Chapter 3. Fundamentals of Knowledge Capital

• Chapter 4. Building Knowledge Capacity through Knowledge Capabilities

Section 2. Managing Organizational Capabilities

• Chapter 5. Knowledge Capabilities – Roles, Responsibilities, Placement

• Chapter 6. Revisiting Competence and Competencies

• Chapter 7. Competence, Proficiency and Performance

Section 3. Managing Individual Capabilities

• Chapter 8. Human Capital Competence and Proficiency

• Chapter 9. Structural Capital Competence and Proficiency

• Chapter 10. Relational Capital Competence and Proficiency

Section 4.  Changing Landscape of Human Resource Management

• Chapter 11. Aligning Strategies – Business, Knowledge and Human Resources

• Chapter 12. Implications for Human Resource Management Role and Responsibilities

Chapter Summaries

Chapter 1 focuses on the changing landscape of work by explaining how the economy has changed over the past 70 years and how work has changed, specifically who works, when and where they work, who we work with. This chapter also defines knowledge capital and considers the role that knowledge capital has played in shifting focus and priorities in the new economy. This chapter raises the reader’s awareness of how their organizations have responded to the economic changes, and how those organizations view knowledge capital.

Chapter 2 defines capacity and explains why knowledge capacity is important for a successful transition from an agrarian or industrial organization to a knowledge organization. The chapter walks through what it means to build capacity strategically, individually, and collectively. It further explains how what capacity looks like at an organizational capability level – and why it is important to build out knowledge management functions. The chapter also describes how individuals build organizational capacity by investing in and growing their knowledge capital. Building knowledge capacity is the responsibility of every member of an organization.

Chapter 3 goes into greater detail on the changing view of labor. In the industrial economy people have been viewed and managed as resources – like financial and physical – that support a business process. Are people expendable when the process changes? The process view assigns people to jobs and job classes, describes people in terms of their technical competencies, and evaluates them based on their proficiency to support the process. This chapter explains the business value of labor shifts to knowledge capital and capabilities. The chapter also illustrates how increasing automation and artificial intelligence are changing, who does predictable routine work (i.e., agents and robotics) and the increased demand for people to take on problem solving, creative, design, and innovation work. In the knowledge economy, organizations assess what an individual can contribute to a context and the organization’s current and future capabilities. As knowledge capital, people are seen as sources of growth and assets for investments. This chapter raises the reader’s awareness of how their organizations think about future labor needs.

Chapter 4 shifts the discussion to capacity building as a critical factor in transitioning from an industrial to a knowledge organization. Capacity is considered from two perspectives – as a transition factor and as an organizational effectiveness factor. In both cases, building knowledge capacity means building a robust foundation of knowledge capabilities. Knowledge capabilities described in terms of facets drawn from the field of knowledge management. Knowledge management capabilities are interpreted for all capacity building roles.

Chapter 5 translates the knowledge management capabilities described in Chapter 4 in terms of roles and responsibilities. The chapter describes strategic roles and their responsibilities, specialized roles, roles that are aligned with and embedded in the business, and roles and responsibilities that are universal and applied to all workers. The chapter considers the current landscape of roles and responsibilities and the need to establish a generic framework from which organizations can draw. The chapter further discusses the importance of aligning the placement of these roles and responsibilities with the organization’s administrative structures and organizational cultures.

Chapter 6 takes the reader from roles and responsibilities to identifying the new competencies needed to support them. There are many different approaches for defining qualifications, competencies, and proficiencies. This chapter describes the concepts in a business-neutral way that allows the reader to adapt the ideas to their organizational setting. The authors review different models and approaches and explain the historical focus on technical and behavioral competencies. The definitions and characterizations of knowledge capital presented in Chapter 2 are reviewed and aligned with this traditional approach. The chapter walks the reader through a thought exercise of envisioning how their approach to competencies might change in the future.

Chapter 7 explores how we define proficiency levels to these new individual capabilities, and what it means to grow knowledge capital proficiency in general. How does our traditional approach to job training and learning relate to these new capabilities? Who defines what we need to learn? How does what we need to learn, who we learn from, where, how, and when we learn change? How do the concepts of lifewide and lifelong learning relate to the new knowledge capabilities and proficiencies?

Chapter 8 pulls together the ideas from Chapters 5–7 and focuses them on human capital – tacit knowledge, skills and competencies, and attitudes and behavior. These are capabilities owned and developed by individual workers. The chapter explains what it means to grow human capital. The chapter also poses and answers six key questions, including (1) How does this form of capital behave: (2) What is the individual’s role in growing it? The organization’s role? (3) How does it affect the work environment? (4) How does it affect the work culture? (5) How do you know if it is changing? and (6) What kind of assessment is appropriate? What does it mean when tacit knowledge is no longer defined simply as a degree or a credential but must be demonstrated or vouched for? What does it mean when all the skills and competencies your workers need can no longer be demonstrated by simple test results? And, how do we incorporate the growing emphasis on “soft skills” such as emotional intelligence, social intelligence, team collaboration, etc. How do individuals learn these new capabilities? The chapter also considers what it means for individuals to develop the capacity to learn, unlearn, and relearn – rather than to “know.” The chapter considers how these shifts affect our traditional approach to performance evaluation.

Chapter 9 pulls together ideas from Chapters 5–7 and focuses them on structural capital – explicit sources of information, procedural know how, and organizational culture. Structural capital is the capital of groups or organizations – it is an aggregate. Growing structural capital is a new concept for some kinds of organizations, particularly those whose HR management cultures have emphasized individual competition. What does a focus on the aggregate mean for learning an investment? This chapter poses the same six key questions presented in Chapter 8. This chapter walks the reader through what it means to manage these three kinds of capital and considers how it affects management roles and responsibilities. The chapter considers how these shifts affect our traditional approach to performance evaluation.

Chapter 10 focuses on the most challenging type of knowledge capital – relational and reputational capital. While individuals and organizations historically have recognized these attributes, they are typically not accounted for or valued. The economic shift raises the profile of this type of capital and challenges us to define new approaches to growing and managing it. This chapter poses the same six key questions presented in Chapter 8. The chapter considers how these shifts affect our traditional approach to performance evaluation. This is an emerging area which will require a wealth of ideas from researchers and practitioners. The authors encourage readers to contribute to the discussion.

Chapter 11 considers the challenges of aligning strategies across three important functions, including business management, knowledge management, and HR management. This chapter looks at the role of all three of these functions in building knowledge capacity. The chapter explains how organizations might leverage research in these three fields to align strategies. The chapter also explains how the absence of engagement of any one of these three functions might impede the organization’s transition to a knowledge economy.

Chapter 12 brings the focus back to the organization level and the impact the changes may have on traditional HR and line managers and the HR management function. This chapter explores how the economic shifts and the changing definition of work affect the HR management function. What does it mean for what HR professionals do – how they manage job classes and schemes, their approaches to onboarding, retention, off boarding, to performance appraisal? What do the changes mean for HR managers’ roles and responsibilities? What does it mean for what HR professionals do – how they manage job classes and schemes, their approaches to onboarding, retention, off boarding, to performance appraisal? What do the changes mean for HR managers’ roles and responsibilities.

How the Book Impacts the Field

The authors hope the book will contribute to the literature of business and management by shifting the discourse about “managing people” as business resources to be procured and disposed of as business changes to managing people as strategic knowledge capital investments. In some ways this is a back to the future book – taking us back to a time when organizations saw employees as community assets, as neighbors, and as sources of ideas and knowledge. In other ways, it is a radically new treatment of these topics, because it treats individual employees as capital assets. The book considers how organizations can identify, engage, and develop relationships with all employees in a way that best suits them and the organization. The book gives further definition to the general discourse of human capital through the build out of new and varied forms of employee relationships, new roles and responsibilities, competencies, and the growth of investment strategies. Ideally, the book stimulates a discussion about how business invests more in people and how it “right sizes” and “best fits” human capital to future business needs. Roles, responsibilities, competences, and proficiencies are no longer just staffing strategies. They are knowledge capacity building strategies. The text emphasizes the importance of aligning business, knowledge, and HR management strategies.

The authors hope the book will contribute to the field of HR management by increasing the visibility of knowledge capital. The expectation is that the book will highlight the value of knowledge capital to both individuals and organizations. It increases and expands the role of HR from simply managing job descriptions, staffing technologies, training and performance evaluation to the growth and development of capabilities. The focus on organizational capabilities is a new opportunity for both HR and the business to engage to build knowledge capacity. Hopefully, the book adds to the HR literature by expanding the discussion of “the future” well beyond the current focus on the digital workplace. Stimulate a discussion of what role HR plays growing the organization’s capacity to transition to the knowledge economy.

This text translates the generalized discussions of intellectual capital from the field of knowledge management to practical roles, responsibilities, and competencies needed to support knowledge functions. The text also refocuses the discussion within the field from a “knowledge management as project” approach – from sporadic and fragmented initiatives to a sustainable organization wide capability.