KBE Centre

Issue Focus:

Leadership

& Learning

Inside Highlights:

From the Director 2

Knowledge Roundtable 3

New Research Cluster 3

Book Review 5

Editor’s Space 6

New Books 7

Queen's Centre for Knowledge-Based Enterprises

Leadership as Strategic Knowledge ManagementWinter 2003

Volume 4, Issue 1By Anabel Quan-HaasePh.D. Candidate, Faculty of Information Studies, University of Toronto

IntroductionIs leadership a skill that can be learned? What is the best approach for leadership training? Do some organizational forms exist that do not need leaders? What actions should leaders take? Can we measure the success of different leadership styles? During the Knowledge Summit hosted by the Queen’s Centre for Knowledge Based Enterprises, ten graduate students from across North America (myself included) had the opportunity to listen to ideas on these topics from some of the most progressive thinkers in the area of knowledge management. The presenters discussed issues surrounding leadership in a knowledge-based economy and what unique challenges exist for industry, government,

and education sectors. This article summarizes some of the key trends discussed and offers a critical lens by pointing out avenues for future research.

We are currently going through a transformation from a vision of knowledge management as occurring via technology in digital spaces to one emphasizing physical space. Rose Patten spoke of the relevance of the “Institute of Learning” for bringing employees together to share their expertise, to establish trusting, social relationships, and for creating community within the BMO Financial Group. By establishing the “Institute of Learning,” management is sending a strong message to its employees: We care about knowledge sharing and we support life-long learning. For Larry Prusak, management’s actions are the signs and symbols that tell employees what the organization’s culture, expectations, and beliefs

are - how the organization is expected to function. Management, by establishing safe places where people can gather to talk, is recognizing the need for informal interaction among its employees. These informal interactions help to create dense, trusting social networks, which in turn foster organizational culture and identity.

Although developing new expertise was identified as a key KM concern, it was also clear that, as Michael Zack tells us, “it is not about hiring a bunch of experts without a clear goal because this just increases an organization’s costs.” Knowledge management needs to be implemented with a clear vision and plan. The link between knowledge management and strategy may be difficult to create, but it is nonetheless essential. The ability to align them may distinguish successful firms from unsuccessful ones.Continued on page 4

Contact the KBE Centre for a copy of

the new White Paper from the 2002 Knowledge Summit

or view it at www.business.queensu.ca/kbe under “research papers”.

KBE Centre News

Dr. Brent Gallupe

Is a Professor at the

Queen's University School

of Business and is the

Director of the Queen's

Centre for Knowledge-

Based Enterprises.

It’s a brand new year and I wish you good health and success in all your endeavours. The team at the KBE Centre is gearing up for 2003, identifying themes for upcoming events, lining up renowned speakers for our Speaker Series, planning for the Visiting Scholar program this summer, developing calls for research, etcetera. I encourage you to consult our website for all the latest updates.

This edition focuses on Knowledge Leadership and Learning. I believe the single most important factor in improving our quality of life is our ability to take a leadership role in the knowledge-based economy. By fostering a learning culture and leveraging knowledge and information, we can successfully make the transition to this new global economy. This will determine whether we will continue to achieve the economic, social and cultural accomplishments that define us as Canadians.

The cover article was submitted by Anabel Quan-Haase, one of the PhD candidates who attended our first ever Doctoral Consortium in conjunction with the Knowledge Summit 2002. The article identifies several issues relating to knowledge management that organizations need to address in order to succeed

From the Director

Page 2

Queen's Centre for Knowledge-Based Enterprises

in the new economy. She also proposes a framework that organizations can use to evaluate their knowledge management initiatives.

In the Editor’s Space, a new feature of the KBE Centre News, Candice Christmas discusses leadership in the context of moving into new management forms at the organizational level, as well as how leadership impacts us at the national level in relation to the federal Innovation Strategy. Innovation & Economic Growth was the theme of the 2001 Knowledge Summit. Moving forward, it appears that stronger, braver leadership is required to accelerate Canada’s ability to compete in the new economy.

Mark MacDonald reviews Elspeth Murray and Peter Richardson’s new book “Fast Forward – Organizational Change in 100 Days.” This new book is an excellent “best practice” tool for leaders in the new economy.

We have also started work on a new research stream called “International Knowledge Economics” that addresses some of the issues surrounding the movement of knowledge and knowledge workers.

The KBE Centre team strives to gain an understanding of how best to manage knowledge-based enterprises, disseminate this knowledge to others through academic and practitioner channels, and assist both the public and private sectors in effectively transforming knowledge into practice. New insights into leadership and learning in the new economy are outlined in our new Knowledge Summit White Paper.

I personally encourage you to contact the Centre to see how you can participate in the Centre’s activities as well as access our many different resources. Also, don’t forget to register for the upcoming Knowledge Roundtable, entitled Customer Knowledge Management. It promises to be the most interesting and provocative Roundtable

KBE Centre NewsPage 3

Mark your calendars, as the KBE Centre presents its new spring conference entitled Customer Knowledge Management (CKM), April 16th and 17th, 2003 at the Donald Gordon Centre.

To date, much of the focus of knowledge management within the field of marketing and communications has been directed at understanding methods of effectively and efficiently capturing and managing information about customers

Knowledge Roundtable ‘03 Focuses on Marketing & Communications

New Research Cluster Launched for KBE Centre

Queen's Centre for Knowledge-Based Enterprises

Join the Knowledge Café!Every other Wednesday the KBE Centre holds a Knowledge Café in the Sutton Room, Goodes Hall Room 403 between the hours of 12-1 p.m. This is an opportunity for students and faculty to converse over research papers chosen by a Café participant.

If the road to further enlightenment wasn’t motivation enough, the KBE Centre supplies a great lunch for all Knowledge Café participants!

If you are interested in joining the Knowledge Café, contact Karey Barr at 32350 and leave your name, department and email address.

– their demographic, preferences, habits, etc.

However, effective knowledge management also entails the management of customers’ knowledge – what customers know about an organization. Successful companies are those who can effectively manage what customers know about their organization and its products and services. CKM empowers managers

with important insights into emerging market opportunities – insights that will allow them to take customer information and turn it into effective product development, service enhancement and marketing programs that lead to long-term, win-win profitable relationships.

Cutting-Edge Speakers and Discussion Leaders include: Dr. Tom Duncan from the University of Colorado, Dr. Tom Leigh

from the University of Georgia, Gannon Jones from Kraft Foods and John Gustavson, President and CEO of the Canadian Marketing Association. A full roster of speakers will be finalized in the next couple of weeks and Queen’s faculty, staff and students can register on-line at www.business.queensu.ca/kbe under “Events”.

Space is limited so register soon to avoid disappointment.

Last fall, the KBE Centre undertook to build a new research cluster. The theme was International Knowledge Economics, research on crossing borders at the national, regional, and local levels. In its role as research broker, the KBE Centre strives to foster research clusters. This involves finding linkages by examining existing and potential research projects and providing financial and staff support as well as infrastructure.

This new stream of research will attempt to examine the following:►The positive effects and influence of Knowledge Worker migration (reverse brain-drain)►Recruitment – quantify the breadth of the knowledge networks attached to an individual Knowledge Worker►Outline how the private sector can access the knowledge resources of universities

flows are affected by emigration through various channels. The hypothesis suggests that knowledge spillovers are geographically localized, but that living in a particular geographic area develops knowledge connections that persist even after the individual has moved from the area. Thus knowledge flows depend on both current and past geographic proximity.

Other faculty and students interested in fields of study relevant to the new International Knowledge Economics stream should contact the KBE Centre.

A website and conference on this new research stream are planned for fall of 2003.

►What insights can be applied to the revision of immigration policies ►What policy recommendations can be made to the World Trade Organization (WTO) on how to deal with non-tariff barriers like “standards” ►How can firms access WTO in dealing with “standards” issues►Quantify and qualify what is the “perfect mix” of intellectual property protection and a mobilized workforce in a given geographic location.

The first research project to be funded by the KBE Centre under the International Knowledge Economics stream was submitted by Ajay Agrawal, John McHale and Iain Cockburn. Entitled Knowledge Spillovers and Labor Mobility, their research will examine how knowledge spillovers are affected by labor mobility, as well as how knowledge

KBE Centre News Page 4

Leadership as Strategic Knowledge Management

Queen's Centre for Knowledge-Based Enterprises

Continued from Cover

I propose a framework that incorporates the following elements: 1. Strategically identifying knowledge gaps: The pre-cursor to performance is to identify what types of knowledge or capabilities need to be developed to keep competitive. There exist a number of strategies that allow for theidentification of who knows what and what are the positions of knowledgeable people in the social network. Larry Prusak discussed how social network analysis can be a useful tool for examining not only where knowledge clusters lie, but also how these clusters are tied into the organizational web by means of social relationships. 2. Environmental scanning: It is not sufficient to know one’s own knowledge and its core capabilities - an organization also needs to be constantly monitoring its environment. Through environmental scanning, new trends, knowledge acquired by the competitor, and opportunities can be identified. Competitive intelligence pinpoints knowledge clusters within the industry and predicts competitors’ ability to innovate. In this way, an organization can

devise its own strategy to: a) keep ahead of competitors, b) identify a new niche; and c) merge with or acquire expertise from outside. 3. Developing a plan based on strategy: Management first needs to understand what knowledge it has (process 1) and what knowledge exists in other companies in the market (process 2), and where the industry is moving (process 2). Then, a set of goals can be defined and a plan devised for how to achieve them. 4. Assessment: Learning and knowledge development need to be constantly assessed with regards to both strategy and recent developments in the market. Michael Zack tells us that if an organization does not have the expertise necessary to survive in an industry, then even the best strategy will not help.

Although the framework is presented in a linear fashion for the purpose of clarity, the processes occur simultaneously and each impacts the others. Most importantly, strategy becomes the umbrella concept that brings together all the other processes. Strategy, however, is not static, as Hubert St. Onge explains - it must be constantly updated with regards to a) changes in the industry obtained through environmental scanning; b) new goals and visions developed by

management; and c) new discoveries in R&D departments and elsewhere. Only by maintaining a flexible stance toward strategy can an organization adapt to changes and succeed.

New avenues for research and implementation

The Summit provoked much thought about areas that still require further investigation: ►Different strokes for different folks: Depending on size, scope, degree of market competition, type of industry, and other characteristics, different organizations may face different challenges. Part of the future research agenda will be to establish best practices that are specific to the various types of organizations. ►Physical versus digital space: A strong emphasis was placed on physical space for creating strong ties, community, learning, and apprenticeship. However, this model may apply only for large organizations. Canada, in contrast to the U.S., consists of primarily small to medium-size businesses. Also, Canada is sparsely populated. Therefore, the Canadian model for innovation may rely more heavily on digital

Continued on Back Page

Lead the Knowledge Café!

Every other Wednesday the KBE Centre holds a Knowledge Café in the Sutton Room, Goodes Hall Room 403 (2nd Floor) between Noon and 1 PM. This is an opportunity for students and faculty to exchange ideas around the topic of knowledge management over a great lunch provided by the KBE Centre.

The Café is generally comprised of ten to twelve students and/or researchers. The KBE Centre encourages students and faculty to lead discussion surrounding an existing research paper, or to vet ideas for their own research by presenting an abstract or research outline.

Materials are presented one week in advance of the Café so participants have a chance to preview the subject to be discussed.

If you are interested in leading a KBE Centre Knowledge Café, contact Jane Webster at 533-3163 or jwebster@business.queensu.ca.

KBE Centre NewsPage 5

Book Review: Fast Forward – Organizational Change in 100 Days

By Elspeth Murray and Peter Richardson2002, Oxford University Press, ISBN 0-19-515311-1

Queen's Centre for Knowledge-Based Enterprises

Academics and practitioners see knowledge leadership as an enabler of effective and lasting organizational change. In this brand new book by two faculty members of the Queen’s School of Business, the complex challenges of organizational change are examined in a powerful and dynamic way. In particular the temporal challenges of change are explored, and a fast-paced and tangible change template is developed.

Fast Forward is deceptively thorough and provides not only well-articulated explanations of critical aspects of organizational change, but provides the practitioner with numerous checklists and methodologies to actually translate change initiatives into tangible and manageable actions. Unlike similar volumes on the subject, which often examine a particular technique of change strategy, this book is in essence a compendium of practical change

management ‘best practices’, supported by actual examples from the authors’ teaching and extensive consulting experiences.

Knowledge is identified as an essential element in the change process. The authors take the commonly held position that a lack of shared understanding among key stakeholders is a critical impediment to effective organizational change. Their view is that effective organizational leadership is often the ‘missing piece’ in knowledge management solutions that are well planned from a technical perspective. They provide detailed ‘check lists’ for both the CEO and senior management team as well as for the Chief Information Officer to effect lasting and coordinated knowledge leadership.

The book also covers a broad range of organizational forms and

change situations. The breadth of the authors’ consulting experiences permits them to cover a richer spectrum of organizations than are commonly found in a change text. I found the chapters devoted to the challenges of maximizing the knowledge value from acquisitions, and to the unique aspects of managing the knowledge challenges of new ventures, to be particularly enlightening. Although specialist books unquestionably cover more of the specific details of these forms, this book provides a good overview and some practical schema to manage the immediate challenges.

One particular dimension of organizational development that is often neglected is the critical issue of timing.

Continued on Page 7

The KBE Centre wants You!The KBE Centre has an on-going program to support research conducted by graduate students at the Queen’s School of Business and elsewhere. The Centre will provide support of $500 for each paper accepted into the KBE Working Paper Series. An additional $500 will be provided for an accepted working paper that is presented at a conference (acknowledging KBE Centre support). If a working paper is published in a journal, the KBE Centre will provide an additional $1000 (acknowledging KBE Centre support).

For more information on submission guidelines and themes, please contact Candice Christmas at cchristmas@business.queensu.ca.

Elspeth Murray is an authority on linking information technology strategy and business strategy.

Peter Richardson is Canada's leading expert in corporate turnarounds and a leading authority on strategic management and the management of innovation.

Newsletter Title

Page 6KBE Centre News

Queen's Centre for Knowledge-Based Enterprises

At the 2002 Knowledge Summit, participants learnt a great deal about what it takes to lead an organization into the new knowledge-based economy. Many organizations are at a cross-road, trying to balance between an old-style, autocratic and bureaucratic form of management, to one that focuses on acquiring, building and retaining the intangible asset known as “knowledge”. Of course, knowledge resides with people - and the asset has a mind of its own.

From capability and performance at the organizational level up to Canada’s competitiveness as a Nation, we are concerned with “innovation” and a vision for Canada’s future. What kind of leadership is required to elevate Canada to its potential in the new economy?

Charles Baillie, former President & CEO of the TD Financial Group would like to see Canada’s standard of living outpace that of the United States in 15 years - a tall order indeed given that Canada has lagged behind the US for the last 22 years. But if we are to create a Canadian solution that addresses what we hold dear as a nation - education, health care, a clean environment, healthy cities - we must be financially strong.

Baillie notes that “in the past, the focus has been on avoiding failure instead of

building success… a great leader must encourage change and show that it can bring positive opportunities.”

This implies that Canadians need to change their outlook, to create environments where risk takers can thrive, in order to build capacity. But let’s face it, sharing knowledge involves risk. To the individual, sharing knowledge implies the risk of relinquishing some of one’s personal worth or power to build a greater good. At the organizational level, sharing knowledge involves the risk of building capacity that can then be “leaked out” to a potential competitor.

We know from knowledge management research (and practice) that knowledge sharing is critical to building capacity that can then be transformed into performance. Hubert St-Onge from <Konvergeandknow> notes that “the open exchange of knowledge is key to managing risk”. A systematic management of knowledge is required to let knowledge flow, unsuppressed, yet also to minimize “knowledge leaks”.

Leaders must motivate people to share knowledge. Knowledge workers, and leaders, must be empowered with the notion that questioning the

status quo is healthy. Talented candidates should have access to high level training as well as a sound understanding of an organization’s strategic direction. Perhaps most importantly, leaders must foster trust and trustworthiness, to build a culture based on shared values where people feel it’s safe to take risks. By implementing a knowledge strategy, leaders can effect the organizational transformation required to build capability that in turn, leads to performance in the new economy.

A knowledge strategy, whether at the organizational or national level, implies a long term commitment. This continues to be difficult for companies who emphasize short-term performance in catering to the financial markets. At the provincial and federal levels, a long-term commitment implies creating a strategy that will cross the three year election cycle and that the next government will embrace and continue to foster that strategy. Notwithstanding, there has been an erosion in public confidence in our institutions. The Conference Board of Canada states that “to rebuild trust Canadians will demand greater accountability and performance from governments and corporations.”

At the individual level, a shift in thinking is required that aspires to be more entrepreneurial. People must embrace knowledge sharing and shake the status quo.

Ultimately, each Canadian has to understand the stakes - the status quo will not suffice to maintain our standard of living over the next decade.

The Conference Board of Canada just published three documents covering workforce development, innovation, and Canada’s performance and potential moving toward 2010. Copies are available at the KBE Centre. The federal government has launched its Innovation Strategy. Each and every Canadian should be familiar with the precepts of these documents in order to understand what we face as a society in the years to come and to get involved in building Canada’s future. No one element of society on its own - not government or the corporate sector - has the capacity to elevate Canada’s competitive potential in the new economy. We must all pull together if we are to claim a stake in a prosperous future. Perhaps we can learn from other countries who have been successful in leveraging knowledge to improve their economies and standard of living.

By Candice Christmas,Assistant Director

Editor’s Space: Shaping Canada’s Future in the New Economy

than one would expect from 250 pages, this book is worth the effort and is a ‘must read’ for all constituencies that manage organizational change and effectiveness.

By Mark MacDonaldPhD Candidate in Management (MIS/OB)Queen’s School of Business

Page 7 KBE Centre News

Continued from Page 5

Fast Forward deals with this issue directly and effectively - developing a model of rapid change. Most importantly, Fast Forward transcends the bounds of theory and provides effective, proven frameworks for facilitating key components of an overall strategy to effect deep and lasting organizational agility – to create organizations that are built to change.

This book should appeal to those who struggle with and study the management of knowledge across the organization. Both academics and industry leaders can benefit from the detailed explorations and from the extensive notes that accompany each chapter. Part ‘how to’ guide and part treatise, this book is a treat – a rare combination of the best of theory and practice. Although a much denser read

Queen's Centre for Knowledge-Based Enterprises

Book Review: Fast Forward – Organizational Change in 100 Days

KBE Centre Library Resources

The KBE Centre Library has many books and magazines for students and faculty to use. Please drop by the Centre to find the latest materials on Knowledge Management.

If there is a book or publication that you think the KBE Centre should have on hand, e-mail Karey Barr with the title, author and publisher.

Magazines include KM World, Business 2.0 and Business Week, to name a few.

New books include:

Information Orientation: The Link to Business (Marchand, Donald A.)

Competing with Information: A Manager's Guide to Creating Business Value with Information Content (Marchand, Donald)

Knowledge @ Wharton on Building Corporate Value (Pandya, Mukul)

Leaders Talk Leadership: Top Executives Speak Their Minds (Ashby, Meredith D. (Editor), Miles, Stephen A. (Editor)

Knowledge and Information Technology Management - Human and Social Perspectives (Gunasekaran, Khalil, and Rahman)

IT-Based Management - Challenges and Solutions (Luiz Antonio Joia)

Books can be signed out at the KBE Centre, though we ask that they be returned within three weeks so that other students and faculty have access to them.

Write for the KBE Centre News!

Each season the Centre for Knowledge-Based Enterprises publishes the "KBE Centre News". Each issue is based around a theme highlighted by a feature article. The Spring ’03 Issue will be published in April. Contact Candice Christmas for themes.

We will offer $250 for every article selected to be a feature article in the KBE Centre News.

The KBE Centre News also contains book reviews on Knowledge Management. Book reviews must focus on a book contained in our KBE resource library.

We will offer $100 for every KBE Centre book review selected for publication in the KBE Centre News.

The KBE Centre newsletter also brings you up-to-date about activities at the Centre, including research projects, special programs, synopses of speaker series events and general activities. We welcome and encourage submissions of any relevant projects, papers, or news relating to knowledge management.

For more information on submission guidelines and themes, please contact Candice Christmas at cchristmas@business.queensu.ca or call 533-3088.

been explored before and setting up plans for the future. This suggests that tacit knowledge is an important component of leadership. Leadership is also about faith and trust, both concepts that are difficult to measure. Dawn Nicholson-O’Brien brought forth the relevance of learning from native communities and understanding how their knowledge may apply to the challenges of today.

Concluding Remarks

In this article, I outline the trends discussed at the Knowledge Summit and propose a framework that weaves these trends together. The framework shows how leadership needs to implement a knowledge management plan that is in tune with a clearly defined organizational strategy. The progression of the knowledge management plan needs to be constantly monitored and updated. Leadership training takes place by focusing on best practices. However, for an organization to improve, it needs to recognize failure and build an understanding around how failure occurred and what steps can be taken to prevent failure in the future. Further, frameworks need to be developed that address the specific challenges of different types of organizations.

Page 8KBE Centre News

Queen's School of BusinessQueen's University

Goodes Hall Room 446143 Union Street

Kingston, ONCanada K7L 3N6

PHONE:(613) 533-3088

FAX:(613) 533-6363

E-MAILkbe@business.queensu.ca

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See us at:

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Queen's Centre for

Knowledge-Based

Leadership as Strategic Knowledge Management

Continued from Page 4

technologies for expertise exchange. There are many examples where digital technologies have been successfully used as a platform for knowledgeexchange and community development. The government’s agenda will be to create and support these forums that connect communities of interest within Canada and between Canada and other parts of the world. ►Defining knowledge leadership: Part of the agenda within knowledge management should be to develop frameworks that allow for the examination of knowledge and leadership more closely and the building of more links between the two areas. These frameworks provide a lens through which management can establish its own strategy.

►Best practice toolkit: An important component of learning is to establish best practice. A prerequisite to setting up a best practice toolkit is to have a “record” of events and processes; i.e., “how” it was done. It is management’s task to record current practice and to set up the toolkit of best practice.

►Barriers to knowledge management: Frequently, the biggest barrier to knowledge management is people’s

attitude within the organization. This may be at the level of management, the work group, or the individual employee. However, attitude is probably not the only barrier to knowledge management. Barriers exist that are organization specific. What are the key barriers to knowledge management in your organization and how can they be overcome? Do diagnostic tools exist?

►Learning how to fail: This is a difficult topic to address because there are many emotional pitfalls around accepting failure. Moreover, there is a general perception that leadership is about success. Yet organizations sometimes fail even though they have a knowledge management initiative set up. Learning can result from failure and part of learning is to recognize and capture what went wrong. This can provide new and important insights into processes that will lead to future success. I suggest the establishment of a “worst practices workshop”, in which employees come together to talk openly about failures. In this type of workshop employees can share how the mishap occurred, what led to the mishap, how it could have been prevented and what they learned from the experience. This type of process is related to learning from others and self-actualization.

►Hidden knowledge: Leadership includes recognizing areas of knowledge that have not