During project delivery, expertise from the vendor and client organizations combine to yield new knowledge, this project memory created over the duration of the engagement is an asset the client organization needs to ensure that it is retained. Without structures to identify, capture and retain project memory it would simply be lost into the minds of those involved resulting in dependencies and exposure due to single points of failure. High dependency on a particular vendor may lead to prohibitive costs should the client organization want to switch to a different, more desirable vendor116. The loss also can result in the organization not being able to reuse generated knowledge in other scenarios that may occur in the future.
Figure 5.8 - The knowledge management lifecycle (Source: Huysman M & De Wit D, 2003)
A structured knowledge management strategy in line with the activities highlighted in Fig5.8 needs to be put in place to ensure that all created knowledge artefacts are captured, refined and stored for reuse. The captured knowledge needs to be disseminated to the relevant project teams
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and a management process needs to be put in place to ensure that knowledge is reviewed for currency and relevance.
5.8.1 Organizing for effective knowledge flows
The way the delivery team is structured influences the way it communicates within itself and the effectiveness of its governance processes. Even with the most elaborate knowledge management strategy in place, if the team is not structured for efficient knowledge flows, knowledge will continue to leak out and the leverage and reuse opportunities will be missed.
Figure 5.9 - Offshore/Onshore delivery team structure. (Source: Chakrabarty S, 2006)
As illustrated in Figure5.9, the delivery team needs to have management structures on both sides of the shore to ensure that agreed processes and standards are observed.
Key to this global software delivery structure would be the following principles:-
• Knowledge intensive activities are performed onshore closer to the business while factory type activities are moved offshore and executed by low cost resources.
• There are established communication links between the two teams to encourage sharing of information and lessons learnt.
• A knowledge repository accessible and updatable by both sides is established.
• There is constant movement and rotation of resources between the teams to exchange cultures, increase collaboration and to minimize misunderstanding.
All the above features facilitate the smooth flow of knowledge ensuring the effectiveness of the organization’s knowledge management strategy. ICT collaborative tools like email, video conferencing and instant messaging and knowledge portals are used to bridge the distance and ensure an enhanced communication experience117. The model allows for an organization to have several global delivery centres based on a similar structure, coordinating according to the same principles and greatly increasing delivery capability across time zones while lowering costs.
5.8.2 Managing knowledge as part of a corporate strategy
So far we have highlighted the importance of knowledge management to an organization, the processes that drive knowledge management and barriers to the implementation of an effective knowledge sharing culture. There is however a more critical role of knowledge management and that is the criticality of knowledge management to the attainment of an organization’s strategic goals, this implies that all the knowledge management activities mentioned above need to be underpinned by a knowledge management strategy which is aligned to the organization’s competitiveness objectives. Having an appropriate knowledge strategy in place is essential for ensuring that knowledge management efforts are being driven and supported by and are supporting the organization’s competitive strategy118. The presence of a knowledge management strategy indicates its belief that knowledge is a strategic resource that is essential for its long term sustainability. In an outsource scenario, the presence of a knowledge management strategy means that both organizations are able to refer to the strategy for alignment, they can ensure that
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their knowledge sharing activities support the knowledge management strategy and that the behaviour of all team members involved in the project will be checked against the prescriptions of the strategy.
Figure 5.10 - Knowledge gap as derived from the Business gap. (Source: Gottschalk P, 2005)
As highlighted in Figure 5.10, it is important for organizations to ensure that their knowledge strategies align with their business strategies and that the business strategy compliments the knowledge strategy. When an organization sets its vision for the future, it does an assessment of its current capabilities against the competencies required to deliver its target state, it therefore implies that a gap analysis needs to be done on its current knowledge to determine what the organization must know to deliver on its strategic goals. Executive support for the knowledge management strategy implies that it will be easily enforceable at all levels and that it will get the necessary support and resources to enable it to prosper. When the organization’s knowledge management capabilities have matured, the executive sponsorship role for knowledge management would be assumed by the Chief Knowledge Officer; a senior executive reporting directly to the Chief Executive Officer.
The Chief Knowledge Officer would amongst other things be responsible for119 :- • Being the champion for knowledge management within the organization.
• Manage the organization’s knowledge management competency including its staff and plans. • Manage relationships with external service providers.
• Provide strategic input to the executive regarding the direction of knowledge management within the organization.
• Measure, manage and promote the value of knowledge management contribution to the organization’s strategic direction.
• Architect the organization’s knowledge management strategy, processes and tools.
Figure 5.11 - A typical knowledge management strategy framework. (Source: Gottschalk P, 2005)
A knowledge management strategy framework (see Figure 5.11) can be used to position knowledge management within an organization and align it to the organization’s strategic intent. A typical knowledge strategy framework would consist of the following key components:-
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• The Strategy
This constitutes the alignment area where the knowledge management strategic objectives and value proposition are articulated.
• Culture and Behaviour
This is where the expected organizational culture and behaviour is articulated in order to foster an environment of free flowing knowledge. As indicated before; culture influences behaviour and knowledge sharing can be facilitated or hindered depending on the culture that is prevalent within the organization.
• Structure and Processes
This constitutes the knowledge management operating model and governance, all processes regarding knowledge Discovery, Capturing, Sharing and Utilization would be articulated here.
• Metrics, Results and Rewards
This constitutes the measurements on the adoption and maturing of knowledge management within the organization, achievements of set goals and rewards and incentives to encourage buy-in.