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Star Series

Preparing for Conversation with Rony Dayan
Knowledge Creation:
The Third Leg of the KM 'Stool'

Rony Dayan
CKO and Director of International Properties
Israel Aircraft Industries
Yahud, Israel

  Introduction

I owe former STAR Series moderator Edna Pasher a debt of gratitude for connecting me with Rony Dayan who has been the spark behind the development of knowledge management programs at Israel Aircraft Industries (IAI) in Israel and across locations throughout the world. Rony's personal passion for KM has recently led him to pursue a PhD in KM and he has reached that goal just this month with the acceptance of his paper which examined the success factors for KM implementation of KM based on evidence from case studies involving five divisions of IAI.

His research showed the following factors involving both the general manager and knowledge manager of an organization had the most effect on the implementation and success of a KM program:

  • The profile of the knowledge manager.
  • The perception of relevance of KM to the business.
  • A structured framework for the organization to follow.
  • The acceptance of long term value.
  • Management support.
  • The openness of the general manager to external knowledge.
  • The knowledge manager's initiative.

A complete abstract can be found at the bottom of this page.

But what drew me to do a story on IAI's KM program for Inside Knowledge magazine was the emphasis Rony and Edna place on creating new knowledge. Because it is a somewhat different topic than we've covered in previous STAR Series, I've asked Rony to use 'K Creation' as his opening topic here. However, as you can see by his opening remarks, Rony is eager to discuss the difficulties encountered while implementing a KM program. Overcoming the barriers aren't as easy as many reports claim.

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  Biography

A retired lieutenant colonel of the Israeli Air Force (IAF), Rony Dayan has industrial experience as deputy GM of MBT, one of the Israel Aircraft Industries divisions belonging to the Electronics Group. Before that, he was the corporate marketing representative in Southeast Asia where he received the IAI President Marketing Award for outstanding performance.Rony Dayan

Rony has been leading the effort to incorporate knowledge management in the company since 2002. He has designed the program and has managed it since the beginning. The program is currently being implemented across the five groups and over 20 divisions of this two billion dollar aerospace and defense company (www.iai.co.il).

He has given courses in business and high-tech marketing in the School of Business Administration at the Israeli College of Management and is preparing a course for the implementation of KM in a learning organization for the Israel Teachers Association. He holds an engineering degree from the Technion in Haifa, Israel, and a Masters Degree, both in electronics, from the US Air Force Institute of Technology at Wright Patterson AFB, in Dayton, Ohio, US.

Rony's research interests are in the field of knowledge management and of measuring its performance and impact in a large corporation.

At the stage in life in where most people think about retiring and resting on the laurel leaves collected, Rony pursues two careers, one in the IAF, and one in industrial management, he pointed to the academy to research what he has been preaching for all along. He now holds a PhD from the Cranfield University, School of Industrial and Manufacturing Science, Department of Enterprise Integration in the UK.

Rony (together with Edna Pasher and Ron Dvir) authored a chapter in a book called Real-Life Knowledge Management: Lessons from the Field, written as a practitioner's guide to implementing KM. He has published an article on KM implementation in The Knowledge Management Review (2003), 6, (2), p.12-15, a number of conference papers on various KM subjects as "Using a common taxonomy to implement the 'One Company' value at IAI, Search and Retrieval Conference, The ARK Group, Amsterdam; has collaborated with Stephen Evans on the writing of an article on the commonality between KM and the CMMI(SM) standard (CMMI is a service mark of Carnegie Mellon University), published by the Journal of Knowledge Management (2006), 10, (1), p.69-80; and has led workshops for the planning of KM using the Hoshin Kanri methodology for the Marcus Evans Conferences in Amsterdam and for the ARK Group in Singapore.

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  Pre-Dialogue Remarks

Literature abounds with definitions of knowledge, of management, and of knowledge management. They are not the result of alternative rhetoric expressions, but rather of different perceptions about the content of the issue at stake, the context in which it takes place, the preferred state one would like the issue to take, and the description of the recommended path to that state.

  • KM as a young discipline

It is not clear whether KM can already be labeled as a discipline, but in any case it would be a young one, age of twenty years or so. Some are not convinced and regard it as a fad, a way to wrap normally practiced management means, into a sophisticated package. They say "We think we perform KM without calling it as such."

As one could draw from skeptical answers of this type, the audience of the knowledge manager is not an easy one and unless one can penetrate his/her own perception about a good reason to implement KM, it will bang on deaf ears.

The relationship with the discipline of quality, and the precedence of the highly publicized TQM process, which left many disappointed mainly because they didn't manage it properly, thought it would deliver by itself, and were not able to admit its failings, are to the detriment of those trying to establish KM as a discipline, meant to help organizations manage what they already recognize as their most valuable asset --their knowledge.

Nevertheless, it already has evolved through two or even three generations, the first one restricted to the organizational memory and the way it is populated, used and managed; the second dedicated to sanctify knowledge flow rather than the knowledge itself; and the third, not yet stabilized and with different definitions depending on the various schools of thought.

  • The importance of a KM strategy structure

Cooking and serving the implementation meal

Literature refers to KM strategy as the overall picture and plan of the program at any time along its institution, meaning the concepts and contents that the program is concentrating on. I believe there is another dimension to KM strategy, and this is the time dimension. Implementing such an idea, abstract though it may be and yet self-evident, is not a one-time affair or a one-off action.

It has to be carefully cooked, it has to include ingredients serving the matters of principle such as the wholeness of the program and its relationship with the business; it has to take into account the special tastes of the different users; it has to be served with awareness to its shape in reality and in their perception; and it has to provide support in a meticulous order starting with matters of culture and not to bring in too early, technology solutions which could spoil the appetite of the participants and derail the program.

The choice of a framework

Previous research discovered a profusion of alternative frameworks constituting of KM program. These involve the three typical constituents of KM being culture, processes, and technology in various dosages, but what is stated to matter is its being systematic. As (Drucker, 1993), a father of modern management theory has asserted, one of the most important challenges facing organizations in a contemporary society is to build systematic practices for managing knowledge.

Link to business

Among other factors identified to contribute to the sustainability of any KM program is its link to the business strategy of the organization. I have attempted to do it at IAI, using the KM measurement element and relating it at three levels, first to the mere performance of the program, to its implementation throughput, and last to the operational and business results.

The general issue of measurement needs to be approached with caution, trying to answer the basic question on "why do we measure at all?" before investigating the various available metrics for KM. The dangers of measurement, and especially for an entity as abstract and subjective as knowledge management, have been discussed in literature; yet I believe that those people preventing themselves from measuring KM in the name of these dangers, mainly do so due to the difficulty in performing this important task, and then theorize about the illegitimacy of measuring KM.

The importance of management tools

One of the main factors playing a crucial role for the implementation of KM in IAI is the way it is managed. My experience has been with two of the management tools I have used for the KM program in IAI: the Hoshin Kanri method and the self assessment process.

Hoshin Kanri is one of the most structured management tools that literarily connects goals to actions through measures and does it in a coordinated way across the whole company; this is a tool to practically deploy a policy over all company's organizations and within them at all its management levels.

The usage of the Hoshin Kanri method as a management tool for the program enables the establishment of a clear connection between the strategy of the division, its goals, measures and targets, and the action it is going to take in order to achieve those goals.

This is also supplying transparency in the management of the program at all levels of personnel across the whole company; it means that any employee can see at any moment what are the achievements of any of the organizations in implementing KM. This publicity and the will of most managers to display a positive picture of the performance of their organization are some of the generators of the program. Combining this tool with the measurement method makes it a very powerful means for the planning of the program, for its everyday management by the knowledge managers, for its monitoring in a perfectly transparent way across the whole company, and for achieving its goals.

The self-assessment method draws its value from its very basic definition -- its being performed by the organizations themselves in a uniform way across the company. Beyond this fundamental virtue, the staged construction of the method depicts a natural evolution for the organization that must be aware of the principles of the program before it can train itself for it, on its way to understanding it, as a prerequisite for committing to it, and before it becomes a habit -- the five levels of the assessment test being: awareness, training, understanding, commitment, and habit.

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  PDFs

  • Flying high
    How Israel Aircraft Industries uses knowledge before it goes stale
    Inside Knowledge magazine, Vol. 9, Issue 7, 2006 (copyright)
  • KM your way to CMMI
    Similarities between KM and CMMI (capability maturity model integrated)

  Dissertation Abstract

Purpose

Knowledge Management (KM) is by now a recognized term, increasingly accepted in the corporate community. This research contributes a better understanding of its implementation by providing a list a factors -- though each seems self-evident -- whose combination and experience acquired in applying them would support practitioners applying KM, and constitute a stepping stone for researchers for deepening knowledge.

Research context

Israel Aircraft Industries (IAI), where this research has been conducted, is a large aerospace and defense company that has gone through a change process inclusive of KM implementation.

Research approach

A qualitative research strategy with a constructivist paradigm using action research (the author also being the director of knowledge of the company), was used. A case study methodology has been utilized over five divisions representing the average KM performance in the company. Sources of information have included questionnaires, interviews, data from the various management tools employed by the program, and author's observations.

Success factors for KM implementation

The factors relevant to the general manager of an organization and to the Knowledge Manager were found to be:

  • The profile of the knowledge manager.
  • The perception of relevance of KM to the business.
  • A structured framework for the organization to follow.
  • The acceptance of long term values.
  • Management support.
  • The openness of the general manager to external knowledge.
  • The knowledge manager's initiative.

Originality is found in:

  • Application of a comprehensive KM framework, its procedures and measures.
  • A multi-level measurement of KM goals as a link to the organization's business goals.
  • Application of the Hoshin Kanri method for the management of KM.
  • Application of a staged assessment of maturity for a KM implementation.
  • The factors mentioned above, their peculiar combination and further understanding of the GM and the knowledge manager roles.

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