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Star Series

Conversations with Stephen Denning

Editor's note: Following is an edited and sumarized transcript of a discussion conducted in the Knowledge Management/Strategy Community of Practice (CoP) of the Stephen DenningAssociation of Knowledgework. As in most of our lengthy documents, we have used a system of "anchors" to help you go directly to specific subjects while reading it online.

The discussion follows the publication of "The Laws of Knowledge Management" contributed originally to the AOK White Papers section by Stephen Denning, Michel Pommier, and Lesley Shneier, all of the World Bank.

If you haven't yet purchased The Springboard, please do it now through the AOK Bookstore.

  Welcome by Jerry Ash, AOK chief executive

It is my pleasure to welcome Stephen Denning, Program Manager, Knowledge Management, The World Bank, as AOK's inaugural guest moderator of an AOK Community of Practice Forum.

Steve and his colleagues at the World Bank are taking significant steps in translating the complex concepts of knowledge strategies into understandable, practical and useful messages.

This forum closely follows one Steve hosted for the New York Times over the New Year - that one focused on the value of gossip, itself a natural human form of storytelling.

Larry Prusak, himself an icon in the KM movement, had this to say about Stephen Denning's new book, The Springboard:

"Stephen Denning has written one of the more interesting and creative management books of the past few years. The Springboard reflects Denning's strong belief in stories as encapsulated knowledge and his own stories about the World Bank are strongly illustrative of his own passion and knowledge. This is the first book to give to anyone interested in storytelling for organizational change. Read it, and learn from it, and enjoy it!"

For the next several days, members of the AOK KM/Strategy Community of Practice will have the exceptional opportunity to discuss with Steve the ideas presented in the just-posted AOK White Paper "Are There Laws of Knowledge Management?"

Now I'll use the words of Larry Prusak to entreat you to take full advantage of this e-mail forum: "Read it, and learn from it, and enjoy it!"

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 'Laws' inspired while lunching with Larry Prusak

Jerry Ash: Now, Steve, I welcome you to this virtual meeting place.

I'd like to begin the dialogue by asking a question and suggesting an addition to the possible "Laws of KM."

The question:

What inspired you, Michel and Lesley to begin compiling such laws? And, as a follow-up, do you think KM has matured to a point where universal truths are emerging?

Stephen Denning: Thanks for the warm welcome! I am delighted to be joining you all in this dialogue. It feels like a trip back to my home country, Australia!

Jerry asks: "What us to begin compiling the "laws?" And, as a follow-up, do I think KM has matured to a point where universal truths are emerging?"

Well, as often happens, it occurred over a meal. I was having lunch with Michel Pommier and Larry Prusak in New York, getting ready to meet with a group of managers and staff in a large public sector organization, and we were talking about knowledge programs in different companies.

We discussed how, back in the mid 1990s, it had often seemed as though the companies that were talking about knowledge management were discussing very different concepts and approaches and emphases, so that it almost seemed like a number of different subjects. More recently we were noticing how much convergence there was, and how there seemed to be an increasing degree of consensus about what worked and what didn't. And we kept running into many of the same problems in all the organizations that we were familiar with. I think that we were talking about the pervasive phenomenon of resistance of a section of the middle management to KM when Larry Prusak suddenly said, "You know, it's as though there are laws which all organizations seem to be obeying. Wouldn't it be interesting to try to write down what these laws are and see whether people agree?"

By ourselves, I am not sure that we would have had courage - or foolhardiness - to think that we could identify universal laws, as we were only familiar with perhaps a score of organizations in addition to our own organization, the World Bank. But Larry Prusak had a much broader experience and knew what was going on in several hundred organizations. It was this breadth of knowledge that confirmed what we were seeing in a few organizations was a set of patterns that was occurring over essentially the whole field of late 20th century organizations.

Michel and I agreed that it was an exciting idea and so we asked Lesley to join us in trying to write down what are these phenomena that are common among organizations. We shared them with Larry and he encouraged us to continue and share them with others and get reactions. And so here we are.

At this point, what we have put forward are not so much laws, as hypotheses as to what appear to be very widely observable phenomena in organizations approaching knowledge management. They are also an invitation to anyone who knows an organization where these phenomena are not occurring to let us know and we can see about revising the hypotheses to reflect a more nuanced picture. If no, or few, such exceptions emerge, then the hypotheses might move towards being accepted as universally accepted characteristics of knowledge management programs.

What do others think?

I am almost tempted to add a corollary to this experience: most innovation occurs in the vicinity of food. It is amazing how much creativity and innovation occurs over meals, in snack bars, in coffee shops. There is something about sharing food with people that gets the creative juices flowing. I wouldn't like to suggest that all innovation occurs here, but in my experience, it is quite a lot.

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 Decentralized decision making inspires innovation or despotism?

Jerry Ash: Now my suggestion: In my recent AOK K-Net EZine I told the story of a California pastor who empowered individual members of his flock to make personal decisions about how to distribute some of the church's money. In addition to the minister's lesson of stewardship, I thought it was also a lesson in decentralized decision-making. So, I propose Law # 8: Decentralized decision-making ignites innovative thinking and multiplies the outcome.

Stephen Denning: As a way of getting into this issue, I would say that I certainly agree with the converse. Centralized decision-making, i.e., decision making based on hierarchy and command-and-control rather than on expertise, seems unlikely to ignite innovative thinking. The very nature of hierarchy and control is to ensure conformity and compliance with existing ideas, rather than create new ones. This doesn't mean to say that innovation will not occur at all in top-down hierarchies, but I would agree that the top-down dynamic may not encouraging it much.

Decentralized decision-making would imply an element of empowerment to local managers to innovate and implement new approaches. If these local managers have adequate access to expertise and themselves encourage and take advantage of the opportunity to empower their own staffs, then decentralized decision-making could be seen as encouraging innovation.

But I have also seen situations where there was decentralized decision-making, but the local manager, instead of using it to encourage innovation, simply became a small-scale centralized decision-making, a local despot, with the result that innovation did not flourish, any more than in a wholly centralized organization. Not always, of course, but sometimes.

My sense is that we have two related but different domains here. On the one hand, we have the domain of power and hierarchy and decision making and control. On the other hand, we have the domain of knowledge and expertise and creativity and innovation. The former domain is ruled by, who's calling the shots? The latter domain is ruled by, who's got the smarts? Occasionally, it is the same person who is calling the shots and who has got the smarts, but not too often. The person calling the shots can do things to enable or disable the person with the smarts.

If you look at organizations in the 20th century, the emphasis has been on who's calling the shots,and trying to arrange, and rearrange, things so that the guy who's calling the shots can get better control. This has been a game of diminishing returns. And with explosive and rapid transformations occurring across the world economy, the viability of these approaches is becoming less and less evident.

Hence the emphasis on sharing knowledge as a way of surviving, on communities where know-how can be pooled and new insights ignited, on creating work environments where personal interest and enthusiasm can be unleashed and so on. In other words, the rise of knowledge management as a central preoccupation of organizations in the 21st Century.

Jack Vinson: Much of the KM literature rails against hierarchical bureaucracies for exactly the reasons Stephen Denning mentions (inefficient, too rigid, lost information). It is very difficult to "think outside the box" when following rules designed to keep you in the box. The KM literature is also full of examples where people circumvent the official lines of communication and set up their own. Thus, we have a trade in "knowledge mapping" consultancies.

Why not change the way we think about bureaucracies? Let's change the name too. Instead of forcing information up and down branches of the hierarchy, why not change the job of the manager from "knowledge collector" to "knowledge distributor." The new manager's job becomes a task of making sure that her people have everything they need to move the company forward. This is not a new idea, but it needs to be reiterated.

Stephen Denning: I would say that the introduction of communities of practice into organizations is changing them quite dramatically and if persisted in, will change the very nature of organizations. I wouldn't see the existing role of manager as a knowledge collector, as usually the knowledge never flows to the manager but is rather something embedded in the way the work gets done. The manager tends to collect information of a certain type, such as budgets, outputs, schedules and the rest of the regular bureaucratic stuff, in order to control the work. In the new environment, the manager will still go on collecting this stuff, but will be more of a coach, and facilitator, and catalyst for the communities. A big problem with managers today is that they feel threatened by the untidy and cross cutting nature of communities which could undermine their control. If they can learn to see their role as catalyzing rather than controlling, this tension will diminish.

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 Squeezing knowledge into or out of the business process?

Denham Grey asks a question on the role, importance and returns from adopting a process for knowledge generation.

Denham Grey: Is knowledge really something you can squeeze into a business process?

Somehow, this seems the wrong metaphor to use; it is far too "engineering" and '"systems'" oriented for knowledge which is tender, fuzzy, dynamic, people oriented and morphing all the time. When you move too far along the process line you may over reach the reification of knowledge, turning your attention to explicit stuff that can be captured, validated, stored, sold.

Knowledge, I believe, is best appracted from a 'practice' POV - set the principles for cultivating an environment where knowledge can flourish, pay attention to recognition, identity, language, reflection, meaning, inquiry. Knowledge will create its own workflows and validation is a natural emergent property of dialogue. Are you a knowledge process or practice person?"

Stephen Denning: My own take is that there is no such thing as a knowledge process person. Processes are about conformity and compliance with predetermined repetitive routines. Such processes do not generate knowledge. Knowledge may occur, almost by accident in the interstices of such processes, but the processes themselves are deadening and the antithesis of innovation and creativity.

Further material on this issue from John Seely Brown and the Institute for the Future can be found at:

http://www.stevedenning.com/engineering_ecological.html

So I come down clearly on the side of saying that no, you can't squeeze knowledge generation into a business process. It's a different thing altogether.

Are there are any knowledge process persons out there?

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 Relationship Between Springboards and Patterns?

Stephen Denning: Thanks to Denham Grey for the nice comments about The Springboard.

Denham Grey: Do you have any ideas to share around stories as memes and the relationship between a springboard story and a pattern? Seems they address much the same areas i.e.,, define and forces at play, specify the context, gather the solution steps, test the package, release the pattern / story."

Stephen Denning: On memes: my understanding is that this is a (fancy jargon) term invented by the biologist Richard Dawkins to mean an idea that spreads.

Editor's note: Thanks for defining it, Steve.

I don't happen to have the book at hand where he introduced the term but my recollection is that he didn't distinguish between ideas expressed in abstract form and ideas expressed in narrative form. My own experience is that ideas in narrative form can travel an awful lot faster than abstract ideas, if you can launch the narrative in the right format.

The "springboard story" is one kind of narrative that does seem to travel easily and fast, and its characteristics are spelt out elsewhere on my web site and in my book, The Springboard, i.e., comprehensible, told from the perspective of a single protagonist; prototypical of the organization's business, has a degree of strangeness or incongruity, plausible, embody the change idea as fully as possible, recent and true, told as simply as possible, and has a happy ending. Stories that have this pattern and that are performed in the right way can travel easy and fast.

On patterns: The process you describe - i.e., "define the forces at play, specify the context, gather the solution steps, test the package, release the pattern" is a model that describes an approach to problem solving that is not unrelated to what I have been describing, though my experience is that innovation doesn't usually occur in this simple linear pattern. The linear model sounds good in a classroom or on paper, is very appealing to someone setting out, but in real life things are more complicated.

Thus as I describe in The Springboard, when I was launching KM back in 1996 at the World Bank I did set out to "define the forces at play, specify the context, gather the solution steps, test the package" but I found that the package" I was using didn't work, so I was back at square one again. The linear approach got me nowhere. It was subsequently through stumbling on help from an unexpected source - storytelling - where I certainly wasn't looking for it, that I began to make progress. Further experimentation, further interferences, further evolution of the response - all of this led to change in ways that were not linear.

So my suspicion based on this and other experiences is that the actual process or pattern of change is rarely a simple linear model and instead has all kinds of setbacks, loops, reverses, serendipitous discoveries, diversions, false trails, interferences. We need to keep this kind of more complex reality steadily in mind, particularly when we are presenting to those who are setting out on this journey, so that we don't mislead them as to what's involved. I know the demand for a simple cookbook is out there (step one, step two, step three and so on), but if we offer these simple recipes, we need also to be stressing the caveats, and the difficulties that people will run into in real life. It is even possible, given that serendipitous nature of innovation, that the more people follow a formal structured process, the less they are likely to innovate.

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 Using Stories to Explain Transition

Chris McEntee: I am a great believer in stories. When we had a major transition about a year and half ago - rearranging some roles and responsibilities - we wanted to make sure that staff understood that our core values were remaining the same. We had the entire staff get together in round tables of 10 and asked each table to recount their favorite stories that illustrated our values and then pick one to share with the entire staff. The stories were great - inspiring, funny at times, and made the point. I am personally trying to use more and more stories in meetings, presentations etc.

 Underutilized Teams and Job Rotation

Larry Rosenthal: "Let me weigh in here. Could part of the problem be the way we are used to looking at organizational structure. We still try to look at it with the old industrial model with tight vertical integration. In our structure we call them "silos." And, this is what we are trying to break down. Our thoughts are if you break down the silos, knowledge will be able to more easily flow and find those who need it. If we continue to take a vertical view of our organizations we will be exactly where we are now; requiring another layer to try to move the knowledge around into and out of our respective silos."

David Skyrme: Structure is an important element of any KM strategy. Stephen Denning rightly points out the value of communities of practice, and I still find that some very well known techniques are not used as much as they should be. Two that I find time and time again are underutilized are multi-disciplinary task (project) teams and job rotation or secondment across functions.

What many organizations (or senior managers) find difficult is, to let knowledgeable individuals in communities or task teams take authority and responsibility for decisions. Too many managers go in for micro-management - wanting to make decisions on fine detail, rather than setting some simple ground rules, objectives and giving professionals autonomy. Yes - there has to be some top view and coherence about all the micro-decisions, but properly recorded with assumptions (as should happen in a good KM system), a small independent review panel can achieve a lot - and senior managers can always drop in when they need to, and monitor through their executive portals all the micro-decisions that are being taken.

Stephen Denning: I agree with David that multidisciplinary teams and job rotation or secondment across functions can encourage knowledge sharing, although there are also limitations in these approaches.

In multidisciplinary teams, you only get the expertise of the people who happen to be assigned to the team. In today's complicated multifaceted problems, unless those team members can reach out to others inside or even outside the organization to get additional expertise, a sub-optimal approach can easily result. And unless there is a framework for capturing what the team learnt and sharing that with others, then wheels can be reinvented many times by successive teams.

With job rotation or secondment across functions, the forced juxtaposition of people with different backgrounds can create those serendipitous encounters from which innovation emerges. If only a few people move around, then the interchanges are limited. The cost of shuffling large numbers of people around an organization can be extremely high. If a lot of people are moving around with new assignments all the time, they may never get to learn any one job well. And yet even with a lot of rotation, the pace of the interchange, viewed from the entire organization, can be painfully slow, compared to the urgent demands of the marketplace.

These limitations have pushed organizations to nurture communities of practitioners, where you can get wide-ranging interchange of know-how across the entire organization, on the fly, without people having to change jobs or organizational units. But as David points out, it does require a certain maturity in the management to accept and encourage and empower such communities which can easily be seen as a threat to the traditionalist manager.

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 Views exchanged on the seven 'Laws'

Joe Katzman and Stephen Denning exchanged their views on the "laws of KM."

About Law #1: Knowledge sharing is essential to economic survival. Traditional hierarchical organizations cannot cope with fast changing client demands.

Joe Katzman: Depends in what industry. Some are very well suited to that hierarchical approach - indeed, you wouldn't want to run your Wendy's any other way. Not all client demands are fast-changing.

Stephen Denning: My sense is that the imperative of sharing knowledge is largely independent of industry because it is driven by economic factors which underlie all industries; namely, that the unit costs of computing, communications and transactions are falling towards zero. These simultaneous changes create new opportunities in all industries. Companies that fail to respond will sooner or later succumb. In industries where the current knowledge content is less obvious (e.g., hamburgers, cement, casinos), the evolution of the change may come from unexpected directions but is equally inevitable.

About Law #2: Communities of practice are the heart and soul of knowledge sharing. Formation of professional groupings where people come voluntarily together to share common interests and learn from the skills of others has become the common feature of knowledge organizations.

Joe Katzman: Some take a people-centric model, others take a document-centric model. CoPs often accelerate the process, but they aren't the defining feature or even always necessary. TelTech has built a whole business based on a very good directory that makes individual connections in real time. This does not create communities, nor is it intended to. It does result in a lot of knowledge sharing, however.

Stephen Denning: Having a good information system is a good thing in itself as TelTech appears to have. I don't know it directly and so cannot comment on its particular implementation, but thanks for pointing it out to me.

What I would suggest is that corporate environments today are mostly low trust environments generally speaking. As a result, not much sharing happens across boundaries because of the lack of trust unless some kind of communities are in place. If substantial sharing is occurring in the absence of communities, it may suggest an exception that there is a high trust environment which is fortunate but quite rare perhaps.

About Law #3: Virtual community members also need physical interactions. While technology has provided the possibility of virtual communities, many organizations have found it difficult without initial face-to-face meetings.

Joe Katzman: This one goes back to Howard Rheingold's experience at the WELL, and continues to be demonstrated by experience. But the emphasis needs to shift - groups CAN get going under these circumstances, but without F2F meetings, they won't last.

Stephen Denning: We seem to agree on this one.

About Law #4: Passion is the driving force behind communities of practice. Communities of practice only flourish when their members are passionately committed to a common purpose.

Joe Katzman: Not so much a common purpose, as a common interest. Purposes will differ within every CoP, sometimes fairly considerably. Those sub-groups are important, and sometimes the differences and debate are productive. Sometimes, too, they fracture the community beyond repair. A real law would help people tell which is which.

Stephen Denning: The law is not directed at distinguishing healthy from unhealthy communities. A separate law would be needed for that, if such a law could be formulated.

It is suggesting that passion among members is a common thread in healthy communities.

The "purpose" indicated here is implicitly the purpose of sharing knowledge in the topic in which members have chosen. My sense is that if none of the members of the communities have more than an interest, then there is no passion and the energy level of the community is not high enough to ensure longevity.

Not all members may be passionate about it, and some may merely lurk out of interest.

About Law #5: Communities enrich organizations and personal lives. Building on positive human emotions in the workplace provides a key to creating and developing healthier forms of organizations.

Joe Katzman: This springs from a rather idealized notion of community. Think of them like small towns. You have the petty arguments, the outright vendettas, and the rumour mill as well as all the healthy components. Communities may provide some positive emotions with a release they don't usually get in the workplace, but they don't always work out that way and can "turn to the dark side" or at least show darker aspects of human nature as well.

Stephen Denning: I agree that communities have a dark side as well as a positive side.

However, the interconnectedness of a community is normally an enriching feature for most members, as compared to the solitary individual working alone without friends or connections. Aristotle noted that man is a social animal, and the knowledge sharing experience simply underlines the importance of that insight. Equally interesting, the research on emotions shows that emotions are also largely social phenomena.

The difference between a small town community and a community of practice is that in the latter, the member can generally withdraw and cease to be part of the community, whereas in the small town, the inhabitants may not have this choice without leaving the town. However, withdrawal is not the only solution to dealing with the dark side of community, and learning to deal with it in more positive ways can also be enriching.

About Law #6: Knowledge sharing has both an inside-out and outside-in dynamic. Insiders must "own" the process, be involved in it, make changes happen, encourage others. Outsiders validate and "push" the agenda forward.

Joe Katzman: Regular contact with and feedback from outsiders will help, and avoiding insularity is a key commandment. Groups that don't pull knowledge and ideas from outside will wither. But the notion that some outside agency must always provide the validation or forward push doesn't strike me as a law so much as a probability.

Stephen Denning: I would agree that outside push is a helpful probability. Where it occurs it is helpful. Where it does not occur, there is a lost opportunity. What seems to me is that the probability is high enough that it is worth formulating as a hypothesis to determine whether there are any exceptions.

Editor's note: As a reminder, Stephen Denning previously suggested that the "laws" are in some ways "hypotheses" which are to be tested.

About Law #7: Storytelling ignites knowledge sharing. Telling stories that build on real knowledge sharing situations enables individuals to understand complicated and abstract ideas.

Joe Katzman: Mostly, what it enables them to understand is that their workplace supports knowledge sharing and here's how we go about it here. That's usually about three times as valuable as any specific ideas conveyed.

Stephen Denning: While storytelling can (1) communicate the importance of knowledge sharing and (2) can catalyze communities into existence, it is also the form in which most knowledge is embedded, and hence storytelling is also key to (3) knowledge transfer.

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 Views Exchanged on the Corollaries of the Seven 'Laws'

Joe Katzman's views on the corollaries of the Laws of KM and Stephen Denning's responses:

About Corollary #1. Knowledge sharing is at some point confused with IT. Web sites and IT tools neither create nor transfer knowledge by itself.

Joe Katzman: No, but they're a measurable implementation, unlike most other activities touted as KM. Since managers must justify their budgets and expenditures, they naturally prefer things that produce either observable end products or measurable results. KM still does a poor job here, which is why IT is used as a proxy measure.

Stephen Denning: The point of the corollary is not so much that it is used as a measure for KM (i.e., one thing used as a measure of something else) but rather that it is actually confused with, or equated with, KM. Building a website is equated with KM, for instance. Merely building a website doesn't necessarily lead to sharing of knowledge, although it may be a necessary step towards it. Unless the organization that makes this confusion transcends it, that may not succeed in knowledge sharing.

About Corollary #2. Middle management resists. Knowledge sharing appeals to chief executives and front-line employees, while middle managers have built their careers on mastering hierarchical pathways.

Joe Katzman: Sometimes. This still doesn't make resistance in their interest, and broad characterizations like this aren't helpful. See an article called "Converting Middle Powerlessness to Middle Power: A Systems Approach" by Barry Oshry.

Stephen Denning: I agree that resistance is not in the interest of middle management. It isn't much of a surprise that it occurs very widely, since KM generally involves taking an organization that has been working in a vertical mode and adding a horizontal mode to it. Upper middle management, whose function in the existing organization is to preserve the vertical "order" will naturally tend to see the horizontal pathways as disorder, and hence tend to resist. Some organizations overcome this resistance. Others are still struggling with it.

Since the resistance of a portion of upper middle management seems to be such a widespread phenomenon, it was thought to be helpful to point it out to organizations starting down this path so that they can expect it, plan for it and ultimately deal with it.

About Corollary # 3. Vibrant communities of practice attract new talents. In an environment of turnover, organizations that nurture communities of practice and let positive passion permeate the workplace are more attractive to the best talents.

Joe Katzman: Generally true, but the best people are mostly attracted by the opportunity to work with other "stars" they recognize. Communities spread out that contact among more people, but a roster with 1-2 stars will consistently be more attractive to good people coming in from outside than a pitch talking about a vibrant community of one's peers.

Stephen Denning: The presence of "stars" obviously can draw members in, but my experience with the communities that I know is that the presence of stars is not a necessary or even a common feature of a vibrant community. The more essential characteristic seems to be the presence of active practitioners - people who are actually doing things on a day to day basis, who have some depth and breadth of experience, and who exhibit passion in their work. The very nature of a "star" may reflect more of an interest in personal promotion or media attention than the real learning, and could in some circumstances be a constraint on sharing.

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 Force Fed KM Doomed to Failure

Paul Cripwell: I read your seven laws with great interest. I have always imaged KM as a somewhat amorphous entity with no clear boundaries or structure. These seven laws have provided some structure to my thinking.

My experience with KM suggests another law, or maybe a truism. KM installed as a rigorous process is doomed to failure. Or, attempts to force KM will be met with resistance.

Instead KM must be implemented so that knowledge transfer potential is made available. My experience suggests that schemes along this line are usually cheaper and easier.

To put a story to it:

The other day I was at the Travel Clinic for an update dose of shots for my African excursions and on the wall was a map of the world with a little sign encouraging patients to put a dot on the country they are visiting. I asked the doctor about this. He said that the staff had found the waiting area was always dull and boring with no lively activity. Putting up a map "might" create a meeting between two people with a common country interest. There are now occasional lively discussions in the waiting area.

He has created a situation where knowledge transfer can occur.

In relation to my earlier comments, this is an easy and cheap approach. No one is "required" to talk about their trip.

Stephen Denning: I would tend to agree that KM installed as a rigid process would be doomed to failure (a rigorous process could perhaps be flexible and I'd be less sure about that.)

And attempts to force KM - without people agreeing that it makes sense - will be met with resistance and almost certain failure. Nevertheless I would also say that there is a role for leadership in marking the path for the future and communicating that persuasively to the organization so that managers and staff genuinely see this as a better way. As I have argued in my book, The Springboard, and on my website, the most effective way to achieve this is through storytelling.

And yes, I love your story about the Travel Clinic! It neatly captures the way in which an ingenious manager can through the simplest of tools create an environment where sharing occurs naturally and easily without a whole lot of expenditure and fuss. Thanks for sharing this story!

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 Knowledge: Linear Flow or Whirl of Serendipity?

Jerry Ash: In another forum I have been lurking in, I have been observing a debate about whether or not there is a "knowledge chain" just as there is/was a "supply chain" in the old economics. I admit I've only been scanning this discussion, but in my mind it becomes a question of whether or not the knowledge asset flows in a sequence - down, up, horizontally, diagonally, or along the lines of an organizational chart? Or, does knowledge whirl about in a pool of serendipity?

Stephen Denning: When we are talking about deep or complex knowledge, I am inclined to think that it is more generally the latter than the former. Knowledge comes from unexpected sources in unexpected sequences, and grows in the course of interaction, rather than in any simple linear flow. Certainly with innovation, serendipity is going to be a big part of it.

Whether it "whirls about," I'm not sure about the image as I can't quite visualize the whirling as it kind of implies that the knowledge is whirling on its own rather than as part of an interaction between people.

Are there other ways to describe it?

John Seely Brown talks about two people in a dialogue where the conversation "spirals up" to a new level of understanding, in which the outcome is neither the tacit knowledge of one person or the other but is, in fact, some new understanding which is the joint product of the conversation, i.e., some new knowledge is created in the process of interaction. I kind of like the "spiraling up" image, although it's the conversation that spirals up, not the knowledge. Maybe the problem is in thinking or speaking of knowledge as a substance that flows about an organization. It's not that kind of thing.

With simpler kinds of knowledge, the situation might be more linear. For instance, if you want to know when do trains leave from London to Devon, the question is directed to British Rail and the answer comes back in a predictable linear fashion. No one else knows and there is (hopefully) no serendipity involved.

Jerry Ash: If the flow of knowledge isn't always linear, then, does "knowledge mapping" make any sense at all?

Stephen Denning: Knowledge mapping may make more sense when the knowledge is about simple information, but much less when the knowledge is deep or complex. My own experience with knowledge mapping generally is that as an activity, the knowledge mapper learns a great deal, but the resulting map is generally not very useful to anyone else, because the map is so complicated that it is hard for someone to understand who didn't go through the process of mapping the knowledge. As a result, the usefulness of knowledge mapping is often overestimated.

Jerry Ash: If you can't map it, how can you "manage" it?

Stephen Denning: My own take is that you can no more manage knowledge anyway - any more than you can manage love or friendship or courage or piety. You can manage people and you can organize environments where knowledge sharing is encouraged, but strictly speaking you can't manage knowledge. That's why in the World Bank we have shifted away from the term, "knowledge management" and use "knowledge sharing" instead. Other companies have made similar moves.

Jerry Ash: I share your view of the futility of managing knowledge and now you know why we call ourselves the Association of Knowledgework, not Knowledge Management. Still, if knowledge is our most valuable asset, companies who have danced around the term KM, still identify their knowledge assets, organize them and develop strategies for converting them into real value. That's management.

Seems to me our rejection of the term "knowledge management" is more political than actual. Seems to me it's not the idea of "managing" we need to worry about as much as how we "manage" our intellectual assets. I know the "spin" is important, but I keep thinking spin is not quite as important as the way we manage - oops, I mean - share our intellectual assets.

Steve, I really do mean that, but I am being a bit of a "devil's advocate here.

 Tornado a Good Metaphor for Knowledge

Hock-Seng Tay writes: "At one time, I used the tornado as an example. What is at the center of the spiral or core is very clean and unlike that on the circumference. If you watch a twister, at one scene toward the end when the tornado crosses the path of the victim, the camera looks up into the sky and it is a clear tunnel, with a very nice feeling."

Stephen Denning comments: I like the tornado image a lot and I agree that the center of knowledge sharing in an organization may be much calmer than the front lines where knowledge sharing takes place, where there will be many unexpected interactions and phase changes.

Hock-Seng Tay describes three steps toward "wisdom management."

  1. We learn something new and understand and form or create certain competencies (Information world).
  2. We share what we have learned to strengthen it and often under control, as the driving force is in place, depending on the step 1, (this is) how information is absorbed (Knowledge Domain).
  3. We teach (that we should) put sharing back into the cycle and repeat the whole thing all over again from step 1. This is the part I have been working on for many years, as Wisdom Management.

Stephen Denning: Wisdom can be defined as a kind of "knowledge about knowledge management," although there are other uses of the word. Some use it in the sense of an attitude towards the world. An interesting book on the subject of wisdom is "Wisdom: Its Nature, Origins and Development" edited by Robert Sternberg, Cambridge UP, 1990.

Hock-Seng Tay writes that when he started KM within his group (more than) eight years ago his organization branded him crazy! And mad!

Stephen Denning: Join the club. You are in good company. I like Albert Einstein's quote: "If at first the idea is not absurd, there is no hope for it." What Einstein is implying is that any genuinely new and valuable idea is going to seem absurd to people when they first hear it. One implication is that if an idea that comes along doesn't seem absurd, then one can suspect that the idea is either not genuinely new or not valuable.

Hock-Seng Tay: Have you looked at MG Taylor Corporation"s work? There are a number of diagrams there that I used to move my group into KM (much) faster, as I used them as tools. Go to their website.

Stephen Denning: Thanks for the reference. I went to the site and it does have some interesting material. Its discussion of the difference between zero-sum game into an infinite game draws on James Carse's wonderful book on Finite and Infinite Games, published in 1986. Although written in a somewhat different context, the spirit is the same.

I tended to find the diagrams somewhat less informative than the prose, as it is difficult to depict complicated ideas in diagrams. I agree that the overlapping circles and curves (which imply ecology) are better than the straight line drawings with boxes and arrows (which imply that the organization functions like an engineered machine), but even the circular drawings tend to oversimplify a good deal.

Hock-Seng Tay: To me, knowledge is changing so fast; so, why map it? Lots of energy is wasted in this. Why (not) direct this (energy toward) some other areas that can be of better use? It will map itself automatically if the force behind the KM is in place and is spiraling. I spend only about 10% of my overall KM time on this.

Stephen Denning: As you will have seen from my earlier postings, I agree that knowledge mapping often has somewhat limited returns and so I agree with the priority that you assign to it.

Hock-Seng Tay: Now I manage and control the knowledge and do gain some leadership in this and make sharing unconsciously happen. But the moment I make this known, the whole process stops. This is part of the chaos that is in place. Never change or touch the strange attractor, unless it wants changes.

Stephen Denning: The zen-like wisdom of these thoughts is a hard thing to communicate in organizations in the West today without sounding obscure or inscrutable, but I agree with the thrust of what you are saying.

Thanks, Hock-Seng, for such a wonderfully rich contribution to this dialogue!

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 Storytelling Must Be Truthtelling

Carol Tucker writes: An awful lot can be learned about an organization by listening to the stories that are being told. It is a time honored practice to regale the new employee with tales of "stuff" that has happened in the past; it is how the corporate culture is transmitted to newcomers. Stories are the track record of past actions, and they speak much louder than words.

And when the stories do not match the declared values, it is the perception created by the stories that will take precedence and linger. If the president/CEO tells you that s/he is interested in his/her people taking risks and growing by learning from their mistakes - that is an expression of value. But if the story you hear from the EVP/COO is how that VP in sales was let go after the new product line flopped, how willing are you going to be to take a risk?

Stephen Denning: I agree completely with the primacy that people give to stories over abstract declarations of "values." Narrative is something we master at the age of about two years old and we use it throughout our life as a kind of native language. We have abstract language beaten into us around the age of eight, and we learn it as a kind of foreign language. But we generally remain faithful to our native language and understand the world through the stories that we hear or that we tell. We tend to find abstract language tiring and boring whereas we find stories refreshing and energizing because stories focus on what is new and unexpected. We tend to translate what we hear in the (foreign) abstract language into our native narrative language, i.e. stories.

Hence if the president/CEO wants the message about innovation to stick, he/she needs to tell a true story about how innovation and risktaking were truly rewarded in that organization. If there is no such true story to tell, then he/she is wasting his/her breath in talking about the value placed on innovation. He/she needs to get out and change the organizational environment so that there are true stories to tell about the value placed on innovation. Actions speak louder than words and once the actions occur, stories will start to spread spontaneously on the underground current of storytelling which is the lifeblood of corporate culture.

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 Size Limits for Effective CoPs

Noreen Kelly writes: A key consideration in Charles Ehin's "Unleashing Intellectual Capital" is that humans are physiologically incapable of developing and maintaining mutually beneficial voluntary collaborative relationships within groups much larger than 150 people. The author points out that in larger groups, relationships become fragmented, ties of common interest cannot be adequately sustained, and hierarchical structures begin to prevail. He concludes that,from a human nature perspective, small size is absolutely essential for the generation of high levels of social and intellectual capital in organizations.

The author goes on to state that communities should be formed around core competencies. Steve, this author's model seems to be in line with your "laws of KM." Thoughts?

Stephen Denning: I agree that there are limits to the size of viable communities. This is related to the fact that there are limits on how many people you can get to know and trust. I know that people like Malcolm Gladwell and others argue that the limit is around 150 people. I wonder whether the upper limit is not closer to 500, at least where efforts are made to enhance trust and where technology is used to make people more accessible than they would be if they had to meet physically to communicate every time. My guess is that where trust levels are very low, it may be that the limit may be quite a bit smaller than 150 people. But in any event, I agree that there is a limit, whatever the actual size might turn out to be.

And yes, I agree that communities should generally be formed around core competencies, although there may also be areas other than competency around which communities can be usefully formed, e.g. areas of interest and areas which are cross-cutting in nature (e.g. environmental issues). Communities that cut across disciplines may in fact turn out to be among the high value communities, since major innovations often come from outside any specific discipline, not from within the discipline. People within the same discipline tend to share the same professional assumptions and so can be blind to what may be apparent to "outsiders" or those from a different discipline.

Editor's Note: This exchange led to a new thread in the AOK Knowledge Management/Strategy Community of Practice Discussion Group, which may be synthesized later into a separate white paper.

 Thank You

Jerry Ash: This concludes the "Conversation with Stephen Denning," an icon of best practices in knowledge leadership at the World Bank and author of "The
Springboard
," a wonderful book that shares the journey Steve took in transforming a world financial institution into a repository of knowledge assets to the benefit of developing countries throughout the world.

On behalf of the members of the Association of Knowledgework, I thank you Steve, for the valuable time and knowledge you have shared with us these three weeks. It is significant - in and of itself, and it is significant in that it has catapulted AOK into a monthly program of appearances from "stars" and "rising stars" in our three Communities of Practice (CoPs).

We also thank your World Bank colleague and our AOK fellow member Michel Pommier for the idea of this exchange and Lesley Shneier, the third author of the draft "Laws of Knowledge Management" for permission to reproduce this draft in the AOK White Papers.

I want to encourage the three of you to continue the task of developing something so simple as the "Laws of Knowledge Management." While we all understand that there can be no cookbook, we are in deep need of a primer that will lay out for all of us (veteran and newbie alike), and in the simplest terms, the basics of a knowledge-driven strategy. We need a definition of knowledge management that will roll off our tongues smoothly and with such confidence that our audiences have no doubt that this is not just another management fad and that we are clear as to our meaning. And we need to develop the skill of storytelling, to transform the complex terms of knowledge work into understandable and embraceable concepts.

Proceed with your "Laws," and we will follow by memorizing and repeating every word!

It is also a great thrill for me to announce that Stephen Denning has become a full member of AOK. So, we are not saying goodbye to Steve. We're saying "hello, and welcome as a fellow AOKer." It also means, that the dialogue is not totally closed. Anyone who wishes to return to the subject matter of this conversation, will be able to do so in open forums. I know Steve plans to be one of our most valued and active members. Thank you, Steve.

Thanks also to those members who have engaged in the "Conversation with Stephen Denning."

And finally, I want to remind you that the next "Conversation" begins February 12, 2001, with Debra M. Amidon, founder of Entovation International. I have been privileged to synthesize several of Debra's works into a paper which has now been published as an AOK White Paper. Go "do your homework now," and get ready to engage in the conversation.

She will be with us for three weeks in the Knowledge Architecture/Structure CoP, and her vision of Knowledge-Innovation Architecture will frame the scope of content for the KA/Structure CoP for the foreseeable future. If you are not a member of AOK, join now.

  Participants

Our thanks also go to the participants in the Conversations with Stephen Denning:

  • Jerry Ash, AOK chief executive
  • Paul Cripwell, J.P. Cripwell Associates, Canada
  • Denham Grey, CEO, Grey Matter, Inc.
  • Joe Katzman, Senior Consultant, KPMG Consulting LP, Canada
  • Noreen Kelly, Knowledge Management Specialist, Baxter Healthcare
  • Cris McEntee, EVP, American College of Cardiology
  • Larry Rosenthal, PhD, Deputy EVP and COO, American Academy of Orthopaedic Surgeons
  • David Skyrme, Principal, Entovation International, UK
  • Hock Seng Tay, Head, Business Knowledge Group, Singapore Economic Development Group
  • Jack Vinson, Engineering Knowledge Strategist, Pharmacia Corporation

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