1 Purpose and outline Three dimensions Who knows? Individual
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Purpose and outline Perspectives on Organizational Learning and Knowledge • Discuss relevant dimensions of organizational knowledge for the analysis of firm’s (innovative) behavior Fredrik Tell Department of Management and Engineering • Provide qualitative case studies of knowledge integration in innovative activities (NPD projects) Linköping University fredrik.tell@liu.se EKI http://www.epokresearch.se http://www.liu.se/kite EKI 1 2 Three dimensions Who knows? • Individual knowledge • Individual/Collective Knowledge • Tacit/Explicit Knowledge • Exploration/Exploitation of Knowledge • Collective knowledge EKI EKI © Fredrik Tell EKI © Fredrik Tell 3 4 Individual Learning Individual Knowledge • Experiential learning • Semantic understanding • Problem-solving • Memory episodes of specific events Stimuli, experience, problem Observation of stimuli and reflection Change in actions, experimentation Creation of new concepts and actions • Senso-motoric skills • Tacit assent based on experience • Unconscious interpretations and prejudices EKI (Sparrow, 1998) (Kolb) © Fredrik Tell 5 © Fredrik Tell 6 1 Collective Learning Collective Knowledge: Routines • (cf. Markus Becker this afternoon…) • History-dependent • Based in routines • Oriented towards target or aspirations • Implies local search • Addresses the selection environment EKI EKI Structures Rules Procedures Conventions Strategies Technologies Serves as collective memories… (March and associates) © Fredrik Tell © Fredrik Tell 7 8 Learning is difficult! Limits to individual cognition • Interpretations are based on previous experience • Salient attributes get amplified • We select the most common interpretation • We look for solutions close to the problem • We select confirming information • Chronology is often interpreted as causality Can one understand collective learning by drawing an analogy to individual learning? How to interpret organizational experience? EKI • Few observations • High complexity • Unclear cause-effect relationships • Goal ambiguity (aspirations) • Trade-off between short-term and long-term EKI © Fredrik Tell © Fredrik Tell 9 Communities of practice Community of practice Purpose Members To develop members’ capabilities and exchange knowledge Members who select themselves Passion, commitment and identification with the group’s expertise As long as there is interest in maintaining the group Everyone who reports to the group mgr Job requirements and common goals Until the next reorganization Formal work To deliver a product or group service EKI “Glue” To accomplish a specific task Employees assigned by senior management The project’s milestones and goals Until the project has been completed Informal network To collect and pass on information Friends and business acquaintances Mutual needs As long as people have a reason to connect © Fredrik Tell Communities of practice Duration Project team 10 “Practices that give rise to mutual engagement, joint enterprise and a shared repertoire are communities of practice.” Wenger (1998) • Etzioni (1996) Affect-laden relations among a group of individuals Shared values, history, identity – a shared culture Both “social relationship” and “shared cognitions” • Distinctive features of CmPs EKI (Wenger & Snyder, 2000) 11 “Strong” social, value/affect-laden bonds “High degree” of shared cognitions 12 2 EKI Management of Individual Knowledge Management of Collective Knowledge • Facilitating the Context for Individual Learning • Facilitating the Context for Collective Learning • Knowledge Management as a Market • Knowledge Management as Developing a Practice • Incentives • Identity/Commonality • Brokers EKI © Fredrik Tell • Language/Narratives © Fredrik Tell 13 14 The explicit dimension What do we know? • Tacit dimensions • Rational • Comprehensive • Codified • Simplified • Explicit dimensions • Conscious • “Know-what” EKI EKI © Fredrik Tell © Fredrik Tell 15 The tacit dimension EKI 16 Knowledge Management Strategies • Irrational • Low-cost • Differentiation • Action-based • Reuse economics • Expert economics • Sub-conscious • People-to-documents • Person-to-person • Automatic • Information Technology • Moderate IT • Personal • Hire ”rookies” • “Know-how” EKI • Hire experienced staff • McKinsey and Bain • AC and E&Y => Codification Strategy © Fredrik Tell 17 => Personalization Strategy © Fredrik Tell (Hansen et al, 1999) 18 3 The SECI model Learning typologies, outcomes and economic benefits Learning Processes Experience Knowledge articulation accumulation • Learning by reflecting • Learning by doing • Learning by thinking Learning • Learning by using • Learning by discussing typology • Learning by confronting • Outcome EKI EKI Economic benefit • Local experts and • experiential knowledge in • individuals (e.g. subject matter expert) Economics of • specialisation Economics of information (diffusion, reuse of information) (Prencipe and Tell, 2001) 20 The Myopia of Organizations • Bounded rationality Exploitation (knowledge application) • Action rationality vs. Decision rationality Right: At the Westinghouse plant outside Pittsburgh, 1904 • The advantages of specialization and departementalization • Knowledge is stored in routines, rules, and cognitive frames Exploration (knowledge generation) Left: Edison’s Menlo Park Laboratory Right: Patent Drawing of Edison's Electric Lamp, January 27, 1880 • Learning by writing and re-writing Learning by implementing Learning by replicating Learning by adapting Codified manuals, procedures (e.g. project management process) © Fredrik Tell 19 Knowledge activities EKI • • Symbolic representations • and communication Improved understanding of action-performance relation (predictive knowledge) Economics of co• ordination (Nonaka, 1994) © Fredrik Tell Knowledge codification • • Knowledge is power EKI • There is a cost to search for new knowledge => Supports exploitation of knowledge! (cf. Levinthal & March, 1993) © Fredrik Tell 21 “Success breeds success”? Knowledge Exploitation • Competence traps • Efficiency • Superstitious learning • Avoid reinvention of the wheel • Power over the environment • Re-use economics • History as a recipe for the future • Storage of Knowledge • Routines (experience accumulation) • Success decreases the willingness to experiment • Paradigm-driven EKI EKI © Fredrik Tell 22 23 • Single-loop learning © Fredrik Tell 24 4 Knowledge Exploration Single- & double loop learning • Innovation • Effectiveness • Economics of flexibility/customization • Knowledge generation • Articulation • Paradigm-shifting EKI Double loop learning requires reflection (in action)! EKI • Double-loop learning © Fredrik Tell (Argyris & Schon, 1978) © Fredrik Tell 25 Knowledge Generation The Reflective Organization • Making innovation: ”Break the spell” • Intention (Vision) • Search new areas • Autonomy • Contemplate basic assumptions • Fluctuation (creative chaos) • Conceptualize what is taken-for-granted • Redundancy (slack) • Unlearning • Variation (complexity) • Diffusion of knowledge and ”bi-sociation” EKI => Exploration of new knowledge requires different management approaches! © Fredrik Tell 26 EKI • Love, care, trust & commitment (Nonaka et al, 2000) © Fredrik Tell 27 28 Governance problems • Problem of co-operation Incentive alignment Why does this matter? • Problem of co-ordination Knowledge integration EKI EKI 29 30 5 Co-ordination problem How to achieve coordination? • Knowledge Integration (Nesta and Saviotti, 2006) • How to integrate different knowledge bases for efficient production? • Major contingencies: Knowledge differentiation and complexity (Grandori, 2001) Interdependencies: pooled, sequential, reciprocal (Grant, 1996) Task features (Zollo and Winter, 2002) “Coordination means, at a minimum, that all the needed tasks are completed without pointless duplication. Better yet, it seeks to ensure that the tasks are done efficiently, by the right people, in the right way, and at the right time and place. Ultimately, full coordination also requires that the tasks undertaken are the right ones.” (John Roberts, The Modern Firm, 2004: 75) EKI • How to achieve this in innovative settings? • Coordination devices: Hierarchy, rules, prices, property rights sharing, communication networks, knowledge integrators, teams, communities (Grandori, 2001) Rules and directives, sequencing, routines, group problem solving (Grant, 1996) Tacit experience accumulation, articulation, codification (Zollo and Winter, 2002) EKI 31 32 Managing Knowledge Organizing for innovation Traditional KM view • Projects (especially new product development projects) as an example • • • How is knowledge integrated? Codified knowledge for simple tasks and standardized products Tacit knowledge for advanced tasks and customized solutions Alternative view • Task features and knowledge integration • Learning investment function • Frequency • Homogeneity (differentiation) • Causal ambiguity (complexity) Articulation/Codification Articulation/Codification (e.g., Grant 1996; Hansen et al 1999;) EKI Articulation/Codification EKI (Zollo and Winter, 2002) © Fredrik Tell 33 Knowledge integration context in projects Level of analysis Individual • Low frequency (temporary tasks) • Low homogeneity (unique tasks) • • • • • • • Group/Project • Navigator’s learning landscape Learning processes Knowledge articulation • Figurative thinking • “Thinking aloud” • Scribbling notes Experience accumulation On-the-job training Job rotation Specialisation Re-use of experts Developed groupthink Person-to-person communication Informal encounters Imitation • High causal ambiguity (complexity) EKI • • • • • • Prencipe, A. and F. Tell (2001), Inter-project learning: processes and outcomes of knowledge codification in project-based firms, Research Policy, 30(9): 1373-1394 EKI 34 • Informal organisational routines, rules and selection processes Organisational • Departmentalisation and specialisation • Communities of practice Knowledge codification • Diary • Reporting system • Individual systems design Brainstorming sessions • Project plan/audit Formal project reviews • Milestones/deadlines • Meeting minutes De-briefing meetings Ad-hoc meetings • Case writing Lessons learnt and/or post-mortem • Project history files meetings • Intra-project lessons learnt database Intra-project correspondence • • • • Project manager camps Knowledge retreats Professional networks Knowledge facilitators and managers • Inter-project correspondence • Inter-project meetings • Drawings • Process maps • Project management process • Lessons learnt database (Prencipe and Tell, 2001) 35 © Fredrik Tell 36 6 The Stacker case The stacker NPD project Sarah John Electro-design Located at the IT department Vocational training Tenure: 25 years Responsible for technical requirements Development department MSc in engineering Tenure: 2 years Bill Design engineer consultant Located at the development department BSc in engineering Steven Harry Manufacturing, tripods and chassis (sub-group at the manufacturing department) Internal courses Tenure: 20 years Design engineer consultant Located at the development department Vocational training • Incremental, 1 country, 13 engineers, 2 years • Not much of a shared goal Henry Martin Richard Marketing No formal education Tenure: 30 years Project manager Located at the development department Internal courses Tenure: 17 years Manufacturing, walkie (sub-group at the manufacturing department) BSc in engineering Tenure: 2 years • Project members were not working tightly together Located in different departments Little communication Met primarily at project meetings – but not in conducting their work Albert Order structure builder Manufacturing department Co-located with Harry and Bill No formal education Tenure: 40 years Paul Technical support and field testing (sub-group at the development department) Vocational training Tenure: 30 years Anthony Charles Quality and standards (sub-group at the development department) BSc in engineering Tenure: 4 years Order structure builder Manufacturing department No formal education Tenure: 17 years Tom EKI EKI Order and administration Secondary school certificate Tenure: 13 years Enberg, C., L. Lindkvist and F. Tell (2006), Exploring the Dynamics of Knowledge Integration: Acting and Interacting in Project Teams, Management Learning, 37(2): 143-165 EKI High High Low Experience accumulation 38 Acting Parameter input Contribution The Product Experience sharing A more complicated case Low Low High Articulation/ Codification Interacting High High High Iterative model Representation Task characteristics Low Complexity Very High Enberg, C. (2007), Knowledge Integration in Product Development Projects, PhD Diss., Linköping University Subordination (Enberg, Lindkvist & Tell, 2006) Core group Experienced Peripheral group Less experienced Arno (aero) Leonard (aero) Lukas (MI) Nikolaus (MI) Urs (aero, project manager) Valentin (MI) Alain (aero) Dieter (MI) Dominik (project manager) Franz (MI) Marcel (MI) Simon (MI) Experienced • Concurrent engineering in NPD projects: Now (in operation 2006) and then (in operation 1994) in the telecom industry. Less experienced Victor (cycle/FS) Jürgen (MI) Matthieu (MI) Gerhard (MI) David (MI) Beat (aero) …so does division of labor Plan 40 NPD in telecoms When complexity increases… Less exp. Core group Less exp. Plan Feedback/ Communication • Large development projects (>100 engineers) Peripheral Plan Feedback Less exp. EKI Low Homogeneity EKI 39 Communication Interaction Frequency Steam Turbines Ad hoc problem solving Experienced project members • How did knowledge integration take place? 37 An iterative model of knowledge integration Frequency Homogeneity Complexity Knowledge integration mechanism • Knowledge did not seem to be shared Peripheral Peripheral Plan Less exp. EKI Peripheral • Follow up-projects on major breakthrough technologies Enberg, C. (2007) 41 42 7 Concurrent engineering (1) 1990s NPD: Post GSM • Digital cellular telephony system for a new important customer Concept Design • New standard partly based on GSM • Software and hardware Test & Verif. • Half development time of GSM Installation • 1 country, >100 engineers, 2 years EKI EKI Lindkvist, L., J. Söderlund and F. Tell (1998), Managing Product Development Projects – On the Significance of Fountains and Deadlines, Organization Studies, 19(6): 931-951 Time 43 44 Analysis Implications for knowledge integration • High complexity but error detection rather than error diagnosis – Tightly coupled projects Type of complexity analyzable systemic • Tight knowledge integration error detection Scheduling logic Coupling logic Type of error problematic error diagnostics Separating logic Practicing the processes Solving problems due to interaction effects among units Continuous feedback – little buffers Less ‘work breakdown structure’ oriented Arenas • Systems emergency ward • Daily meetings • Video/telephone conferencing Semi-coupling logic EKI EKI Combination of hierarchical and network structures 45 46 2000s: Post 3G Problems • n th version of third generation cellular telephony systems • Quality not up to standard • Run partly in parallel with n -1 and n +1 version • Difficulties in adapting to emerging objectives and new specifications • Software platform EKI • Time delays • 5 countries, >200 engineers, 18 months EKI (On-going work with Ramsin Yakob; Yakob and Tell, 2007) 47 48 8 Developing telecom platforms in work packages Ways of working • Starting early by defining small work packages (WP) • Work out a genealogy of the project WP 1 x x WP 1 • Set up interdisciplinary teams working with each package (teams of 10-15) WP WP 4 x WP 5 x WP 3 WP WP 4 WP 5 Latest System Version WP 6 Final System Version • Fairly brief “slots” for delivery from WP to systems integration (second weekly build) WP 2 Latest System Version x • Each WP is an entity in the anatomy (60-70 WP) EKI Design Base Design Base WP 7 WP 8 Final System Version Previously This project EKI • Continuous integration enabled by “build” environment tool (Yakob and Tell, 2007) 49 50 The Anatomy of a project Design Base Concurrent engineering (2) Design Base Increment Plan Integration Dependency WP Team Final System Verification Shipment 1 Integration Analysis Feasibility Study Work Package Integration Plan WP Team WP Team WP Team WP Team Shipment 2 Design Base Shipment 3 EKI Shipment (Delivery to customer) 2 3 4 5 FSV System Test (Yakob and Tell, 2007) (Yakob and Tell, 2007) 51 52 Complex NPD projects as nearly decomposable systems Managing near decomposability • Systemic aggregation “(1) In a nearly decomposable system the short-run behaviour of each component sub-system is approximately independent of the short run behaviour of the other components; (2) in the long run the behaviour of components depends in only an aggregate way on the behaviour of the other components” (Simon, 1996: 198) EKI 1 EKI • Decomposition and composition Exit Point(s) “While decomposing a problem is necessary in order to reduce the dimension of the search space, it also shapes and constrains a search process to a specific sub-space of possible solutions thus making it possible for optimal solutions not to be ever generated and for systems to be locked into sub-optimal solutions” (Marengo et al., 2005: 3) Compose Component Development Aggregate/ Design Base Feedback Decompose Anatomical Decomposition Feed-forward EKI Determines (Yakob and Tell, 2007) 53 54 9 Tentative observations • Knowledge integration in distributed settings • Level of shared and collective knowledge • Knowledge integration and representations • Knowledge integration and coupling/feedback • Contingencies for knowledge integration EKI 55 10
