Keeping the Flame Alive 323Copyright © 2005, Idea Group Inc. Copying or distributing in print or electronic forms without writtenSMSI was willing to pay for the KM infrastructure and support participation in
knowledge activities. This senior management support came from the desire to retain and
reward key employees, and less from any formal calculation of the knowledge benefits
to the firm. In a time of high turnover, any reasonable technique to retain staff through
formal and informal recognition was deemed useful. Even in the absence of financial
value, the firm’s partners and senior executives believed that the program was helping
the firm manage its growth in a time of technical change and rapid expansion of staff.
The belief in the potential of KM to sustain the company through this period of
growth was most manifest in the recognition of Knowledge Colleagues. Participation in
the program was specifically considered during staff personnel reviews, and Colleagues
were given special business cards that identified them as participants. This provided
both financial and psychological incentives to participate.
As she considered these observations, Ms. Johnson saw that they interacted in a
complex way. Firm growth stimulated demand for knowledge, and the programs she
developed helped to meet that need. The internal programs and incentives created an
active knowledge-sharing environment. Was there more “knowledge sharing” than
could be maintained while preserving quality? Should there be additional screening or
reviews put in place? What effects would such changes have on the culture of the firm
and incentives to provide knowledge?
Forces external to the firm would also affect what direction KM should take. SMSI
had benefited from the explosive growth in e-commerce paired with the millennial-driven
Y2K systems revisions. The suddenness of these industry changes created an extreme
demand for information and solution reuse, which provided great leverage from the
collected knowledge assets of the firm. There was little expectation that this type of work
would continue at the same pace, and much of this previously valuable information would
no longer be needed. The cost of keeping existing materials is small, as long as they are
correct.
What new knowledge needs would emerge when markets start to decline? Integrat-
ing new staff was going to be less important. What knowledge will be needed to maintain
SMSI’s revenue and opportunities for growth? Are there unmet internal markets for
knowledge that might still be exploited? This is another area Ms. Johnson wanted to
explore.
The internal KM program at SMSI needed to shift its focus from creating a
knowledge-sharing organization to one that manages its knowledge as an asset that
depreciates over time. The success of the program would be based on maintaining the
value and quality of its contributions to its users. In addition, a somewhat shaky forecast
for SMSI’s services would affect the willingness to support programs that do not
demonstrate bottom-line contributions. Was there a way to directly demonstrate the
value of knowledge sharing to the partners of the firm?
She believed that ongoing investment is needed, but was not sure how should it
be applied. Is the development of new knowledge more important than cleaning up and
review of older information? Are the incentives in place adequate to keep the internal
knowledge channels open? What about developing new markets for KM? What should
be the focus of her team’s activities?