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Case Study: K&P Engineering: Learning fast K&P Engineering carries out structural analysis for complex buildings (for example bridges) at two offices with approximately 30 employees, mostly engineers.To answer these questions <over the past 15 years, knowledge management (KM) has progressed from an emergent concept to an increasingly common func tion in business organizations= (Zack et al. 2009, p. 392), and a search of the literature reveals a huge number of KM definitions which contain similar elements

Knowledgemanagementenablesindividuals, teams and entire organisations as well as networks, regions and nations to collectively and systematically create, share and apply knowledge to achieve their strategic and operational objectives.Knowledge: Key Resource of the Post-industrial Era Three Driving Forces The increasing importance of knowledge as a resource can be traced back to three interdependent driving forces: o Structural change: Moving from labour and capital-intensive activities to infor mation and knowledge-intensive activities means that the companies increas ingly sell information, knowledge or intelligent products and services. Information processing only creates formal knowledge in terms of data, codified procedures and principles, and is measured using metrics such as increased efficiency, lower costs and improved return on investments (Nonaka and Takeuchi 1995).Theorists adhering to a purely cognitive perspective view learning as the development of new insights through the revision of assumptions, causal maps or interpretive schemas.If an employee has to conduct a structural analysis for a new object, he can update himself with the frequently recurring construction defects by referring to the database, detect them quickly, avoid them in his construction work if possible and learn the elements of a <good solution=.Hence there is an argument that an efficient creation and transfer of knowledge within the framework of a hierarchical and multi- divisional organisation is difficult (Hedlund 1994).o Information and Communication Technologies (ICT): ICT enables collaboration and interaction at low transaction costs and brings about worldwide information transparency.This results in fast market changes and a higher innovation rate that is reflected in price reductions, shorter product lifecycles, personalisation of customer requirements and the emergence of new business areas.At K&P,frequently recurring construction errors as well as good solutions are documented using a database structured according to types of buildings.Often, the rewards and appraisal systems that have an individualistic orientation offer very little incentive to create and distribute knowledge (see Fig.Knowledge management contributes to increase the efficiency and effectiveness of operations on the one hand and to change the quality of competition (innovation) on the other by developing a learning organisation.Organisational knowledge (OK) theorists have also noted the behavioural cognitive distinction, but from the point of view of the product of learning; either the development of know what or know how.Those exploring the interplay between cognition and action have delved into how action springs from, or leads to, deeper cognition through reflective processes such as action learning and after action review.Rather, practitioner-developed knowing must be absorbed through interaction via improvisation, apprenticeship, conversation, and storytelling.Integrating people in a common venture by thinking through, setting and exemplifying the organisational objectives, values and goals 4.A new global information market place is established and information and communication technologies represent the wind energy that fans structural change and globalisation.Here learning is said to occur as new insights, assumptions, and causal maps lead to new behaviour or conversely, new behaviour leads to new insights.Pointing to the intimate relationship that learning has with action, Argyris (1999) suggests: <An organization may be said to learn to the extent that it identifies and corrects errors=.Sensemaking has also been linked to the levels of cognitive development, whereby routine learning is associated with single loop learning, and double loop learning with deeper cognitive adjustment.1.5 Key Insights of Chapter 1 o Knowledge as a resource and the capacity to learn become the main ingredients for sustainable competitiveness.Only those engineers who handle projects efficiently and learn quickly from their mistakes as well as those who distinguish themselves as experts in a specific area are successful in this business.The brains of these employees contain highly specialised knowledge about solutions and recurring errors in construction.This generates a commonly accessible collective knowledge of the engineering company.Despite superior information technology, databases, exchange of experience, work groups, steering committees, etc.While one view is restricted to information processing, the more successful approach is to viewknowledgecreationasaprocessthatenablesthecompanytorespond quickly tocustomers,create newmarketsandrapidlydevelopnewproductsandservices.The multi-divisional form of organisation found in a number of major enterprises often stands in the way of smooth flow of knowledge across the segments.The understanding of what KM is, means and does to organisations will be expanded upon throughout this book (see Fig.Thus they end up <reinventing the wheel=. 1.1).2.3.4.5.1.2).

Case Study: K&P Engineering: Learning fast
K&P Engineering carries out structural analysis for complex buildings (for example bridges) at two
offices with approximately 30 employees, mostly engineers. Only those engineers who handle
projects efficiently and learn quickly from their mistakes as well as those who distinguish themselves
as experts in a specific area are successful in this business. The brains of these employees contain
highly specialised knowledge about solutions and recurring errors in construction. How can this
information be stored, made available to all and used for training and continuous improvement of
the younger employees? At K&P,frequently recurring construction errors as well as good solutions
are documented using a database structured according to types of buildings. If an employee has to
conduct a structural analysis for a new object, he can update himself with the frequently recurring
construction defects by referring to the database, detect them quickly, avoid them in his construction
work if possible and learn the elements of a