Friday, March 23, 2001

Introduction
Executives have for long time tried to find new ways to get more success in managing firms and to get more competitive advantage. All kinds of managing theories have pop up through the years, but none of them have been able to follow the changes that have been in the business environment. When I began my College study, there were theories about Quality Management. This method should improve competitive advantage and their productivity. It didn’t past much time until other theories arise, such as Reengineering and Change Management, which supposed to have something more than other theories. Most of these theories did have the objective to standardize operations, cut down cost and ensure fated outcome on service or product. Obviously, the problem with most of these methods that they try to standardize human behavior and thoughts and that is why it has been difficult to get them to work in human relationship. Human behavior is a very difficult phenomena and that is why it is difficult to standardize it and do it homogeneous for each one. We think and see the external world in our own special way and this will not be chance by any methods. There is also problem with these standardized methods that it is possible to copy them from one company to another, and that is why they are not feasible to make competitive advantage for long time period.

Most of the companies are built on an organizational structure that has been known for decades and little has been done to change this work structure. These organizational structures are often named “Top-down” and “Bottom-up” models and are built on hierarchy. It woke up my attention whether most of company’s problems could be in this fixed management and work organization. In many cases, previous organization doesn’t serve enough that purpose to allow enough information and knowledge flow inside companies. This has often lead to more investments in hard technology to minimize these problems, but managers after that discover, when they have spent huge amount of money in these investments, that the real problem is human kind and deals with organization and the time of those who should deliver the information’s. In fact, there is a need for scope for the employees to formulate and produce the information, rather than technology to transfer the knowledge, information or the data.

What does the Knowledge Management so interesting is that it handles about human behavior and communication. All business systems handle about people or are made by people. Knowledge is something we have always known, but never wondered about or how we could mange it or stimulate its creation. When we think deeper about knowledge, then we chew over how knowledge is create. With theoretical researches and experiments, we try to prove and disprove those things, which influence knowledge creation, how it is possible to stir learning and how to share knowledge.

In this forum I will give managers change to bring up questions about Knowledge Management and how they can implement such human system into their companies.

Sincerely

Sigurjon Haraldsson, MSc. in Strategy and Management from University in Iceland.

P.S. If you would rather write personal letters, then e-mail: sigurjon@mail1.stofanet.dk