Preserving and Using Institutional Memory Through Knowledge Management Practices (2007)

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96 SHORT-TERM IDEAS Steve Bates (2003) interviewed Thomas H. Davenport, direc- tor of the Accenture Institute for Strategic Change. According to Bates, Davenport recounted an event involving an explo- sion in a petroleum plant in which investigators discovered that the company’s engineer and control room operators had been on the job for less than one year and lacked the expe- rience to prevent the accident. Often less attractive jobs are vulnerable to knowledge loss. According to Bates, recom- mended steps for capturing the expertise and knowledge of workers near retirement include: (1) mentoring programs; (2) identifying knowledge at-risk by establishing a process to determine which employees have the most critical knowl- edge; (3) instituting succession and career development plan- ning; (4) building knowledge that professionals will need as they move through the organization; (5) mastering practices of knowledge transfer, including face-to-face, training pro- grams, and other human resources tools; (6) using information technology, which can supplement person-to-person knowl- edge transfer; (7) exploring phased retirement and looking for new ways to hold on to key workers; (8) using retirees effectively and considering formal programs to re-employ former employees; and (9) building a retention culture and making retention part of the organization’s mission. Eric Lesser and Laurence Prusak (2001) wrote that volun- tary reductions in the work force may have a negative effect on preserving knowledge. Unfortunately, often the most mar- ketable and knowledgeable individuals leave first. In addi- tion, sometimes early retirement programs are offered in con- junction with voluntary reductions, which only compounds the problem. Downsizing can hurt the social networks that play a critical role in helping people identify, share, and work with corporate knowledge. Worse, managers may not even be aware of the roles that individuals play as knowledge activists—the authors tell us the World Bank calls them “bon- ders and bridgers”—who oil the wheels that keep informa- tion flowing. Cutbacks and outsourcing can undermine trust that is critical to knowledge transfer. Tightened business con- ditions can lessen the slack time needed for knowledge shar- ing. In times when immediate, quantifiable payback is sought, managers may send an unspoken message that manag- ing knowledge is something we can live without. The authors recommended some solutions. By spreading pay cuts rather than layoffs, the underlying social networks can be main- tained. Organizations can develop systematic processes for recording knowledge of employees on the verge of retire- ment by using video interviews and hyperlinks to documents and reports. Bonuses can be paid to departing employees willing to share their working knowledge with their replace- ments. Newer employees can work alongside most knowl- edgeable employees, especially in project-based situations. Because tacit knowledge is more easily reproduced through imitation and adaptation than through traditional documenta- tion, letting workers with varying levels of expertise mingle can facilitate transfer of essential knowledge. LONGER-TERM ORGANIZATIONAL DEVELOPMENT APPROACHES Christopher Conte (2006) described how state and local offi- cials are grappling with the unprecedented loss of institutional memory because of the number of public officials approach- ing retirement. Those concerned with institutional memory must focus on knowledge management (KM), especially tacit knowledge. Some organizations try to collect lessons learned; however, it is unclear if such systems work. Do people really have time to read through past case studies and, if they do, are the studies relevant to the new project at hand, which may well be a brand-new problem? Too much focus on the past can make government less flexible and effective; past infor- mation may be irrelevant, given the pace of change. Another strategy often used is training, but much learning goes on in real life, so the effectiveness of training is subject to question. For example, the Georgia Merit Systems, the central person- nel agency for the state of Georgia, urges agencies to give promising employees accelerated opportunities to broaden their experience through job shadowing, mentoring, job rota- tions, and various special assignments. However, there are only so many slots and not all employees can be given one. Conte described a promising new technique called “social network analysis” or “knowledge mapping,” based on the idea that it’s not what you know but whom you know. He described a pilot project in this technique in the Canadian federal gov- ernment’s environmental agency that used social networking, whereby people were asked whom they rely on for help with different issues. Patterns of interaction were mapped and some individuals were identified as “nodes” in the network. In some areas, a few key individuals were heavily relied on; therefore, management must take steps to develop skills in others. There were risks: some saw the process as an invasion of pri- vacy, some managers saw it as threatening to their control, and some workers who played essential functions outside their official duties were afraid of being punished for not adhering to their job descriptions. Conte further asserted that if effective use of knowledge catches on in the public sector, credit must go to individuals APPENDIX I Annotated Literature Survey Regarding Challenges Owing to High Rate of Retirements and Leave-Taking

97 such as Maureen Hammer, Virginia Transportation Depart- ment Knowledge Manager Officer. She found that networks of contacts among employees were becoming more localized in the face of fiscal austerity that limited travel in the state, membership in professional associations, etc. She used knowl- edge mapping to find out whom employees relied on to get their job done. Hammer instituted communities of practice. According to Conte, Hammer believes communities of prac- tice have to yield short-term dividends, and must secure con- tinued support from top management and policymakers to buy time to put into effect longer-term efforts. In one instance, an online community of practice stalled because participants did not know or trust each other well enough to discuss prob- lems openly. Conte wrote that Hammer argued that KM must transcend turf battles and must not be used against people. KM leaders must facilitate, not direct, and stay neutral. Quality Management Systems—Guidelines for Performance Improvements, ISO 9004:2000 Guidelines for Performance Improvements (2000) Section 6.2.1 states that “As an aid to achieving its performance improvement objectives, the organization should encourage the involvement and development of its people” (p. 15). It goes on to list 12 ways to do that, including “by investigating the reasons why people join and leave the organization” (p. 15). Frank M. Kahren (2004) advised paying close attention to worker demographics. Managers should staff positions requir- ing extensive experience with the intention of allowing more junior employees to grow in experience. Allow succession in positions where workers are so specialized as to be key to some segment of the operation, especially in those day-to-day jobs of people who actually run the system. Shape the orga- nization to mirror more closely future demands. For exam- ple, organizations typically go through cycles. Growth cycles require more planners; stewardship cycles require people to operate, sustain, and upgrade existing systems. One action the organization can take is not to replace departing employ- ees whose skills are not as applicable to the cycle the orga- nization is in. Organizations can also encourage employees to transfer between disciplines and increase their skill sets. As an example, during stewardship cycles planners can become operations, training, or human resources personnel, and this cross-discipline work provides a great overall benefit to the organization. Such reorganization can be particularly useful when there is an executive vacancy and less likelihood of protecting territorial boundaries. Kahren reminded us that people leave, there are terminations, individuals quit to pursue other opportunities, and people choose to retire. This employ- ment cycle is inevitable and organizations can use it to save money, make the workplace less threatening, preserve the level of experience, and facilitate necessary reorganizations. Patrick J. Kiger (2005) described the predicament caused by the aging of the baby boom generation as a “Y2K” problem. He warned that if companies do not prepare now, no amount of money thrown at the problem will be enough. The problem will span at least a decade. Kiger made the point that the vul- nerability may be not so much in the positions of current “top talents,” but in the less glamorous jobs that are hard to fill, such as jobs on oils rigs, maintenance, in difficult environ- ments, or that require significant time away from families. Among his solutions to help companies cope was including social scientists and cultural anthropologists along with con- ventional business consultants on consulting teams. Use sophisticated software to analyze the problem within indi- vidual organizations to figure out where make-or-break losses in key competencies may occur. Entice older workers to remain on the job. Make jobs interesting for retirement-eligible work- ers. Redesign jobs to provide more flexible working hours or telecommuting. Redesign work environments to be more ergonomically comfortable, including easier-to-read computer monitors and other tools. Do succession planning beyond the top executive level. Develop extended supply chains of peo- ple by creating a pool of individuals to train and develop so they are ready to move into positions in about three years. Capture departing workers’ knowledge, through mentoring programs and better documentation. Change the business strategy to reduce the importance of the positions and skills of retiring workers by revamping jobs or outsourcing. Vicki J. Powers (2006), in an article published on the “Free Resources/Knowledge Management” section of APQC’s (formerly known as American Productivity & Quality Center) website, referenced some of the ideas of Darcy Lemons, also of APQC, who argued that one of the best ways to retain critical knowledge is to embed knowledge retention efforts in the overall management strategy by redesigning existing processes to focus on knowledge retention needs. First, iden- tify critical knowledge that may be at risk because of retire- ments or layoffs; second, communities of practice and other such human resource approaches, although in themselves useful tools, are not always the proper tools for identifying and retaining critical knowledge. Powers recommended cal- culating the cost of lost critical knowledge—how much pro- ductivity will be lost? How will research and development remain competitive? She went on to discuss how choosing the right tools to capture knowledge depends on the culture of an organization, but the most important aspect is leverag- ing what is already in place. For example, if human resources already conduct exit interviews, record the responses and capture that knowledge. In some organizations, communities of practice work better; in others, focus groups are better. Tool selection depends on the person who has the knowledge and who will be the recipient. A scientist will probably pass on documents; however, that can be augmented by mentoring, or having another employee “shadow” the scientist. Hire peo- ple with strong knowledge-sharing behaviors such as “high- touch” capabilities; ability to function well in communities of practice, face-to-face meetings; and also ability to use ded- icated KM repositories effectively. Use phased programs during which retirees are brought back with more flexible or

shorter hours. Give current employees “just-in-time” access to retirees as they need them for current work. William Seidman and Michael McCauley (2005) presented methods for protecting an organization against the potential loss of retiring knowledge workers (RKWs). They recom- mended that although the conventional wisdom is to gather the knowledge of everyone approaching retirement age, in fact it is necessary to gather the knowledge of only critical, high-performing knowledge workers, the “best of the best.” They recommended aiming for quality assurance of the con- tent; at some companies, individuals nearing retirement have mentally retired years before and their knowledge may be out of date and of marginal value to the organization. Focus on the highest performers, those who know how to get things done, and harvest their knowledge regardless of age. Deter- mine the critical or most core processes in the organization that most require protection and identify the top performers in those processes. It may be seen as socially unacceptable to identify publicly that some parts of an organization are more important than others; however, from a knowledge perspec- tive, it is essential to prioritize. Preserve only the knowledge of the few top-performing RKWs in key areas. Seidman and McCauley go on to assert that only tacit knowledge of the top-performing RKWs matters. One of the most critical pieces of RKW knowledge is the subtle cueing and categorization process that enables quick discrimination between a number of alternatives. They recommended a spe- cialized interview called a “naïve new person interview,” led by a human facilitator, supported by digital coach technol- ogy, which is software that simulates the human coaching experience. Using it, the RKW can polish their knowledge into a best practice, which can then be made available through an electronic library. They recommended that RKW knowl- edge not necessarily be stored to be used only after the worker retires, but that it is promptly made available both for immediate improvement to the organization and is protected for use in the future, when the RKW is no longer there for personal contact. Thus, the RKW knowledge can immediately be used to improve less-effective performers, rather than for just one successor. Gathering RKW knowledge is not just a one-time event; however, successors should regularly update the knowledge through continuous use and feedback. Thus, the problem is not so much an RKW problem, but a knowl- edge problem. The goal is to make what is today considered “RKW knowledge loss” into a process that protects knowl- edge losses generally from layoffs, illness, transfers, or other forms of departure. The authors believe that the potential for massive retirements can present an opportunity to improve overall productivity and that by following their approach, the RKW problem can be resolved permanently. Mallory Stark (2004) discussed “knowledge nomads”; that is, workers who job hop taking their knowledge with them. She recommended that managers seek not to “retain” workers who are knowledge-rich, but to “re-recruit” them; 98 maintaining that workers do not want to be “retained,” they want to be valued and engaged. Typical retainment approaches of raising salaries or changing job titles have little to no effect. Provide opportunities for formal and informal learning; set up situations where workers do not have to choose between loyalty to their careers and loyalty to their organizations; and nurture small work groups, which fosters commitment. Develop a culture conducive for eliciting commitment and engaging knowledge workers. UTILIZING RETIREES POST-RETIREMENT OR KEEPING RETIREMENT-ELIGIBLE EMPLOYEES ON THE JOB Eric Lesser (2006) recommended a number of strategies for addressing the aging work force. Create a cross-functional team of executives who have a solid understanding of over- all business objectives and marketplace needs, and have it prioritize individual positions and groups where interven- tion is critical. Redirect recruiting and sourcing efforts to include mature workers. Offer flexible benefits, including unpaid leave around holidays or on the birth of a grandchild. Make use of the benefits that older workers bring to the work force, which are decreased absenteeism and customer reten- tion. Institute programs in which older workers work on a project-consulting basis. Use telecommuting. Elicit tacit or experiential knowledge through detailed interviewing and/or documentation. Store knowledge in explicit form for future use. Use mentoring arrangements and communities of prac- tice. Use technology to help employees share lessons learned, expand the organization’s knowledge base, and improve operational quality. Use videotaping with or in addition to storytelling. Use websites. The author cautioned that age alone is not linked directly to difficulty in adopting com- puter use in the workplace. There are accessibility issues such as deciphering smaller typefaces, understanding the audio portion of a streaming video, or controlling hand motions for use of a computer mouse. Incorporate ample time for the practice of new technology. Address learning needs by considering programs that focus on building new skills and leveraging the wealth of experience. Jay Liebowitz (2004) reported on the issue of determin- ing and closing knowledge and skills gaps in the federal government. He cited numerous studies about the dimen- sion of the challenge and detailed numerous initiatives that can be taken by the federal government to deal with the problem. One often overlooked source is the untapped pool of talent: the federal retirees themselves. Options are a knowl- edge retention program, mentoring activities, and knowledge sharing forums with retirees and current government employ- ees. He asserted that many retirees would like to work in some capacity and seek opportunities to share their insights to help bridge possible knowledge gaps. Another initiative is the creation of a more flexible work force, with a segment of the work force kept on-call to deal with specific issues. He referred to management theorist Charles Handy’s frame-

99 work for organizational workers: (1) a core group of man- agers and skilled workers who lead the organization and provide stability and continuity; (2) the contractual fringe; and (3) a flexible labor-force of a project-based employee pool, composed of people loosely connected to the organization on a job-by-job basis. Older workers might be useful in items 2 and 3. Other ideas from Liebowitz include tapping retirees as re- employed annuitants; use retirees as part-time employees through reemployed part-time or phased retirement programs. Unions, however, may look unfavorably on this approach as taking jobs from current employees. Other options include Canada’s technique of “casual employment,” especially when specialized expertise is required; limited-term appointments; using retirees as mentors, emeriti, or as participants in knowl- edge sharing forums; and knowledge capture activities such as knowledge sharing workshops, storytelling, and one day “transfer wisdom” workshops. He suggested expert data- bases of current and retired practitioners, programs where a new employee shadows a prospective retiree, document- ing procedures and processes, and brown bag lunches twice a week. Liebowitz reviewed a survey of NASA and NIST (National Institute of Standards and Technology) retirees and alumni that found that 91% agree they would be interested in work- ing part-time with their former employers. They favored phased retirement programs, retiree job banks, emeritus pro- grams, part-time retired annuitant/project team consultant programs, and mentoring programs. They were less interested in knowledge-sharing forums, rehearsal retirement/boomerang jobs, job sharing, facilitating online communities of practice, or a knowledge capture/retention program. He made four recommendations: (1) that there be legislation giving all fed- eral agencies authority to reemploy annuitants and to insti- tute phased retirement programs, (2) that federal employees should be brought back into the work force for knowledge sharing and management roles, (3) that each agency have an association of retirees and alumni to allow quick access to talent, and (4) that each agency have a more flexible work force and that retirees be a part of that work force.