Two knowledge management researchers present a strikingly simple framework to visualize what organizations can do with their strategic knowledge assets. In Harvard Business Review (Jan-Feb 2015), Ihrig and McMillan suggest that every organization plot their knowledge assets along two dimensions – the extent to which the knowledge is distributed (undiffused to widely diffused) and the extent to which the knowledge is codified (unstructured or tacit to structured).
For example, a company may have proprietary expertise that is in key people’s heads (unstructured and undiffused), proprietary process documentation (structured and undiffused), product usage guides (structured and diffused), and so forth.
The authors suggest four ways to manage knowledge assets, each visualized as a movement along the horizontal or vertical axis.
Contextualize. Take some codified process and apply in new setting. For example, P&G uses its brand building process in new markets. This is indicated by an arrow pointing down vertically.
Codify. Make explicit the product knowledge – and leave process knowledge sharing informal – to protect against leaks. Combine people networking with knowledge codification to dig deeper into tacit knowledge. Use structured knowledge as hook to get to the right person. Codification is indicated by an arrow pointing up vertically.
Diffuse. Diffusion works best at the top where knowledge is structured. You can diffuse knowledge either inside the company (through apprenticeships and other knowledge sharing practices) our outside by licensing (the way Du Pont or Harvard Business Publishing do) or by giving away strategically (the way Tesla does with patents, Adobe with the pdf format, and Mckinsey with ther Insights newsletter).
Gain insights from big data. This is the hardest to systematize, but successful examples include Rolls Royce (who use engine sensors for scheduling preventive maintenance), and Subway (who capitalized on low-cal trend).
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