Monthly Archives: March 2009

Beyond the knowledge management productivity paradox

Artist: Sarah Carter Jenkins www.sarahcarterjenkins

Artist: Sarah Carter Jenkins www.sarahcarterjenkins

10 Years ago the Knowledge management Handbook stated that few companies were capable to develop a sound business case for knowledge management.

10 Years after, I still encounter in my working environment the same challenge. I call the knowledge managemewnt productitity paradox. The knowledge management productivity paradox is the concept that despite the importance for companies and organizations worldwide, there still seems to be little pay-off.

Knowledge management systems can no longer be viewed as a support service for a business. Knowledge management now has a lead role to play in the strategic planning processes of any organization.

As we move further and further into a knowledge in the network-based working environment, a critical question is how the value of knowledge management can be measured and evaluated!

We saw a similar development in the early nineties. The productivity paradox (also known as the Solow paradox or sometimes the Solow computer paradox) is the theory that computers have contributed negligibly to productivity, and is often summarized with Robert Solow‘s 1987 quip, “You can see the computer age everywhere but in the productivity statistics.”[1] The paradox has been defined as the “discrepancy between measures of investment in information technology and measures of output at the national level.”[2] It was widely believed that office automation was boosting labor productivity (or total factor productivity). However, the growth accounts didn’t seem to confirm the idea. From the early 1970s to the time Solow was writing there was a massive slow-down in growth as the machines were becoming ubiquitous. (Other variables in country’s economies were changing simultaneously; growth accounting separates out the improvement in production output using the same capital and labour resources as input by calculating growth in total factor productivity, AKA the “Solow residual“.)

For understanding the paradox, different authors have identified different requirements; Turban, et. al (2008), mention that understanding the paradox requires an understanding of the concept of productivity. Pinsonneault et al. (1998) state that for untangling the paradox an “understanding of how IT usage is related to the nature of managerial work and the context in which it is deployed” is required.

One hypothesis to explain the productivity paradox is that computers are productive, yet their productive gains are realized only after a lag period, during which complementary capital investments must be developed to allow for the use of computers to their full potential. Another hypothesis states that computers are simply not very productivity enhancing because they require time, a scarce complementary human input. This theory holds that although computers perform a variety of tasks, these tasks are not done in any particularly new or efficient manner, but rather they are only done faster. Current data does not confirm the validity of either hypothesis. It could very well be that increases in productivity due to computers is not captured in GDP measures, but rather in quality changes and new products.

Economists have done research in the productivity issue and concluded that there are three possible explanations for the paradox. The explanations can be divided in three categories:

  • Data and analytical problems hide ´´productivity-revenues´´. The ratios for input and output are sometimes difficult to measure, especially in the service sector.
  • Revenues gained by a company through productivity will be hard to notice because there might be losses in other divisions/departments of the company. So it is again hard to measure the profits made only through investments in productivity.
  • Revenues are unnoticed because of losses and expenses: there might be a third possibility; information technology doesn’t raise the productivity. For example: the output can increase with 50%, but if the input increases with 60% there will be a decrease in productivity.

At this moment I agree with Turban’s point of view . Knowledge management is – in his opinion – necessary for improving productivity and quality (similar to Abell’s cost and quality). I would prefer to add flexibility, innovation within the organization and its network.

Artist: Sarah Carter Jenkins www.sarahcarterjenkins

Artist: Sarah Carter Jenkins www.sarahcarterjenkins

Ways of seeing: Helen Levitt

Helen Levitt, one of the greatest photographers of our time passed away yesterday at the age of 95. Levitt was a pioneering and extraordinary artist. Her work will certainly continue to inspire young photographers. But more over, Helen was capable to connect to city contexts. And acting accordingly. That’s the reason I insert this post of her work. All of her work strongly recommended!!

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Helen Levitt by Helen Levitt

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Oops, remarkable! 03/31/2009

  • Vava Ribeiro Biography

    The youthful, dream-like utopias of Vava Ribeiro’s photography mark out a unique artist.

    The beach culture of Vava Ribeiro’s native Rio was an early influence and the shore remains a common setting in his work today. The light quality you would find at the sea’s edge, and which illuminates Vava Ribeiro’s images, sums up a characteristic of his work in general: it is gentle and romantic while simultaneously being utterly natural and unflinching.

    An intuitive handling of youthful beauty is intrinsic in Vava Ribeiro’s work and he captures his subjects from an intimate stand point. Vava Ribeiro explores dream worlds that are infused with an air of deja vu where a playful handling of idealism and nostalgia creates a laidback atmosphere of cool composure.

    His work spans portraiture to fashion and Vava Ribeiro is a regular contributor to publications including Purple, Exit and Dazed and Confused. He has worked with clients from Levis to Miller and has been exhibited from San Paulo to Tokyo via France, where he won the jury prize for photography at the prestigious Festival International des Artes de Mode at Hyeres in 2000.

    tags: no_tag

  • tags: no_tag

Posted from Diigo. The rest of my favorite links are here.

Blown to bits: the future of music, media and content

Artist: Vava Ribeiro

Artist: Vava Ribeiro

Artist: Vava Ribeiro

Artist: Vava Ribeiro

Look:your next reorganization must be around customers or services

Artist: William Selden

Artist: William Selden

Yes, they will come again.

The depression and the preparation for the forthcoming boom will lead to a restructuring, anyway.

Maybe this time, the reorg quells internecine conflict among functional and geographical silos by relocating the profit and loss center.
Now in a networked services economy, heavily dependent on knowledge, my prediction is that services P&L or a customer based P&L will be major trends.

Quite a few companies have already shifted their focus to product (services) categories, sometimes encountering pittfalls. My trend prediction is that we are witnessing this evolution even more in the forthcoming quarters. Functional silos are becoming integrated. Geographic silos have already become online.

Focussing on services (products) and customers is the only way you can manage your operations and lead it to a succesfull boom.

Do you agree?

Artist: William Selden

Artist: William Selden

What is the most common CRM mistake?

Artist: William Selden

Artist: William Selden

The Lexnet blog started a series of email interviews at their blog.

They’ll be talking to CRM, sales, lead gen and inbound marketing experts to get insights on their respective industries.

Christopher Carfi, who has one of the top CRM blogs of 2008, helps them to kick off the series below:

Name: Christopher Carfi

Company/Title: Cerado, CEO

Website/blog/Twitter:

Website at http://www.cerado.com,

blog at http://www.socialcustomer.com,

Twitter @ccarfi

How did you get involved with CRM?

I’ve always worked at the place where customers, sales & marketing, and engineering have come together. The most interesting problems are the ones where the complexities of customer’s problems need to be wed with available and envisioned solutions. In 2002, I co-founded Cerado, with (at that time) a focus on listening to the customer by using research. Since then, I’ve been increasingly involved in all of the three “traditional” pillars of CRM vis-a-vis marketing, sales and support.

What’s the most powerful tactic or strategy for which CRM can be used?

It’s simple. Listening to the customer. Many marketers become enamored with telling the customer what she should think. Listening is a much more powerful tactic. It eliminates the guesswork!

What’s the most common CRM mistake?

Focusing on technology. Ultimately, CRM is about people and how you interact with them.

What’s the biggest CRM trend on the horizon?

I would say the biggest trend that’s on the horizon is Vendor Relationship Management, a project headed up by Doc Searls that’s being run out of the Berkman Center at Harvard. The biggest trend that’s here today is mobile, and how the mobility of both customers and individuals who work in vendor organizations are taking advantage of always-available information, regardless of where they are.

What job would you do if you weren’t a CRM expert?

Whitewater river guide.

Artist: William Selden

Artist: William Selden

Blown to bits: training of knowledge

Artist: Vava Ribeiro

Artist: Vava Ribeiro

This blog expresses my view that connecting to a a context and acting accordingly is very important. The included item stresses the importance of a changing mindset and attitude.
Ins my recent posts I reflected on knowledge (and the difficulties we encounter from a managerial perspective).  The challenges if attitude is the dominant element is similar (in my opinion one can not limit attitude to a bi-annual employee satisfaction survey!
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Please feel free to share your attitude and knowledge!

As part of the continual rethink about what I offer and to who (e.g. training department rethinks to managers, directors, VPs; experience design reviews/refines to learning teams), my thoughts on learning experience design took a leap.  I’ve argued that the skills in Engaging Learning (my book) are the ones that are critical for Pine & Gilmore’s next step beyond their experience economy, the transformative experience economy. But I’ve started to think deeper.

John Seely Brown challenged us at the Learning Irregulars meeting that what fundamentally made a difference was a ‘questing disposition’ found in certain active learning communities.  This manifests as an orientation to experimentation and learning. My curiosity was whether it was capable of being developed, as I’m loath to think that the 10% that learn despite schooling :) is inflexible because I believe that more and better learning has a chance to change our world for the better.

I hadn’t finished the article he subsequently sent me (coming soon), but it drove me back to some early thinking on attitude change.  I recognize that just learning skills aren’t enough, and that a truly transformative experience subjectively needs to result in a changed worldview, a feeling of new perspectives.  This could be a change in attitude, a new competency, or a fundamental change in perspective.

Which brings me back to looking at myth and ritual, something I tried to get my mind around before. I was looking for the Complete Idiot’s Guide to Ritual, and the closest thing I could find is Rapport’s Ritual and Religion in the Making of Humanity, which is almost impenetrably dense (and I’m trained and practiced at reading academic prose!).  However, the takeaway is that ritual is hard to design, most artificial attempts fail miserably.

Others have suggested that transformation is at core about movement, which takes me back to ritual.  Both a search on transformation and a twitter response brought that element to the surface.  The other element that the search found was spirituality (not just religious).  Which is not surprising, but not necessarily useful.

Naturally, I fall back to thinking from the perspective of creating an experience that will yield that transformational aesthetic, but it’s grounded in intuition rather than any explicit guidance. Still, I think there’s something necessary in the perspective that skills alone isn’t enough, and as I said before, as much of our barriers may be attitude or motivation as knowledge and skills.

I’ve skimmed ahead in JSB’s article, and can see I need a followup post, but in the interim, I’d welcome your thoughts on designing truly transformative experiences, not just learning experiences.

http://blog.learnlets.com/?p=884

<!–Filed under: design — –>Clark @ 12:15 pm 28/3/2009

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Artist: Vava Ribeiro

Artist: Vava Ribeiro

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