Category Archives: Knowledge Management

Apprenticeship is the Answer

Back in March when I asked if we can fix supply chain education because academic programs, third-party programs, private programs, and vendor programs are, for the most part, not meeting our needs, I pointed out that the answer was to go back in time to when apprenticeshipos were common. When students studied on the job under the guidance of a master who prepared them for the job they had to do, not to advance an understanding of purely intellectual pursuits devoid of a real world application.

While I didn’t get much of a public reaction, I did get some very positive feedback from some old-school folks who have tried everything and realized that work-alongside training is the best answer. But a few old coots, as brilliant as they may be, do not deliver enough critical mass to get the idea out there. However, it seems that India is proving my point. As per this recent article over on Global Services that asks if “everything we know about offshoring innovation is wrong”, not only does an appropriately designed test prove to be a better indication of ability than a University degree, but intensive on-the-job training under a skilled expert tends to produce a better worker in months than is typically produced by years of higher education.

In other words, apprenticeships are the answer.

Elements of Leadership

A recent post over on ChiefExecutive.net on The Four Elements of Leadership had four great tips for helping you manage your top talent. In brief, they were:

  • Understand Your Role
    You’re a leader, not a manager. As a result, you direct, you don’t control.
  • Unify the Team
    Don’t divide the team, don’t add members that will divide the team, and if the team begins to divide, align them against you if need be (on a temporary basis).
  • Deference is for Managers
    If you get too accustomed to having people defer to you, you stop growing as a leader. The team should be empowered to make their own decisions, should know that you’re not the only expert, and should know that you don’t have all the answers and don’t expect that you do.
  • Deal with Differences
    Learn how to identify them, respect them, use them appropriately, and find a common language when not everyone thinks the same.

In other words, leaders lead, they don’t micromanage; they build a team, they don’t just put bodies in seats; they empower the team and acknolwledge their own limitations, they don’t see themselves as superior; and they understand.

It’s a good article with good advice.

A Streamlined Supply Chain Is Integrated

I was pleased to see this recent piece on “Making It Right” over on Stores.org that quoted Brandon Arbiter, the Business Intelligence Manager for FreshDirect LLC, who said that we are operating three businesses simultaneously and that to execute each of these on a daily basis, every department needs to use the most up-to-date information and have that information at their fingertips.

Just like FreshDirect is simultaneously a grocer, an online merchant, and a transportation company, an average CPG supply chain is a manufacturer, a broker, a transportation company, and a bank that has massive amounts of data that needs to be managed in the physical, financial, and information flows. The business operations of manufacturing, brokering, transporatation, and finance cannot be conducted independently if the supply chain is to be successful. Otherwise, goods will be produced too fast or too slow, or they will get held up in customs somewhere, or they will sit in a warehouse for too long, or they won’t ever leave the factory because the last order wasn’t paid for on-time. That’s why a successful supply chain has to be integrated, and also why it’s the only way to arrive at a streamlined supply chain that has to simultaneously minimize the physical, financial, and information flows that need to be in lock-step for success.

Furthermore, not only are the operations and data flows integrated, but so are the metrics. Instead of metrics like shipped complete and on-time delivery, you have metrics like perfect order that say right product at the right time at the right price that integrate all of the operations. So take a lesson from FreshDirect and integrate your supply chain operations.

IP Good, Knowledge Better

I enjoyed this post over on the HBR Blogs that said you should “stop obsessing over intellectual property rights” because what inevitably happens when companies obsess over IP rights is patent frenzy, and that just results in patent pirates plundering. And if that isn’t bad enough, since the full text of your patent is only a click away on the USPTO site, your secret sauce can easily be copied by any set of eyes with interest, and if their country isn’t very protective of IP rights, and they don’t try to sell into your home country, they can profit off of your IP royalty free and you have no recourse.

That’s one reason I’m not a big fan of patents in general, and think that North America should follow the EU and ban software patents specifically. There’s not much value in patenting “processes” that have existed since the dawn of civilization (and we have records of “auctions” going back thousands of years) as the patent can be easily knocked down, and there’s no value patenting a technology “invention” that is based almost entirely on open source, as a simple substitution of a few pieces, a few changes to the integration strategy, and a few new steps makes it a different invention — which means that someone else can use your publicly available blueprint to create their own “invention” with very little effort. Plus, the process is very time consuming and expensive in terms of dollars (as patent lawyers aren’t cheap) and time (as the documentation and questions from the lawyers and USPTO will take up a lot of time). And you can’t defend them unless you’re cash-rich, making them weak defenses if you’re cash poor.

I’m not saying IP isn’t important, it is, and, fortunately, it is protected under copyright law and other laws if you keep it trade secret. I’m just saying that IP isn’t everything. As the post points out, it’s what you do with the IP that matters. And effective use requires effective knowledge management. As the post points out, pursuing IPR (IP Rights) entails structuring and documenting knowledge, and the irony is that this very structuring allows diffusion to other firms who get access to it and either work around the IPR or eventually imitate it — so if you don’t effectively manage your knowledge, you lose it, or at least the benefits of it.

However, since a powerful strategic opportunity lies in binding your tacit knowledge assets to your structured knowledge, proper knowledge management can lead to significant market advantages and revenues, and make you a thought leader, like it did for Adobe, McKinsey, and Bloomberg.

So how do you create a knowledge management strategy? The authors suggest that you start by mapping your knowledge assets against a codification/diffusion grid that separates them into core compentencies, patents & copyrights, industry wide principles, and industry conventional wisdom, using the process described in this post on “are you wasting money”. Each type of asset requires a different strategy where protection and revenue generation are concerned.

In the end, legally owning your knowledge pays off only if you’re cash-rich enough to monitor and enforce the IPR. For most organizations, what ultimately drives performance is the organization’s possession of deep, tacit knowledge and its ability to identify, construct, and exploit knowledge networks using that knowledge to generate continual revenue streams.

McKinsey’s Seven Steps to Better Brainstorming

How do you generate better and more creative ideas for innovation, CI (Continuous Improvement), and BPR (Business Process Re-Engineering)? According to the McKinsey Quarterly, you need “better brainstorming” instead of the familiar brainstorming process where the company brings in an outside moderator who knows little about the business and offers little motivation to the employees who do not think that the session is a good use of time.

This process, that the authors call “brainsteering”, is a more advanced form of brainstorming that requires more preparation, the ability to leverage how people typically think, and the leadership to steer the energy wasted in a typical brainstorming session into a productive direction. The preparation starts with the following seven steps:

  1. Know Your Organization’s Decision Making Criteria
    It’s useless to think outside the box if the organizational policies create boxes that cannot be escaped. Make sure any absolute criteria are known and outlined in advance. This allows participants to avoid wasting time on ideas that will not be accepted and makes for a more productive session.
  2. Ask the Right Questions
    Decades of research has shown that traditional, loosely structured brainstorming techniques, are inferior to approaches that provide (some) structure. One of the best techniques is to use (well-designed) questions as the platform for idea generation. The “right” questions, of which there should be about one per person, are those that force participants to take a new, unfamiliar perspective while still limiting the conceptual space the team will explore (to the organizational box of the first step).
  3. Choose the Right People
    Specifically, pick people, with “in the trenches” knowledge, who can likely answer the questions you’re asking. Don’t bring an MBA to help you with CI on the NPD process for electronic component design.
  4. Divide and Conquer
    Conduct multiple, discreet, highly-focused idea generation sessions among subgroups of 3-5 people that focus on a single question, or a small set of related questions, being sure to isolate “idea crushers” in their own subgroup. This will ensure that everyone speaks up and contributes.
  5. On Your Mark, Get Set, Go!
    Before you break the participants into subgroups and set them off, take the time to clearly explain your expectations, which revolve around a deeper consideration of key questions than traditional brainstorming sessions. Explain that, given the restrictions, a group may only generate two or three worthy ideas and that any ideas outside the scope of the current discussion should be written down and saved for the appropriate time.
  6. Wrap it Up
    While each subgroup should share all of its leading ideas with the entire group to motivate and inspire participants, the group shouldn’t pick a winner. Since the participants won’t always have the executive-level or subject matter expert understanding of the criteria and considerations that must go into prioritizing ideas, picking winners is not a fruitful exercise. Instead, describe what steps the organization will use to pick the winners and how, and when, the winning ideas will be announced.
  7. Follow Up Quickly
    Decisions and announcements should be quick and thorough. Team members won’t be demoralized if their idea wasn’t chosen, instead, their morale will be increased when they get feedback as to why the winner was picked that they can use to generate better ideas next time.

Some of these steps contain some good advice, and the McKinsey Quarterly article on “seven steps to better brainstorming” contains some great examples. Check it out.