Chapter 2



Productive knowledge flows increase the potential for value generation. In other words, when knowledge is transferred quickly and easily from where it is generated to where it is needed it has more opportunity to make both a short and a longer term difference to something that matters to the organization. The organization is only one element in an industry/sector-wide system of knowledge-based activity that includes individual employees, customers, suppliers, competitors, and other institutions. Ultimately the knowledge value generated depends on how well connected the organization is within that system and how effectively nine critical knowledge flows work together to influence the firm’s performance.

A method has been developed that allows you to build an integrated picture of these nine major knowledge flows and to diagnose what can be done to make them more effective. The approach is based on a two-level framework. The top level outlines the nine flows in some detail (describing the measurable objectives that can be achieved from assessing current and desired status in relation to each flow). This gives you the big picture so that you can make an evaluation of strategic priorities. The second level outlines the common influences affecting how smoothly each of the top-level flows works. It is at this level that you can identify practical initiatives that will have the most impact in reducing waste and inefficiency. ...

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