MAKE Framework

MAKE Framework

After reviewing various knowledge management approaches and models, such as those developed by BP, CREATE, the Knowledge Management Consortium International, Theseus Institute, University of Kentucky and Xerox. Teleos has developed a framework of eight knowledge performance dimensions which are the visible drivers of the knowledge-driven enterprise:
• creating an enterprise knowledge-driven culture.
• developing knowledge workers through senior management leadership.
• delivering knowledge-based products/services/solutions.
• maximizing enterprise intellectual capital.
• creating an environment for collaborative knowledge sharing.
• creating a learning organization.
• delivering value based on customer knowledge.
• transforming enterprise knowledge into shareholder value.

Each of these eight knowledge performance dimensions is made up of dozens of knowledge processes and sub-processes. Taken together, they serve as the ‘engine’ of the knowledge-driven enterprise.

The eight knowledge performance dimensions which form the MAKE framework are found in all world-class enterprises. They are seen as key drivers in creating wealth in knowledge-intensive organizations. Listed below are the major processes which form the foundation of the eight knowledge performance dimensions.

Creating an enterprise knowledge-driven culture
The key drivers of this knowledge performance dimension include:
• Developing and deploying a knowledge-driven enterprise vision and strategy.
• Determining enterprise core competencies (knowledge assets).
• Designing a knowledge-driven enterprise structure and relationships between enterprise units.
• Developing and managing enterprise knowledge values.
• Developing and managing enterprise knowledge behaviors.
• Developing and managing enterprise knowledge systems/processes.
• Creating and managing a knowledge-based human resources strategy.

Developing knowledge workers through senior management leadership
The key drivers of this knowledge performance dimension include:
• Developing and deploying an enterprise management style that encourages the acquisition,
sharing and application of knowledge for enterprise value creation.
• Providing financial and non-financial enterprise support for managing knowledge.
• Encouraging and supporting an enterprise knowledge strategy and approach.
• Developing and training knowledge leaders.
• Recognizing/rewarding knowledge leaders.

Perhaps the key knowledge performance attribute in this knowledge performance dimension is the chief executive officer’s support. This support involves articulating a clear vision for the organization, including how it is going to become and then grow as a knowledge-driven enterprise.

Delivering knowledge-based products/services/solutions
The key drivers of this knowledge performance dimension include:
• Developing and deploying an enterprise knowledge creation and innovation strategy.
• Developing and training the workforce in idea generation and innovation.
• Involving customers and suppliers in the development of knowledge-based goods and services.
• Increasing/expanding enterprise knowledge.
• Managing the transfer of knowledge and ideas to ‘points of action.’
• Recognizing/rewarding innovators.
• Managing the production and/or service of knowledge-based goods and services.
• Measuring value created from knowledge creation and innovation.

Visionary companies create an environment of ‘discomfort’ to stimulate change and improvement –before their customers/clients demand it of them. Best practice innovative organizations display the following characteristics:
• Employees are allowed free time to be creative.
• Functional barriers are removed and ‘silo’ mentalities discouraged.
• Employees are allowed to take risks and to make mistakes.
• Organizations create reward systems which encourage innovation.
• Networks and communities of practice are encouraged.
• Customers are integrated into the creative process – problems are looked at from the customers’ perspective.
• The innovation process is under continuous review and improvement

Maximizing enterprise intellectual capital
The key drivers of this knowledge performance dimension include:
• Developing and deploying an enterprise intellectual capital strategy.
• Developing and training the enterprise workforce in intellectual capital concepts and tools.
• Developing tools and techniques to manage and measure intellectual capital.
• Managing and expanding intellectual capital.
• Protecting knowledge assets.
• Recognizing/rewarding employees for increasing enterprise intellectual capital.

Creating an environment for collaborative knowledge sharing
The key drivers of this knowledge performance dimension include:
• Developing and managing the capture, categorization and use of knowledge.
• Mapping knowledge resources throughout the organization.
• Converting individual tacit into enterprise explicit knowledge.
• Creating systematic mechanisms for sharing existing internal and external knowledge and best practices.
• Providing information technology platforms for knowledge sharing.
• Developing communities of practice.
• Effectiveness in identifying and accessing internal and external expertise.
• Establishing knowledge-based reward and recognition systems.

Creating a learning organization
The key drivers of this knowledge performance dimension include:
• Developing a knowledge-driven enterprise learning strategy.
• Developing collaboration/partnerships for accelerated learning.
• Developing and/or acquiring learning methodologies, tools and techniques.
• Converting individual tacit into enterprise explicit knowledge.
• Developing communities of practice.
• Learning by doing.
• Coaching and mentoring.
• Developing an organizational learning infrastructure, e.g., corporate intranet for the internal and external exchange of learning experiences.
• Moving from individual learning to organizational learning.

Most knowledge enterprises understand that to grow and prosper in the 21st century, they will have to innovate, develop new knowledge and create maximum value for their customers and shareholders. To establish this environment of creativity and innovation, a growing number of firms are transforming themselves into learning organizations.

Delivering value based on customer knowledge
The key drivers of this knowledge performance dimension include:
• Developing and deploying an enterprise knowledge-driven customer value strategy.
• Creating and managing customer value profiles and maps.
• Creating customer value chains.
• Developing and/or acquiring tools and techniques to collect and gain value from customer knowledge.
• Developing and managing customer databases.
• Developing tools and techniques to extract value from customer knowledge.
• Measuring changes in the customer value chain.

The knowledge economy has changed the goal posts in terms of winning customers and retaining their loyalty. It is now possible to market to customers on a global scale and to know more about their needs, wants and desires than ever before. On the other hand, customers are becoming more discerning – they are knowledgeable about what they want, how much they will pay for it, and from whom they will purchase it.

Transforming enterprise knowledge into shareholder value
The key drivers of this knowledge performance dimension include:
• Developing and deploying an enterprise knowledge-driven strategy for increasing shareholder value.
• Mapping and developing knowledge value chains.
• Managing and measuring knowledge value chains.
• Measuring changes in enterprise shareholder value.
• Communicating/reporting on knowledge-based value creation.

Organizations have discovered that this knowledge performance dimension, along with ‘Maximizing the Value of an Enterprise’s Intellectual Capital,’ is the most difficult to manage at a strategic level. The concept of knowledge-based shareholder value is hard to grasp, and tools and techniques are lacking to make it visible within the enterprise as well as to external stakeholders.

Part of the difficulty is that most companies are still operating with industrial age financial and accounting systems. Attempting to measure and manage knowledge processes that create wealth –especially those activities that focus on long-term paybacks – are still beyond the grasp of most organizations.