THE HEAD & HEART APPROACH

What helps your team do its job well?

The answers to this question always fall into four categories.

Human Structural
assets assets

Relationship
Tangible
assets
assets
 What is an asset?

Human We use the term "asset" to mean anything that Structural

assets
produces, or contributes to producing, regular assets

income.

For example, one's regular salary is the income

produced by one's human asset or human
capital. A well-known franchise and the reputation
and consumer trust that go with it is an example
of relational asset.

Relationship Tangible
assets assets
 What is an asset?
One may have landed a job because of the
Human Structural
assets strong recommendation or sponsorship of a well- assets
respected person; this is another example of
relational asset that contributed to regular income
A fruit tree that yields fruits every season is an
example of natural capital.

Relationship Tangible
assets assets
 Human Assets?

Human Capital

n.The accumulated knowled

ge and skills that make a wor
kforce productive:

"Individuals and nations

become rich by investing in
human capital"
(Ben Stein).

Photo by mauro mora on Unsplash

 Structural assets

Structural capital is one of the three primary components

of intellectual capital, and consists of the supportive infrastructure,
processes, and databases of the organisation that enable
human capital to function

Photo by Samuel Zeller on Unsplash

Relationship assets
 Tangible assets

Photo by Alexandre Debiève on Unsplash

 What helps your team do its job well?
Your answers coincide very well with the categories in intellectual capital
management (ICM), which overlaps greatly with knowledge management (KM).

Human Structural
assets assets
Tangible
Relationship assets
assets

Different team performance factors, based on your answers and on answers from
many other groups, fit into ICM categories.
What helps your team do its job well?
consists of -

1.1 Character, attitude, creativity

Human
assets 1.2 Knowledge, skills, experiences

1.3 Health, recreation, work-life balance

1.4 Colleagues' competence, experience

1.5 Self-motivation, commitment

1.6 Good and capable leader,

champion
What helps your team do its job well?
consists of -

2.1 Access to information

Structural 2.2 Business processes, standard operating
assets
procedures, work load

2.3 Policies, support systems/structures, tools,

guidelines

2.4 Training, feedback, learning and innovation

processes; career growth

2.5 Vision and direction; fair, caring and

empowering policies
 What helps your team do its job well?
consists of -

3.1 External linkages: partners, customers, suppliers, government

support, Internet
Relationship
assets 3.2 Brand, reputation

3.3 Communication; shared understanding of policies, standards,

procedures

3.4 Supportive culture/informal practices: teamwork, morale,

cooperation and interpersonal relationships

3.5 Support, inspiration, motivation, recognition and trust from

superiors

3.6 Support from family, friends and community

What helps your team do its job well?
consists of -

4.1 Technology, equipment, facilities, books and other

Tangible commercial information
assets

4.2 Financial resources

4.3 Physical Accessibility

4.4 Conducive workplace

4.5 Good pay, benefits, incentives, perks.

 The first three categories (human,
structural and relationship assets)
intellectual capital
constitute

Intellectual capital, on the other hand, is

intangible; it is not measured in dollars
or pesos nor included in the accounting
system.
Differentiate three categories
of intellectual capital
One way to differentiate the three categories of
Human
intellectual capital is to say that human asset is
assets
"embodied knowledge", structural asset is
"embedded knowledge" and relationship asset is
"enculturated knowledge."

In any case, it is the human assets of employees

and managers that produce or is the ultimate
source of structural assets and relationship assets.

Structural Relationship
assets assets
 The fourth or tangible assets are
those measured by accountants and
entered into the accounting system of
Tangible
an organization. assets
 Skills and experiences
Attitudes, work ethic and values
Let us take a closer look

Scope of intellectual assets

Health of employees
at the factors that affect Leadership
E OPLE
Drive and motivation of staff P
performance.
Information system, library and
These factors are important whether we documents
are looking at individual, team or Strategies, policies and guidelines
ESS
organizational performance. Business processes
O C
Learning systems PR
Knowledge assets constitute the scope Vision, organizational culture
of KM within intellectual assets. Notice External networks and support systems
that the scope of intellectual capital Relationship with suppliers and
management is very close and overlaps customers
with the field of knowledge management. Teamwork E OPLE
Support from peers and bosses
P

Resources: money, salaries, financing

Technology, equipment, building
conducive workplace, incentives ES S
OC
PR
 Skills and experiences
Attitudes, work ethic and values
Knowledge assets

Scope of intellectual assets

Health of employees PLE
Leadership PEO
The entries in bold letters, or the Drive and motivation of staff
entries that constitute the scope of KM,
Information system, library and
are sometimes referred to as
documents
knowledge assets.
Strategies, policies and guidelines
Business processes
Note that knowledge assets are mostly
intangible assets; the exception is
Learning systems
OC ESS
technology which is a tangible asset
Vision, organizational culture PR
because it is traded, has money value External networks and support systems
and is entered in the books of account Relationship with suppliers and
of organizations. customers
Teamwork
E
Support from peers and bosses OPLPE
Resources: money, salaries, financing
Technology, equipment, building
conducive workplace, incentives

S S
OCE
 Skills and experiences
Attitudes, work ethic and values
Some KM authors define

Scope of intellectual assets

Health of employees
KM as "management of Leadership
PLE
Drive and motivation of staff
P E O
people, process and
Information system, library and
technology." documents
Strategies, policies and guidelines
You can see from the above figure Business processes
why this definition, although Learning systems C E SS
Vision, organizational culture P
RO
simplistic, is basically correct.
External networks and support systems
Relationship with suppliers and
customers
Of the 30 unit KM skills targeted in Teamwork
this Course, eleven involve people, Support from peers and bosses E OPLE
P
eleven involve process and nine
involve technology. Resources: money, salaries, financing
Technology, equipment, building
conducive workplace, incentives
S
R OCES
P
 30 BASIC KM SKILLS
1.  CONTENT MANAGEMENT OF A WEBSITE
a.  Editing and updating a webpage
b.  Creating a webpage with functionalities to suit its purpose
c.  Managing a threaded online forum
d.  Evaluating how demand/user-driven is a website
2.  MANAGING INTELLECTUAL CAPITAL
a. Setting up a web-based self-updated expertise directory
b. Identifying elements of my relationship capital
c. Aligning KM to organizational objectives
d. Innovating for “next practice” : what went wrong and why?
3. ESTABLISHING AND MANAGING LEARNING PROCESSES IN THE WORKPLACE
a. Keeping a learning journal: My most significant learning
b. Making our thinking process visible: mind mapping
c. Setting up an “Ask Me” procedure
d. Creating a KM persona that suits a person’s talents and passions
 30 BASIC KM SKILLS
4. MOTIVATING KNOWLEDGE WORKERS
a.  Making explicit the inner drives of a person: My Passions
b.  Explaining the benefits of KM to a superior: Contest with Prizes
c.  Identifying and designating in-house consultants
d.  Creating a KM persona that suits a person’s talents and passions
5. ENHANCING ORGANIZATIONAL PERFORMANCE
a. Identifying generator knowledge assets and critical knowledge assets
b. Estimating peso value of a demand-driven intranet
c. Collecting and organizing work templates
d. Setting up and managing an online participatory M&E
6. KM ASSESSMENTS AND MEASUREMENTS
a. Assessing process efficiency and effectiveness
b. Identifying potential KM champions
c. Estimating the market value of my human capital
d. Selecting KM tools to match workplace needs
 30 BASIC KM SKILLS
7. INNOVATION (KNOWLEDGE CREATION)
a.  Setting up an idea register
b.  Mining customer complaints
c.  Problem finding versus problem solving
d.  Questioning your assumptions
e.  Two-phase creative brainstorming
f.  Go outside your comfort zone
 BASIC KM COMPETENCIES IN COMMUNICATIONS

1. Identifying and classifying knowledge Determine if an asset is a knowledge asset and

assets classifying it into human, structural, and
relational assets
2. Manualization of Work Process: Manual of a work process

a. Constructing a process flowchart Process flowchart: interrelated activities

performed in a sequence and/or in parallel to
produce a specific output

b. Collecting and organizing work templates Set of work templates used in each activity in a
work process

c. Conducting a lessons-learned session for List of actionable lessons learned after

process improvement performing a repetitive work process
 BASIC KM COMPETENCIES IN COMMUNICATIONS

3. Identifying knowledge gaps that most Select a performance indicator and measure it
affect work performance with versus without an input knowledge asset

Identifying knowledge assets relevant to a List of knowledge assets which are needed
work or business process inputs for each activity in a work process

4. Constructing an expertise directory Expertise directory: organized list of human assets

needed in one or more work processes

Constructing a knowledge taxonomy A structured list of competencies using their names,

tags, or keywords as used in an organization
 BASIC KM COMPETENCIES IN COMMUNICATIONS

5. Writing and delivering an effective KP Select a performance indicator and measure it

with versus without an input knowledge asset
6. Assessing needs or demands for KPS
List of knowledge assets which are needed
Testing a draft KP with potential users inputs for each activity in a work process

Following a KP with workplace coaching

Expertise directory: organized list of human assets
7. Knowledge Translation needed in one or more work processes

A structured list of competencies using their names,

tags, or keywords as used in an organization
 A purpose of KM is better effectiveness
and efficiency or productivity
KM overlaps much with quality management (QM) because both KM and QM aim for better
quality and productivity.

KM is included in the latest version of ISO 9001 series. The ISO standards on KM (ISO 30401)
defined knowledge as "human and organizational asset enabling effective decisions and action in
context."

Note that the International Organization for Standards uses "assets" (an accounting term) while
the ICM practitioners use "capital" (an economics term).
KM gurus define knowledge in terms of capacity for
effective action.
 An action is "effective" if it produces the end results
intended, desired or valued by an individual, team or
organization.
Hence, we can now adopt the following basic KM
framework, where we see that the ultimate objective
of KM is to contribute to achieving a result valued by
an organization.

In other words, KM supports value creation, whether

of market value in the case of private organizations,
or social value in the case of public or development
organizations.
An action is "effective" if it produces the end results
intended, desired or valued by an individual, team or
organization.
Private companies create market value by selling products at prices that
exceed unit production costs (producer surplus); while buyers of products
experience satisfaction because prices they are willing to pay exceed the
purchase price (consumer surplus).

Value is created at the moment of sale. In the public and development

sectors, service delivery creates social value if intended beneficiaries
experience satisfaction (evidenced by surveys, interviews or comments).
 Value is created at the point when knowledge is
actually used or consumed during effective action or
decision.

1 2 3
Effective
Knowledge Valuable
decision/
assets results
action
Peter Drucker differentiates two ways that organizations use knowledge to
create value

by doing the same work better (productivity) and

by doing new and better kind of work (innovation).
 Knowledge assets, which we
observed earlier as mostly
intangible assets, are creating
more market value than
tangible assets.

On the average, the market values of

companies listed in stock exchanges
are 3-4 times their book values.
Stock buyers are willing to pay that
much more because the future
earning capacity of companies are
generally much greater than could be
anticipated based only on their book
values.
 Knowledge assets, which we
observed earlier as mostly
intangible assets, are creating
more market value than
tangible assets.

The global economy has become a

global knowledge economy. In fact,
most of Gross World Product now
comes from the service sector, which
is more knowledge-intensive than the
agriculture or the industrial sectors.
As a result, about three-fourths of
GWP is now being created from
human knowledge and innovation.
 Not all intangible assets are knowledge
assets.
There are factors that affect performance which are affective ("heart" factors)
rather than cognitive ("head" factors).

Obviously, even if a knowledge worker knows how to do a job well but if he is

unwilling or does not want to do it, the job will not be done well or may not be done
at all.

Human Relationship Structural Tangible

assets assets assets assets
 Not all intangible assets are knowledge
assets.
Examples of motivational factors affecting performance.

Human Relationship Structural Tangible

assets assets assets assets

Drive and Vision, Support from Conducive

motivation of staff organizational peers and bosses workplace,
culture incentives
 Not all intangible assets are knowledge
assets.
Motivational factors are outside the domain of KM. However, experienced KM
practitioners observe and realize that for KM implementation to be successful they
must additionally pay attention to motivating knowledge workers.

This is the reason why large-scale or organization-wide KM has to be

accompanied by change management. This is also the reason why some KM
practitioners adopt a "head and heart" approach.

Human Relationship Structural Tangible

assets assets assets assets
 Motivating knowledge workers towards KM

Needed information are I get useful tips from my I know what works well
"at my fingertips" network. from past experience.

I finish my work faster

Re-use work templates Support from boss and Work processes/

officemates. outputs are

Class
Discussion
Questions
Enter your answer in the
Comment box in the weekly
lesson page; precede it with the
label Question A or B.
Question A
Imagine that you read a newspaper
article about a more effective way of
reducing incidence of epidemics
and diseases of prawns in prawn
farms. Does the information from
the article contain knowledge? If
yes, why; if no, why not? Did
reading the article increase your
knowledge? If yes, why; if no, why
not?
Question B
Based on her experiences, a skilled facilitator-trainer designed what she
believes is a more effective training program for interviewers in executive
search companies. The training program was subsequently implemented with
participants from several companies.

After the training program, participant P conducted an echo seminar to share

what he learned to his office colleagues. Participant Q used what he learned to
improve his interviews and see their results. Participant R learned many new
new things and she wrote a summary of her learning and posted it in the
company intranet. Participant S reproduced learning materials from the course
and distributed it to his five fellow interviewers. Participant T regularly conducts
on-boarding lectures for the company's newly recruited interviewers; he used
what he learned to improve his lectures.

Which action (or actions) created value? Why? Which action (or actions) did not
create value? Why not?