R1511D1145675

University of South Wales

Masters in Business Administration (MBA)

Strategy as Practice & Leadership (ST4S19-V1)

Tutor: Dr Leonidas Efthymiou

Student Number: R1511D1145675

Assessment – Section B: Strategic Knowledge

Management

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Task:
‘inventing new knowledge is not a specialized activity...it is a way of behaving, indeed a way
of being, in which everyone is a knowledge worker’ (Nonaka, 1991).
With reference to relevant literature and theory, discuss your company’s approach to
strategic management of knowledge and organisational learning. Evaluate its use of
strategic frameworks and tools.

Introduction
Everyday should be a learning experience, whether it’s in school, at home, at the office or even

in social organizations. Information has become so easily accessible to all, that traditional

learning will soon be a thing of the past. However, it’s how the information is received and

interpreted that’s most important. They say knowledge is power, however; knowledge has no

power until it’s applied. The strategic management of knowledge is key to the growth and

development of any organization. The management of knowledge has generated considerable

interest in business and management circles due to its capability to deliver to organisations,

strategic results relating to profitability, competitiveness and capacity enhancement (Chua, 2009;

Jeon, Kim and Koh 2011) as cited in Omotayo (2015). The efficient management of knowledge

sets an organization apart from its competitors by giving it the edge to be at the forefront of

current technology and trends to accomplish its objectives and goals. This paper seeks to analyze

Nonaka’s (1991) theory of knowledge management where knowledge is described as a way of

behaving and not a specialized activity. This analysis will determine how it applies to Tagman

Media Inc.’s approach to strategic management of knowledge and organizational learning by

evaluating its use of strategic frameworks and tools. These strategic frameworks and tools

consists of: Knowledge Management/Environment; Intellectual Capital & Social Capital;

Balance Scorecard, Communities of Practice; and Soft Systems Thinking.

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It is imperative that an understanding of the Tacit Knowledge verse the Explicit Knowledge be

established to fully comprehend how it applies to Nonaka’s (1991) theory of knowledge workers.

Literature Review

Knowledge management from the perspective of organizational capabilities, suggests that a

knowledge infrastructure consisting of technology, structure, and culture along with a knowledge

process architecture of acquisition, conversion, application, and protection are essential

organizational capabilities for effective knowledge management (Gold et al.,2001). The

objective of knowledge management is to share perspective ideas, experience and information; to

ensure that these are available in the right place at the right time to enable informed decisions;

and to improve efficiency by reducing the need to rediscover knowledge (UAOTI: 2012).

Knowledge environment, exists where the environment supports the knowledge-based

development of individuals, firms, cities, societies and nations; more specifically, it is

the environment—i.e., built, environmental and social—that consists of social practices,

technological and physical arrangements to facilitate collaborative knowledge generation,

exchange, marketing (IGI Global: 2015).

Knowledge Creation and Sharing

Knowledge Management consists of the creation and acquisition of knowledge for an

organization. Nonaka (KMT: 2010), is of the view that knowledge creation is about the

continuous transfer, combination, and conversion of the different types of knowledge, as users

practice, interact, and learn. Knowledge creation entails the development of new knowledge or

adding new content to existing knowledge. Organizations must create an environment which

encourages knowledge sharing among employees through incentives as well as the awareness of

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the values knowledge sharing has to the individual. The creation of knowledge is at the core of

an organization’s competitive advantage strategy (KMT: 2010). Peter Drucker (1996) as cited in

(CFI: n.d) , the creator of the term knowledge worker, described these individuals as high leveled

persons with theoretical and analytical skills which they acquired through formal training to

develop products and services.

Tacit verse Explicit Knowledge

Source: Knowledge Management (KM: 2010)

There are two main categories of knowledge; Tacit and Explicit Knowledge. Tacit Knowledge is

referred to as knowledge which is embedded in the human mind through personal and

professional experience (KM: 2011). Tacit Knowledge is difficult to transfer from one person to

other, however it is not totally impossible. Most organizations have mentorship programmes

where the more senior employees mentor and training junior employees. The mentorship process

allows information and knowledge to be transfered and shared in a more informal manner since

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mentor and the mentoree develops a bond over a period of time. The mentoree gets to observe

the behavior patterns of the mentor and in some cases starts to emulate similar behavior patterns

and traits; allowing the transfer of some tacit knowledge.

Like most organizations, Tagman Media Inc.’s hiring process involves the careful selection of its

employees with particular skills sets and knowledge base which fits well with the company’s

strategic management plans to accomplish its goals and objectives. Tagman Media Inc.’s client

needs are specific and as such, having employees with the right knowledge base is critical to the

company’s success in providing efficient services to its clients. Every employee hired at Tagman

Media is mentored by the founder of the company before they fully take on their respective roles.

Explicit Knowledge on the other hand refers to structured knowledge expressed by text, images

and symbols which can be taught verbally or learned (Torabi, El-Den, 2017). According to

Torabi-El-Dem (2017), explicit knowledge is achieved through teaching, training and it is the

basis for innovation because of the relative simplicity of its availability to

information/knowledge seekers. This category of knowledge allows for the continued

development of knowledge workers with internal and external training. Tagman Media conducts

regular internal training and based on the need, source professional training personnel for a

specific knowledge area.

The understanding of Tacit and Explicit knowledge sets the tone for rest of this analysis which

examines the other aspects of knowledge management.

Learning and Knowledge Management

In a corporate world where true value is no longer determined by physical assets alone, but

instead by a combination of material and nonmaterial resources (Edvinsson, Malone 1997),

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Intellectual Capital is as “A firm’s holistic prowess and potential for creating value” (Rastogi,

P.N. 2002). Intellectual Capital consist of various subcategories which includes: Social Capital;

Human Capital; Structural Capital; and Customer Capital. For the purpose of this paper,

emphasis will be placed on Social Capital and its role in the Intellectual Capital concept. Pierre

Bourdieu (1986), describes Social Capital as 'the aggregate of the actual or potential resources

which are linked to possession of a durable network of more or less relationships of mutual

acquaintance or recognition.' Tagman Media Inc. has a wealth of Intellectual Capital among its

workforce. The minimum qualification required for any position with the organization is a

Bachelors’ Degree and considerable years of experience within a specific field that can add value

to the company. In addition to the human capital aspect of the company, information technology,

client base, company brand and social network, all plays significant roles in the added value of

the company apart from its book value.

Strategic Development

Information technology is one of the driving tools behind the company’s success. In most

companies in Guyana and the Caribbean at large, employees are forbidden from using the

internet unless it is work related. Social Media use has been banned or block by employers from

their employees. The reason given is that, employees are less productive and are distracted by

social media, whether it is Facebook, Instagram etc. However, at Tagman Media Inc. employees

are allowed and encouraged to utilise these mediums as they are very resourceful to the company

and the services they provide. Social media, among other information technology tools are used.

One of Tagman Media Inc.’s main service is public relations, as such, keeping abreast with our

clients through social media and other mains is vital to the company in providing exceptional

service to clients. This strategic approach to management allows Tagman Media to always be a

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step ahead of the game. Tagman Media Inc. client portfolio is very extensive and includes both

the public and private sector. Most government ministries, including the Ministry of Education,

Ministry of Public Health, Ministry of Public Infrastructure, Ministry of Communities and the

Ministry of the Presidency are a part of Tagman Media Inc. client portfolio. Private enterprises

include clients from large and prestigious companies like the Guyana Telephone and Telegraph

Company, Demerara Distillers Limited, Sterling Products Limited and Smart City Solutions.

Other government agencies such as the National Industrial and Commercial Investments Limited

(Special Purpose Unit) and international organizations like the United Nations all comprise of

Tagman Media Inc. client portfolio. The name Tagman Media is very well known and respected

in the business community. The company has been in existence for more than 20 years and has

built a reputation for itself. As a result, the company’s social network or social capital is

exceptional. Over the years, Tagman Media Inc. has done little to no marketing for the company,

however, the company still has a large client portfolio. The reason for this is the network of

individuals known by the company’s founder, Mr. Alex Graham and the wealth of experience

and knowledge which would have been acquired over the years. This knowledge would have

passed down to the team in the interest of knowledge sharing and ensuring that strategic

development and direction of the company is understood. Mr. Graham, before starting Tagman

Media Inc. worked in broadcasting, journalism, marketing and telecommunications. Through his

career path, he would have networked and interacted with persons in various fields and at various

levels. This network of persons has helped build the foundation for Tagman Media Inc. and

continues to be of value today.

Tools and Techniques for Knowledge Management

A Balance Scorecard is a business framework used for tracking and managing an organization’s

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strategy (Jackson, 2017). This framework guides the company’s vision, mission and values to

accomplish its goals, objectives and strategies. The Balance Scorecard is a logical and structured

way to help leaders of an organization ensure that all areas of the organization are covered in an

easy to understand way (Jackson, 2017). Though, Tagman Media Inc. does not have such a

system currently in place, after reviewing the benefits of the Balanced Scorecard,

recommendations would be made for the company to introduce this strategic management

approach. This approach can significantly improve the operations of the company and increase

its efficiency. Having a strategic road map, which clearly communicates a strategic plan to

employees, allows them to understand the strategic elements that needs attention and allows the

employees to see how objectives affect each other.

Communities of Practice have become an important focus within organizational development. In

recent years, the idea that learning involves a deepening process of participation in a community

of practice has gained significant ground (Smith, 2003). A community of practice involves much

more than the technical knowledge or skill associated with undertaking some task. Members of

these communities of practice are involved in a set of relationships over time (Lave and Wenger

199:98) as cited in (Simth, 2003) and communities develop around things that matter to people

(Wenger 1998) as cited in (Smith, 2003). Communities of practice are formed by people who

engage in a process of collective learning in a shared domain of human endeavours. It is a group

of people who share a concern or a passion for somethings they do and learn how to do it better

as they interact regularly (Wenger-Trayner, 2015)

The graphics department of Tagman Media Inc. has a community of practice among the graphic

designers internally, as well as externally. The graphic designing community in Guyana is

relatively small and connected. This community of talented individuals collaborate their skills

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and resources through various communication mediums. The communication and information

sharing tools used by the graphic department community of Tagman Media Inc. are the Bitrix

and Facebook Work Place. Bitrix is a customer management system which allows the graphic

artists to keep up to date with clients and projects to ensure timely delivery of graphic design

products. See appendix 1 for more information on Bitrix. This software allows participants to

add content, collaborate and share ideas. Another exciting tool used by Tagman Media Inc. is

Facebook Workplace, this software is a by-product of Facebook which caters specifically to

organizations. Facebook Workplace is a work collaboration tool which allows the graphics team

to communicate, share information that is relevant to a project or idea, as well as information is

can add to the expertise of the graphic designers. Tagman Media Inc./Tinninben collaborates on

Facebook Workplace, this group on facilitates the sharing of information internally among

members. The graphic department has its own group on Tagman Media Inc. Facebook

Workplace, however, an additional group has been created called Net Sessions. The purpose of

this group is for members of share information for learning enhancement. Members are allowed

to post articles, videos and documents which will add value to the members knowledge base.

There is also an evaluation process where the graphic designers meet once per week to discuss

what was shared on Facebook Workplace, how relevant was the information shared and how/if it

added value to the members knowledge base in their area of expertise.

The Soft Systems Methodology approach can usefully compliment strategic frameworks, such as

the Balanced Scorecard, in achieving clarity of thinking about performance and change issues

(Jacob, 2004). Soft Systems Methodology is a learning process. It is viewed as a set of principles

rather than a precise method and uses the concept of the whole entity. See appendix 3 for more

information on the Soft Systems thinking methodology. Soft Systems Methodology involves

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comparing abstract wholes with the real world in order to learn about it (Jacob, 2004). Jacob

(2004), states that the use of soft systems methodology can help managers and others develop

new perspectives by recognizing and accounting for factors otherwise ignored and challenge

prevailing attitudes and retrenched assumptions. It is analysing an organization as a whole and

not the performance of individual departments. Tagman Media Inc.’s business development

department can be functioning exceptional, however; if the graphic design department and the

other departments of the organization is not functioning well, the entire organization will not be

efficiently operational. Soft Systems Methodology “…. Is not a tool or technique to be used

occasionally but a way to think and act everyday…” (Checkland, 1999) as cited in Gasson (n.d).

Checkland (1999) as cited in Gasson (n.d), broke down the Soft System Methodology into the

following categories; the Client; Actors; Transformation; Weltanschauung; Owner; and

Environment. The client are customers of the system; Actors are the people who carry out

activities in the system; Transformation is the changes that take place because of the system;

Weltanschauug is the world view or accepted assumption of the system, the Owner are those that

the system is answerable to and the Environment is the external influences on the system.

Conclusion

To conclude the findings of this paper, it was established that an understanding of Tacit and

Explicit knowledge must be clear in order to put the other elements of knowledge management

into prospective. As it relates to the efficient management of knowledge by organizations such as

Tagman Media Inc., a review of the strategic frameworks and tools that assist in the proper

management of the organization. This includes Knowledge Management/Environment;

Intellectual Capital and Social Capital; Balanced Scorecards; Communities of Practice and Soft

Systems Thinking. Most, if not all of these frameworks and tools are used by organizations to aid

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in the effective and efficient management of those organizations. Knowledge management is

imperative to any organization. Its objective is to share perspective idea, experiences and

information and ensure that these are available in the right place at the right time to enable

informed decisions. Intellectual and Social Capital are intangible assets of an organization.

Tagman Media Inc. based on its foundation and history has been fortunate to be able to take full

advantage of the opportunities afforded to the company through Social Capital. The company’s

strategic recruiting process has also been beneficial in regard to Intellectual Capital. The

Balanced Scorecard framework is a logical and structured way to help leaders of an organization

ensure that all areas of the organization are covered in an easy to understand way (Jackson,

2017). Community of practice involves much more than the technical knowledge or skill

associated with undertaking some task, it is formed by people who engage in a process of

collective learning in a shared domain of human endeavours. Tagman Media Inc. utilizes this

framework within its graphics department, which has been successful thus far. Tools such as

Bitrix and Facebook Workplace are used to aid in the knowledge sharing among the persons in

the graphics department. Similar to the Balanced Scorecard framework, the Soft System

Methodology is capable of achieving clarity of thinking about performance and change issues

(Jacob, 2004). It is viewed as a set of principles rather than a precise method and uses the

concept of the whole entity. Granted, Tagman Media Inc. does not utilize all of these frameworks

and tools featured in this paper, based on the elements of tools such as Balance Scorecard and

Soft Systems thinking. Recommendations will be made for these frameworks and tools to be

included in the strategic management approach.

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Reference List:

Andrew H. Gold, Arvind Malhotra & Albert H. Segars (2001) Knowledge Management: An

Organizational Capabilities Perspective, Journal of Management Information

Systems, 18:1, 185-214, DOI: 10.1080/07421222.2001.11045669

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Bitrix 24: Online Link https://www.softwareadvice.com/crm/bitrix24-profile/

Etienne and Beverly Wenger-Trayner. (2015) ‘ Introduction to Communities of Practice’,

http://wenger-trayner.com/introduction-to-communities-of-practice/

Facebook Workplace: Online Link https://www.facebook.com/workplace/about?

source=topbar

Gasson. S. (n.d)., A Brief Introduction To “Soft Systems” Thinking

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.726.7819&rep=rep1&type=pdf

IGI Global (2015)., Knowledge -Based Urban

Developmenthttps://www.igi-global.com/dictionary/knowledge-based-urban-development/

41745

Jackson .T.(2017)., What is a Balanced Scored? Definition, Clear Point Strategy.

https://www.clearpointstrategy.com/what-is-a-balanced-scorecard-definition/

Jackson .T.(2017)., A Thorough List of Balanced Scorecard Advantages & Disadvantages

https://www.clearpointstrategy.com/thorough-list-of-balanced-scorecard-advantages-

disadvantages/

Knowledge Management Tools. (2010)., The SECI Model and Knowledge Conversion

http://www.knowledge-management-tools.net/knowledge-conversion.html

Knowledge Management (2011)., Tacit and Explicit Knowledge

https://www.skyrme.com/kmbasics/ktacit.htm

Omotayo O. F. (2015)., Knowledge Management as an important tool inb Organizational

Management: A Review of Literature. https://digitalcommons.unl.edu/cgi/viewcontent.cgi?

article=3330&context=libphilprac

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http://www.citeulike.org/group/8343/article/1868716

Smith, M. K. (2003) 'Communities of practice', the encyclopedia of informal education,

www.infed.org/biblio/communities_of_practice.htm.

Torabi F and El-Den J. (2017). The impact of Knowledge Management on Organizational

Productivity: A Case Study on Koosar Bank of Iran.

https://reader.elsevier.com/reader/sd/pii/S1877050917329277?

token=ECB53963173C51A056162B6EC98B655EAF0842D1D6168C0DEEEB0FEC2773C68E

09A947F56B1C08CBEB66AC0628FCECB6

Burge. S (2015)., An Overview of the Soft System

Methodologyhttps://www.burgehugheswalsh.co.uk/Uploaded/1/Documents/Soft-Systems-

Methodology.pdf

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Appendices:

Appendix 1
Bitrix

Bitrix24’s customer relationship management (CRM) solution provides a platform for businesses

to organize and track interactions with potential or existing clients and partners. The software

allows users to log and manage client interactions, capture and store lead data, generate sales

reports and perform segmentation of target audiences.

Leads received from a user’s website (for example, from an order or feedback form) can be fed

directly to the CRM. Users can then create message templates, send individual or group emails to

leads and contacts, capture notes on client interactions, schedule meetings and assign tasks.

Users can create personalized invoices for clients by automatically inserting client information

and sending them directly to the client's email address.

Appendix 2

Facebook Workplace

More than just a quick chat

Workplace doesn't just get people talking. It's a rich space for everyone to work together, share

ideas and swap expertise.

 Work across organizations with multi-company groups

 Hold team and 1:1 meetings with group calls and screen-sharing

 Strengthen teamwork with real-name profiles, org charts and automatic language translation

 Scan important updates quickly with a News Feed tailored to you

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More than just another tool

 Make Workplace the heart of your organization, with direct access to files and information in

the business tools you already use.

 Extend Workplace with free integrations for Dropbox, G-Suite, OneDrive and many more

 Deploy custom bots to automate everyday tasks

 Use open API to build the right tools for your business

Appendix 3

Soft Systems Thinking Methodology

 The Soft Systems Methodology (SSM) was born out of research conducted at Lancaster

University to apply Systems Engineering approaches to solve “management/business

problems”. In other words, they attempted to apply a Hard Systems approach to fix business

problems. What they discovered was the approach often stumbled at the first step of problem

definition. This happens quite simply because the different stakeholders have divergent views

on what constitutes the system, the purpose of the system and therefore the problem. Two key

players in the development of the SSM are Peter Checkland [1999] and Brian Wilson [2001]

who through “action research” were able to put together a practical and pragmatic approach to

the identification and solution of “soft” ill-defined problems.

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