Sloan Management Review 

About: Sloan Management Review is an academic journal. The journal publishes majorly in the area(s): Competitor analysis & Service (business). It has an ISSN identifier of 0019-848X. Over the lifetime, 239 publications have been published receiving 61369 citations.

Successful knowledge management projects

Abstract: In a study of thirty-one knowledge management projects in twenty-four companies, the authors examine the differences and similarities of the projects, from which they develop a typology. All the projects had someone responsible for the initiative, a commitment of human and capital resources, and four similar kinds of objectives: (1) they created repositories by storing knowledge and making it easily available to users; (2) they provided access to knowledge and facilitated its transfer; (3) they established an environment that encourages the creation, transfer, and use of knowledge; and (4) they managed knowledge as an asset on the balance sheet. The authors identify eight factors that seem to characterize a successful project: 1. The project involves money saved or earned, such as the Dow Chemical project that better managed company patents. 2. The project uses a broad infrastructure of both technology and organization. A technology infrastructure includes common technologies for desktop computing and communications. An organizational infrastructure establishes roles for people and groups to serve as resources for particular projects. 3. The project has a balanced structure that, while flexible and evolutionary, still makes knowledge easy to access. 4. Within the organization, people are positive about creating, using, and sharing knowledge. 5. The purpose of the project is clear, and the language that knowledge managers use in describing it is framed in terms common to the company's culture. 6. The project motivates people to create, share, and use knowledge (for example, giving awards to the top "knowledge sharers"). 7. There are many ways to transfer knowledge, such as the Internet, Lotus Notes and global communications systems, but also including face-to-face communication. 8. The project has senior managers' support and commitment. An organization's knowledge-oriented culture, senior managers committed to the "knowledge business," a sense of how the customer will use the knowledge, and the human factors involved in creating knowledge are most important to effective knowledge management.

The Link between individual and organizational learning

Abstract: All organizations learn, whether they consciously choose to or not—it is a fundamental requirement for their sustained existence. Some firms deliberately advance organizational learning, developing capabilities that are consistent with their objectives; others make no focused effort and, therefore, acquire habits that are counterproductive. Nonetheless, all organizations learn.

Managing Codified Knowledge

Abstract: Firms can derive significant benefits from consciously, proactively, and aggressively managing their explicit and explicable knowledge, which many consider the most important factor of production in the knowledge economy. Doing this in a coherent manner requires aligning a firm's organizational and technical resources and capabilities with its knowledge strategy. However, appropriately explicating tacit knowledge so it can be efficiently and meaningfully shared and reapplied ? especially outside the originating community ? is one of the least understood aspects of knowledge management. This suggests a more fundamental challenge, namely, determining which knowledge an organization should make explicit and which it should leave tacit ? a balance that can affect competitive performance. The management of explicit knowledge utilizes four primary resources that the author details: repositories of explicit knowledge; refineries for accumulating, refining, managing, and distributing the knowledge; organization roles to execute and manage the refining process; and information technologies to support the repositories and processes. On the basis of this concept of knowledge management architecture, a firm can segment knowledge processing into two broad classes: integrative and interactive ? each addressing different knowledge management objectives. Together, these approaches provide a broad set of knowledge-processing capabilities. They support well-structured repositories for managing explicit knowledge, while enabling interaction to integrate tacit knowledge. The author presents two case studies of managing explicit knowledge. One is an example of an integrative architecture for the electronic publishing of knowledge gleaned by industry research analysts. The second illustrates the effective use of an interactive architecture for discussion forums to support servicing customers. Zack also discusses several key issues about the broader organizational context for knowledge management, the design and management of knowledge-processing applications, and the benefits that must accrue to be successful. In summary, organizations that are managing knowledge effectively (1) understand their strategic knowledge requirements, (2) devise a knowledge strategy appropriate to their business strategy, and (3) implement an organizational and technical architecture appropriate to the firm's knowledge-processing needs.

The Bullwhip Effect in Supply Chains

Abstract: Tremendous variability in orders along the supply chain can plague companies trying to eliminate excess inventory, forecast product demand, and simply make their supply chain more efficient. What causes the bullwhip effect that distorts information as it is transmitted up the chain? The authors identify four major causes: 1. Demand forecast updating. As each entity along the chain places an order, it replenishes stock and includes some safety stock. With long lead times, there may be weeks of safety stocks, which make the fluctuation in demand more significant. 2. Order batching. Companies may place orders in batches, often to avoid the cost of processing orders more frequently or the high transportation costs for less-than-truckload orders. Suppliers, in turn, face erratic streams of orders, and the bullwhip effect occurs. When order cycles overlap, the effect is even more pronounced. 3. Price fluctuation. Special promotions and price discounts result in customers buying in large quantities and stocking up. When prices return to normal, customers stop buying. As a result, their buying pattern does not reflect their consumption pattern. 4. Rationing and shortage gaming. If product demand exceeds supply, a manufacturer may ration its products. Customers, in turn, may exaggerate their orders to counteract the rationing. Eventually, orders will disappear and cancellations pour in, making it impossible for the manufacturer to determine the real demand for its product. The authors suggest several ways in which companies can counteract the bullwhip effect: 1. Avoid multiple demand forecast updates. Companies can make demand data from downstream available upstream. Or they can bypass the downstream site by selling directly to the consumer. Also, they can improve operational efficiency to reduce highly variable demand and long resupply lead times. 2. Break order batches. Companies can use electronic data interchange to reduce the cost of placing orders and place orders more frequently. And they can ship assortments of products in a truckload to counter high transportation costs or use third-party logistics companies to handle shipping. 3. Stabilize prices. Manufacturers can reduce the frequency and level of wholesale price discounting to prevent customers from stockpiling. They can also use activity-based costing systems so they can recognize when companies are buying in bulk. 4. Eliminate gaming in shortage situations. In shortages, suppliers can allocate product based on past sales records, rather than on orders, so customers don't exaggerate their orders. They can also eliminate their generous return policies, so retailers are less likely to cancel orders. Only by thoroughly understanding the underlying causes of the bullwhip effect, say the authors, can companies counteract and control it.

Scenario Planning: A Tool for Strategic Thinking

Abstract: Among the many tools a manager can use for strategic planning, scenario planning stands out for its ability to capture a whole range of possibilities in rich detail. By identifying basic trends and uncertainties, a manager can construct a series of scenarios what will help to compensate for the usual errors in decision making ? overconfidence and tunnel vision. Through case studies of Interpublic, an international advertising agency, and Anglo-American Corporation in South Africa, the author describes how to build scenarios in a step-by-step process and how to use the resulting stories to plan a company's future.