Knowledge Management:   Success depends mostly on the Social Dimension! 

HS

Knowledge Management:   Success depends mostly on the Social Dimension!  http://www.hi.is/~joner/eaps/cs_kmsoc.htm          


"
Knowledge Management's Social Dimension: Lessons From Nucor Steel

Anil K. Gupta and Vijay Govindarajan

Unless an enterprise generates new knowledge and pumps it efficiently throughout its network, it will soon be playing tomorrow's game with yesterday's tools.


How are companies facing that challenge?


Many rely on an information-technology infrastructure; but no matter how sophisticated, it is not the key to effective knowledge management.

Success, say the authors, depends more on the social system in which people operate
- the  social ecology of a company.


Social ecology
- drives
people's expectations,
- defines
who will fit in,
- shapes individuals' freedom to pursue actions without prior approval
, and
- affects how they interact with both insiders and outsiders.


Focusing on Nucor Corp.'s success in the 1980s and 1990s, the authors suggest that it was the company's social ecology that contributed to it becoming one of the most efficient steel producers in the world. Through effective management of knowledge, Nucor developed and constantly upgraded its main strategic and proprietary competencies: plant construction and start-up know-how, manufacturing-process expertise and the ability to adopt breakthrough technologies earlier than competitors.

With financial incentives to improve efficiency, operating personnel developed exceptional mastery of manufacturing processes. And Nucor's employee-oriented practices led to high retention.
For example, in recessions, a "share the pain" program prevented layoffs through a shortened work week that affected everyone equally - and built loyalty.

Nucor's social ecology also allowed excellence in the tasks associated with sharing and mobilizing knowledge:
identifying opportunities to share knowledge, encouraging individuals to share knowledge, building effective and efficient transmission channels, and convincing individuals to accept and use the knowledge received.

Routine measurement and distribution of performance data helped uncover opportunities to share best practices.
Pay incentives for work groups instead of individuals were instituted to reward sharing. Nucor also passed along unstructured knowledge through face-to-face communication in plants that were deliberately kept small and through the transfer of people among plants.

The authors explain how others can maximize knowledge sharing by setting stretch goals, providing high-powered
incentives, cultivating empowerment, equipping every unit with a well-defined "sandbox" for experimentation - and
cultivating an internal market for ideas.

It's a difficult challenge. But its very difficulty means that companies tackling it successfully will have a competitive
advantage that rivals cannot beat merely by buying the same software.

Reprint 4216


Anil K. Gupta
is a professor of strategy and global e-business at the University of Maryland's Robert H. Smith School of Business in College Park, Maryland, and a visiting professor in the Standford Technology Ventures Program.

Vijay Govindarajan
is professor of international business and director of the Achtmeyer Center for Global Leadership at Dartmouth College's Amos Tuck School of Business Administration in Hanover, New Hampshire.

Contact the authors at: agupta@rhsmith.umd.edu and vijay.govindarajan@dartmouth.edu . "


See full original:
  http://mitsloan.mit.edu/smr/past/2000/smr4216.html

NL_TI_NUCOR Steel  http://faculty.washington.edu/jwh/ST980217.htm
http://www.hertfordcounty.com/nucor_steel.htm
"How to Decrease Turnover and Increase Employee Retention.

  by Dr. Jim Harris
  Here are five principles embraced by the world's best-run companies that decrease
  turnover and increase employee retention. "

http://www.jamesharrisgroup.com/Article-EmployeeRetention.htm

LEITJ

2000-11-14

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Human Capital Index:
LINKING HUMAN CAPITAL AND SHAREHOLDER VALUE

HS

Human Capital Index: LINKING HUMAN CAPITAL AND SHAREHOLDER VALUE   http://www.hi.is/~joner/eaps/cs_hci1.htm     


"Human Capital Index

LINKING HUMAN CAPITAL AND SHAREHOLDER VALUE

Voodoo economics. Bloated balance sheets. Mickey Mouse accounting. Charges like these have often been leveled against efforts to put a value on a company’s human capital.

Such measurements, it is argued, are bound to be more qualitative than quantitative, more elusive than incisive.

But few things are more critical than accounting for human capital.
It is the chief resource and result of a knowledge-based economy.
It is
the source of innovation and renewal.


And once it can be measured, it can be managed and exploited to increase shareholder value. That is precisely the aim of the Watson Wyatt Human Capital Index
.

The WATSON WYATT HUMAN CAPITAL INDEX (HCI) shows a clear relationship between the effectiveness of a company’s human capital and the creation of superior shareholder returns. It is a single, simple set of measures that quantify exactly which human resources practices and policies have the most effect on increasing — or decreasing — shareholder value.

Human Capital Index
Introduction
About The Survey
Survey Highlights
Recruiting Excellence
Clear Rewards And Accountability
Collegial, Flexible Workplace
Communications Integrity
Prudent Use Of Resources
Discovering Your Company's Human Capital Index
Order The Report


See the full original:
http://www.watsonwyatt.com/homepage/us/new/Human_Capital_Index/index.htm

 
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