Knowledge Management as a driver in the COVID-19 new business reality – part A

In Covid-19 crisis, those businesses that could remain in operation had to undergo wide-ranging changes in their business operation which had to be adopted fast. It has been an actual operational transformation. In this rapid adaptation challenge, a key driver has been Knowledge Management (KM). Knowledge Management practices are currently being applied in all businesses still in operation, even if they are not aware that their practices are actually KM practices. In this first part of Faye Orfanou’s article she clarifies some key aspects of Knowledge Management.

A. The Covid-19 Challenge for Fast Operational Transformation

In this unprecedented Covid-19 crisis, most of the world is currently in a new status of digitally connected isolation. Moreover, wide-ranging changes have been required in business operation which had to be adopted fast.

Those businesses that could remain in operation have been required to tackle with a series of significant or even radical changes. Most businesses had to enhance their digital operations over their prevailing physical operation, converting into “phygitality”: Digital communication, digital payments, remote work and digital collaboration have become an imperative element and are not optional anymore. There have been also those businesses, which had to modify their core activity by adding or altering their manufacturing production lines to produce urgently needed healthcare products.

It has been an actual operational transformation. Many businesses had to introduce new forms of operation not applied before. A sweeping change in patterns. Moreover, all these changes had to be made fast. There has been no other “survival” option.

Clearly, most businesses were overwhelmed by the necessity to apply such wide-ranging transformation in their operation so fast. In this rapid adaptation challenge, a key driver has been Knowledge Management (KM).

Knowledge Management practices are currently being applied in all businesses still in operation, even if they are not aware that their practices are actually KM practices. The unprecedented circumstances of the Covid-19 pandemic could demonstrate the significance of Knowledge Management and its potential value in achieving an efficient operational transformation. Awareness of the significance and value of Knowledge Management could be seen as an opportunity arising out the sad circumstances of the Covid-19 pandemic.

In this article, we clarify some key aspects of Knowledge Managements and offer some suggestions for a potentially effective corporate Knowledge Management.

2. Knowledge Management Currently Applied

2.1 – Knowledge is essential for any operational transformation

A key element for any efficient operational change is corporate k n o w l e d g e and its effective management. In the current need for rapid adoption of the required wide-ranging changes knowledge management has been critical. In simple terms, in order to change effectively, you need to know “what you have to change” and “how to perform the change”. Businesses needed to know how to design and how to implement each specific operational change.

Knowledge has been critical. Each business had to ask itself:

1. Do our managers have the essential knowledge and experience to identify, design and set up all these operational changes?
2. Does our IT personnel and/or outsourced advisors know what we need to ensure safe and effective remote and digital operation?
3. Do the personnel have the necessary knowledge to adapt to the new modus operandi and to apply in practice this new form of operation?

Knowledge has been fundamental for both the management and the employees. The operational changes have concerned and have affect all. It has not been simply an issue of finding and exploiting the knowledge necessary for the managers to make strategic decisions. It has been an issue of which knowledge was critical for all employees and stakeholder so that the business can continue to operate effectively

Actually, the COVID-19 circumstances required a full deployment of the collective corporate knowledge.Collective corporate knowledge is the combined know-how and experience of both management and personnel. The business as a whole could achieve a smooth and efficient transformation, only if every person in the business had the knowledge necessary to deal with the new operational reality. The management has had to ensure that each employee would know what would be necessary to know.

2.2 – The necessary knowledge

Businesses have been required to define

• What knowledge was necessary for decision making,
• What each employee needed to know in order to adapt and implement the new operational practices,
• What the clients and collaborators had to know so as to continue smoothly their collaboration with the firm.

2.3 – The available knowledge

Further on, businesses were required to identify which of the necessary knowledge was already available within the business, whether organized or not, whether it was already stored or simply retrievable, whether explicit or tacit.

It was a challenge of finding, retrieving, capturing and exploiting. The management had to seek for knowledge available in the company’s record but also the knowledge available at specific individual employees which could be shared and exploited for the whole business.

2.4 – Knowledge outsourcing and the learning challenge

Many businesses also identified lack of knowledge or gaps in the required knowledge, in order to set up the operational transformation. For the knowledge not available within the business, the business management have had to act fast. The options were:

• either to ask experts for processed and codified knowledge, which could immediately useable (as long as the business could afford relevant experts fees)
• or find the suitable knowledge sources and then process the information

The latter option included a further challenge: the learning challenge:

• How effectively (and how fast) could the managers and personnel absorb and apply the necessary knowledge.
• What means were more effective for such rapidly required learning of knowledge, which – furthermore – had to be immediately applied in practice?

Fast, flexible and adaptive learning for all has been a significant challenge.

Moreover, in terms of individual needs, the business have had to identify potential knowledge gaps and specific learning needs for specific employees and decide on the most effective method so that they learn fast and are ready to apply what they learn in practice.

2.5 – Knowledge Management (KM) activity unfolded

All the knowledge-related activity mentioned above has been Knowledge Management (KM) activity. Clearly, each business had to unfold a KM activity in order to support the efficient transition to the new operational reality.

The main KM processes which can be distinguished in this Covid-19 transformational KM activity (often not expressly acknowledged as KM) have been:

1. IDENTIFYING the necessary knowledge,
2. FINDING, retrieving and capturing the available corporate knowledge within the business,
3. ACQUIRING new knowledge from outside sources and process such knowledge,
4. LEARNING new knowledge in a fast and effective way (identifying learning needs, select the learning method, ensure fast and effective learning),
5. (immediately) EXPLOITING the necessary knowledge in order to carry out efficiently the organizational transformation.

2.6 – The critical Knowledge Management (KM) challenges

1st Challenge: Effectiveness in KM

How effectively have businesses been applying such Knowledge Management (KM) processes?

The 1st KM challenge has been the potential effectiveness in each of the above KM processes. Ensuring effectiveness and efficiency in the whole range of KM processes has been extremely valuable for the required fast transition to the new modus operandi of the business.

2nd Challenge: KM Awareness and KM Adoption

How “consciously” have businesses been applying KM processes? Were they even aware that they have been applying Knowledge Management activity while setting up their new operational model and organizing this operational transition?

KM awareness and understanding has been a significant challenge. Awareness that a business is actually practicing KM would permit it not only to make the most out of KM under the current circumstances but it would enable the business to benefit from those KM practices it in the future as well. If the business consciously applies KM and develops its own KM system, even at a rudimentary level, then it sets up a solid foundation for its future operation which most probably is expected to face further changes and transition challenges.

The COVID-19 sad and unsettling reality has also been an opportunity for KM awareness, an opportunity for companies to get introduced in the world of KM and to set up a KM system, which could protect them against future business transformations, that are almost certain to be required. In any event, adopting KM as an integral part of their operation could be a significant value adding element, improving business operation and supporting its growth.

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