Knowledge management in projects and organizations

Revision as of 00:10, 16 September 2016

Abstract

Effective project management is a key enabler for business success.

For a project management organization to be competitive, project managers need to retain and build knowledge improving project performance and the organization needs to do this faster and more effectively than in competing organizations. If knowledge is managed effectively, projects can be delivered successfully within budget and time.

The aim of this article is to identify within a project in an organization how knowledge is created, transferred and reused in a project management environment. Three main areas will be studied: intra project learning and knowledge creation; knowledge transfer and reuse across projects; and organizational memory and knowledge

People working at projects always learn new things. Sharing this information within the project team members is essential to carry out the project successfully. This should be done at regular review points during the project lifecycle. Knowledge needs to be developed within a project, where it is used and tested, before it can be transferred to other projects. Intra-project learning can occur in different ways but should be documented in order to transfer it to other projects within the company.

This concept is called knowledge reuse. Two models have been analyzed to understand how knowledge gained from one project can be transferred, reused and built on in future projects. The first model is called the OODA loop, which describes a process for developing and executing strategies either at an individual or an organizatinal level. The second model called the PDSA cycle is based on the premise that for an organization to continually improve or learn they need to plan for it, implement the plan, analyse or study the results and act on the analysis.

Knowledge that is gained in different projects needs to be transferred to an organization's memory for reuse on other projects. This information transfer is essential for the organization's prosperity. Therefore, a knowledge management strategy is developed to determine how knowledge should be reported, stored, shared and used.

Importance of knowledge management

Knowledge is a vital resource in project-based industries such as aerospace, construction, shipbuilding and software. Considering management of knowledge is a necessary prerequisite for project success in today’s dynamic and changing environment.

Key business objectives for project management in companies are to: increase customer retention and acquisition, increase returns on projects, and minimise risks. Crucial factors in achieving these objectives are related to managing, applying and reusing knowledge gained throughout the project lifecycle. If useful information is identified, assimilated and retained within the organization, it represents intellectual capital that can be reused on other projects, reducing the time staff spend recreating what has already been learned, and therefore improving program management in general. Such organizations must continually develop their core competencies or project management capabilities to successfully win and execute projects to meet client needs.

Effective project management is a key enabler for business success. However, where corporate knowledge is ineffectively managed during the project lifecycle, valuable intellectual capital is lost or devalued, causing rework and lost opportunities. The management and transfer of knowledge can support an organization in improving organizational learning. From the project management point of view, this in turn should help deliver more projects on time and within budget, or alternatively deliver projects of a higher quality for an increased profit. This also leads to higher customer satisfaction and better reputation for the organization.

To succeed competitively and to achieve their business strategies and goals, organizations such as project management organizations need an effective knowledge management strategy in order to maintain valuable intellectual capital and not causing rework to employees. Effective knowledge management and learning are also essential to ensure a qualified and polyvalent staff. It also affects to the personal satisfaction of employees, as they consider their work to be valuable and efficient. For technology-based organizations, continuous learning is a helpful strategy to remain innovative.

Intra and inter project learning and knowledge creation

In a company, two projects will never be exactly the same. Possibilities to find similar projects are high, but each project is unique due to several factors such as project definition, tasks or members, among others. Therefore, projects are especially suitable for learning. [1]

PDSA cycle

The Plan-Do-Study-Act (PDSA) cycle is an iterative, four-stage problem-solving model used for improving a process or carrying out change [2]. Applied to the field of knowledge management, it is used to characterize knowledge creation and learning in a project management environment, and is linked to the Project Management Institute´s Project Management Body of Knowledge (PMBOK). The PDSA model is valid to explain two possible situations in a project-based environment. On the one hand, it can explain the process within a project where an iterative process is used to find the best solution for a problem. This means that inside a project there are several PSDA cycles, and the design is improved and refined until the final solution is obtained. On the other hand, taking into account that a project is a single PDSA cycle, it explains how knowledge that is gained from one project can be saved and transferred to be reused in future projects.

In both cases, The PDSA cycle is based on the premise that for an organization to continually improve or learn they need to plan for it, implement the plan, analyze or study the results and act on the analysis [inventado]. In the following explanation the second situation will be considered, but it can be perfectly applicable to the first situation as well.

The “Plan” step is where the cycle usually starts. When a project is assigned to a project manager, the first step is to plan and decide how it is going to be carried out. There are several points that need to be taken into account. The most relevant ones are explained next:

• Recruit a team: Assemble a team that has knowledge of the problem or opportunity for improvement. Consider the strengths each team member brings and look for a balanced, engaged and forward-thinking staff. Roles and responsibilities should also be identified and assigned to all the members of the group.

• Describe the problem: It is important that all the members of the group have a clear understanding of the problem.

• Define the goal: The objectives of the project need to be clear and every member of the group should know what needs to be accomplished.

• Make a plan: Analyze how the previously defined goals could be accomplished in the most efficient way. Develop an action plan, including necessary resources and a timeline. Identify risks that might come up in the implementation process and develop alternatives in relation to the risks. [3]

The "Do" step is where the project team implements the previously defined plan. During this process the project team identifies problems that were not planned in the previous stage and these need to be solved in order to deliver the project successfully. Learning takes place when project team members discuss approaches for completing a task or overcoming problems [4]. Knowledge is created by individuals and groups building on existing knowledge and creating new knowledge. This knowledge can either be coded in project documentation or is stored with the project member, as it usually occurs in informal situations [Knowledge reuse and transfer in a project management environment (1)]. The intra-learning occurs continually throughout the project life cycle [5]. A way of ensuring that project learning occurs is to ensure that knowledge is captured at regular review points during the project lifecycle.

In the "Study" step the project team reflects on the associated plans, and assesses what has occurred in the project, determining both good and bad instances. The output of this step is a lesson learned, which is a tool to consolidate the knowledge gained throughout the project. A lesson learned overcomes the barriers to organizational learning and knowledge sharing by playing two roles. First, the process of developing a lesson learned provides an opportunity for the project team to take reflective time to gain a full understanding of project results. Actions are identified as good or bad as well as procedures to carry them out. The lesson learned should describe the actions to take or avoid on similar projects. Second, a lesson learned is a mechanism to document the learning of the project team to share with other members in the company.

The "Act" step is the next step where the cycle is completed and knowledge gained from one project can be input into future projects. It represents the transition from project to project. Then, if a project as a whole is seen as a PDSA cycle, the "Act" step is the one that links one cycle with the next one. For example, a lessons learned document of a current project supports the planning stage of the next project by providing information and knowledge gained from one PDSA cycle to another.

EXAMPLE

Knowledge transfer and reuse across projects

In this section a model is established for how knowledge gained from one project can be transferred, reused and built on in future projects. The model needs to be flexible enough to change as new knowledge is created and stored. Knowledge that is already captured can be built on from knowledge gained from earlier projects.

Organizational memory and knowledge sharing

Knowledge that is gained in a project needs to be transferred to an organization´s memory for reuse on other projects. Organizational memory is the accumulated body of information and knowledge created in the course of an individual organization´s existence. The organizational memory can be divided up in two main groups: organization´s archives (including its electronic data bases); and individual´s memories. The challenge is to capture and index this knowledge for retrieval while it is available, as project teams are temporary. The context in which knowledge transfer happens is important, especially for tacit knowledge, because usually people exchange knowledge personally based on trust and experience. As stated in the previous chapter, a project knowledge base is created when a project is carried out. This knowledge is stored in two ways mainly: formal and explicit documentation (lessons learned) and within each of the individual members of the project group. This information will not be useful for the organization unless it is shared with other members in the organization. It is essential that this information is shared effectively. For that purpose, a knowledge management plan should be established. If done it successfully, the loss of information throughout the process would be minimal, enhancing the reuse of knowledge for other projects. Explicit knowledge is usually shared through archives or documentation. Lessons learned from all the different projects that the organization has carried out throughout years should be archived and stored for future look up by any of the members of the organization. Bear in mind that employees will also use it as a source of learning if the system is easy and straightforward. Therefore, knowledge management tools are a great step forward in order to keep the information well-structured and organized. Computer-based information systems have been key in the improvement of such databases, which make the information exchange much easier and convenient. In this way, the information remains stored within the organization and it is ready for lookup and reuse in future projects. [6]

Tacit knowledge is more difficult to share because it is something that an individual has learnt through experience and cannot be transferred to a document effectively. Absorbing facts by reading them or seeing them demonstrated is one thing; experiencing them personally is quite another. It is very difficult to become knowledgeable in a passive way. Actively experiencing something is considerably more valuable than having it described. This type of knowledge is usually shared within the members of the organization based on trust and experience; therefore, human relations and social behavior play a key role. Some practical means of transferring tacit knowledge will be explained shortly next:

• Tours within the organization: it allows employees to see how other colleagues work and knowledge is shared.

• Personnel rotation programs: probably one of the most powerful methods of transferring knowledge. Those in daily contact with these experts benefit enormously from their skills. Transferring them to different parts of the organization helps share the wealth and knowledge.

• Training programs within the company: this enables social networking and enables knowledge sharing among its members if they are well designed.

Continuous learning is essential for companies in fast-growing industries to be able to respond to changes in the business environment. In order to maintain competitive advantage, organizations need to learn and obtain knowledge faster than their competitors. A knowledge management strategy is developed by the organization for improving how it develops, stores and uses its corporate knowledge. Both tacit and explicit knowledge are important in the creation and reuse of knowledge. Organizational memory forms the basis of intellectual capital that is held in an organization. Intellectual capital is the knowledge and capability to develop that knowledge in an organization.

Four key factors are critical to a project-based organization´s capacity to learn:

• A culture that encourages learning

• A strategy that allows learning

• An organizational structure that promotes innovative development

• The environment

These factors contribute to individuals creating, transferring and reusing knowledge leading to organizational learning. For a project organization to continually learn and develop, organizational learning needs to occur. Organizations with these characteristics and mindset, that integrate learning as part of their business, are called learning organizations.

A key component of this mapping process is the recording of organizational memory. Organizational memory comprises the sum of participating individual´s knowledge. Once this body of knowledge is created new people can use it and it survives people leaving the organization.

Discussion