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Abstract: The new economy not only poses challenges, but also offers opportunities for both private and public sectors alike.
To meet the challenges and take the opportunities, government must take active initiatives to adopt new management tools,
techniques and philosophies of the private sector and adapt to its circumstance. Knowledge management (KM) is such an area
that needs to be further explored and exploited for its full benefits to be reaped. Key issues, challenges, and opportunities of KM
in the public sector need to be addressed and better understood
Wisdom
Knowledge
Information
Data
traditional assets like inventory and capital early 1980s and since spread around the globe
facilities (U.S. Department of Navy 2001) in countries like Australia, New Zealand,
4. As knowledge transfer is increasingly Finland, Sweden, France and Germany. In the
recognised as a source of value creation, USA another term reinventing government is
organisations have come to identify KM used, but the principles of NPM are applied
initiatives as strategic facilitators of (Lane 2000).
competitive advantages.
According to Lane (2000), NPM is a general
According to a survey (KM magazine, 2001),
theory about how government can get things
an organisations main implementation
done; how government can get services
challenge stems from the absence of a
organised and offered to citizens. NPM is not
sharing culture and employees lack of
about politics, but about what happens after
understanding KM and the benefits it offers.
parliament has decided on the objectives. Its
Organisations can address these challenges
basic claims are that public administration is
by making; training, change management and
old fashioned and can be replaced by NPM.
process redesign primary components of KM
What NPM claims is twofold. First,
initiatives.
bureaucracy is not the most efficient way to
steer the public sector. Second, NPM states
2. Comparison of KM in the public that contractualism is the answer to the
and private sector question of what is to be used instead of
While literature on KM has been addressing administrative law and budgetary
issues, challenges and opportunities for the appropriation. Contracting out by means of
private sector, little has been discussed for the tendering/bidding, auction and leasing as new
public sector. Programs such as those tools of governance for government to reduce
associated with New Public Management costs and increase efficiency is the main
(NPM) suggest that the public organisations characteristic of NPM. Among the advantages
should import managerial processes from the are efficiency, more services produced lower
private sector, emulating their successful costs, and higher contractual transparency.
techniques. However, critics of NPM argue that This, at least in part, is in line with benefits
the differences between public and private offered by KM. But its disadvantages cannot
sectors are so great that business practices be overlooked. One major disadvantage is that
cannot be transferred across. Significant trust has decreased. Political democracy may
differences in human resource management be negatively affected and transactions costs
policies and practices, the management of may increase. This may run counter to KM in
ethical issues and decision processes still exist which trust is crucial factor in the culture of
between the two sectors. However, there is no sharing knowledge. Nonetheless, the NPM
established body knowledge on successful experience of different countries, though
management strategies in the private sector varied, indicates that the advantages prevail
that can be drawn upon by public agency over the disadvantages.
either (Boyne 2002). Consequently, it is
proposed that there is a need of strategy The practice of NPM and its increasing
designed especially for the public sector to be acceptance by countries around the globe
developed to fill the gaps and for cross show that the concept and practice of KM
learning. stemming from the private companies can be
adopted in the public sector. However, its
2.1 NPM and KM in the public sector success or failure will depend on how KM is
adapted to the context of the public sector.
More than decades of development of NPM There are some differences indeed existing
both theoretically and practically in the western between the two sectors as alluded above.
world and its tendency to spread to the
developing countries has paved the way and
2.2 Importance and need of KM for
laid a solid foundation for KM initiatives to be
implemented in the public sector. To better government
understand the relevance between NPM and The management of knowledge is of
KM, a brief introduction of NPM is discussed. increasing importance for governments in
dealing with the challenges created by the
NPM offers a set of new ideas and tools for knowledge economy. These challenges are
government to run the public sector. Its key addressed in the following aspects (OECD
idea is the employment of private law contracts 2003):
in order to provide public services. NPM 1. Knowledge has become a critical
started in the UK with Premier Thatcher in the determinant of competitiveness for the
public sector. Service delivery and policy (Jussilaninen, 2001). Public organisations
making are the main tasks for need to tweak their KM initiatives now to
government. In a knowledge economy, start retaining the knowledge currently in
governments are increasingly facing the heads of these employees. Unless
competition in these areas at both this is done, services to the public will
international level and national level. At suffer. Thus capturing tacit knowledge
the international level, for example (OECD and then training the staff is important so
2003), NGOs and governments are in that it can be passed on to new staff.
competition with foreign organisations Increasingly knowledgeable citizens require
delivering similar service. Research governments to be on top of newly created
institutes compete to attract the best knowledge, as it is increasingly rapidly
researchers and funding while universities produced by more differentiated actors.
are increasingly in competition to attract
KM is based on the idea that an organisation's
the most investments, the best students
most valuable resource is the knowledge of its
and the best professors. At the national
people. This focus is being driven by the
level, competition among public bodies is
accelerated rate of change in today's
also increased following the
organisations and in society as a whole. KM
decentralisation processes. In the public
recognises that today nearly all jobs involve
sector, goods and capital is not as
'knowledge work' and so all staff are
important as in the private sector, but
'knowledge workers' (Drucker 1993) to some
knowledge is. Knowledge is an important
degree or another - meaning that their job
element of competition and is a central
depends more on their knowledge than their
resource of the government. Effective
manual skills. This means that creating,
functioning of government rests on
sharing and using knowledge are among the
effective acquisition and dissemination of
most important activities of nearly every person
knowledge.
in every organisation.
2. Private firms produce goods and services
One of the proper solutions to meet the
that are increasingly intensive in
challenges is to take proactive attitude towards
intangible capital, directly competing with
KM practices prevalent in the private sector
the public sector for the delivery of goods
and adopt and adapt them to the public setting.
and services such as education, science,
KM has some potential to actually strengthen
security and knowledge. For example
government effectiveness and competitiveness
(OECD 2001), through distance learning,
in the changing environment. Public sectors
coaching, information and courses on the
and NGOs have to face these challenges and
Internet, private firm have increasing
make good use of opportunities offered by
influence on the public education and
globalisation, the knowledge-based economy,
training of citizens, which was traditionally
and new development of ICT. If it does not, it
offered by the public sector. As customers
will mean missing out on opportunities KM
demand and receive more customisation
offers.
from knowledge-oriented private firms,
they would also expect similar benefits
from the public sector. 3. Generic KM framework in the
3. Retirement of civil servants and frequent public sector
transfer of knowledge workers across
government departments also create new 3.1 Need for a generic KM framework
challenges for the retention of knowledge for the public sector
and preservation of institutional memory Many researchers have proposed a variety of
and the training of new staff. There is also KM frameworks, models, and perspectives to
competition for talent with an ability to help understand the concept of and conduct
share knowledge. KM. Holsapple and Joshi (1999) have made a
4. According to a report (GAO 2001), comparative analysis of key KM frameworks
approximately 71 % of U.S. governments available in the literature and argued that none
current employees will be eligible for of these researchers appeared to subsume all
retirement by 2005. This is not confined to of the others as each of them addressed
the U.S alone. Most governments are certain KM elements. The authors of this paper
facing the similar problems. It is estimated leads to propose that there is a need for a
in Finland, for example, that until 2012 more comprehensive and unified framework
about 85% of the senior civil servants will describing the nature of KM.
leave and that nearly half of the civil
servants will be leaving in 2001-2011
While these frameworks are designed for the are the most important component, because
private sector, there are few, which are managing knowledge depends upon peoples
distinctive, for public sector. The public sector willingness to share and reuse knowledge.
is widely accepted as being different from the (CIO Council, 2001).
private sector and has some unique features of
its own. A framework for the public sector is 3.2.1 People
different for two reasons: the public sector is Getting an organisations culture (including
stakeholder dependent while the private values and behaviours) right for KM is
sector is shareholder dependent. Stakeholder typically the most important and yet often the
approach involves multiple parties in the most difficult challenge. KM is first and
process and it is much more complex to deal foremost a people issue. The success of KM
with. In the public sector, the stakeholder can initiatives depends upon peoples motivation,
be citizens, state and local government, private their willingness, and their ability to share
firms, users, and lobby groups, just to name a knowledge and use the knowledge of others.
few. When governments have to make policy
decision and deliver services care and People in organisation, processes and
considerations must be taken of the interest of technology will at all times be acting as either
the stakeholders. In the private sector, firms enablers of, or barriers to, effective KM
are mainly responsible for their shareholder. practices. Barriers need to be identified and
Firms must provide shareholders for their removed. Existing enablers also need to be
returns on investment. Secondly, the private enhanced and additional ones created. This is
sector is competition based, while the public often where the greatest KM challenges lie
sector is dependent more on factors such as
service delivery, information provision, and The structure of the public sector organisations
knowledge identification, sharing and, has traditionally been compartmentalised. Silo
utilisation. Due to the survival issue, private is probably the best word to describe it. Need
firms are in constant vigilance to gain to know basis is part of public sector culture.
competitive advantage against discontinuous Knowledge is power, whats in it for me, and
environmental change by adopting new not invented here syndrome are typical
management tool, techniques and mindsets of the manager and staff in
philosophies such as KM. There is, however, organisations. In such an environment,
no such threat in the public sector. In the core information and knowledge are hardly ever
public service, organisational change has not shared across different units and different
traditionally been motivated by product organisational levels. However, people do
competitiveness. However, traditional public share knowledge for some reasons such as
service monopolies, to some extent, are reciprocity, reputation and prestige, or
increasingly challenged with the globalisation sometimes just for altruistic reasons. This
of information and increased people and suggests that knowledge sharing is not a
capital. Even so, the public sector should focus natural act in organisations. It needs a mental
more on identification, sharing and, utilisation model change. To change the attitude and
of knowledge. behaviour of the people and reduce barriers, a
knowledge sharing culture need to be created.
These two main reasons have seriously altered The proposed framework suggests following to
the implementation of KM strategy. Therefore, bring about necessary change:
it is considered that there is a need to develop 1. Raise awareness of benefits of KM. Staff
a generic KM framework for the public sector, and managers should be aware of the
by understanding and implementing KM changes and advantages that KM can
practices. bring to them and organisation. While they
believe that knowledge is power, they
3.2 Elements to be considered for must understand that sharing knowledge
public sector KM framework is power.
People, processes, and technology are the 2. Build an environment of trust. People tend
three key elements of the environment. KM to share knowledge when they know each
focuses on people and organisational culture other. The level of trust has direct bearing
to stimulate and nurture the sharing and use of on knowledge sharing. The more trust that
knowledge; on processes or methods to exists, the more people are willing to
locate, create, capture and share knowledge; share.
and on technology to store and make 3. Develop leaders who foster sharing, as
knowledge accessible and to allow people to role model. A champion is needed to KM
work together without being together. People implementation.
4. Establish a formal rewards and 3. Select. Assess the value of the captured
recognition system for knowledge sharing. and formalised knowledge and filter it to
Employees must be rewarded and obtain knowledge that seems appropriate.
recognised, not only for sharing their 4. Store. Classify the filtered knowledge, get
knowledge with others, but also for being it organised in a standard format, add it to
willing to use others knowledge. This can the organisational memory, and review
be done by: and update it periodically.
4.1. Acknowledging the contributor of 5. Share. Classify and retrieve knowledge
ideas, knowledge, and time by linking from organisational memory, and make it
this to their semi and annual available for the knowledge users.
performance evaluation, promotion,
6. Apply. Utilise the knowledge in performing
and pay.
the tasks such as solving problems,
4.2. Providing special recognition to making decisions, researching ideas, and
volunteers, change agents, and role learning.
model and rewarding them.
7. Create. Discover new knowledge through
4.3. Celebrating success stories and a variety of processes such as surveys,
propagating tales of savings and best practices, research, pilot studies, and
contributions in order to gain data mining.
acceptance among employees and
engage them in further participation. 3.2.3 Technology
4.4. Making knowledge sharing a job Technology is employed in all the processes of
requirement. KM and various technological solutions are
4.5. Hiring people with an ability to share already available in the market. The problem is
knowledge actually a matter of selecting an appropriate
5. Develop and nurture communities of technology (Asoh, et al 2002). However, one
practice (CoPs). CoPs are knowledge must bear in mind that technology is just a
centres of an organisation wherein a crucial enabler. It can help connect people with
group of individuals with similar work information, and people with each other, but it
responsibilities but who are not part of a is not the solution. Along the technology
formally constituted work team; create, dimension, the framework proposes the
share and use knowledge. CoPs can be a following tasks:
broader means of sharing tacit 1. Identify the appropriate hardware and
knowledge. They can be effective in the software for conducting KM and make
public sector activities, either on generic sure any technology used must fit the
or specific basis. To reap rewards from organisation's people and processes.
CoPs and sustain them over time, 2. Build a technological infrastructure as
organisations need to nurture them by identified by employees needs in
making resources available to them and knowledge resources and right for the
by allowing members the opportunity to processes.
participate. 3. Establish an organisation wide intranet
with extensive communicating and
3.2.2 Process collaboration capabilities to share explicit
Drawing KM methodologies from the existing knowledge.
literature, the framework proposes to address 4. Build a knowledge portal, virtual
issues in relation to the processes and knowledge platform, that is accessible via
techniques for managing knowledge, the the organisation wide intranet to share
following stages of KM: tacit knowledge without being face to face
1. Identify. Determine core competencies, through means such as email, discussion
recognise strategic capabilities and groups, chat rooms, audio and
knowledge domains, assess the expertise videoconference.
level for each knowledge domain, and
5. Organ and store the knowledge assets in
focus on bridging the gap between the
an electronic medium so as to enable
existing and needed knowledge.
efficient and faster access and retrieval.
2. Capture. Attempt to obtain needed
6. Provide customised access to knowledge
knowledge from both inside and outside
resources by pull or push technology to
sources and to formalise and document
facilitate interaction with citizens,
the obtained knowledge.
customers, suppliers, partners and others.