How to utilize knowledge capital to produce results and improve human worth
Why do we have such a problem relating knowledge to our business needs?
Enterprises have a well-known problem in relating knowledge to business needs.This is because enterprises do not organize and manage the business. Dead-end 20th century management used today lays organization, business process, administration, and a variety of other structures over the business to manage the enterprise. Knowledge is not related to the business; knowledge is related to contrived structures laid over the business, such as an index of subjects and topics.
The business is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Knowledge is capital consisting of specific solutions of worth utilized to improve the utilization of other solutions for cost and effectiveness of performance to produce value and quality in results. Knowledge is human capital that increases human personnel capital worth by improving their performance in utilizing various capital solutions effectively and producing higher value-quality results. Knowledge is used to develop specific human capability solutions that are utilized to produce specific difficult results to be of high value-quality,
Enterprises need a systematic way to identify specific business results that must be supported by knowledge, identify specific capital solutions that must be utilized properly to produce the result, define the precise knowledge needed, to relate knowledge to the capability of the user applying the knowledge, to link knowledge to where and by whom it is needed, to understand the value created by knowledge that gives worth to the knowledge, and to get feedback and improvement on the knowledge. This can only be done by managing the actual business.
There are many problems inherent in knowledge management today
Many enterprises make large investments in knowledge, but 20th century methods that we use to manage knowledge limit the value created and the return of the investment:
- Knowledge is labeled as intellectual capital or intangible assets to relieve us of the responsibility to manage knowledge as an asset of worth
- Knowledge is organized by topics or subject matter, which depend on someone referencing the topic to their job or function to put knowledge to use
- Knowledge is human capital to improve human capability, but it is rarely managed as human capital
- Knowledge is delivered through learning, but learning material is often separate from knowledge
- Knowledge is information capital to contribute to the overall business information base, but is usually separated from other information
- Knowledge is not integrated with the business to be utilized as a capital solution to produce value for the enterprise
- Knowledge gains worth by creating value in business results, but results are not managed and only a few results are supported directly by knowledge
Conventional methods hamper the application of knowledge by using structures that are defined through various contrived entities like department, activity, and object, while organizing knowledge by topic, subject, etc. These fundamental problems prevent knowledge from being leveraged to be high-worth capital utilized in a managed business.
Knowledge is human capital that enables other human capital to utilize specific capital solutions to produce specific results
Knowledge is human capital that must be created and managed specifically to increase human capital worth through the value of results produced. Knowledge is also information capital that must be integrated with business data and delivered where needed to produce specific results and to support human capabilities utilized. Human capital includes human personnel, the internal and external individuals utilized to produce business results. Human capital also includes human capabilities that are developed to produce difficult high-value results. Any human personnel solution with the needed capability can be implemented with the capability to produce the result.
The business must be organized by specific capital solutions implemented, utilization of capital solutions in performance, and the specific results produced. Knowledge needs to be developed as capital solutions to be implemented to produce specific results. Human personnel and capability capital and other solutions required are also implemented to produce the result. Knowledge provides the instructions, learning, and documentation so that humans utilize the solutions properly to produce the best results.
Business Management provides the means to manage knowledge to produce results
Business management defines the business through the capital solutions, such as human capabilities and knowledge, the business process, and facility equipment to be utilized in performance to produce value in results, such as knowledge created, service rendered, sale completed, project closed, etc. The knowledge created result is implemented as a knowledge capital solution to be utilized to produce other results. In order to apply knowledge to produce value, knowledge must be related to results. Knowledge can be related directly to the result or be related to a human capability or other solution that is utilized to produce a result. Knowledge concerning operation of facility equipment solution is referenced by the solution, Knowledge that is utilized to produce a sale completed result is referenced by the result.
A business process is utilized to produce a result. The business process defines the human capabilities that are integrated with the process to produce the result. The result manager is responsible for the adequacy of the solutions utilized to produce a result. The manager must describe the additional knowledge requirements to the performance manager responsible for knowledge capital utilization to see that knowledge is created to increase the value of results. Human capital utilizing knowledge to increase the value-added in results, increase their worth as human capital and justify an increase in human performance cost.
Business management makes knowledge creation and application part of the enterprise business routine
Creating and applying knowledge may look like a lot of work. But it is not a lot of work; it is routine in an enterprise that utilizes capital in performance to produce value in results. Knowledge created is integrated with business data by being referenced by specific capital solutions and by specific results. Knowledge may be referenced by enterprises, business descriptors, and other subject as well. The result value created in the utilization of knowledge is attributed back to the knowledge solution. This provides the return of the knowledge investment in value created to date. The potential of the knowledge to create future value provides future worth to the knowledge. Knowledge can lose worth very quickly as it comes outdated in a changing business. So the useful life of knowledge must be planned carefully when created, and managed periodically when utilized to produce results.
21st century business management eliminates 20th century problems
Business management eliminates costly 20th century problems that cause the financial and economic crisis. Business management maximizes capital worth, performance effectiveness and result value, while minimizing capital investments, performance costs, and result risk.
Result-performance Management (R-pM) provides the knowledge needed for direct business management. The Business Management Toolkit, is available today to document and develop business management. The Business Management Toolkit subscription is offered at a nominal price to encourage wide management of businesses around the world to prevent the problems that caused the economic crisis. Subscribe to the Business Management Toolkit, and receive future updates, at result-performance-management.com.
The Solution to the Economic Crisis is explained in free downloads
Three free white papers explain the dead-end 20th century management problems that caused the economic crisis, the way to eliminate the problems, and a government program to address the crisis by stimulating the economy, solving the problems, building an structure for financial and economic management, and organizing local businesses to flourish in the eventual recovery.
- How to Eliminate Problems that caused the Economic Crisis explains the major unsolvable 20th century management problems and the 21st century business management solution
- The Only Solution to the Economic Crisis; Manage the Business explains how to manage the business to capture actual business data and provide management the information needed for actual business, corporation, industry, and economic management
- A Government Business Management Program to Answer the Economic Crisis outlines a government program to encourage business management and manage economic cycles to prevent future crisis
These three white paper downloads are available free to R-pM Community Members at result-performance-management.com. There is no cost or obligation to join the R-pM Community. Join by entering your email address and password. Your email address is protected and used only for download problems and occasional R-pM Member news and white papers
