THE KNOWLEDGE MANAGEMENT CYCLE

A little knowledge that acts is worth infinitely more than much knowledge that is idle.
Kahlil Gibran (1883–1931)

LEARNING OBJECTIVES
1. You can describe how valuable knowledge from individual, group, and
organizational is captured, and then created, codified, shared, accessed,
applied, and reused throughout the Knowledge Management Cycle.

2. You can compare and contrast ) ‫ (مقابلً کردن‬major KM Life-Cycle

models,

3. You can define the key steps in each process of the KM Cycle and provide
concrete examples of each.

4. Identify the major challenges and benefits of each phase of the KM Cycle.

5. Describe how the integrated KM Cycle combines the advantages of other

KM Life-Cycle models.
 INTRODUCTION
Effective Knowledge Management requires an organization to Identify, Generate, Acquire,
Diffuse, and Capture the benefits of knowledge that provide a Strategic Advantage to that
organization.

A clear distinction must be made between Information which is digitizable, and true
Knowledge Assets which can only exist within the context ) ‫ مته‬،ً‫ (زميى‬of an Intelligent
System.

As we are still far from the creation of Artificial Intelligence Systems, this means that
Knowledge Assets reside within the human mind and not the organization per se )ً‫(في وفس‬.

Major Terms
Table 2-1 summarizes the major terms found in the KM literature.

TABLE 2-1
A COMPARISON OF KEY KM CYCLE PROCESSES

Nickols (1999) Wiig (1993) McElroy (1999)

Acquisition Creation Individual & Group Learning

Organization Sourcing Knowledge Claim Validation
Specialization
Compilation Information Acquisition
Store/access
Retrieve Transformation Knowledge Validation
Distribution Dissemination Knowledge Integration
Conservation Application
Disposal
Value realization
 Major Terms

TABLE 2-1 (Continued)

A COMPARISON OF KEY KM CYCLE PROCESSES

Rollet (2003) Bukowitz & Williams Zack (1996)

(2003)

Planning Get Acquisition

Creating Use Refinement
Integrating Learn Store/retrieve
Organizing Contribute Distribution
Transferring Assess Presentation
Maintaining Build/sustain
Assessing Divest

The Zack KM Cycle

The Zack KM Cycle is derived from work done on the design and development of information
products.

Information products are broadly defined as information “sold” to internal or external customers
such as databases, news synopses, and customer profiles.

Meyer and Zack (1996) propose that research and knowledge about the design of physical
products can be extended into the intellectual realm (area) to serve as the basis for a KM cycle.

The Zack KM Cycle (Continued)

The KM Cycle consists primarily of creating a higher value-added “Knowledge Product” at
each stage of knowledge processing.

Example: For example, a Basic Database may represent an example of Knowledge that has
been created. Value can then be added by extracting Trends from this data.

The original information has been repackaged to provide Trend analyses that can
serve as the basis for Decision Making within an organization.

The Zack KM Cycle (Continued)

The Meyer and Zack KM Cycle processes are composed of the Technologies, Facilities, and
Processes for manufacturing Products and Services.

Information Products are best viewed as a repository comprising (containing) Information

Content and Structure.

Information Content is the data held in the repository that provides the building blocks for the
resulting information products.

The Content is unique for each type of business or organization. For example;
 Banks have content relating to Personal and commercial accounts

 Insurance companies hold information on policies and claims

The other important elements to consider are the Overall Structure and approach to how the
content is Stored, Manipulated, and Retrieved.

Repository
The Repository becomes the foundation upon which a firm creates its family of information and
knowledge products.

This means that the greater the Scope, Depth, and Complexity, the greater the Flexibility for
deriving Information Products and thus the greater the potential variety within the product
family.

Such repositories often form the first kernel of an Organizational Memory or Corporate
Memory for the company.
Repository Samples
 The Meyer and Zack KM Cycle
Meyer and Zack analyzed the major developmental stages of a knowledge repository and
mapped these stages onto a KM Cycle. The stages are 1- Acquisition, 2- Refinement, 3-
Storage/Retrieval, 4- Distribution, and 5- Presentation/Use. They refer to this cycle as the
“Refinery.”
 Acquisition
Acquisition )‫ (اکتساب‬of data or information addresses the issues regarding sources of “raw”
materials such as:

 Scope )َ‫(قلمر‬  Timeliness )‫(مىاسبت‬

 Breadth )‫(گستردگي‬  Relevance )‫(ربط‬
 Depth )‫(عمق‬  Cost,
 Credibility )‫(اعتبار‬  Control, and
 Accuracy)‫(صحّت‬  Exclusivity )‫اوحصاريت‬
ّ (

Refinement
Refinement )‫ (پااليش‬is the primary source of value added;

 It may be Physical (e.g., migrating from one medium to another) or

 It may be Logical (restructuring, relabeling, indexing, and integrating.)

Refining also refers to;

 Cleaning up (e.g., “Sanitizing )‫ ”(پىٍانکاري‬content so as to ensure complete anonymity
)‫ (بيوامي‬of sources and key players involved) or

 Standardizing (e.g., conforming to templates of a best practice or lessons learned as

used within that particular organization).

Storage/Retrieval
Storage/Retrieval forms a bridge between the upstream Acquisition and Refinement stages
that feed the Repository, and downstream stages of Product Generation.

Storage may be;

 Physical Storage (file folders, printed information) or

 Digital storage (database, knowledge management software)

Distribution and Presentation

Distribution describes how the digital product is delivered to the end user (e.g., fax, print, e-
mail) and encompasses (includes) not only the medium of delivery but also its timing, frequency,
form, language, and so on.

Presentation or Use is the final step. It is at this stage that context )ً‫ زميى‬،ً‫ (سابق‬plays an
important role. The effectiveness of each of the preceding value-added steps is evaluated here:
Does the user have enough contexts to be able to make use of this content? If Not,
the KM Cycle has Failed to deliver value to the Individual and ultimately to the
Organization.

Front-End knowledge
In order for the cycle to work as intended, Front-End knowledge needs to be provided. This is
typically in the form of rules in;
 How to Identify source information

 How to Acquire it

 How to Refine it, and subsequently

 How to Add it to the firm’s information repository

Definition: Front End and Back End are generalized terms that refer to the initial and the end
stages of a process. The Front End is responsible for collecting input in various
forms from the user and processing it to conform )‫ (مطابقتکردن‬to a specification
the Back End can use. The front end is an interface between the user and the
back end.

Rules on Content Distribution

There may also be a similar need at the final stage—Rules on how content may be distributed
and used such as;
 Copyright Rules

 Attribution Rules

 Confidentiality Rules, and

 Other restrictions that may be applied

 Content and Structure Renewal
There is a necessity of continually renewing the Repository and the Refinery in order to avoid
‌
obsolescence )‫کٍىًگي‬ (.

Renewal should be added to the cycle diagram in the form of a feedback loop that involves
rethinking the basic Content and Structure of the repository to decide whether different,
newer products or repackaging is required.

This may mean;

 Increasing the depth of an analysis

 Updating a report

 Providing greater integration

 Allowing more sophisticated cross linking, or

 Achieving greater standardization of content

 The McElroy KM Cycle
McElroy describes a knowledge life cycle that consists of the processes of Knowledge
Production and Knowledge Integration, with a series of feedback loops to;
 Organizational Memory

 Beliefs

 Claims and

 The Business-Processing Environment

McElroy emphasizes that Organizational Knowledge is held both;

 Subjectively in the minds of individuals and groups and

 Objectively in explicit forms and documents

Processes in the McElroy KM Cycle
Single-Loop Learning
Our mental models affect the way we work
with the information and determine the final
decision. The decision itself changes, but
the mental models remain the same. It is
the predominant method of learning,
because it is very convenient. One
established mental model is fixed, so the
next decision is very fast.

Single-Loop Learning

Double-Loop Learning
Is used when it is necessary to change the
mental model on which our decision
depends. Unlike single loops, this model
includes a shift in understanding—from
simple and static to broader and more
dynamic—such as taking into account the
changes in the surroundings and the need
for expression changes in mental models.

Double-Loop Learning

Distributed Organizational Knowledge Base

Together, the Subjective and Objective Organizational Knowledge comprise (include) the
Distributed Organizational Knowledge Base of the company.

Knowledge use in the Business-Processing Environment results in outcomes that either

match expectations or fail to do so.
IF Matched

Matched outcomes reinforce existing knowledge, leading to its reuse, whereas mismatches lead
to adjustments in business-processing behavior via Single-Loop Learning

IF Not Matched

Successive (succeeding) failures from mismatches will lead to Doubt and ultimately Rejection
of Existing Knowledge, which will in turn trigger Knowledge Processing to Produce and
Integrate New Knowledge, this time via Double-Loop Learning.
 Problem Claim and Knowledge Claim
Problem Claim Formulation represents an attempt to Learn and State the specific nature of
the detected Knowledge Gap.

Knowledge Claim Formulation follows as a response to validated Problem Claims via

information acquisition and individual and group learning.

Knowledge Claim Evaluation

New Knowledge Claims are tested and evaluated via Knowledge Claim Evaluation
Processes.

Evaluation of Knowledge Claims leads to surviving Knowledge Claims that will be integrated
as New Organizational Knowledge or falsified/undecided Knowledge Claims.

Distributed Organizational Knowledge Base

The record of all such outcomes becomes part of the Distributed Organizational Knowledge
Base via Knowledge Integration. Once integrated, they are used in business processing.

Experience gained from the use of Knowledge in the Distributed Organizational Knowledge
Base gives rise to new Claims and resulting Beliefs, triggering the cycle to begin all over again.

Knowledge Production
In Knowledge Production, the key processes are;
 Individual and Group Learning

 Knowledge Claim Formulation

 Information Acquisition

 Codified Knowledge Claim; and

 Knowledge claim evaluation

Knowledge Production Processes

 Knowledge Production Process (Continued)
Individual and Group Learning represents the first step in Organizational Learning.
Knowledge is information until it is validated.

Knowledge Claim Validation involves codification at an Organizational Level. A formalized

procedure is required for the receipt and codification of individual and group innovations.

Information Acquisition is the process by which an organization deliberately )‫ًا‬

‫ (عمما‬or
unexpectedly )ً‫ (غيرمترقب‬acquires Knowledge Claims or Information Produced by
others, usually external to the organization

Knowledge Production Process (Continued)

Information Acquisition plays a fundamental role in Formulating New Knowledge Claims at
the Organizational Level. Examples include;
 Competitive Intelligence  Consortia, and

 Subscription Services  Personalized Information Services

 Library Services

 Research Initiatives

 Think Tanks
 Knowledge Claim Evaluation
Knowledge Claim Evaluation is the process by which Knowledge Claims are evaluated to
determine their veracity )‫ّت‬
‫ (صح‬and value.

Knowledge Claim Evaluation is the process by which Knowledge Claims are evaluated to
determine their veracity )‫ّت‬
‫ (صح‬and value. This implies that they are of greater value than
existing knowledge in the Distributed Organizational Knowledge Base.
Knowledge Claim Evaluation Processes
 Knowledge Integration
Knowledge Integration is the process by which an organization introduces new knowledge
claims to its Operating Environment and retires old ones.

This includes all Knowledge Transmission such as Teaching, Knowledge Sharing, and
other Social Activities that;
 Either communicate an understanding of previously produced Organizational
Knowledge to knowledge workers, or

 Integrate newly minted (issued, ‫ )ايجادشمي‬knowledge.

Processes in the McElroy KM Cycle
 McElroy KM Cycle in Short
One of the great strengths of the McElroy cycle is the clear description of how knowledge is
evaluated, and a conscious (mindful, ً‫ )آگاٌاو‬decision is made as to whether or not it will be
integrated into the Organizational Memory.

The validation of knowledge is a step that clearly distinguishes Knowledge Management

from Document Management.

The KM Cycle does more than address the storage and subsequent management of
documents or knowledge that has been warehoused “As Is.”

The KM Cycle focuses on processes to identify Knowledge Content that is of Value to the
organization and its employees.

Distribution and Presentation

Wiig’s KM Cycle concentrates on how knowledge is built and used as Individuals or as
Organizations. There are four major steps in this cycle, as shown in Figure 2-9:
1. Building Knowledge.

2. Holding Knowledge.

3. Pooling Knowledge.

4. Applying Knowledge.
Steps in the Wiig KM Cycle
 Building Knowledge
Building Knowledge refers to activities ranging from market research to focus groups,
surveys, competitive intelligence, and data mining applications.

Building Knowledge consists of five major activities:

1. Obtain knowledge.

2. Analyze knowledge.

3. Reconstruct/synthesize knowledge.

4. Codify and model knowledge.

5. Organize knowledge.

Knowledge Creation
Knowledge Creation may occur through;
 R&D projects

 Innovations by individuals to improve the way they perform their tasks

 Experimentation

 Reasoning with existing knowledge, and

 Hiring of new people

Holding Knowledge
Holding Knowledge consists of;
 Remembering Knowledge

 Accumulating Knowledge in Repositories

 Embedding Knowledge in Repositories, and

 Archiving Knowledge

Remembering Knowledge means that the individual has retained or remembered that item of
knowledge. It means knowledge has been internalized or understood by a given individual.
Accumulating Knowledge in a repository means that a computer-resident knowledge base
has been created and that knowledge has been encoded, permitting it to be stored in
Organizational Memory.

Embedding Knowledge consists of ensuring that it is part of business procedures. For

example it is added to a procedures manual or training course.

Finally, Archiving Knowledge involves creating a scientific library and systematically retiring
out of date, false, or no longer relevant knowledge from the Active Repository.
 Examples of Knowledge Held
Examples of knowledge held by companies include;
 Intellectual property

 Patents

 Knowledge Documented in the form of research reports

 Technical Papers, or

 Tacit Knowledge

Examples of Knowledge Held (Continued)

Tacit Knowledge, remains in the minds of individuals and may be elicited (extracted) and
embedded in the knowledge base or repository. For example:
 Tips

 Tricks of the trade

 Case Studies

 Videotapes of Demonstrations by Experts, and

 Task Support System

Pooling Knowledge
Pooling Knowledge consists of;
 Coordinating Knowledge

 Assembling Knowledge, and

 Accessing and Retrieving Knowledge

Coordination of knowledge typically requires the formation of collaborative teams to work with
particular content in order to create a “who knows what” network.

Assembling Knowledge is carried out after knowledge sources are identified. These
resources are then assembled into background references for a library or repository in order to
facilitate subsequent access and retrieval.
Access and Retrieval then addresses (deals with) being able to consult with Knowledgeable
People about difficult problems, obtaining a second opinion from an expert, or discussing
a difficult case with a peer.

Using Knowledge
Using Knowledge or Applying Knowledge is the final stage and there are innumerable
(countless) ways to apply the knowledge, including the following:
 Use established knowledge to perform a routine task.

For example, make standard products, provide a standard service, or use the expert
network to find out who is knowledgeable about a particular area.

 Use general knowledge to survey exceptional situations at hand.

For example, determine what the problem is, and estimate the potential
consequences.

 Use knowledge to describe the situation and scope of the problem.

For example, identify the problem and show generally how to handle it.

 Select relevant special knowledge to handle the situation.

For example, identify who you need to consult with or want to address the problem.