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Nancy M. Dixon - Common Knowledge: How Companies Thrive by Sharing What They Know

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Breakthrough research on knowledge transfer reveals five proven methods for making knowledge sharing a reality - which are right for your company? While external knowledge - about customers, about competitors - is critical, it rarely provides a competitive edge for companies because such information is equally available to everyone. But internal know-how that is unique to a specific company - how to introduce a new drug into the diabetes market, how to decrease assembly time in an automobile plant - is the stuff of which sustained competitive advantage is made. Nancy Dixon, an expert in the field of organizational learning, calls this knowledge borne of experience common knowledge, and argues that in order to get beyond talking about knowledge management to actually doing it, companies must first recognize that all knowledge is not created - and therefore cant be shared - equally. Creating successful knowledge transfer systems, Dixon argues, requires matching the type of knowledge to be shared to the method best suited for transferring it effectively. Based on an in-depth study of several organizations - including Ernst & Young, Bechtel, Ford, Chevron, British Petroleum, Texas Instruments, and the U.S. Army - that are leading the field in successful knowledge transfer, Common Knowledge reveals groundbreaking insights into how organizational knowledge is created, how it can be effectively shared - and why transfer systems work when they do. Until now, most organizations have had to rely on costly trial and error to find a knowledge transfer system that works for them. Dixon helps managers take the guesswork out of this process by outlining three criteria that must be considered in order to determine how a transfer method will work in a specific situation: the type of knowledge to be transferred, the nature of the task, and who the receiver of that knowledge will be. Drawing from the successful - but very different - practices of the companies in her study and providing compelling illustrative stories based on the experiences of real managers, Dixon distills five distinct categories of knowledge transfer, explains the principles that make each of them work, and helps managers determine which of these systems would be most effective in their own organizations. Common Knowledge gets to the heart of one of the most difficult questions in knowledge transfer today: what makes a system work effectively in one organization but fail miserably in another? Going beyond one-size-fits-all approaches and simple generalities like upper management involvement and cultural issues, this important book will help organizations of every kind construct knowledge transfer systems tailored to their unique forms of common knowledge - and in the process create the best kind of competitive advantage there is: the kind that cant be copied.

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title Common Knowledge How Companies Thrive By Sharing What They Know - photo 1

title:Common Knowledge : How Companies Thrive By Sharing What They Know
author:Dixon, Nancy M.
publisher:Harvard Business School Press
isbn10 | asin:0875849040
print isbn13:9780875849041
ebook isbn13:9780585258171
language:English
subjectOrganizational learning, Business enterprises--Communication systems, Intellectual cooperation, Information networks--Economic aspects, Success in business.
publication date:2000
lcc:HD58.82.D585 2000eb
ddc:658.4/5
subject:Organizational learning, Business enterprises--Communication systems, Intellectual cooperation, Information networks--Economic aspects, Success in business.
Page iii
Common Knowledge
How Companies Thrive by Sharing What They Know
Nancy M. Dixon
Harvard Business School Press
Boston, Massachusetts
Page iv
Copyright 2000 President and Fellows of Harvard College
All rights reserved
Printed in the United States of America
04 03 02 01 00 5 4 32 1
Library of Congress Cataloging-in-Publication Data
Dixon, Nancy M., 1937
Common knowledge: how companies thrive by sharing what they know /
Nancy M. Dixon.
p. cm.
Includes bibliographical references and index.
ISBN 0875849040 (alk. paper)
1. Organizational learning. 2. Business enterprises
Communication systems. 3. Intellectual cooperation.
4. Information networks-Economic aspects. 5. Success in
business. I. Title.
HD58.82 .D585 2000
658.4'5-dc21 99048879
The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Publications and Documents in Libraries and Archives Z39.481992.
Page v
FOR MY SONS WHOSE LIVES HAVE SO GREATLY ENRICHED MY OWN:
STEPHEN DIXON JOHNSON
RICHARD SCOTT JOHNSON
Page vii
Contents
Acknowledgments
ix
1
Introduction
1
2
Creating and Leveraging Common Knowledge
17
3
Serial Transfer
33
4
Near Transfer
53
5
Far Transfer
77
6
Strategic Transfer
99
7
Expert Transfer
127
8
Looking Across the Five Types of Knowledge Transfer
143
9
Building an Integrated System for Knowledge Transfer
161
Notes
175
Index
179
About the Author
187

Page ix
Acknowledgments
In the course of writing this book many organizations opened their doors to me so I could gain a comprehensive understanding of how they were transferring knowledge. I owe a great deal to the individuals who spent time being interviewed and who paved the way to give me access to others in their organizations. In each of these organizations I talked with dozens of people, but it is particularly important to thank: Dar Wolford and Stan Kwiecien at Ford; Greta Lydecker and Gary Fischer at Chevron; Rick Longbrake and Bob Wacker at Texas Instruments; Nick Milton and Kent Greenes at British Petroleum; Johnathan Ungerleider, Ruddy Ruggles, Ralph Poole, Dale Neef, and Mare Rasmussen at Ernst & Young; Cheryl Lamb and Melissie Rumizen at Buckman Labs; Candice Phelan at Lockheed Martin; Raleigh Amos, Fred Dkystra, Tim Horst, and Doug Omichinski at Bechtel; James T. Stensvaag and Ed Guthrie of the U.S. Army; and Stephen Denning and Seth Kahan at The World Bank.
Page x
I have had long-term relationships with colleagues at Conoco and I am grateful for their support and the conversations that helped develop these ideas. They include: Sallie Hightower, David Nelson, Dennis Stephen, Mac Curtis, Dennis Wolf, and Brian Hall, among many others.
There are a host of other colleagues who also inspire and encourage my ongoing efforts: Doris Adams, who I can always count on for a careful and thoughtful response; Marie-eve Marchand, whose ideas push my own; Catherine Fitzgerald, whose breadth of knowledge keeps me humble; and Rick Ross, my colleague and sometimes coauthor, who provides very helpful, practical insight.
Page 1
Chapter 1
Introduction
A great cartoon in the NewYorker some years back showed two venerable men, obviously scientists, sitting back to back at their respective desks. One says to the other, "It's just come to my attention that we've both been working on the same problem for the last twenty-five years." The cartoon is funny because of both the truth and the absurdity of the situation. It is not news to organizations that they need to find ways to keep from continually reinventing the wheel. Although aware of the problem, organizations only recently have begun to construct processes that may change the too familiar predicament depicted in the cartoon.
Perhaps organizations are now addressing the issue of knowledge sharing due to their growing awareness of the importance of knowledge to organizational success or perhaps because technology has made the sharing of knowledge more feasible. Whatever the impetus, organizations have started to do more than
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