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Example Cases
Valuable lessons can be learned from the following organisations:
Anonymous Large Multinational Corporation
Communities of Practice (CoP) save costs and time
At a large multinational corporation informal CoP's were found to be successful mechanisms for achieving tacit-to-explicit and explicit-to-tacit knowledge transfer for R&D work. An informal technology club was initially created to discuss leading-edge ideas in various fields; experiment with ways of solving common challenges; and to share knowledge and ideas. The club grew rapidly through voluntary participation and with regular face-to-face and online discussions involving internal company experts, outside industry experts, suppliers, and corporate customers from a variety of research fields, a community was founded. The community solved current problems and learned how to use existing technologies more effectively, pushing these to new frontiers. A key benefit reported from the CoP was the synergistic blending of diverse technology fields. Technology transfer which saved the organisation significant costs and time was one of the most valuable accomplishments of the CoP. (Persaud et al 2001)
Mennonite Economic Development Associates
Knowledge Creation - Microfinance for entrepreneurs
Organisational learning principles associated with the financing of family enterprises were used in Bolivia by the Mennonite Economic Development Associates (MEDA). Microfinance activities involve the provision of credit to poor micro-entrepreneurs thus enabling them to establish and to grow their businesses. It was recognised that the need for organisational learning (e.g., technical assistance) was much greater than the requirement for external funds in the long-term development of microfinance in Bolivia where about 1 million people are self-employed or work in family enterprises. The MEDA initiatives were compared with Nonaka`s 4 phase Knowledge Creation model. MEDA followed the `socialisation` and `externalisation` stages closely, but shortened/modified the `combination` and `internalisation` stages, which appeared to have led to less than optimum outcomes. Overall the venture was deemed to be an overwhelming success reaching in excess of 98,000 clients in 1999. On average, clients enjoyed a 20 % increase in income and their employees` enjoyed an average salary increase of 43 %. (Dyck, 2002)
Hallmark Cards Inc (US)
Communities of Practice (CoP) provide valuable insights
US based Hallmark Cards used knowledge communities to generate innovative growth. Innovative ideas were found to develop best in communities that enjoyed a rich dialogue of perspectives and experiences. A web-based collaborative environment was built involving some 200 specifically recruited participants who were asked to dedicate at least 1 hour per week to the role. Members participated in bulletin boards, on-line chats, and email communications. Surveys were also posted by Hallmark and by members themselves. The site included a resource centre for members to post articles, favourite web sites, or other information of interest, and a gallery for posting images. Importantly a Hallmark facilitator made regular telephone contact with participants. It was noted that core groups tended to develop involving some 15-20 % of the community membership. The knowledge communities provided valuable insights with rapid turnaround of responses from 30 to 40 consumers on a particular issue within 48 hours. (Brailsford, 2001)
IBM Data Management
Communities of Practice (CoP) strengthen focus on business goals
CoP's were used by IBM's Data Management (DM) group and helped individuals develop skills; enabled teams to collaboratively solve problems/develop best practices; and strengthened the focus upon business goals. The following helped nurture and support these groups:
- Cross-department councils that met regularly to discuss processes, common practices, and guidelines. Councils provided a formal way of encouraging direct collaboration concerning the most critical issues for each community. Members shared examples of their work, demonstrated new work techniques, shared best practices, or asked questions relating to common problems.
- Informal networking was encouraged through the provision of resources and tools to aid staff to form interest groups and electronic forums.
- Trained mentors were designated for new employees showing them how to identify and participate in helpful communities of practice.
- Physical proximity was used to reinforce the sense of community amongst groups. It was recognised that communication was directly affected by physical proximity. (Fisher & Bennion, 2005)
NCR (Dundee)
Organisational learning in a manufacturing company
In the early 1990s NCR (Dundee), a Scottish designer and manufacturer of automatic teller machines (ATMs), introduced an organisational learning initiative called Education-for-all (EFA) to reinforce its strategic growth objectives and its mission statement that its employees were the most valuable asset. The programme:
- Drew on most of the principles of lifelong learning;
- Committed the company to learning for all employees;
- Had an emphasis on education rather than training in skills development;
- Provided easily accessed and well-stocked flexible learning centres in the company;
- Tied the programme in to the corporate university in the USA, and provided close links with local universities and further education colleges;
- Developed a career management system and courses in career development to encourage employees;
- Paid the fees for any course broadly related to the company's business, and gave employees paid time off work to undertake such courses, including: an electronics certificate course for shop floor staff, an engineering degree programme, participation in a consortium engineering Masters programme, MBAs and functional management professional qualifications, and support for doctoral programmes.
Participation of white/blue-collar employees in education programmes at any one period of time rose from 9% in 1991 to 20% per cent in 1998. The company was featured prominently in the Harvard Business School series of video seminar presentations on exemplary companies and won the Best Factory in Britain award. (Martin et al, 2001)
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