Technology Is Not Enough: Improving Performance by Building Organizational Memory

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Knowledge management promises to improve business performance by using technology to capture and share the lessons of experience.1 Truly improving business performance, however, demands more than simply putting more knowledge into databases; it requires leveraging the many ways that knowledge can migrate into an organization and strengthen business performance. Distributed technologies, such as Lotus Notes or intranets, can be used for disseminating information and creating virtual forums that connect experts. But they are only one of many ways in which learning from a significant organizational experience can be captured and integrated into an organization’s operations. For example, an organization may be able to embed knowledge gained from an experience by altering work processes or a product’s architecture. By embedding learning, companies can reduce the information overload of their employees and improve the consistency and effectiveness of knowledge use throughout an organization.

One way to make organizational learning more tractable is to consider it as the development of an organization’s memory.2 The concept of organizational memory is not new; for some time researchers have pointed to various features of organizations as key components of memory.

These discussions, however, focus on organizational structure, physical layout, cultural values, or tacit routines—forms of memory that change only slowly over long periods and bear an indirect relationship to business performance. Managers need to know where important forms of memory reside. By defining the myriad ways to embed knowledge in an organization’s memory, we believe companies can leverage learning from key experiences and improve business performance.

Organizational Learning as Organizational Memory Development

To better understand how knowledge that develops from significant experience migrates into an organization, we examined learning from 22 projects in professional services, financial services, and manufacturing organizations. The projects ranged from new product development and roll-out initiatives to process improvement efforts to consulting services and development of financial solutions for investment banking clients. The companies were primarily Fortune 250 organizations that had global operations. We asked people what they had learned from their experience on these projects and where the knowledge gained had migrated within the organization. To capture both operational and strategic perspectives on learning, we conducted the interviews across several hierarchical levels (e.g., in a consulting firm, we interviewed the partner of the office, the partner managing the identified project, and the manager and consultants working on the project).

References (70)

1. T. Stewart, Intellectual Capital: The New Wealth of Organizations (New York: Doubleday, 1997);

T. Davenport and L. Prusak, Working Knowledge (Boston: Harvard Business School Press, 1998);

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Acknowledgments

This article has benefited from the constructive comments of three anonymous reviewers. In addition, we are grateful for the comments of John Henderson and Amy Edmondson about a previous draft.

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