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VICIOUS AND VIRTUOUS
          CIRCLES IN THE
       MANAGEMENT OF
KNOWLEDGE: THE CASE OF
  INFOSYS TECHNOLOGIES
    Raghu Garud and Arun Kumaraswamy
                    MIS Quarterly 2005

                      K6213 Reading Topic
                             20-Sep-2011

                     Aravind Sesagiri Raamkumar
                               Nirmala Selvaraju
AGENDA
•   Objective of the article
•   Key KM topics
•   Infosys trivia
•   KM in Infosys
•   Virtuous and Vicious Circles
•   Conclusion
•   Key takeaways from the article
Objective of the article
• To showcase the diverse and dynamic nature
  of KM in an organization
  – Through a longitudinal study conducted using a system
    perspective approach

• To highlight virtuous and vicious circles
  formed as a result of KM processes and the
  strategies for steering away from virtuous
  circles
Key KM Topics - Dynamics
Infosys Trivia
     IndIa’s 2nd largest IT company

                             2004
            •   US 1 billion dollar company
            •   23000 employees
            •   Global development centers
            •   NASDAQ listed
            •   30 % growth YOY
            •   Asian and Global MAKE AWARD winner



Research group conducted 56 interviews over
a period of 3 years between 2001 and 2004
   KM group were primarily selected for repeated interviews during the period
Philosophy of KM in Infosys
Motto - ”Learn once,use anywhere”

• Knowledge = Currency of new millennium

• Employees recruited with learnability skills

• One among the few companies in the world that values and
  reports its human capital on its balance sheet

• Knowledge Maturity Model

• Asking Culture

• Rich Informal Social Networks
KM through the years in Infosys
Virtuous and Vicious Circles in totality




“The very same mutually causal processes that have the potential to generate a
virtuous circle can just as easily generate a vicious one”
Virtuous Circles
                Individual                 Group



                                      Communities
          Reflect-in-action
                                      Different Epistomologies
          Learning-by-doing
                                      Shared Division of
          Single and Double Loop
                                       Labour
           learning
                                      Innovative Solutions




          Increased Contributions
          Collective Intelligence    Dynamic Balance
          Adaptive Structuration     Pre-defined templates
                                      Dynamic Capabilities




                ‘K’ Initiatives              CMM
Vicious Circles
                             Market for Knowledge
                            o    Extraneous contributions
                            o    Less number of reviewers
                            o    Information overload




      Reduced Knowledge Re-
               use                                   Archetype Employees
                                                    o   Too much of emphasis on
      o   Codification becomes
                                                        Knowledge Creation
          counterproductive
                                                    o   Knowledge reusability
      o   Abstract Knowledge
                                                        impaired
Vicious Circles can be inherent in KM
systems
          • Vicarious effect between
      1     levels
          • Symbiotic relationships
      2     across levels amplifies
            process effects
          • Impairing effects from
      3     specific initiatives are not
            immediately visible
Steering out of & around Vicious
Circles
  Steering out of Vicious circles
   Deviation Amplifying feedback
     • Identify and decoupling process (ex: KShop and
       incentives scheme )
     • Deviation counteracting feedbacks (ex: KM prime
       and Knowledge Champions)
  Steering around Vicious circles
  • Awareness towards intangible effects of KM
  • Distribution of roles & responsibilities between
    Knowledge Managers within KM group
  • Knowledge of diverse functions across the organization
Implications and Conclusion
• An organization’s knowledge system comprises mutually causal
  processes that unfold at and across different organizational levels.

• These mutually causal processes generate opposing forces that
  need to be balanced dynamically to generate a virtuous circle

• An organization’s knowledge system contains seeds of its own
  destruction, as the very initiatives that the organization
  undertakes to generate

• A virtuous circle have the potential to generate vicious circles as
  well

• Knowledge managers must intervene processually to steer their
  organization’s knowledge system around and out of vicious circles
  that are bound to emerge
Key Takeaways from the article
• Unique in terms of its study method – systems perspective
  and longitudinal study

• KM is an evolving process which needs constant monitoring

• Clear distinctions should be made between the objectives of
  KM at individual, group and organisational levels

• Socio-psychological and Socio-technical effects need to be
  taken into consideration

• Methodologies suggested by KM academicians and
  practitioners need to be referred before starting a KM
  implementation
QUESTIONS?
THANK YOU

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Review of vicious and virtuous circles in the management of knowledge: The case of Infosys Technologies

  • 1. VICIOUS AND VIRTUOUS CIRCLES IN THE MANAGEMENT OF KNOWLEDGE: THE CASE OF INFOSYS TECHNOLOGIES Raghu Garud and Arun Kumaraswamy MIS Quarterly 2005 K6213 Reading Topic 20-Sep-2011 Aravind Sesagiri Raamkumar Nirmala Selvaraju
  • 2. AGENDA • Objective of the article • Key KM topics • Infosys trivia • KM in Infosys • Virtuous and Vicious Circles • Conclusion • Key takeaways from the article
  • 3. Objective of the article • To showcase the diverse and dynamic nature of KM in an organization – Through a longitudinal study conducted using a system perspective approach • To highlight virtuous and vicious circles formed as a result of KM processes and the strategies for steering away from virtuous circles
  • 4. Key KM Topics - Dynamics
  • 5. Infosys Trivia IndIa’s 2nd largest IT company 2004 • US 1 billion dollar company • 23000 employees • Global development centers • NASDAQ listed • 30 % growth YOY • Asian and Global MAKE AWARD winner Research group conducted 56 interviews over a period of 3 years between 2001 and 2004 KM group were primarily selected for repeated interviews during the period
  • 6. Philosophy of KM in Infosys Motto - ”Learn once,use anywhere” • Knowledge = Currency of new millennium • Employees recruited with learnability skills • One among the few companies in the world that values and reports its human capital on its balance sheet • Knowledge Maturity Model • Asking Culture • Rich Informal Social Networks
  • 7. KM through the years in Infosys
  • 8. Virtuous and Vicious Circles in totality “The very same mutually causal processes that have the potential to generate a virtuous circle can just as easily generate a vicious one”
  • 9. Virtuous Circles Individual Group  Communities  Reflect-in-action  Different Epistomologies  Learning-by-doing  Shared Division of  Single and Double Loop Labour learning  Innovative Solutions  Increased Contributions  Collective Intelligence  Dynamic Balance  Adaptive Structuration  Pre-defined templates  Dynamic Capabilities ‘K’ Initiatives CMM
  • 10. Vicious Circles Market for Knowledge o Extraneous contributions o Less number of reviewers o Information overload Reduced Knowledge Re- use Archetype Employees o Too much of emphasis on o Codification becomes Knowledge Creation counterproductive o Knowledge reusability o Abstract Knowledge impaired
  • 11. Vicious Circles can be inherent in KM systems • Vicarious effect between 1 levels • Symbiotic relationships 2 across levels amplifies process effects • Impairing effects from 3 specific initiatives are not immediately visible
  • 12. Steering out of & around Vicious Circles Steering out of Vicious circles  Deviation Amplifying feedback • Identify and decoupling process (ex: KShop and incentives scheme ) • Deviation counteracting feedbacks (ex: KM prime and Knowledge Champions) Steering around Vicious circles • Awareness towards intangible effects of KM • Distribution of roles & responsibilities between Knowledge Managers within KM group • Knowledge of diverse functions across the organization
  • 13. Implications and Conclusion • An organization’s knowledge system comprises mutually causal processes that unfold at and across different organizational levels. • These mutually causal processes generate opposing forces that need to be balanced dynamically to generate a virtuous circle • An organization’s knowledge system contains seeds of its own destruction, as the very initiatives that the organization undertakes to generate • A virtuous circle have the potential to generate vicious circles as well • Knowledge managers must intervene processually to steer their organization’s knowledge system around and out of vicious circles that are bound to emerge
  • 14. Key Takeaways from the article • Unique in terms of its study method – systems perspective and longitudinal study • KM is an evolving process which needs constant monitoring • Clear distinctions should be made between the objectives of KM at individual, group and organisational levels • Socio-psychological and Socio-technical effects need to be taken into consideration • Methodologies suggested by KM academicians and practitioners need to be referred before starting a KM implementation