Both formal and informal knowledge, electronic and printed information, internal and in-coming data, are all mobilized to bid on contracts, deliver projects, lower costs, and enhance profitability. This is why Arthur Andersen has achieved the reputation as a company in the forefront of developing and selling knowledge management services. Human capital is after all, just a metaphor for the cognitive capabilities of creative consultants. Managerial Knowledge Formal infrastructure, such as equipment and procedures, is a necessary part of knowledge management. But it is not sufficient, by itself, to create organizational synergy.
People turn information into knowledge by using it to make decisions and take actions.
So the key to effective knowledge management is the commitment of knowledge workers to sharing knowledge, with whomever is appropriate, and whenever the occasion requires. Frances Horibe advises on how to manage the people and the processes that will implement this knowledge sharing. Furthermore, this is the ONLY book on knowledge management which I have seen so far, that is actually focused on the genuine dilemmas that managing expertise often entails, and that does acknowledge the very substantial challenges a manager faces in coordinating idea work . Frances prefers an open policy on knowledge sharing, and so do many others who consult in this area. Instead, given proprietary and security considerations, it is important to define and enforce restrictions based on the need to know .