This new discipline of knowledge
is basically destined to make best use of the time to produce maximum results
Mar 06 - 12, 2000
Attock Refinery is the first company in Pakistan which has introduced
the discipline of "Knowledge Management" which is so far new in Pakistan.
This was stated by Naeem Khan, Assistant Manager (Finance) of Attock
Refinery Ltd while delivering a lecture on "Knowledge Management" organized by
Institute of Chartered Accountants of Pakistan.
This new discipline, according to Naeem Khan, will enhance the decision
making process, efficiency and productivity of the organizations.
Elaborating his point of view, Naeem Khan said that generally the
financial capital and financial management of an organization have 50-10 per cent impact
on market capital but the share of intellectual capital and knowledge management on the
market capital is 50-90 per cent which is a significant indicator about worth of knowledge
management in an organization.
He said that Attock Refinery has already gone into intensive research
on this subject and intended to disseminate its experience with the corporate sector for
managing their business with a use of technology and using collective insight of all
employees of the company.
Naeem Khan stressed on the fact that in order to meet the challenges of
the new millennium our corporate and other segments of the economy should re-inset the
business and training staff to cope with the expected challenges and threats confronted to
business and professionals in the years to come.
He said that knowledge accounts for more than 80 per cent of net wealth
of the company. Our organizations are extremely lagging behind in managing and enhancing
the precious asset of knowledge.
Explaining the concept of knowledge management, he said that knowledge
management is a conscious strategy that governs process of creation, dissemination,
utilization and protection of knowledge for getting the right knowledge to the right
people at the right time to enhance decisions and improve organizational performance.
In fact the spirit of this new discipline was to save time, energy and
wealth by channelizing the knowledge more productively. For example he identified
following areas of knowledge and their applications in organizations: Knowing individually
what we know collectively and applying it. Knowing collectively what we know individually
and making it re-usable. Connecting people with other knowledgeable people. Knowing what
we don't know and learning it.
Connecting people with valuable information. Disseminating knowledge to
everyone needing it. Avoiding loss of valuable knowledge and wheel reinvention. Enabling
conversion of information into valuable knowledge. These areas he suggested where
knowledge management is needed in any organization.
Categorizing knowledge into three segments i.e. Tacit Knowledge,
Explicit Knowledge and Cultural Knowledge, he said that implicit knowledge is used by
organizational members to perform their work and to make sense of their words. Tacit
knowledge is hard to verbalize because it is expressed through action based skills and
cannot be reduced to rules and recipes. The explicit knowledge can be expressed formally
using a system of symbols and therefore be easily communicated or diffused. The third
category of cultural knowledge is cognitive and affective structures that are habitually
used to perceive, explain, evaluate and construct reality. The assumptions and believes
that are used to describe and explain reality, as well as, the conventions and exceptions
that are used to assign value and significance to new information.
Highlighting various strata of knowledge lie cycle, he said that
knowledge resides in people, processes, systems and culture which are inter-connected in
the knowledge life cycle in respective cronical order. In order to make best results out
of knowledge management, two steps in systematic order are needed to be initiated in an
organization for identifying the business problems. First step is to determine the domains
of knowledge managing initiatives which include initiating responsibility for knowledge
sharing. Sharing knowledge and best practices. Capturing and re-using past practices.
Driving knowledge generation for innovation. Mapping networks of experts. Building and
mining customer knowledge bases. Measuring the value of knowledge. Leveraging intellectual
assets, Embedding knowledge in products, services and process "knowledgized
After identifying the business problems, the second step is to create
dedicated department of knowledge management. This department is needed to have
understanding of core business issues and competitive needs, coordination/communication
technologies, developing human and cultural infrastructure, matrics of knowledge creation
This new discipline of knowledge is basically destined to make best use
of the time to produce maximum results of the assets both in financial and intellectual
nature of an organization.
Earlier Ahmed Saeed and S.M. Shabbar Zaidi of ICAP welcomed the speaker
and introduced the subject to the audience.