Universidad Pontificia de Salamanca en Madrid

Facultad de Informática

Teorías, Tecnologías y Metodologías de Gestión del Conocimiento,

Capital Intelectual y Negocios electrónicos

DEA – Diploma de Estudios Avanzados - Project Presentation

Knowledge Transmission and Retention Model -

Based on Educational Activities and on Balanced
Scorecard concept

Teresa Florentino

[email protected]

Madrid, 07.09.2005
DIRECTOR DEL CURSO PROFESOR : Dr. Luis Joyanes Aguilar
ORIENTADOR DE LA LÍNEA DE INVESTIGACIÓN PROFESOR : Dr. Juan
Manuel Lombardo Enríquez
ALUMNO : Maria Teresa Garcia Florentino
BIENIO : 2003/05
CURSO : 2004/05
ENTREGA : 15 de Septiembre de 2005

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 INDEX
1.INTRODUCTION .......................................................................................... 9
1.1. Hypothesis............................................................................................... 9
1.2. General Objectives ................................................................................ 11
1.2.1. Portugal Information and Technological development situation and
trends 12
1.2.2. Educational Activities, Characteristics and Evaluation Models ...... 13
1.2.3. Knowledge Management Models .................................................... 14
1.2.4. Management Performance Models .................................................. 15
1.2.5. Pros and Cons in studied Models ..................................................... 15
1.2.6. Knowledge Transmission and Retention Model - Based on
Educational Activities (EA) and on Balanced Scorecard (BSC) concept ................. 16
1.2.7. Technological applications to facilitate model implementation ...... 16
1.2.8. Some study conclusions and future studies and investigations ........ 16
1.3. Specific Objectives ............................................................................... 17
1.4. Methodology ......................................................................................... 17
1.5. Document Organization ........................................................................ 19
2. PORTUGAL INFORMATION, COMMUNICATION AND
TECHNOLOGICAL DEVELOPMENT AND TRENDS ................................................ 20
2.1. Some Considerations ............................................................................ 20
2.2. Data Analysis ........................................................................................ 21
2.2.1. Global Indicators .............................................................................. 21
2.2.2. Users online ...................................................................................... 22
2.2.3. Web pages sought per year – Statistics during 7 years .................... 22
2.2.4. Information and Communication Technologies Sustainability........ 23
2.2.5. Innovation and High Technology Investment .................................. 23
2.2.6. Portuguese People with University Education ................................. 24
2.2.7. PhD per thousands residents ............................................................ 25
2.2.8. Investigators per thousands residents ............................................... 26
2.2.9. Employment in High Technology .................................................... 26
2.2.10. Small and Medium Enterprises (SMEs) involving Innovation ...... 27
2.3. Inquiry of Information and Communication Technologies Use in
Companies - 2004 ......................................................................................................... 28
2.4. Inquiry of Information and Communication Technologies Use in
Families – 2000 - 2004 ................................................................................................. 30
2.4.1. Statistical Indicators of Computers using Activities (2000-2004) (%)
30
2.4.2. Using Computing between 2003 - 2004........................................... 31
2.4.3. Domestic and ICT use in 2003 and 2004 ......................................... 31

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 2.4.4. Internet use in 2004 .......................................................................... 32
2.4.5. E-commerce use in 2004 .................................................................. 33
2.4.6. Computer users profile in 2004 ........................................................ 33
2.5. Resuming ICT Portuguese Situation ..................................................... 33
3. KNOWLEDGE MANAGEMENT ............................................................... 35
3.1. Knowledge Management Concepts ...................................................... 40
3.2. Organizational Culture, Structure, Management Types and Politics .... 41
3.3. Infrastructure and Architecture ............................................................. 42
3.3.1. Knowledge Management Models .................................................... 42
3.3.2. Methodologies and procedures ........................................................ 42
3.4. IT infrastructures for KM...................................................................... 43
3.4.1. Tools and Applications .................................................................... 44
3.4.2. Storage.............................................................................................. 44
3.4.3. Communications .............................................................................. 47
3.4.4. Data / Information / Knowledge ...................................................... 47
3.5. Environment Development ................................................................... 47
3.6. KM models and Methodologies ............................................................ 48
3.6.1. Knowledge concepts ........................................................................ 48
3.6.2. Some ideas, some investigators, some thoughts .............................. 54
3.6.3. Models, Methodologies and Strategies ............................................ 55
3.6.4. Nonaka and Tiwana extended SECI Model ..................................... 56
3.6.5. Laudon orientation to manage Knowledge for a Digital Firm ......... 57
3.6.6. Touraj Nasseri - The Knowledge Enterprise ................................... 64
3.6.7. Cavalcanti Intelligent Enterprises .................................................... 67
3.6.8. Several approaches from Swaak ...................................................... 68
3.6.9. Toolkit from Tiwana ........................................................................ 69
3.6.10. Kluge and the McKinsey methodology.......................................... 72
3.6.11. Knoco enterprise model based on Communities of Practice ......... 73
3.6.12. Sveiby Approach – KM Initiatives ................................................ 75
3.6.13. Kingston’s KM strategy choice ...................................................... 76
3.7. Categorizing KM .................................................................................. 78
3.8. Conclusions on KM .............................................................................. 81
4. EDUCATIONAL ACTIVITIES, CHARACTERISTICS AND
EVALUATION MODELS ............................................................................................... 83
4.1. Reasons ................................................................................................. 84
4.2. Definitions of Evaluation ...................................................................... 85
4.3. The Goals of Evaluation ....................................................................... 86
4.3.1. Major Categories in the Taxonomy of Educational Objectives ....... 86
4.4. Lexical Terminology ............................................................................. 88
4.5. Types of Evaluation Models ................................................................. 90
4.5.1. Crawford analysis and studies .......................................................... 90

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 4.5.2. William M.K. Trochim studies and approach models – Four
proposed models ....................................................................................................... 92
4.5.3. Use of Portfolio Assessment in Program Evaluation - Tony C. M.
Lam and Marcella E. Campbell .............................................................................. 94
4.5.4. Mızıkacı evaluation model based on the systems approach to Total
Quality Management. ............................................................................................... 97
4.5.5. Classroom Assessment Techniques (CATs) .................................... 99
4.6. Types of Evaluation ............................................................................ 106
4.7. Performance Evaluation Models at Universities and High Schools ... 107
4.7.1. Evaluating students in the classroom ............................................. 107
4.8. Comparisons and Conclusions of Evaluation Models ........................ 110
4.8.1. Evaluation and Assessment models ............................................... 110
4.8.2. Evaluation and Assessment models in Universities and High Schools
111
4.9. Some Brief Resuming ......................................................................... 113
5. MANAGEMENT PERFORMANCE MODELS ........................................ 114
5.1. Hubert Saint-Onge Communities of Practice ..................................... 115
5.2. Skandia’s Navigator ............................................................................ 119
5.3. Sveiby’ Monitor for Intangible Assets ................................................ 123
5.4. Technology Broker Model .................................................................. 125
5.5. Balanced Scorecard ............................................................................. 127
5.5.1. Nolan and Kaplan’s Model ............................................................ 127
5.5.2. Third generation of BSC ................................................................ 139
5.5.3. BSC inside education business or activities ................................... 141
5.5.4. BSC inside Universities ................................................................. 144
5.5.5. BSC Constrains .............................................................................. 149
5.6. Conclusions on Management Performance Models ........................... 151
5.6.1. BSC Management Performance Models Contribution .................. 152
5.6.2. Alliances, Learning and the Importance of Knowledge to Value
Creation 152
5.6.3. Intangibles, Human Capital, Intellectual Assets ............................ 153
5.6.4. ICT Tools ....................................................................................... 154
5.7. Resuming BSC importance and some defaults ................................... 154
6. KNOWLEDGE TRANSMISSION AND RETENTION MODEL - BASED
ON EDUCATIONAL ACTIVITIES (EA) AND ON BALANCED SCORECARD (BSC)
CONCEPT 157
6.1. Model Step by Step ............................................................................. 159
6.2. STEP 1 - General Study and ICT Existence and Use ......................... 163
6.2.1. General Study ................................................................................. 163
6.2.2. ICT Existence and Use ................................................................... 166
6.3. STEP 2 - Compilation ......................................................................... 167
6.4. STEP 3 - Model Implementation helped by EA ................................. 169

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 6.4.1. Evaluation helped by EA ............................................................... 171
6.5. STEP 4 - Adjusting Proposed Model .................................................. 184
6.6. Some concerns and strategies when applying this model ................... 184
7. CONCLUSIONS......................................................................................... 187
7.1. Analyzing Portugal Information and Technological development
situation and its trends ................................................................................................ 188
7.2. Evaluation Models in Education ......................................................... 190
7.3. Knowledge Management Models ....................................................... 193
7.4. Management Performance Models ..................................................... 193
7.5. BSC based model to get better performance and knowledge retention
and transference using Educational Activities (EA) inside Small, Medium and Micro
Enterprises (SMME) ................................................................................................... 195
7.5.1. Enhancing Organization Results .................................................... 202
7.5.2. Other Possible Effects .................................................................... 203
8. FUTURE STUDIES.................................................................................... 207
9. REFERENCIES AND ACTIVITIES ......................................................... 208
9.1. Publications ......................................................................................... 208
9.2. Talks .................................................................................................... 209
9.3. Talks and Publications ........................................................................ 210
10. BIBLIOGRAPHY ................................................................................... 211
10.1. More often accessed Internet links ..................................................... 219
11. APPENDIXES ........................................................................................ 220
11.1. Appendix: Defining Enterprises - Definição de Empresas ................. 220
11.2. Appendix: ICT (Tecnologias da Informação e da Comunicação) ...... 220

FIGURES INDEX
Figure 1 - Schema – Target Goal – Best Results using Educational Activities .... 12
Figure 2 - Source: Mızıkacı (2001) TQM approach - System Evaluation for
Higher Education .............................................................................................................. 99
Figure 3 - Clint Burdett Strategic Consulting - The Balanced Score Card ......... 130
Figure 4 - Process of developing the BSC .......................................................... 131
Figure 5 - Balanced Scorecard Planning Process .............................................. 132
Figure 6 – BSC and the four Traditional Perspectives: Financial, Customer,
Processes and Innovation and Learning (sometimes Learning or Research and
Development) .................................................................................................................. 133
Figure 7 - Formalizing Best Practice-KPI........................................................... 135
Figure 8 – BSC at QPR - Create a Balanced Scorecard .................................... 136

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 Figure 9 – Source: Johansson, Hallgårde - Studentlitteratur (1999). BSC -
Questions and Steps ........................................................................................................ 137
Figure 10 - Feedback Structure of BSC .............................................................. 143
Figure 11 - Dolan School of Business - Fairfield University - Balanced Scorecard
– Draft of April 19, 2002 ................................................................................................ 145
Figure 12 - Four Perspectives in the Balanced Scorecard (BSC*) (Accounting,
B.A.) ................................................................................................................................ 146
Figure 13 - The AVC-BAS Balanced Scorecard: An Organizational Pilot ........ 147
Figure 14 - Scorecard in Action .......................................................................... 147
Figure 15 - The barriers to implementing strategy Adapted from material
developed by Robert S. Kaplan and David P. Norton .................................................... 150
Figure 16 - Schema – Target Goal – Best Results .............................................. 157
Figure 17 - Model – step by step - BSC based configuration model to get better
performance and knowledge retention and transference using educational activities inside
all steps............................................................................................................................ 160
Figure 18 – Actors, Entities or Shareholders – From Community to Community
......................................................................................................................................... 162
Figure 19 – Team Group ..................................................................................... 165
Figure 20 – ICT Project Planning ....................................................................... 170
Figure 21 - Educational Activities in Every Phases Of The Model .................... 173
Figure 22 -Proper Perspectives for all Layers ..................................................... 174
Figure 23 - BSC Layers – using EA in every stages - Knowledge Equilibrium . 183
Figure 24 - Schema – Target Goal – Best Performance ...................................... 195
Figure 25 - Model – step by step implementation. Examples of Evaluation on
Environment and ICT – Incremental Add Value Cycle.................................................. 196
Figure 26 – Team Group ..................................................................................... 199
Figure 27 – Actors, Entities or Shareholders – From Community to Community
......................................................................................................................................... 199
Figure 28 - Educational Activities in Every Phases Of The Model .................... 201
Figure 29 – Educational Activities as Knowledge Wheel Enabler ..................... 202
Figure 30 - BSC Layers – Course Application - Knowledge Equilibrium ......... 203
Figure 31 - Proper Perspectives for all Layers .................................................... 204

TABLES INDEX
Table 1 – Source: Trochim (2005) ........................................................................ 97
Table 2 – CATs - Matrix for Guideline .............................................................. 105
Table 3 – ICT resources for new proposed model – 2 scenarios ........................ 166

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 Table 4 – Knowledge Activities used in all steps of BSC model at SMME,
enhanced by Educational Activities ................................................................................ 176
Table 5 – Mission, Objectives and Perspectives for Education Activities ......... 179
Table 6 – Activities and Measures for Education Activities............................... 180
Table 7 – Objectives and Activities – Sample for each step – Enhancement with
Education Activities ........................................................................................................ 181
Table 8 – Objectives and Activities - ICT support using Education Activities in
SMME ............................................................................................................................. 182

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1. INTRODUCTION

Integrated performance models are quite common inside enterprises. Those

models can evaluate all organization, particular business units or processes. But for
specific activities like training, teaching, learning or other educational activity in
traditional classrooms or small groups it seems like a quite different process.

Enterprises had learn that better performance can be archived combining several
interests from all the organization functions. Nowadays key indicators come from all
organization or Business Unit or process in order to collect the best representative issues
from all enterprise or sector.

Organizations can be considered a combined center of knowledge which must be

managed and evaluated to get better performance. It seems that this kind of approach can
be applied in Portuguese evaluation systems at Universities, High Schools or other
Organization that perform training, teaching, learning or other educational activities.

Training and scholar failure in Portugal it is a reality no matter the great amount
of money spent in education and training courses this problem move us to try to get a
most suitable and real approach models for those days in a close approach to the real
world of organizations environment hoping to get better results.

1.1. Hypothesis

The hypothesis will confirm or reject considered objectives after all details that
sustain those objectives.

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 Knowledge Retention and Transference using Educational Activities inside
Organizations, particularly inside Small, Medium and Micro Enterprises (SMME)
helped by Balanced Scorecard (BSC) methodology and ICT tools can improve
performance due better Organization, Business and Community understanding.

Usually performance evaluation at SMME or small groups inside organizations

has very poor or very limited performance and evaluation indicators and for the common
intervenient, they also really do not know about institution objectives, strategy, values,
vision or mission.

These characteristics can be overcome creating new models using educational

activities accomplished with communication, evaluation and performance present models
used inside successful organizations.

Models emerge after investigation or best practices in order to support a good

chance and possible successful implementation. In the other hand the combination of
performance and knowledge management models seems to be a good choice in this
particular problem where evaluation appears to be isolated from management present
trends.

In one side we have Performance Evaluation Models usually very basic, very
traditional very limited, focus only in one small piece of organization activities and in the
other place Knowledge Models should be combined with evaluation ones. In particular
models should focus in Knowledge Management where Retention and Transference are
essential knowledge activities for enterprise success.

Global Performance that includes Management and Evaluation should appear

together helped by Educational Activities which will promote one key success factor
element – Communication.

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 Management can diffuse objectives, activities plans in SMME but the global
strategy must also appear in those objectives and also be evaluated and communicated.
For Knowledge retention and transference specific goals and activities also need formal
description and also an evaluation. Adding these issues probably a better performance
and knowledge transference and retention will emerge helped by Educational Activities
(EA) in all steps.

1.2. General Objectives

There are some important objectives that sustain this document and study. They
are resumed in the following items:
 Analyze Portugal Information and Technological development situation and its
trends – Focus on Enterprises and Families;
 Collect and analyze Educational Activities characteristics, models and
applications;
 Analyze knowledge management models, methodologies, tools and their
characteristics;
 Collect management performance models;
 Models pros and cons analysis and evaluation;
 Suggesting a Knowledge Transmission and Retention Model - Based on
Educational Activities (EA) and on Balanced Scorecard (BSC) concept.

In following subsections a brief resuming will explain the main goals. There is a
logical sequence starting by an analysis of Portugal situation for ICT and also for
Learning, Teaching, Training and Knowledge and Educational Activities correlation
inside Organizations.

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 MANAGEMENT
COMMUNICATION
COMMUNICATION TECHNOLOGIES

SHAREHOLDERS/COMMUNITY
EDUCATION
R

KNOWLEDGE
INFORMATION AND

C
•LEARNING

KNOWLEDGE
PROCESSES

FINANCIAL
A

CLIENTS
BEST
•TEACHING A
RESULTS
S
•TRAINING E

Empowerment and Enabling

EVALUATION
Remembering; Comprehension; Application;
Analysis; Synthesis; Evaluation

Figure 1 - Schema – Target Goal – Best Results using Educational Activities

Those are the foundations for knowledge development. However these activities
must be coordinated, managed and evaluated to check their performance and act like a
guide for orientation to reach the possible best results.

1.2.1. Portugal Information and Technological development situation and

trends

Richest Countries are good investors in technologies and the most developed, and so
the ones that better support companies’ future. However actual small countries not
considered the big eight, like Finland, Denmark, Sweden are sending capital on ICT for it
seems ICT investment promotes growth and development, OCDE (2005)1. Portugal does
not seem to be betting in technologies investment nor obtaining good results with existing
technologies.

1
OCED (2005), http://thesius.sourceoecd.org/factbookpdfs/06-02-02.pdf (online 01/09/2005)

12
 Based on these assumptions a close study can confirm or reject these assumptions.
Today Portuguese situation in not in a “good health” so more importance must be given
for the understanding of Information and Communication Technologies (ICT) adoption
and investment, what kind of tendencies in ICT and in management and evaluation are
considered inside organizations and particularly on educational activities.

1.2.2. Educational Activities, Characteristics and Evaluation Models

In recent years, a need for a renewed focus on education has been felt.
Universities, High Schools and other schools and Organizations seek for more effective
systems to eliminate the increasing dissatisfaction with the performance of almost
education systems. However Education characteristics are quite suitable with knowledge
retention and transference, evaluation and skills development and new models or
applications must be developed to overcome deficiencies.

The initial purpose of evaluation is to measure and assess, by comparison of

information. More specifically, "true" evaluation consists of an establishment of criteria,
collection of evidence to compare with the set criteria (baseline) and the arrival of a value
judgment. Good models can help teachers, students and all shareholders for an accurate
evaluation.

Educational activities can be adopted inside Organizations they will combine the
major functions of Education: Remembering, Comprehension, Application, Analysis,
Synthesis and Evaluation with Community and Organizations mission, vision, values,
strategic objectives and activities so a better integrated combination can result in better
performance and knowledge Organization.

Learning style is one of the possible pieces in learning units or learning

organizations. Learning is the base for knowledge and so for Organizations development.
In Portugal models and methodologies should be analysed and combined with easy ICT

13
tools for a better evaluation on these themes, because a systemic and good understanding
of methods can improve work performance.

1.2.3. Knowledge Management Models

One of the main problems nowadays for all enterprises is communication

inefficiency specially between employees inside organizations. In general, organizations
put the blame on Information Systems (IS). Large amount of money in IT spent in last
decade in Portugal discredited some Chief Information Office (CIO). At same time,
organizations are questioning about effective use of some systems, some applications or
methodologies and models.

Some ideas for innovative procedures and methodologies, inserting CoPs;

Weblogs; eLearning; groupware; sharing knowledge; top-down and bottom-up
information flows are experiments in organizations and Universities investigation areas.
Tendency is to group isolated knowledge and ideas because a knowledge database will
generate more knowledge and more ideas.

Knowledge Management is not a fashion in our days but an important issue

considering the complexity of Organizations and Global environment. Main asset on
Organization is Human Resources and this value is each more important to evaluate,
manager and retain specially on knowledge point of view. KM models can help
Organization acting more accurately and retain efficiently information and knowledge
inside themselves and promoting interchange experiences, know-how and wisdom to
create more value and sustainable competitive advantage.

Technology can not be forgotten because it is a powerful enabler, although the

critical issues of knowledge transfer are cultural and people-intensive. Clearly a culture of
knowledge sharing and knowledge seeking based on trust is essential for effective and

14
rewarding networking and for the flourishing of knowledge alliances between
communities of knowledge workers.

1.2.4. Management Performance Models

Management Performance Models combines several characteristics some are

learning oriented using Human Capital and Intellectual Capital as basis foundations and
in this arena they touch Knowledge Management Models, see Cavalcanti Intelligent
Enterprises, Knoco Methodology or Kingston’s KM strategy choice. Some like Hubert
Saint-Onge are using Communities of Practice (CoPs) to enhance learning practices and
knowledge transference. Others like Sveiby’s theories, Skandia Navigator Model or
Technology Broker Model encourage managers to look Organizations as a holistic
structure where all assets must have a special attention in organizational governance.

Combining CoPs activities and support tools inside BSC will probably accelerate
knowledge retention and transfer. There are other facilitators for enable communication
inside Performance Management Models like web tools facilities: forums, weblogs, wikis
or chats.

Balance Scorecard (BSC) crosses these models looking for tangible and non-
tangible assets whatever they exist: Organizations, small units, individuals. More then an
holistic view, BSC can be globalize, being used inside or outside Organizations moving
their characteristics to some other environment where conceptual overview can be
adopted with conversions and adapted to several entities (organization, unit, individual).

1.2.5. Pros and Cons in studied Models

It is not enough only evaluation or knowledge models or even performance

models. The combination of all can reach better performance as a whole and with
sustainable activities very well known by all stakeholders.

15
 Learning, training and other educational activities are some of the most important
components of knowledge and evaluation but guidance like management must appear to
control and adjust performance.

Only an integrated model with easy understanding and ICT tool to facilitate usage
can provide a solution for efficient educational activities with gains for every stakeholder.

1.2.6. Knowledge Transmission and Retention Model - Based on

Educational Activities (EA) and on Balanced Scorecard (BSC) concept

Inside Organizations one of the most hurdles is knowledge transference and

retention and also communication issues. So educational activities will enhance and
clearly get better improvement over knowledge process.

Problems may occur inside SMEs or micro enterprises (SMME) as this study
points. Here problems are multiplied by the lack of easy and cheap tools and by an easy
implementation guide. Also the understanding of what is the BSC and the positive value
for the shareholders are fundamental and it is one of the main problems even big issues
for SMME.

1.2.7. Technological applications to facilitate model implementation

Other important issue is partnership between SMME and suppliers when

concerning ICT applications. It is very difficult and expensive to be the edge of ICT
development. ICT grow and develop in a high rate so partnership or alliances between
institutions and suppliers are one key issue to enhance even more this model.

1.2.8. Some study conclusions and future studies and investigations

Investigations never stop and there are always more areas to understand and to
focus on. In this subject several studies should be performed:
 Web tools to enhance communication and share knowledge;

16
  CoPs area – the contribution of communities for better sustain knowledge and
diffusion will help Organizations, small groups or units and even individuals;
 Search for more cases and examples in SMME where BSC is used;
 Evaluate and check new possibilities for standards and frameworks for SMME
and small groups;
 ICT features add on this new model.

1.3. Specific Objectives

The complexity of evaluation models suggests a division into the different type
models to facilitate the investigation.

In the order hand key indicators are strongly correlated with the industry sector,
organization, business, process or activities. So it is necessary to get special clustering
key indicators depending on pointed characteristic. This means a previous evaluation
over the environment using some evaluation techniques.

Testing ICT tools and their comparison should be a valuable issue in further
studies to support this investigation and the theoretical model.

1.4. Methodology

Information was collect from several sources:

 Internet, recognized sites (Universities, Organizations, Individuals);
 Books and Documents from Libraries (Thesis, Papers, Proceedings);
 Magazines from well know and recognized sources;
 Balanced Scorecard Workshop;
 Conferences and meetings

The methodology here adopted has two years period from 2003, first year of PhD
starting classes until the first quarter of 2005 where this theme investigation was thought.
Several papers, works and discussions were made and from these compiling, some ideas
and arguments were planned and made, and are reflected on this document.

17
 After this planning phase and with structured ideas, the phases of compilation and
study of the collected material, the base of the investigation development has begun.
Searching sources are made mainly in computer science libraries, specially university and
in the technical magazines. Another important source is the World Wide Web (www,
Web, Internet), that it has provided the most recent documents about these themes here
studied also through the connections of main computer science editorials and recent
congresses and workshop.

Theoretical bases of the investigation development have been written and appear
along the studied material with corresponding establishment of the bibliographical
compilation and according to the existing norms and standards for this kind of work.

The beginning of analysis started before finalizing the compilation and study of
all collected material. This analysis was sustained by the practical application of
knowledge, acquired throughout the study all documents and discussions.

With this material a new model for evaluation, management, communication and
better performance was proposed based on Knowledge Management and BSC concept
helped by Educational Activities. These activities were also made inside the Investigation
Group particularly in Information Technologies Strategic Planning; Hybrid
Organizational and Manager Models and Balanced Scorecard – Information Department
of University Pontificia de Salamanca en Madrid. (Planificación Estratégica de las
Tecnologías de la Información; Modelos organizaciones y de gestión híbridos y Cuadro
de Mando Integral (Balanced Scorecard) como sistema de gestión de intangibles en las
organizaciones).

Based on all material compilation and analysis it was possible to conclude about a
better model for better results using Educational Activities in SMME.

18
 1.5. Document Organization

This document has eight main chapters or theme groups. 1 - The introduction aiming
proposes: objectives and hypothesis; methodology and document organization. 2 -
Portugal statistics on ICT and trends appear at beginning after the initial introduction. 3 -
Refers the state of art with models collections and compiling on the most evident issues
in Knowledge. 4 – Educational Activities main features. 5 - Performance Models mainly
correlated with Enterprises and Schools. 6 - Comparisons, pros and cons are expressed to
bring a new possible solution for a new model. In this chapter a New Model is proposed
for Knowledge retention and Transference. 7 - Conclusions resuming the entire document
and pointing new model importance. 8 - Possible future investigations, bibliography,
references, appendixes and public work and conferences from the author end this study.

19
2. PORTUGAL INFORMATION, COMMUNICATION AND
TECHNOLOGICAL DEVELOPMENT AND TRENDS

This section shows several statistical evidences when studying Information and
Communication Technologies (ICT) development, use and tendencies for the new
technologies inside enterprises and Portuguese society.

Portugal will depend on actual ICT use and trends required for better performance
competitiveness and progress. The indicators are related with potential Portuguese
technological investments, use and applicability of information technologies and
communication. In the other hand ICT ownership and use in Portuguese Population will
be presented.

Porter (1998) value chain used by Laudon (2003) will be a methodology to analyze
ICT both population and Organizations.

After collect statistical data, documentation and opinions from credential entities had
after analyze these data and information some conclusions will be referred at the end.

2.1. Some Considerations

Richest Countries are good investors in technologies and the most developed, and so
the ones that better support companies’ future. However actual small countries not
considered the big eight, like Finland, Denmark, Sweden are sending capital on ICT for it
seems ICT investment promotes growth and development, OCDE (2005)2. Portugal does
not seem to be betting in technologies investment nor obtaining good results with existing
technologies.

2
OCED (2005), http://thesius.sourceoecd.org/factbookpdfs/06-02-02.pdf (online 01/09/2005)

20
 Training, learning, teaching and other education activities sustain better performance
on Organizations. Considering professionals’ investment on training and improving
qualifications, Portugal is moved away from the European average and has several
negative indicators, INE/UMIC (2004)3.

The companies who use explicit mechanisms of knowledge management have

potentially better performance that the companies who do not use explicitly these
mechanisms / tools (Knowledge Management, Bases of Knowledge, HelpDesk, DW,
DataMining, TextMining, CRM) combined with accurate methodologies (BSC, Value
Chain, Intangible Assets Table). This hypothesis cannot be proven for Portugal therefore
there are no collected elements for this study to take a valid conclusion in statistical
terms. But it can be commented that everything leads to believe that Portugal does not
have investment in this kind of applications / tools / methodologies because statistics
show quite low investment for global ICT, (OCED (2005), INE/UMIC (2004)).

Globalization impacts and the New Technologies in Portugal are presently misty and
without indication of fast improvement in short term, they haven’t sustainability so that
the Portuguese Society, enterprises and Portuguese economy can prosper due this data
and results. Without efficient and accurate investments and efficient strategy we will be
kept out of best European performance countries and far from developed countries in the
World.

2.2. Data Analysis

2.2.1. Global Indicators

Year Portuguese online Sells Portuguese Daily access Residential
/ Qt Enterprises for e- online Internet Citizens
commerce (euros) use

3
INE/UMIC, Inquérito à Utilização das Tecnologias da Informação e da Comunicação nas Empresas, 2003

21
 Year Portuguese online Sells Portuguese Daily access Residential
/ Qt Enterprises for e- online Internet Citizens
commerce (euros) use
2001 519 32.421 - - 10.356.117
2002 701 194.531 - - -
2003 748 - 1.582.000 24,9% 10.474.685
2004 - - 1.590.000 28,1% -

Table 1 - Source: Vector21;UMIC;OCDE; Tek, Marktest – Enterprise Indicators – Population

2.2.2. Users online

Users Online observation collected in September 2002 by NUA (2002).

World Total 605.60 million

Africa 6.31 million

Asia/Pacific 187.24 million

Europe 190.91 million

Middle East 5.12 million

Canada & USA 182.67 million

Latin America 33.35 million

Table 2 – Source: Various; Methodology - Compiled by: Nua Internet Surveys

Still that today in 2005 values are already quite superior, these data lead us with
conscientious of the importance, dimension and impact of the Internet.

2.2.3. Web pages sought per year – Statistics during 7 years

Year Pages views

1998 82.198.020
1999 177.617.743
2000 318.319.268
2001 479.389.879
2002 612.818.201

22
 Year Pages views
2003 875.255.368
2004 1.060.181.999

Graph 1 – Web pages views

2.2.4. Information and Communication Technologies Sustainability

Based on 2002 data collection made by - Infosociety Portugal (2002), there are
several indicators that allows identifying Portuguese situation and they are going to be
analyzed in this section. Starting for the identification of the Population its interests,
characteristics and trends, it will be analyzed the following pointers:

2.2.5. Innovation and High Technology Investment

Sustaining that richest Countries are the best investors in technologies and the most
developed, and so the ones that better support companies’ future this indicator has a great
importance because show present Portugal situation in Innovation Investment.

Source: European Commission, European Innovation Scoreboard, 2002.

Notes: (1) Reference period, 1996 for all countries, except 1998 for Spain, Greece and Netherlands.

Graph 2 - Innovation Investment

23
 This is one of the headings that enter in the scope of the knowledge transmission and
application and where Portugal is in the penultimate place. Also with this indicator,
efficient expenses with Information and Communication Technologies can reflect
knowledge creation and diffusion and stimulating both incentive bigger productivity and
competitiveness.

Source: European Commission, European Innovation Scoreboard, 2002.

Notes: (1) Reference period, 2001 for all countries.
(2) Weighted means based on summing the numerator and denominator across all EU countries.

Graph 3 – Capital Investment in High Technology

Portugal is in the last place of European ranking for Capital Investment in High
Technology. Assuming that countries with high investment in technologies are richest,
the most developed, and the ones that support better future company’s performance level,
Portugal seems to be long apart of this movement.

2.2.6. Portuguese People with University Education

From 2002 data, Portuguese People with University education is in the penultimate
place.

24
 Graph 4 - Source: Eurostat (2002). Revista Resitir - Portuguese People with University education

2.2.7. PhD per thousands residents

The Science &Technology (S&T) PhD population - also have in Portugal a low value
facing the other European Countries and the European average.

2000, (%) aged 25-34 - Source: European Commission, Key Figures, 2002.
Notes: (1) Reference period, 2000 for all countries. (2) 1999 for Italy and Greece. (3) Eu average does not include Luxembourg. (4)
Spain is provisional.

Graph 5 – Science &Technology (S&T) PhD per thousands residents

25
 2.2.8. Investigators per thousands residents

1999, (%) labour force - Source: European Commission, Key Figures, 2002.
Notes: (1) Reference period, 1999 for all countries. (2) 2000 for Finland, Japan, Spain and Portugal, 1998 for Austria and United
Kingdom. (3) UE average does not include Luxembourg.

Graph 6 – Investigators per thousands residents

Graph of the highly qualified work executed by investigators indicates that Portugal is in the tail of the European,
it seems there is no bother or importance in this kind of qualifications. It represents that the companies do not believe
that there is any profit in the act of contract these individuals.

2.2.9. Employment in High Technology

2001, (%) total workforce - Source: European Commission, European Innovation Scoreboard, 2002.

26
Notes : (1) Reference period, 2001 for all countries. (2) Weighted means based on summing the numerator and denominator across
all EU countries.

Graph 7 – Employment in High Technology

Although positive tendency in Human resources key indicators in Portugal specially

positive during the last years, the general situation is very preoccupying due to low
qualification of the manager staff in our Organizational structures.

Education indicators are the biggest problem that Portugal has nowadays and that
affects our Economy adding now in negative way by these indicators- few workers in
High Technology and few investigators in Industry and Services.

2.2.10. Small and Medium Enterprises (SMEs) involving Innovation

1996, (%) manufacturing SMEs - Source: European Commission, European Innovation Scoreboard, 2002.
Notes: (1) Reference period, 1996 for all countries, except 1998 for Spain, Greece and Netherlands. (2) Weighted means based on
summing the numerator and denominator across all E

Graph 8 – Small and Medium Enterprises (SMEs) involving Innovation

Low capital investment in Portugal enterprises related with %GDP - Gross Domestic
Product, is 10 times less than European average - Graph 8. This fact discloses that the
enterprise bases and markets in Portugal are in a very embryonic stadium and can
therefore constitute barriers to innovation activities on technological companies or those
whose technological support is strong effective.

Conditions for inversion of this situation have priority Portugal will have that to look
for sustainable conditions for success.

27
 Trying entrepreneurial or more spirit of initiative, installation of responsibility,
creativity and taste for the risk based on high technology or merely good ICT applications
to the diffusion and creation of innovative activities. Financial barriers also contribute for
a serious delay in the decision taking to go ahead with new innovative projects, specially
SMEs or micro enterprises.

Expenses with Technologies are one of the key indicators that reflect the investment
on the creation and diffusion of knowledge stimulating higher levels of competitiveness
and productivity.

Concentration on expenses with the Information and Communication Technologies

(ICT) do not represent for itself a success, they are not enough, it has must seen all of sets
of indicators and the National environment to try to understand the Portuguese situation.

Comparing with Spain and its indicators, also low at least in 2002, Spain seems to
become using a very good strategic vision to support policies and activities that lead them
to a better improvement and development on Enterprise and Society.

2.3. Inquiry of Information and Communication Technologies Use in

Companies - 2004

Portugal Internet use will be made in two ways: Enterprise and personal analysis.
Based on the "Inquiry to the Use of Technologies of the Information and the
Communication in Companies 2004" from the National Institute of Estatística (INE),
2004 there is the following data:

 In 2004 about 78% of the companies with ten and more employees had
access to the Internet

The access to the Internet by itself does not indicate wealth to companies. We need
other indicators to measure the use of the activities in the Internet so that it is possible to

28
obtain accurate illations of these data and therefore combine the data of these statisticians
with other data during this study.

The analysis of the use of ICT in accordance with the Organizations’ dimension
shows total penetration of these technologies in the Universe of the big companies
(companies with 250 and more people). About half of the average companies (between
50 and 249 people) and one quarter for the small companies (between ten and 49 people)
it is present on the Internet, through Website.

In the universe of the companies with 50 and more people, 96% declare to have
access to the Internet; for the small companies this ratio is 74%. The email is practically
used by the totality of the big companies, for 94% of the averages and 68% of the small
ones, placing in 73% the global indicator for the email use.

A comment for these indicators is that Construction Companies has a very low
penetration of the ICT, comparatively with other sectors: about 15% of these companies
they have presence in the Internet, while 60% use email and 62% make use of linking to
the Internet.

Companies whose activity lays on the Financial Activities, to Other Collective

Services, Social and Personal Activities, Lodging and Restoration and the Real Estate
Activities, Leases and Services disclose to greater permeability to the TIC, with
practically the totality use of computers. In the set of these companies, about 95% access
to the Internet and more than half (approximately 54%) has presence on the Internet.

These statistics show that ICT relays on Support Activities on exception in the
companies using Websites whose applications support business and thus are included in
primary activities. These indicators are very important but they hardly can lead to
consistence result in the business since the activities are not related with main activities to
the business, those that directly contribute for the business processes.

29
 It seems that all of these activities can improve business, but the biggest
reinforcement comes from the primary activities. It would be advantageous if we have
ICT indicators from the primary activities of the Value Chain: Inbound, Outbound, Sells
and Marketing, Operations and Services in IT. According indicators, Portuguese
enterprises purchase or sells activities are very low on Internet. In terms of value creation,
these results are very weak, see appendix.

2.4. Inquiry of Information and Communication Technologies Use in

Families – 2000 - 2004

Following values between 2000-2004 reports: Computers using, Internet users, e-

commerce users, family computer ownership and broad band Internet family computers.
(collected by UMIC related with the ICT activities in Portuguese population and
families).

2.4.1. Statistical Indicators of Computers using Activities (2000-2004) (%)

Table 3 - Principais Indicadores Estatísticos (2000-2004) (%)

30
 Notas: TMCA – Taxa Média de Crescimento Anual. Para os anos de 2000, 2001 e
2002, a amostra foi estratificada de acordo com a estrutura populacional apresentada nos
Censos de 1991. Sources: OCT, Inquérito à Utilização das Tecnologias da Informação e
da Comunicação pela População Portuguesa, 2000 e 2001. OCT/UMIC, Inquérito à
Utilização das Tecnologias da Informação e da Comunicação pela População Portuguesa,
2002. UMIC/OIC, Inquérito à Utilização das Tecnologias da Informação e da
Comunicação pela População Portuguesa, 2003 e 2004.

2.4.2. Using Computing between 2003 - 2004

In June 2003, 38,3% of Portuguese domestic aggregates owner a computer and

21.7% had access to the Internet in house. The ratio of individuals with age between the
16 and 74 years that are using computers and that who acceded to the Internet were,
respectively, 36,2% and 25,7%.

In 2004 and relatively to the use of computers: 54% of the Portuguese population use
computers and 86% are frequent users (they use the computer more than one time per
week). The places most frequent when using computers are, to the similarity of the
previous year, at home (71%) and at work (47%).

2.4.3. Domestic and ICT use in 2003 and 2004

These are the main results of the Inquiry ICT use for Portuguese Families, carried out
by the National Instituto de Estatística (INE) and the Unidade de Missão Inovação e
Conhecimento (UMIC).

In June of 2003, 38,3% of Portuguese domestic aggregates owned computers and

21.7% were linked to the Internet. The aggregates of Lisbon and Vale of the Tejo are the
ones that present higher levels of ownership, above of the national average, respectively,
44,7% and 26,9%. On the other hand, the aggregates of the Alentejo are the ones that
present the lowest levels of ownership of computer (31,1%) and Internet (16,6%).

31
 Graph 9 - Posse de computador e ligação à Internet dos agregados domésticos portugueses, segundo a
residência NUTS II

In 2004 and related to the Ownership of Computer in the Portuguese Family: About
half of the population own computers in the aggregate (49%), verifying one tax of annual
growth (TCA) in the order of 7% face the 2003. 21% of the individuals that own
computers in the aggregate, they have portable computer, what represents a TCA of 40%
to the homologue year.

2.4.4. Internet use in 2004

Internet user’s percentage registration has a TCA of 10% face the 2003. In 2004,
43% of the population use Internet, of which 83% accede frequently to the Internet (more
than one time per week); Physical location most frequent on Internet remains, such as in
the previous year, to be the home (61%) and work place (41%);

The most popular activities on the Internet are, in synthesis:

 to send / to receive email (75%);

32
 

to play / download games, music, videos (49%);


professional activities (48%);


study / training activities (47%);


search of information on goods and services (41%);


periodical reading and magazines on-line (39%)
search of information in the sites of the public administration (37%).

2.4.5. E-commerce use in 2004

Representing a TCA of 40% in relation the 2003, 7% of the population adopt e-

commerce. The main types of products acquired for the users of the e-commerce are:



books, magazines, periodicals (30%);


music / films (29%);


electrónico equipment (22%)


software of computer (20%)


HW acquisitions, Entertainment and Trips (11% )
The remaining products or services do not have great expression varying
between 1% and 6 %.

2.4.6. Computer users profile in 2004

The use of computers by scholarship are represented by 87% of the population with
3º cycle and secondary education and in the superior courses the values go up to around
96%. For profession people, specialists, technician and administrative staff are those who
represent 85% of relative reference of the computer using.

2.5. Resuming ICT Portuguese Situation

Portugal investment is not archiving good results in investigation and technologies

use. These conclusions are very disclosed to positive values because modernization,
competitiveness and productivity of the Portugal indicators seems very low comparing all
Europe.

The main indicators that support these characteristics show that Portugal is in the last
Europe positions and so perspectives are not good. One concludes that everything leads

33
to believe that Portugal development is to get behind itself. The ICT are not to be
profitable, the investment is very low, evolution is very slow and thus we can be
convicted to a disqualified manpower and possible escape with better chances of the best
Portuguese know-how to other countries.

The Globalization will probably lead Portuguese Economy in a worse situation and
slowing down even more the Portuguese development, smashing the actual poor
Portuguese Welfare.

34
3. KNOWLEDGE MANAGEMENT

One of the main problems nowadays for all enterprises is communication

inefficiency between employees inside organizations. In general, organizations put the
blame on Information Systems (IS). Large amount of money in IT spent in last decade in
Portugal discredited some Chief Information Office (CIO). At same time, organizations
are questioning about effective use of some systems, some applications or methodologies
and models.

Changes in IS in the last decade 80-90 were seen as a solution and engine to push
enterprises to be competitive, get innovation and be profitable. Based on some important
documentation and studies like the White Book for Growth, Competitively and
Employment – the challenges and trails to enter in XXI century - livro branco
Crescimento, Competitividade, Emprego - Os Desafios e as Pistas para entrar no Século
XXI, joined by initiatives like eEurope approved in Feira in June 2000, by the European
Council, the objective is to put in line all citizens in European Union. Books from
Tavares (2000) and Freire (1995, 2000 and 2002) were valuable contributions to show
succeeded cases, trails and ideas for managers in Portugal. Associations like SEDSI –
Asociación Española de Empresa de Tecnologias de la Información firmed in later 1999
supported by Spanish Government developed studies about metrics in Information
Society, a complete work with actualizations by SEDSI (2003).

Estratégia de Lisboa in 2000, wanted to reinforce the employment, the economical

renovation and the social cohesion for an economy based in knowledge. From the
eEurope some action plans were born to 2002 and 2005, BE (2003).
The European Council ask European Committee to make an action plan
eEuropa 2005 and appealed the states members to assure that until the end of 2003
the proportion between all PCs connected to the internet and all students in
European Union should be 1 per 15.

35
 This Plan wants to stimulate services, applications and security contents in a
wide broadband infrastructure, accessible for a large amount of citizens, and
defined some goals to 2005.
- Modern Public services online. Wide broadband connection;
Interoperability; Interactivity; Electronic public contracts; Public Internet Access
points (PAPI); e-services to promote Europe and offer public social information.
- Learning online. Wide broadband connection; eLearning program; Virtual
Campus for all students; assisted computing cooperation system from Universities;
Requalification to the Knowledge Society.
- Health online – Health Electronic cards; Health information networks;
Health services online.
- eBusiness. Laws revision; Small and medium enterprises online e-
qualifications; interoperability; Confidentiality and insurance; 'Enterprise.eu'.
- Secure information Infrastructure. Task force for cibersecurity (TFCS);
'Security Culture' for concept and for the information and communication products;
Communication security between public services.
- Wide Broadband. Spectrum policy; Wide broadband Access from less
developed regions; wide broadband hurdle reduction implementation; Multiplatform
contents; Digital Era, BE (2003).

In Portugal, Insurance Companies, Banks and other enterprises spend huge

amounts in investments for Operational Systems (OS) and Decision Support Systems
(DSS) in 90’s. These enterprises in the financial sector, Banco Espírito Santo, Banco
Bilbau Vizcaya Argentaria in Portugal, Banco Comercial Português, Companhia de
Seguros Tranquilidade, Companhia de Seguros Bonança, and Companhia de Seguros
Fidelidade do not hesitate to change their mainframes, networks, personal computers or
core applications looking for being competitive, BCE (1999), Livro Verde (1997) and BE
(2003).

Good times for financial and economics in Portugal and Europe allowed huge
investments in IT and, almost the time, investments were not reviewed or weigh up and
as result some mistakes, lost and fails were expected and some really occurred.

Well-known mistakes in implementations for Enterprise Resources Planning

(ERP), Customer Relationship Management (CRM) or Balanced ScoreCard made

36
enterprises reduce the investments, totally stopped the implementation, revisit the
investments or just had abandoned these products.

Processes revision were made for OS, application and sometimes infrastructures
changes, especially when Web networks platforms were adopted for Internet support
infrastructures. At same time some infrastructures investments are applied in
technologies: Hardware (HW), Software (SW), Data and Communications (including
networks) and lots of money spent with consultants in this Era of abundance. Consultants
had in years 90th lots of solicitations in several domains: information solutions,
implementations and follow up recommendations.

In 2001 the economic crisis made enterprises to sustain their costs and they cut
budgets in IT and also begin to demonstrate an extremely care in investments in this area.
There was a turn back to review accurately all the future investments and all the steps are
now quite slow. IT and training investments drop abruptly and now only the crucial
investments in IT maintenance and core applications are allowed.

As expected, consultants see with disagree the break down contracts and so their
enterprises look for other services in core applications and solutions, like information
value; integrated solutions; call centers; Knowledge Management (KM), Business
Intelligent and security areas.

Enterprises begin to look at sunk costs in IS and now they are trying to obtains the
maximum gains. Big questions are now in manager’s brain: How can they justify all of IT
investments and why have some of them failed?

It is vital to look for profits from all investments and the new sources are: Data
Mining, Business Intelligent (BI); Knowledge Management (KM); Data Warehouse
Management; Integrated Resources Management (IRM); Customer Relationship
Management (CRM); Common Information Model (CIM); Call Centers; Supply Chain

37
Management (SCM); Business Process Outsourcing (BPO) specially for IT outsourcing
management and help desk (HD) outsourcing.; security systems and control systems;

March 11th in 2001 made all investors and organizations rethink security issues in
physical and communication areas like Web networks, internet, intranet, extranets, data
protection and access controls.

In Portugal the expected development to 2005 was delayed to 2010-2015 due

some problems: economic and financial crises; bad management and gap of knowledge.

The evolution from information to knowledge represents the way from non
competitive to competitive; from the non profitable to the profitable; from the
information culture to the knowledge culture; from the XX century enterprises to the XXI
century enterprises; in sum, the evolution of enterprises to the Net Society - Sociedade
em Rede Castells (2000), in a Post-Capitalism Era Drucker (1993) and actual Digital Age
of Knowledge - Era Digital na Idade do Conhecimento, Junqueiro (2002).

Today several products; concepts, concerns and constrains are interlinked with
knowledge inside organizations and some of them can be referred:

Concepts: Virtual Communities; Communities Of Practice (CoPs); Health

Communities, Darling (2003), Resistance Communities, Castells (2000), E-Business,
Business Intelligent (BI) [= (DSS) + (DW)], Joyanes (2003); Enterprise Networking and
Internetworking, Digital Enterprises, Laudon (2004); Decision Support Systems (DSS);
Group Decision Support Systems (GDSS); Multidimensional Database Management;
Virtual Reality Models.

Products: Data Mining; Text Mining; Data Warehouses (DW); Custom

Relationship Management CRM; Decision Support Systems (DSS); Group Decision
Support Systems (GDSS); Enterprise Resource Planning (ERP); Geographic Information
Systems (GIS); Virtual Reality (VR); Knowledge Management (KM); Call Centers;

38
Supply Chain Management (SCM); Radio Frequency Identification (RFID); Artificial
Intelligent (AI) and neuronal tools; Expert Systems (ES).

Concerns in Information Systems in a Digital Era: Organizational Redesign

and the Information Systems; the IS Value and their Relation to Adding Business Value;
Intangible Assets; Management Changing; Security and Control.

Constrains / Alerts: Knowledge Transference; Organization Learning; Difference

between Organizations; The Gap between Little and Medium Enterprises and the Big and
Powerful Enterprises – Globalization / Internationalization; Human Rights – Education,
Subsistence and Non Discrimination; Enterprise Ethics; Digital Exclusion.

These concepts, products or methodologies support ideas and methods to use

enterprise information and also support their transformation into knowledge through
phases: assimilation, storage, diffusion and reiteration, supporting individual and
organizational knowledge growth and evolution. However it is critical and fundamental
to create and use KM models as facilitators for those phases, which never should be
managed in ad-hoc processes because probably in this way, they would never be
profitable.

Small or big organizations detain data, information and knowledge. Their data and
information are storage in databases more or less organized in little files or paper
dossiers; magnetic supports like rigid disks, fixed or transportable disks, storage in small
DW ranged from some Mega to large Tera bytes or Hypermedia Databases containing
text, graphics, sound, video or executable programs. The good management of all
databases and enterprise models are fundamental to the operations effectiveness:
Extraction, Transforming and Loading (ETL), queries, organization, access and security.

In other hand, concerns and constrains make managers to be awake and get more
accuracy for analyzing careful the investments and their influence in society.

39
Opportunities, threats, markets inefficiency, competencies and resources, both financial
and human and the profitable of financial and human capitals have implications on
enterprises and in society.

Ethics have each time more importance, seriousness and honesty and good
practices should look at environment and society importance. Enterprises as integral part
of society should promote the welfare and the good practices, in order of a good living
and good relations regarding differences.

3.1. Knowledge Management Concepts

Joyanes (2003) explain and makes some alert to stat of art in KM. Ideas and
concepts like explicit and tacit knowledge, suggested by Nonaka (2002) are still useful
and deserve a continued study for KM use or related subjects to obtain more information.
He also saw other perspectives on the technological state of art in Information Society.
Technology does not solve knowledge faults, KM or knowledge assimilation but they can
increase dramatically all these sectors.

KM technologies are a combination of multiple tools, methodologies and concepts

ranging the simple artifacts like text registries to complex systems and fuzzy logic
technologies – different from traditional yes-no logic technologies, the fuzzy logic accept
imprecision states.

Areas like Neuronal Networks – SW and/or HW which copy human pardons of

cerebral functioning, Expert Systems (ES) – behavioral human emulation to solve
specific situations and supercomputers involving very skilled people with deep
knowledge, have strong investments and are now on scheduler in big companies,
governments and Universities.

In reply to “State of art in Knowledge Management Systems” posted by Coffre

(2003) some issues can be expected:

40
  Personal knowledge management - tools for collecting organizing and publishing
our thoughts
 Corporate memory / idea management - ways to capture & share suggestions,
expertise, tips and tricks
 Customer relationship management - sharing knowledge with stakeholders and
gathering innovative experiences
 Text and data mining - discovering interesting relationships, clusters and patterns
in unstructured text and numbers
 Tools for community - ways to foster dialog, spark innovation and encourage
collaborative activity without restrictions of place and time

In this section the main concerns is related with the KM, and in this field there are
four possible orientations:
1. Organizational Culture, Structure, Management Types and Politics.
2. Infrastructure Architecture
Information Systems Models
Knowledge Management Models
Business Models
Methodologies and Procedures
3. IT infrastructure for KM
Tools and applications
Storage
Communications
Data / Information / Knowledge
4. Environment Development.

These marks can be grouped by specificity: Organizational Components;

Infrastructure Architecture; Technological Elements and Social Approach.

3.2. Organizational Culture, Structure, Management Types and Politics

Organizational components like management types, policies and culture trend to

change from conventional forms to adopt new ways to deal with information and
knowledge inside and outside companies. Some communities’ characteristics and their
activities give some trails about future tendency in organizations.

41
 KM can have success when there is a strong involvement from management,
especially from top management support by the introduction of KM policies that sustain
mold structures and this can represent a specific culture and the way of people interacts in
organization.

Policy regarding permanent change and technological growth pay now a special
and strategic role.

Other issue is the intangible assets which are very important to measure evaluate
and have a great importance to enterprises.

3.3. Infrastructure and Architecture

This area is one of the most important parts for an enterprise since combine
processes, methodologies, standards, concepts and technologies to make business
succeed. There is lots of complexity and it is need a strong and deep knowledge from
broad managers to understand the architecture of an organization and much more then
that, to implement Knowledge Management.

3.3.1. Knowledge Management Models

There are some groups for KM models and implementation strategies, some
investigators make social approach like using community’s behavior to implement it in
organizations, others are IT driven and use technology like virtual reality and other tools
to better treat knowledge. The most complex is to use both, technical and social
approaches

3.3.2. Methodologies and procedures

Some ideas for innovative procedures and methodologies, inserting CoPs;

Weblogs; eLearning; groupware; sharing knowledge; top-down and bottom-up

42
information flows are experiments in organization and in investigation Universities. The
tendency is to group isolated knowledge and ideas.

3.4. IT infrastructures for KM

In technological infrastructure some tendencies can be predicted. In HW new

machines are being developed like supercomputers which make possible investigation in
Science and Engineering. The airplanes design can be shorted using supercomputers, now
for a completed design of a plan it is necessary 1018 memory and 1024 operations. An
actual computer has 1012 memory and can execute 40*1012 operations, but specialists say
in 15 years the speed will be 100 times more. If this is possible we could have 10 millions
processors and entire plan simulation could be done in one month, Valero (2004).
Millions of data can be treated faster promoting simulations, improved work or discovers
better then ever.

Programming languages especially in intelligent agents, AI and neuronal network

are being investigating and used more accurately in applications and specific SW like
DSS, fraud detection, preventing malfunctions or internet search.

Web design for products like virtual reality has been a strong growth just because
manufactures like Thompson and Boeing and other industries see improvement in time
and save cost when products are simulated instead physical models.

Multidimensional databases still present in enterprises but other databases are

focused in video, sound executable programs and graphs storage.

In telecommunication the Wi-Fi seems to be the future for communications and

some countries in some cities like NY, London or Seoul, establish access points for
population free use.

43
 New equipments UTMS can improve mobile business after a deep study and
implementation of better security and controls.

Hackers, crackers, terrorism and pirates are a big hurdle to transpose.

3.4.1. Tools and Applications

KM technologies are a mixed of different technologies ranged from simple

techniques through complex ones.

Some problems like best CSF for KM and human physiology inside enterprises
are the biggest problems to solve. Some tools, politics and work processes must be
improved to solve these problems. Some of these concerns can be enumerated as
following:
 KM tools
 Analyzing applications
 Databases management tools
 Knowledge Portals, promoting centralize in one place the access to several links,
tools, application and sites for Portal clients.
 Search intelligent tools
 Wireless machines and communications
 Data Mining, Text Mining exploitation
 Work groups tools, like email, Weblogs, videoconferences, chat and forums
 Knowledge mapping, for understanding knowledge flows.
 E-learning tools permit easy access to knowledge, training and educations.
 Simulations, Virtual Design help manufactures to reduce time and costs for
product development.
 Expert systems and AI development to increase diagnosis and inferences
 Although the big improvement these tools, processes and politics may have, some
limitations:
 Information can be inaccurately
 Links can disappear and so links and flows are broken
 Author rights can be overtaken
 Lots of unorganized information is rolling on Web
 Exclusion of poor people

3.4.2. Storage

44
 One of the big issues in IT is storage. Type and kind of data, information and
knowledge is the base to construct all the sustain base to explore. As much as data,
information or knowledge is accurate, fast access and user driven, the best can be
decisions and progress. Some particular tools and storage have been implemented in last
decade and some are going to appear.

3.4.2.1. Data Warehouses (DW)

“A DW is a collection of data oriented to a subject, integrated, variable with time

with no volatility to support decision processes” or "a subject-oriented, integrated, time-
variant, non-volatile collection of data in support of management’s decision-making" -
Bill Inmon. In the data warehousing field some discussions of person or organization's
philosophy can fall into Bill Inmon or into Ralph Kimball DW definition.

Bill Inmon's paradigm: Data warehouse is one part of the overall business
intelligence system. An enterprise has one data warehouse, and data marts source their
information from the data warehouse. In the data warehouse, information is stored in 3rd
normal form.

Ralph Kimball's paradigm: Data warehouse is the conglomerate of all data

marts within the enterprise. Information is always stored in the dimensional model.

There is no right or wrong between these two ideas, as they represent different
data warehousing philosophies. In reality, the data warehouse in most enterprises is closer
to Ralph Kimball's idea. This is because most data warehouses started out as a
departmental effort, and hence they originated as a data mart. Only when more data marts
are built later do they evolve into a data warehouse, Inmon vs. Kimball (2004).

A DW is a constantly growth databases with actual data with useful information

and one of the big challenges in DW is to manager this huge source of information and

45
clean all spam or unnecessary information. In the other side, accurately data is a key for
success in DW environment, so ETL processes are fundamental to this issue.

3.4.2.2. Data Marts (DM)

Datamarts are small DW focuses in specific subject, department or area to

simplify the complexity of a DW. The structure is similar, but data and subjects are
smaller and, access and maintenance easier. It is good for small project, investigation and
pilot programs.

3.4.2.3. Data Mining

It is a way to solve and discover related data in a huge collection of data. It is

based on mathematics models and formulas (statistics and probabilities) and it is
necessary to make decisions with a high confidentiality degree. So it can save lots of
money in campaigns, projects and marketing, using DataMining to catch the fundamental
and essential data and their correlation.

3.4.2.4. Web Mining

Web Mining is the same of Data Mining but using data Web as sourcing. There is
lots of data that can be compared with enterprises internal data and this is a way to do it.

Huge quantities of information can be easily collected from Web. Web is a

potential way to get data to CRM and Marketing and get major accurate with enterprises
internal data.

3.4.2.5. Text Mining

Texmining is the crown jewel of intelligent search. It is very difficult to get

succeed but it is a challenger that can be a revolution in time. Associations in documents,

46
Weblogs or other websites can produce a tremendous advance in knowledge discover and
optimization.

3.4.3. Communications

Wi-Fi and mobile connection are the future. People want to be free and access the
world what ever is the place. So, all contents and communications related with these
wishes will get a tremendous success.

3.4.4. Data / Information / Knowledge

The major problem in this area is the confidence, explorer tools and knowledge
workers to deal with data, information and knowledge.

One of the big issues is to make data accurate and have confidence on it. Second
problem is to train and give support to workers to understand information and relevant
details. It is crucial to select the good information from the irrelevant one. Other
important fact is knowledge which can make difference from on organization to another,
since as much we have knowledge retained inside our organization, better solutions and
advances should be gotten from competitors.

Limitations:
 Poor structure in some tools like Weblogs and Wikis
 Lots of spam
 Poor information quality and imprecision in several cases
 Author rights not preserved

3.5. Environment Development

The environment around enterprises can interfere dramatically and can act like a
facilitator or in the other hand, can struggle development. Several elements must support
enterprises that are betting in KM. However without a good infrastructure or
organizational climate for KM development it can be very difficult to have success.

47
 There is a complex problem linked with knowledge share. Since competition can
improve development and emerging new ideas and businesses, it seems knowledge share
it is an opposite of that. If someone shares his idea, someone can get advantage of that.
However with pros and cons, it seems that share can be better then to hide knowledge,
but some initiatives should be taken in this direction to push knowledge outside barriers
of fear.

Differences between big and small enterprises, sub developed countries and the
impact of global enterprises, Human Rights and Digital Exclusion are some concerns that
all countries, private and public structures must think about and try to solve in the better
way for the next years.

3.6. KM models and Methodologies

3.6.1. Knowledge concepts

First of all we have to understand what means: knowledge, then knowledge

management, then another concept like knowledge society and so on. The understanding
of concepts will clarify our minds.

3.6.1.1. Knowledge definition

From Hornby, A. S., (1984), Dictionary of Current English (1984),

“Knowledge is familiarity gained by experience”.

Davenport (2000) defines knowledge minding knowledge value and

characteristics:
“Knowledge is a fluid mixed of framed experiences, values, contextual
information and expert insight that provides a framework for evaluating and
incorporating new experiences and information. It originates and is applied in the
knowers' mind. In organizations, it often becomes embedded not only in documents
or repositories but also in organizational routines, processes, practices, and
norms”.

48
 3.6.1.2. Knowledge Management (KM) definition

There are several KM definitions published along last decade until now. In this
document there are mentioned three definitions and two concepts of KM diffusion.

Nonaka and Takeuchi (1995) in his book explain the process of knowledge
transference in a spiral growth from tacit-tacit in a socialization process; tacit-explicit in
externalization activities; explicit-explicit for combination knowledge and explicit-tacit
when internalization occurs. This is a view for organizations and business improvement
based on knowledge and KM. Some examples can be shown for each case:
 Socialization (Tacit to Tacit): Meetings and team work discussions
 Externalization (Tacit to Explicit): Dialogues; answering questions
 Combination (Explicit to Explicit): Share documentation; e-mail; education;
training involving documents
 Internalization (Explicit to Tacit): Leaning from a registry.

Figure 1 – Source: Nonaka/Takeuchi: The knowledge creating company. How Japanese Companies
Create the Dynamics of Innovation, New York Oxford 1995 (BA = Area)

Boisot (1995, 1998) - Six Phases of SLC and I-Space Model

Near Nonaka and Takeuchi model, Boisot's model introduces an extra dimension -
abstraction, in the sense that knowledge can become generalized to different situations.

49
This model allows the flow and transformation of knowledge to be analyzed in greater
detail and explains knowledge fluids on social systems based in three dimensions:
 Codification
 Abstraction
 Diffusion

In Boisot's scheme, knowledge assets can be located within a three dimensional

space defined by axes from "uncodified" to "codified", from "concrete" to "abstract" and
from "undiffused" to "diffused". He then proposes a "Social Learning Cycle" (SLC) that
uses the I-Space to model the dynamic flow of knowledge through a series of six phases:

1. Scanning

Process to identify threats and opportunities in general available but often

considered fuzzy data – i.e., weak signals. Scanning patterns such data into unique or
idiosyncratic insights that then become the possession of individuals or small groups.
Scanning may be very rapid when the data is well codified and abstract and very slow
and random when the data is uncodified and context-specific

2. Problem Solving

It is a process of giving structure and coherence to such insights – i.e., codifying

them. In this phase they are given a definite shape and much of the uncertainty initially
associated with them is eliminated. Problem-solving initiated in the uncodified region of
the I-Space is often both risky and conflict-laden.

3. Abstraction

The idea is generalizing the application of newly codified insights to a wider

range of situations. This involves reducing them to their most essential features – ie.
conceptualizing them. Problem-solving and abstraction often work in tandem.

50
 4. Diffusion

This is a process to share the newly created insights with a target population. The
diffusion of well codified and abstract data to a large population will be technically less
problematic than that of data which is uncodified and context-specific. Only a sharing of
context by sender and receiver can speed up the diffusion of uncodified data; the
probability of a shared context is inversely achieving proportional to population size.

5. Absorption

Applying the new codified insights to different situations in a “learning by doing”

or a “learning by using” fashion. Over time, such codified insights come to acquire a
penumbra of uncodified knowledge which helps to guide their application in particular
circumstances.

6. Impacting

It is embedding of abstract knowledge in concrete practices. The embedding can

take place in artifacts, technical or organizational rules, or in behavioral practices.
Absorption and impact often work in tandem.

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 Figure 2 – Source: Boisot (1998). The Social Learning Cycle in the I-Space

Malhotra (1998) refers a KM definition in his article “Knowledge Management

for the New World of Business”:
“Knowledge Management caters to the critical issues of organizational
adaptation, survival and competence in face of increasingly discontinuous
environmental change.... Essentially, it embodies organizational processes that seek
synergistic combination of data and information processing capacity of information
technologies and the creative and innovative capacity of human beings”.

Laudon (2001) says:

“KM refers to the set of processes developed in an organization to create,
gather, store, maintain and disseminate the firm's knowledge. Information
technology (IT) plays an important role in KM as an enabler of business processes
aimed at creating, sorting, maintaining and disseminating knowledge. Developing
procedures and routines - business processes - to optimize the creation, flow,
protection and sharing of knowledge in the firm as become a core management
responsibility”.

Sveiby (2001) explain through a matrix his concept of KM:

“Even if this grid is to oversimplify things, it captures one essential issue:
There are paradigmatic differences in our understanding of what knowledge is. The

52
 researchers and practitioners in the "Knowledge = Object" column tend to rely on
concepts from Information Theory in their understanding of Knowledge. The
researchers and practitioners in the column "Knowledge = Process" tend to take
their concepts from philosophy or psychology or sociology.Because of their different
origins, the two tracks use different languages in their dialogues and thus tend to
confuse each other when they meet”.

Knowledge Management
Track/Level IT-Track People-Track
Knowledge = Object Knowledge = Process
"Re-engineers" "Organization Theorists"
Organization Level
"AI-specialists" "Psychologists"
Individual Level "E-specialists"

Figure 3 – Source: Sveiby (2001) Knowledge Management Matrix

”Personally I dislike the notion "Knowledge Management". Knowledge is a
human faculty, not something that can be "managed", except by the individual
him/herself. A better guidance for our thinking is therefore phrases such as "to be
Knowledge Focused" or to "see" the world from a "Knowledge Perspective". To me
Knowledge Management is: The Art of Creating Value from Intangible Assets.”

No (2004) adapts Nonaka and Takeuchi focused on Communities of Practice

(CoPs) and Ecologic Technology in “Modelos educativos de transferencia
del conocimiento” – Educational Models for Knowledge Transference:

Comunidades de práctica Ecología tecnológica

Nonaka y Takeuchi
Negociación
Sistema
de significados
Diversidad
Socialización Externalizac
Evolución

Especies Clave
Internaliz Combinación

Participación

Reificación Alta implicación

Figure 4 – Source: No (2004) adapts Nonaka and Takeuchi focused on Communities of Practice
(CoPs) and Ecologic Technology

53
 3.6.2. Some ideas, some investigators, some thoughts

 Where is the Knowledge society?

 Who are the Knowledge professionals?
 Where is the Key to succeed?
 What kind of Models or Methodologies can succeed?

Junqueiro (2002) exposes in his book some ideas and history until we get the
knowledge society. There are some tendencies: Convergence Society, its trend to
converge in several areas:
 Network (multi services platforms, infrastructure, wide broadcast)
 Formats, contents and terminals (all in one)
 Services converge (multi services from one supplier)
 eCommerce (between individuals, enterprises, markets)
 Digital television
 Industry converge (fusion, acquisition, horizontal integration, vertical integration)

First of all we are now at an information society: a new reality, social and
economical globalization tendency, competition, no one can survive without IT, e-
business, and communication are growing exponentially. With this picture there is a
convergence to all as written above: networks, formats, context and terminals, services, e-
business to support digital economy. We try to "Webbelize" everything. There are also
new challenges: digital television and the media are every where. The industries are also
trying to converge.

Junqueiro (2002) says, now we can also talk about mobile society: mobile
phones, GPRS, UTMS, concurs and auctions. So Knowledge Society is related with
qualifications, their training to deal with connections, information, convergence and
mobility.

Nonaka (1996) says “What I found was that the existing theory of information
processing is not enough. The process of innovation is not simply information processing;
it's a process to capture, create, leverage, and retain knowledge.”

54
 Kluge (2002) says the important thing is to know the good and the bad decisions,
that’s knowledge. Information is not enough, we must transform information in
knowledge that is, action. The combination of tacit and explicit knowledge by Nonaka
(1996) framework and their examples suggests the complexity of “to understand what is
knowledge”, how to manager knowledge and how to promote and diffuse it through the
enterprises. Kluge (2002) argues one Critical Success Factor (CSF) is the motivations
human develop when they try to reach the edge.

Mary Lee Kennedy (2004) refers Knowledge Management is now the challenger
to: allow, create, share, raise and increase the availability of knowledge. Traditional
objectives frequently use inside Organizations brought from enterprises software
applications and from enterprise consulting services. Such objectives that often has
demonstrated to be very little useful and has overwhelmed the expectations and to justify
the investments.

The answer to this displeasure brings a new movement nominated "the New
Management of the Knowledge". For McElroy (2002) 4 KM is suitably equipped to attend
the organizations to make the transition between "relatively closed" states to a greater
opening in the knowledge processing, mainly because KM is a management discipline
that it looks for the improvement of the knowledge processing. The objectives of their
intervention are always the information processing behaviour, not only the results.

3.6.3. Models, Methodologies and Strategies

There are few investigators in KM area, Nonaka with the first steps on KM,
Sveiby an investigator who has several approaches to the implementation of KM, Tiwana
a practical knower which book is best seller for implementing KM and some enterprises
like McKinsey whose practices are explained in Day and Wendler (1998) studies and

4 McElroy, Mark W. (2002). “Ethics, innovation and open enterprise”, KM Magazine, Vol. 6 Issue 1

55
Kluge and al. (2002) book, IBM and Microsoft have methodologies to implement KM
supported by a very good knowledge database, and some small enterprises like Knoco
that has a model based on Communities of Practice tested on BP or some studies from the
Telematica Instituut where several approaches are being suited by Swaak (2002) and
Efimova (2002). Cavalcanti and Gomes (2000) with their model for Intelligent Enterprise
are testing their successful model in Brasil. Laudon (2004) also give us some orientation
to manage Knowledge in a Digital Firm.

In Portugal Neves (2004), André (2004) are using Weblogs and studies in KM to
exploit knowledge and adapt their theories to enterprises’ progress.

3.6.4. Nonaka and Tiwana extended SECI Model

The Socialization-Externalization-Combination-Internalization (SECI) Model

shows the interaction of knowledge at an enterprise and how the technologies can enable
those phases in each quadrant.

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 Figure 5 – SECI Model

The improvement made by Tiwana explaining how Nonaka (1995) SECI model
fits in KM strategy refers knowledge interaction at whole organization (C), group or task
teams (G) and individual activities (I) that represents technology enablers that in each
phases: Socialization, Externalization, Combination and Internalization of knowledge are
supported by technology and the essential role of Organization Knowledge, Group or
teams and Individuals.

3.6.5. Laudon orientation to manage Knowledge for a Digital Firm

“Knowledge management increases the ability of the organization to learn
from its environment and to incorporate knowledge into its business processes.

57
 Developing procedures and routines to optimize the creation, flow, learning,
protection, and sharing of knowledge in the firm is now a core management
responsibility. Office systems, knowledge work systems (KWS), group collaboration
systems, and artificial intelligence applications are especially useful for knowledge
management because they focus on supporting information and knowledge work and
on defining and capturing the organization's knowledge base”.

Figure 6 – Source: Laudon (2004) IT Infrastructure for Knowledge Management

3.6.5.1. Some concerns in KM in Digital Firms

“Businesses need knowledge management programs because knowledge has
become a central productive and strategic asset in today's information economy and
a potential source of strategic advantage”, Laudon (2004).

Knowledge management combines several functions to manage knowledge

repositories in an organization. Knowledge management systems provide support for
knowledge repositories, knowledge networks, and Communities of Practice. Office
systems, knowledge work systems (KWS), group collaboration systems, and artificial
intelligence applications represent a crucial role in knowledge management because they
focus on supporting information and knowledge work and on defining and codifying the
organization's knowledge base.

58
 In Figure 6 it is explicit a whole vision of IT infrastructure for KM where:
Networks – all connectivity inside and outside organizations; Databases – data storage
possibilities; Processors (engines like supercomputers, servers, PCs), Software –
programs, applications and operative SW, Internet tools – searchers, portals, Weblogs and
others web applications and tools.

This type of IT infrastructure should be created, maintained and managed to

support KM and business in enterprises.

In Figure 6 - IT Infrastructure for Knowledge Management, there are 4 quadrants

identifying the 4 most concerns and tools to sustain KM, each one it will be described in
next sub sections.

3.6.5.2. Distributing Knowledge: Office and Document

Management Systems

The most important treatment and coordination data work is made at offices.
There are three most important functions, Laudon (2004):
 Data Managing and coordinating work and knowledge workers
 Connecting the work of local information workers with all levels and functions of
the organization, this is internal process coordination.
 Connecting the organization to the external world, including customers, suppliers,
government regulators, and external auditors, this is external process
coordination.

With some different roles and activities, office workers can be included in:
professionals, managers, sales, and clerical workers working alone or in groups. Their
major activities supported by technology include the following:
 Managing documents, including document creation, storage, retrieval, and
dissemination. This can be sustained by databases and databases management,
office tools like word processing.
 Scheduling for individuals and groups, using electronic calendars and scheduler
electronic tools.

59
  Communicating, including initiating, receiving, and managing voice, digital, and
document-based communications for individuals and groups.
 Managing data, such as on employees, customers, and vendors. Some business
tools, DSS, or EIS support employees in these tasks.

3.6.5.3. Creating Knowledge: Knowledge Work Systems

Knowledge work systems (KWS) support the creation of knowledge and its
integration into the organization.

Knowledge Work System Function in Organization

CAD/CAM (Computer-aided Provides engineers, designers, and factory
design/computer-aided managers with precise control over industrial
manufacturing) design and manufacturing
Virtual reality systems Provide drug designers, architects, engineers, and
medical workers with precise, photorealistic
simulations of objects
Investment workstations High-end PCs used in financial sector to analyze
trading situations instantaneously and facilitate
portfolio management

Table 1 – Source Laudon (2004) Examples of Knowledge Work Systems

Knowledge workers perform three key roles that are critical to the organization
and to the managers who work within the organization:
“Keeping the organization up-to-date in knowledge as it develops in the
external world—in technology, science, social thought, and the arts. Serving as
internal consultants regarding the areas of their knowledge, the changes taking
place, and the opportunities Acting as change agents evaluating, initiating, and
promoting change projects.” Laudon (2004).

3.6.5.4. Sharing Knowledge: Group Collaboration Systems and

Enterprise Knowledge Environments

Communities of Practice; Groupware and Web Collaborative tools, Teamware are

some examples to support employees working in group or as a team.

Community of Practice

60
 “One of the big challenges for modern corporations is to find the better way
to manager their own knowledge. Ernst & Yong consultants show that 80% of
intellectual production inside enterprises is not systematically applied in business
processes. The CoPs can be a simple approach, effective and with low costs to the
implementation of enterprises KM”, Nina (2004).

CoPs are embedded inside a broad area – knowledge systems or systems that
create or work to create information and knowledge – Knowledge Working System
(KWS). The majority of these systems were created to work with individuals or small
groups but tendency is to enlarge the scope to larger groups.

There are some working or project groups using KWS tools, like Virtual
Machines, Investment Work Systems, CAD/CAM; Office, but in this case the idea is to
construct CoPs inside organizations.

Other definition can be explicit: “A community of practice is a group of people

informally bound together and engaged in a joint learning experience on a shared
practice”.
"A community of practice defines itself along three dimensions:
o What it is about – its joint enterprise as understood and continually
renegotiated by its members.
o How it functions mutual engagement that bind members together into a
social entity
o What capability it has produced – the shared repertoire of communal
resources (routines, sensibilities, artifacts, vocabulary, styles, etc.) that
members have developed over time". (Wenger 1998).

Groupware and Web Collaboration Tools

There are several technologies for group coordination and collaboration: e-mail,
teleconferencing, data conferencing, videoconferencing, and groupware.

Groupware: is built around three key principles: communication, collaboration,

and coordination. It allows groups to work together on documents, schedule meetings,
route electronic forms, and access shared folders, participate in electronic discussions,

61
develop shared databases, and send e-mail. Information-intensive companies, such as
consulting firms, law firms, and financial management companies, have found groupware
an especially powerful tool for leveraging their knowledge assets.

Commercial software tools called teamware make intranets more useful for
working in teams. Teamware: consists of intranet-based applications for building a work
team, sharing ideas and documents, brainstorming, scheduling, tracking the status of tasks
and projects, and archiving decisions made or rejected by project team members for
future use. Teamware is similar to groupware, although its application development
capabilities are not as powerful as those provided by sophisticated groupware products.

Intranets and Enterprise Knowledge Environments

Some organizations are using intranets and Internet technologies for group
collaboration and coordination. Some of these intranets are providing the foundation for
enterprise knowledge environments in which information from a variety of sources and
media, including text, sound, video, and even digital slides, can be shared, displayed, and
accessed across an enterprise through a simple common interface. Other source for
potential development in knowledge area is enterprise information portal, which can be
presented as an application that enables companies to provide users with a single gateway
to internal and external sources of information.

3.6.5.5. Capturing and codifying Knowledge

Business benefits of using artificial intelligence technology for knowledge

management are resuming in the following paragraphs.

Artificial intelligence: lacks the flexibility, breadth, and generality of human

intelligence, but it can be used to capture and codify organizational knowledge.
Businesses can use artificial intelligence to help them create an organizational knowledge
base to preserve expertise; to perform routine, unsatisfying, or dangerous jobs; and to

62
generate solutions to specific problems that are too massive and complex to be analyzed
by human beings in a short period of time.

Use expert systems and case-based reasoning to capture knowledge

Expert systems: are knowledge-intensive computer programs that solve problems

that until now required human expertise. The systems capture a limited domain of human
knowledge using rules. The strategy to search through the knowledge base, called the
inference engine, can use either forward or backward chaining. Expert systems are most
useful for problems of classification or diagnosis. Case-based reasoning represents
organizational knowledge as a database of cases that can be continually expanded and
refined. When the user encounters a new case, the system searches for similar cases, finds
the closest fit, and applies the solutions of the old case to the new case. The new case is
stored with successful solutions in the case database.

Organizations benefit from using neural networks and other intelligent

techniques

Other techniques neural networks; fuzzy logic, genetic algorithms or intelligent

agents and specially this one have been a very importance in knowledge capture,
assimilation or spread.

Neural Networks: consists in some hardware and software that attempt to copy
the thought processes of the human brain that are able to learn without programming and
to recognize patterns that cannot be easily described by humans. They are being used in
science, medicine, and business primarily to discriminate patterns in massive amounts of
data.

Fuzzy logic: is a software technology that expresses logic with some carefully
defined imprecision so that it is closer to the way people actually think than traditional

63
IF–THEN rules. Fuzzy logic has been used for controlling physical devices and is starting
to be used for limited decision-making applications.

Genetic algorithms: develop solutions to particular problems using genetically

based processes such as fitness, crossover, and mutation. Genetic algorithms are
beginning to be applied to problems involving optimization, product design, and
monitoring industrial systems where many alternatives or variables must be evaluated to
generate an optimal solution.

Intelligent agents: are software programs with built-in or learned knowledge

bases that carry out specific, repetitive, and predictable tasks for an individual user,
business process, or software application. Intelligent agents can be programmed to search
for information or conduct transactions on networks, including the Internet.

3.6.6. Touraj Nasseri 5 - The Knowledge Enterprise

Knowledge management systems can be configured in different ways, Touraj Nasseri

(1999). The main processes of a typical KMS are shown schematically in Figure.
Knowledge management must be inspired and guided by the cultural and strategic
imperatives of the organization.

The output of knowledge management must also feed the value chain of the
organization. Knowledge technologies are shown to extend across the processes to
emphasize that they are enablers of each process.6

5
http://www.exinfm.com/pdffiles/tnasseri.pdf, THE KNOWLEDGE ENTERPRISE, Copyright © 1999 by
Touraj Nasseri

64
 Figure 1 - Basic Elements of a Knowledge Management System
Knowledge Needs Assessment

The alignment of KMS with enterprise's strategy requires that a continual

assessment is made of the human competencies and information needs of the enterprise.
Each value adding activities of the enterprise should be assessed for its knowledge needs
to respond competently to the current and future challenges and opportunities.
Knowledge Acquisition & Development

An enterprise must identify the best sources and means of meeting its knowledge
needs as defined by the process of knowledge needs assessment. The sources are either
internal or external, and the choice depends on several factors including the strategic
importance of the knowledge, the level of knowledge available at the enterprise and the
feasibility of outsourcing options. Knowledge acquisition comprises:
 creating knowledge within the enterprise ( e.g., R&D, product development &
marketing )
 creating knowledge through collaboration and knowledge alliances with other
enterprises, government R&D organizations or academia.
 developing competencies by acquiring promising people and human development
programs (e.g. coaching, mentoring, corporate universities, in -career education
programs)

65
  procuring knowledge from knowledge vendors ( e.g. consultants, research
providers, patent holders)
 gathering knowledge from the market and information sources( e.g. customers,
competitors, the Web, and publications)
 acquiring the people who have the knowledge
 acquiring the company that has the knowledge

Knowledge Evaluation & Mapping

This is a facility that critically evaluates documents validity and continuously

updates the information and competencies of the enterprise. It maps only relevant and
valid information, is dynamic and highly interactive and serves knowledge assessment,
knowledge acquisition and knowledge transfer.

Knowledge Transfer & Use

The principal objective of knowledge management is to ensure that the relevant

and reliable knowledge consistently enlightens decision making and problem solving.
The timely transfer of the right knowledge to decision makers and problem solvers is
therefore critical to the success of an enterprise let alone its KMS.

Measurement & Improvement

While vision and entrepreneurship drive much of knowledge management

initiatives, the value of systems to enhance knowledge productivity and energize
innovation dynamics is to be found in the enterprise performance.

Adding the model it is also important the relevance of Technology as a powerful

enabler, but the critical issues of knowledge transfer are cultural and people-intensive.
Clearly a culture of knowledge sharing and knowledge seeking based on trust is essential
for effective and rewarding networking and for the flourishing of knowledge alliances
between communities of knowledge workers

66
 Technology is a powerful enabler, but the critical issues of knowledge transfer are
cultural and people-intensive. Clearly a culture of knowledge sharing and knowledge
seeking based on trust is essential for effective and rewarding networking and for the
flourishing of knowledge alliances between communities of knowledge workers.

But as Touraj Nasseri(1999) says, the fundamental premise of knowledge

management is that the enterprise is intent on prospering for long by innovation.

3.6.7. Cavalcanti Intelligent Enterprises

In his article Cavalcanti (2000) introduces the idea that the economical models,
based upon the three traditional production factors, should be revised regarding the
incorporation of the Knowledge as an essential instrument of the economical production
itself. A new concept for the business administration in the Knowledge Society: the
Enterprise Intelligence and the inclusion of a model for the management of the
Knowledge Capital. It is suggested to discuss a few ideas of how developing countries
like Brazil should position itself on this new Economics.

Figure 7 – Source: Centro de Referência em Inteligência Empresarial CRIE – COPPE/UFRJ - Os 4

Capitais do Conhecimento

Knowledge as Intellectual Capital incorporated in human beings and in

technology it was always the source of economic development.

67
 However in this last years when economic activities become more intensive in
knowledge arena, the importance of knowledge investments had a huge force in research
and development, education and training, and innovating approaches in work processes
and was considered a key economic success.

Showing the necessity of a new economic model based on the fact that
Knowledge is an essential key factor in this new Economy, Cavalcanti (2000) propose a
new business model supported by Knowledge Society: Enterprise Intelligent. This new
model has three pillars, Knowledge, Innovation and Effort.

For KM, Cavalcanti (2000) propose Knowledge Capital model which consider
internal management (structural capital, relational capital and intellectual capital) and
external or ambient Knowledge management (environment capital). This model it is not a
magic condom, but points a way to guide organizations to succeed in Knowledge
Management.

3.6.8. Several approaches from Swaak

Swaak (2002), other investigators and business people, create a project, METIS-
project trying to search solutions for knowledge management bottlenecks and questions.
Their aim
“is to effectively and efficiently support the work of knowledge managers.
We are developing tools for this purpose, like technological solutions, processes and
handbooks. We are thinking of new tools, are analyzing existing tools, are extending,
combining and evaluating them and apply them in business cases.
In the METIS-project (applied) scientific researchers and business people
are working together on knowledge management issues. Sometimes these issues are
general in nature, sometimes they pop-up in a companies’ daily business. Such
cooperation improves the sharing of knowledge and experiences and bridges the gap
between science and practice. Furthermore it enhances the discovery of solutions”.

A selection of the 2002 METIS issues:

 Linking knowledge management to business strategy, processes, culture and
environment

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  Future knowledge management scenarios
 The role of Chief Knowledge Officers
 Community activities
 Sharing information in the supply chain
 Marketing knowledge
 Knowledge mapping

“This deliverable develops scenarios for the use of knowledge maps. Since
we extend the notion of knowledge maps to an integrating webbed source of
information on many different information sources, we prefer to speak about a
knowledge web”.

Swaak (2002) KM approach is trying to establish knowledge mapping in

enterprises to help managers and all the employees in firms to get knowledge from web
and non web sources in an easy way.

3.6.9. Toolkit from Tiwana

Tiwana (2003) in his deep study shown in his book, point us a KM roadmap with
10 steps:

Phase 1 – Infrastructural evaluation

 Analyzing the existing infrastructure: Understand the KM infrastructure
components; analyze, leverage and build on existing infrastructure; deploy
knowledge servers; understand business needs; identify limitations and gaps in
existing infrastructure.
 Align KM and business strategy: Put strategic vision in the alignment between
KM and business; understand the high-level trade-offs in knowledge transfer and
integration; develop KM in scenario bases; translate business strategy into an
executable KM strategy and architecture; identify critical success factors (CSF)
for KM initiatives.

Phase 2 – KM system analysis, design and development

 Design KM structure: Choose IT components for a knowledge platform; decide
on collaborative platform; understand the several layers and their mixed
applications.

As an example for KM architecture Tiwana (2003) shows seven layers:

69
 Figure 8 – Source: Tiwana (2003) - The seven layers of KM system architecture.
 A KM system interfaces with users U1 through Un and can be scalable until Um.
 Audit existing knowledge assets and systems: understand, identify, evaluate and
select the correct audit method; use Bohn’s stages of knowledge growth to
measure knowledge;
 Design the KM team: Identify sources of requisite expertise, critical points of
failure; KM team structure, balance with technical and managerial expertise,
manage stakeholders’ expectations.
 Create KM building plan: Develop KM architecture, analyze quality indicators,
performance, interoperability and scalability; understand requisites users interface
opinions; analyze built-or-buy tradeoffs.
 Develop KM system: Define capabilities of each layer; create platform
independence; create access and authentication controls and security; develop the
collaborative filtering and intelligence layer; application, transport, middleware
and legacy integration layers; shift from client/server to agent computing
orientation.

Phase 3 – Deployment
 Deploy, using the results-driven incremental (RDI) methodology: construct a
pilot; evaluate the pilot; understand KM life cycle; use RDI methodology to
deploy the system.

70
 Manage change, culture and reward structures: Understand Chief Knowledge
Officer (CKO) role and their relation to other managers, Chief Information
Officer (CIO), Chief Financial Officer (CFO) and Chief Executive Officer (CEO);
manage and implement cultural change and process triggers to KM succeed.

In the infrastructure, KM platform can be seen as the figure:

Figure 9 – Source: Tiwana (2003) - KM Platform

Phase 4 – Evaluation
 Evaluate performance, measure ROI, and incrementally refine the KMS: Analyze
the priority of KM investments; Evaluate inputs from return on investments
(ROI), Balanced Scorecard (BSC), benchmarking and Quality Function
Deployment.

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 Tiwana have a deep methodology quite good detailed but very complex to
implement in small enterprises. This methodology also shows that the top managers and
the rest of employees must be deeply involved in this process.

3.6.10. Kluge and the McKinsey methodology

Kluge (2002), Stein and Litch in their book Knowledge Management by a

McKinsey & Company study, show a methodology based in 7 items for analyzing
enterprise knowledge and then apply the specific strategy to improve that topic. The first
item can be considered like a stimulus to knowledge development and the following six
characteristics represent the focus of a technical base approach best enterprises use to
construct and launch a KM program.

Stimulate knowledge
 Define objectives to reach or overcame best world practices
 Combine those objectives with individual incentives
 Active employee’s involvement in portfolio decisions and products innovation

Subjectivity
 Informal and frequently communication top-down and bottom-up
 Multifunctional teams
 Common objectives and values between departments and functions

Transferability
 Benchmarking techniques
 Use of strategic alliances to get external knowledge
 Employees compromise to get clients preferences and market tendencies

Sedimentation
 Temporary collaborators dislocation to other sectors, especially with external
partners
 Rotation between tasks and team jobs in development period
 External team work or meetings with external partners
 Access to knowledge employees profiles in internet

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 Auto valuation
 Regular training with internal and external specialists
 Creation of networks between external partners
 Free access to the knowledge infrastructure

Perishable
 Standardize processes in all enterprise
 Retention and actualization of all experience processes
 Optimize processes based in past experienced processes
 Decentralized decision making, as adjusted

Spontaneous
 Internet access by all employees
 Access to ideas database to collect ideas about products

With this methodology Kluge (2002) identifies or as they call, they scan the
enterprise and adjust the best methods and techniques to promote and develop
knowledge.

3.6.11. Knoco enterprise model based on Communities of Practice

Knoco enterprise has A Knowledge Management Model based in 3 steps:

1 - An Holistic Approach
Knowledge Management works when it is dynamic and holistic in approach
and when it addresses all these areas: People - who enjoy defined Knowledge
Management roles and accountabilities, Process - simple effective activities at part
of the business process, Technology - standard groupware technology is usually
sufficient and Culture - Knowledge Management is a Culture Change process

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 Figure 10 – Source: Knoco (2004) – Holistic Approach

2 - A Closed Knowledge Loop

Knowledge is generated through action and experience, and needs to be
captured for the full value to be released. Our experience shows that this is a cyclic
process. When the cycle is not completed, the value is not fully realized.

Figure 11 – Source: Knoco (2004) – Knowledge Loop

3- Knowledge Enabled Performance™

The simple model Knowledge Enabled Performance™ is a 6-component model

for managing Knowledge:
 Learning Before
 Learning During
 Learning After Activity

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  The creation of Knowledge Assets to store what we know
 The creation and empowerment of Communities of Practice
 The creation of Accountable Knowledge Roles

Figure 12 – Source: Knoco (2004) – Knowledge Enabled Performance™

The interesting approach here is related with the communities of practice to act as
an engine for learn cycle in the knowledge assets.

The Knoco model was applied in some important clients like BP, De Beers or
BBC.

3.6.12. Sveiby Approach – KM Initiatives

Sveiby approach is different since it is classified in a matrix for specific situations

and investment areas.

Sveiby (2001) has create a matrix where are identified some initiatives to KM
versus potential client and organization gains. Several enterprises have used Sveiby
initiatives methodology as shown in Table 2.

Exterior Initiatives: Gains from clients through several systems, Computer

Aided Design (CAD) or Common Information Model (CIM) or treating clients’ feedback.

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 Internal Initiatives: Sharing culture to knowledge construction; Creating benefits
based on knowledge share; Tacit Knowledge capture, storage, diffusion and reuse;
Creation of new measures related with knowledge to evaluate intangible assets.

Competence Initiatives: creation of new jobs based in KM; creation of micro

environments to tacit knowledge transference; learning through virtual simulator systems
(VIS) or pilot installations.
Knowledge Management Initiatives

External Structure
Initiatives Competence
Internal Structure Initiatives
Initiatives
Gain Knowledge from Build Knowledge Sharing Create Careers based on
Customers Culture Knowledge Management
Create Micro Environments
Offer Customers Create New Revenues from
for Tacit Knowledge
Additional Knowledge Existing Knowledge
Transfer
Capture Individuals' Tacit
Learn from Simulations and
Knowledge, store it, spread it
Pilot Installations
and Re-use it
Measure Knowledge Creating
Processes and Intangible Assets
Companies
Companies 3M, Analog Devices, Boeing, Companies
Benetton, General Buckman Labs, Chaparral Buckman Labs, IBM, Pfizer,
Electric, National Bicycle, Steel, Ford Motor Co, Hewlett- WM-data, Affaersvaerlden,
Netscape, Ritz Carlton, Packard, Oticon, WM-data, Hewlett-Packard, Honda,
Agro Corp, Frito-Lay, McKinsey, Bain & Co, PLS-Consult, Xerox,
Dow Chemical, Chevron, British Petroleum, National Technological
Outokumppu, Skandia PLS-Consult, Skandia AFS, University, Matsushita,
Switzerland, Steelcase Telia, Celemi, Skandia, WM- IKEA
data,

Table 2 – Source Sveiby (2001) Knowledge Management Initiatives

3.6.13. Kingston’s KM strategy choice

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 Kingston (2003) based in several studies from important investigators resume
their approaches and explains a possible framework to define a KM strategy to adopt in
an enterprise. These factors can contribute for a better selection of a KM strategy.
Factor Examples
Current/Planned Knowledge Management Goals, desired applications, technology
Strategy capabilities, analytic/synthetic approach
Business Sector Characteristics Highly regulated, Innovative, Risk factors,
Competitiveness, Globalization, etc.
Strengths, Weaknesses, Opportunities and Reputation, Leading product, Changing
Threats (SWOT) regulations, Acquisitions and Mergers,
Globalization, etc.
Value Focus Operational Excellence, Product Leadership or
Customer Intimacy
Organizational Structure Hierarchical, Loose
Organizational Culture Team spirit, Individualistic, Sharing, Learning
Nature of Knowledge Explicit, Implicit or Tacit; Task Type;
Symbolic/Numeric/Geometric/Perceptual

Table 3 – Source Kingston (2003). Factors influencing the selection of a KM Strategy

Some activities are also provided to help managers to identify suitable KM

initiatives:
1. List the external business drivers for your sector.
2. Perform an organizational SWOT analysis in the context of this environment,
clearly identifying your product or service.
3. Identify the primary organizational Value Discipline, which represents how your
organization attracts its segment of the market.
4. Use these findings to identify the primary KM area to consider.
5. List the (major) knowledge-intensive or knowledge transfer activities undertaken
by the organization, looking initially for those that match the primary KM type
identified above. Try to sort these into order of importance to the organization’s
mission. Then, for each of these activities, identify:
6. Knowledge Assets used
7. Nature of these Assets (explicit, implicit or tacit)
8. Location, form and quality of these Assets
9. Make an assessment for each of the more important activities identified, as to how
well it is being performed at present.
10. Carry out some feasibility checks on the proposed KM approach.

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 3.7. Categorizing KM

Regarding models, methodologies or strategies and concerns, a brief resume can

be done and some ideas are presented from some investigators. Looking for an overall
view, KM can be categorized and, this can probably be the first step managers should do,
before starting a KM implementation study.

Schütt (2003) describes a new “post-Nonaka generation of Knowledge

Management” divided into the three categories:
 Processes
 Organization & culture
 Information technology

Schütt (2003) also builds on Frederik Taylor's idea of applying knowledge to

work, though not on his Scientific Management model. Instead, it extends to Knowledge
Workers and gives answers to the key question of Knowledge Management: How can the
productivity of knowledge workers are increased?

Powell (2003) refers that the Skandia model classifies all organization knowledge
into two major categories with several sub-categories:

Human capital: “All individual capabilities, the knowledge, skill, and experience
of the company’s employees and managers”, (Edvinsson and Malone, 1997).

Structural capital: “The organizational capability, including the physical systems

used to transmit and store intellectual material”, (Edvinsson and Malone, 1997).
Structural capital itself comprises three parts:

Organizational capital. “Investment in systems, tools, and operating

philosophy that speeds the flow of knowledge through the organization, as well as
out to the supply and distribution channels” (Edvinsson and Malone, 1997)

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 Innovation capital. “Renewal capability and the results of innovation”,
including:
• Intellectual properties, such as trademarks
• Other intangible assets, such as the theory by which the business is run

Process capital. “Work processes, techniques and employee programs that

augment and enhance the efficiency of manufacturing or the delivery of services”,
(Edvinsson and Malone, 1997).

The Canadian Imperial Bank of Commerce (CIBC) modification promotes

Customer capital (formerly under structural capital and defined as the “valuation of
customer relationships”) to a third major category equivalent to structural and human
capital.
 Kingston (2003) survey KM Strategies. The major difference between the various
approaches is that they emphasize different aspects of knowledge management;
some strategies focus on three classifications:
 Knowledge
 Business processes/areas
 End results
 Classification By Knowledge

For KM Strategies Nonaka & Takeuchi's Matrix Of Knowledge Types acts like a
continue organizational knowledge creation and Boisot's I-Space Model also shows that
the process of growing and developing knowledge assets within organizations is always
changing.

Classification By Business Process

Wiig (1997) and the APQC (American Productivity and Quality Center) in a
APQC International Benchmarking Clearinghouse Study, McKinsey & Company through
Day and Wendler (1998) or Sveiby can be group in this classification.
 Knowledge Strategy as Business Strategy - A comprehensive, enterprise-wide
approach to KM, where frequently knowledge is seen as the product.

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  Intellectual Asset Management Strategy - Focuses on assets already within the
company that can be exploited more fully or enhanced.
 Personal Knowledge Asset Responsibility Strategy - Encourage and support
individual employees to develop their skills and knowledge as well as to share
their knowledge with each other.
 Knowledge Creation Strategy - Emphasizes the innovation and creation of new
knowledge through R&D. Adopted by market leaders who shape the future
direction of their sector.
 Knowledge Transfer Strategy - Transfer of knowledge and best practices in order
to improve operational quality and efficiency.
 Customer-Focused Knowledge Strategy - Aims to understand customers and their
needs and so provide them with exactly what they want.

Adding some more strategies from Day and Wendler of McKinsey studies:
 Creating a new industry from embedded knowledge - This approach is to
recognize that an organization may have knowledge which it can exploit in new
ways. In particular, it may have built up knowledge about its customers which
reveals a gap in the market for a new product.
 Shaping Corporate Strategy around knowledge - This strategy was identified from
the experiences which encompassed two very different business groups: a
chemicals group and a life sciences group. The chemicals group was focused on
best practice while the life sciences group was an innovation-based business. The
knowledge strategies for these two groups were perceived to be quite different.
This is an interesting example of the tensions between two very different KM
strategies.

Classification By End Results

Sveiby can also be involved in this group due his braod initiatives related with end
results like adding value to and from clients.

The Value disciplines model of Michael Treacy and Fred Wiersema describes
three generic value disciplines. Any company must choose one of these value disciplines
and act upon it consistently and vigorously.

Operational excellence: superb operations and execution often by providing a

reasonable quality at a very low price. The focus is on efficiency, streamlining

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operations, Supply Chain Management, no-frills, volume counts. Most large international
corporations are working out of this discipline.

Product leadership: very strong in innovation and brand marketing, operating in

dynamic markets. The focus is on development, innovation, design, time-to-market, high
margins in a short timeframe.

Customer intimacy: excel in customer attention and customer service. Tailor

their products and services to individual or almost individual customers. Focus is on
CRM, deliver products and services on time and above customer expectations, lifetime
value concepts, reliability, being close to the customer.

Treacy and Wiersema argue that “any company must choose one value discipline,
where it aims to be the best - in the world preferably. This does not mean the other 2
dimensions should be completely neglected, but rather that the company should aim to be
merely 'OK' in these other two disciplines”.

3.8. Conclusions on KM

Knowledge Management is not a fashion in our days but an important issue

considering the complexity of Organizations and Global environment. Main asset on
Organization is Human Resources and this value is each more important to evaluate,
manager and retain specially on knowledge point of view.

KM models can help Organization acting more accurately and retain efficiently
information and knowledge inside organizations and promoting interchange experiences,
know-how and wisdom to create more value and sustainable competitive advantage. The
most important problem that can be overcome is the knowledge vanishing when badly
treated, when no efficient methods are applied.

Some big high lights from the importance of KM:

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  Knowledge management explores the components of a knowledge-management
system and highlights the range of benefits knowledge sharing can have in
Organizations.
 Therefore for business managers, it is essential that they no longer give undue
stress on documentation but also support discussion activities, informal chatting
and also encourage team building. During these activities individuals share
information, which they get during their day-to-day activities within and outside
the organization. It is in fact a knowledge management network updating itself. It
helps the organization to move faster towards its objective, as it makes activities
carried out in business more effective and productive.7

Other important issue is evaluation that it is not always present and explicit in
mostly models. Evaluation guides KM and can stimulate knowledge culture. Almost
models express explicitly learning, training or other educational activities while only
Tiwana and Nasseri refer evaluation inside Knowledge Management models.

Technology can not be forgotten because it is a powerful enabler, although the

critical issues of knowledge transfer are cultural and people-intensive. Clearly a culture of
knowledge sharing and knowledge seeking based on trust is essential for effective and
rewarding networking and for the flourishing of knowledge alliances between
communities of knowledge workers. This can constitute the most difficult problem in KM
– people trusting in each other in this so individual and aggressive world.

7
Knowledge Management- By Harish Mahadik, http://www.indiainfoline.com/bisc/kmgt.html,
(online 14/07/2005)

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4. EDUCATIONAL ACTIVITIES, CHARACTERISTICS AND
EVALUATION MODELS

In recent years, a need for a renewed focus on education has been felt.
Universities, High Schools and other schools seek for more effective systems to eliminate
the increasing dissatisfaction with the performance of almost education systems.

In educational terms, there has been a shift away from traditional models in which
most students might have been viewed as passive recipients of teaching, absorbing
information in an uncritical way to a growing enthusiasm for active, independent
learning, which encourages deep, rather than surface, processing of information.

The initial purpose of evaluation is to measure and assess, by comparison of

information. More specifically, "true" evaluation consists of an establishment of criteria,
collection of evidence to compare with the set criteria (baseline) and the arrival of a value
judgment (Cookson, p. 13:3,1996)8.

9
As William M.K. Trochim (2005) points, evaluation is a methodological area
that is closely related to, but distinguishable from more traditional social research.
Evaluation utilizes many of the same methodologies used in traditional social research,
but because evaluation takes place within a political and organizational context, it
requires group skills, management ability, political dexterity, sensitivity to multiple
stakeholders and other skills that social research in general does not rely on as much.
Here we introduce the idea of evaluation and some of the major terms and issues in the
field.

8 http://www.ag.ohio-state.edu/~brick/evalexpl.htm#Top%20of%20page, David C. Crawford (online 07/07/2005)

9 http://www.socialresearchmethods.net/kb/intreval.htm, William M.K. Trochim, 2005 (online 07/07/2005)

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In Portuguese Universities there were four important objectives10:

a) To promote better quality in development activities

b) To inform and explain all educational and Portuguese communities;
c) To assure precise knowledge and transparency between Universities
d) To contribute to Universities net reorder

The evaluation must contribute for the certification and titles recognition in
Europe. In the other side can be a precious tool for controlling resources activities and for
the financial and human efficiency11

4.1. Reasons

As David C. Crawford (2002) refers there are various reasons or purposes why the
process of evaluation occurs. The person attempting to suggest change must first
recognize who will be the receivers of the findings and if conclusions must be drawn. The
purpose of the evaluation may include one or more of the following:
 to confirm learners' needs- this may suggest the direction of the formation of
course/program objectives,
 to mobilize learner participation- this may assist in identifying and targeting
learners' interests which may initiate a motivational response,
 to document learning outcomes- the most utilized approach in classroom
evaluation, this may suggest change has occurred due in part to participation,
 to identify needed program changes- which can be utilized to re-direct the
program or lesson to the needs and interests of the learner while still achieving
previously set objectives and
 to communicate accountability to founders, administrators and others. (Case,
0.3,1988).

If correctly make and well implemented an evaluation system is useful. Also

should have as main objective to improve institutions quality and their different aspects:

10 Evaluation Lei 38/94, artigo 4º, de 21 de Novembro e no Decreto-lei nº 205/98, de 11 de Junho,

11
http://www.fup.pt/admin/fup/docs/ca/Guiao_AE_Univ.pdf Conselho Nacional de Avaliação do
Ensino Superior (2000). Processo de Avaliação do Ensino Superior

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education, investigation, community services, management and should not be a punitive
tool. Implementation should be slow and careful because the final product is a quality
culture inside organizations. Methodology for this achievement should involve all
stakeholders to put them linked all together and thing as a unique product good for
everybody.

In some cases when financial requisites are involved and related with
performance, indicators can appear as current costs per student, abandon ratios, time to
conclusion, graduate employment and student’s satisfaction (Cave et al, 1997). However
none of these indicators is a feasible measure of education quality because they do not
measure the University or institution contribution for the intellectual and personal
student’s development. Generally these indicators represent efficiency like ratios
professor / student, cost per student, cost per graduate or efficacy (number of graduations,
employment, etc). 12

4.2. Definitions of Evaluation

Evaluation is the systematic assessment of the worth or merit of some object.

However there are many types of evaluations that do not necessarily result in an
assessment of worth or merit -- descriptive studies, implementation analyses, and
formative evaluations, to name a few. Better perhaps is a definition that emphasizes the
information-processing and feedback functions of evaluation.

Evaluation is the systematic acquisition and assessment of information to

provide useful feedback about some object. Both definitions agree that evaluation is a
systematic endeavor and both use the deliberately ambiguous term 'object' which could
refer to a program, policy, technology, person, need, activity, and so on. The latter

12
http://www.fup.pt/admin/fup/docs/ca/Relatorio%20Cipes%20CRUP.pdf

85
definition emphasizes acquiring and assessing information rather than assessing worth or
merit because all evaluation work involves collecting and sifting through data, making
judgments about the validity of the information and of inferences we derive from it,
whether or not an assessment of worth or merit results.

4.3. The Goals of Evaluation

The generic goal of most evaluations is to provide "useful feedback" to a variety

of audiences including sponsors, donors, client-groups, administrators, staff, and other
relevant constituencies. Most often, feedback is perceived as "useful" if it aids in
decision-making. But the relationship between an evaluation and its impact is not a
simple one -- studies that seem critical sometimes fail to influence short-term decisions,
and studies that initially seem to have no influence can have a delayed impact when more
congenial conditions arise. Despite this, there is broad consensus that the major goal of
evaluation should be to influence decision-making or policy formulation through the
provision of empirically-driven feedback.

4.3.1. Major Categories in the Taxonomy of Educational Objectives

Categories in the Cognitive Domain: (with Outcome-Illustrating

Verbs)13

1. Knowledge of terminology; specific facts; ways and means of dealing

with specifics (conventions, trends and sequences, classifications and
categories, criteria, methodology); universals and abstractions in a field
(principles and generalizations, theories and structures):
Knowledge is (here) defined as the remembering (recalling) of
appropriate, previously learned information.
 defines; describes; enumerates; identifies; labels; lists; matches; names;
reads; records; reproduces; selects; states; views.

13
http://faculty.washington.edu/krumme/guides/bloom.html (online 06/07/2005)

86
2. Comprehension: Grasping (understanding) the meaning of informational
materials.
 classifies; cites; converts; describes; discusses; estimates; explains;
generalizes; gives examples; makes sense out of; paraphrases; restates (in
own words); summarizes; traces; understands.

3. Application: The use of previously learned information in new and

concrete situations to solve problems that have single or best answers.
 acts; administers; articulates; assesses; charts; collects; computes;
constructs; contributes; controls; determines; develops; discovers;
establishes; extends; implements; includes; informs; instructs;
operationalizes; participates; predicts; prepares; preserves; produces;
projects; provides; relates; reports; shows; solves; teaches; transfers; uses;
utilizes.

4. Analysis: The breaking down of informational materials into their

component parts, examining (and trying to understand the organizational
structure of) such information to develop divergent conclusions by
identifying motives or causes, making inferences, and/or finding evidence
to support generalizations.
 breaks down; correlates; diagrams; differentiates; discriminates;
distinguishes; focuses; illustrates; infers; limits; outlines; points out;
prioritizes; recognizes; separates; subdivides.

5. Synthesis: Creatively or divergently applying prior knowledge and skills

to produce a new or original whole.
 adapts; anticipates; categorizes; collaborates; combines; communicates;
compares; compiles; composes; contrasts; creates; designs; devises;
expresses; facilitates; formulates; generates; incorporates; individualizes;
initiates; integrates; intervenes; models; modifies; negotiates; plans;
progresses; rearranges; reconstructs; reinforces; reorganizes; revises;
structures; substitutes; validates.

6. Evaluation: Judging the value of material based on personal

values/opinions, resulting in an end product, with a given purpose, without
real right or wrong answers.
 appraises; compares & contrasts; concludes; criticizes; critiques; decides;
defends; interprets; judges; justifies; reframes; supports.

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 4.4. Lexical Terminology

It is also important identify the lexical of the principal terms. Generally each
particular case of a specific model must be adjusted to the specific Education Type or
Classes.

Education 14
 The activities of educating or instructing or teaching; activities that impart
knowledge or skill.
 Knowledge acquired by learning and instruction.
 The gradual process of acquiring knowledge.
 The profession of teaching (especially at a school or college or university).
 The result of good upbringing (especially knowledge of correct social behaviour).
 The federal department that administers all federal programs dealing with
education (including federal aid to educational institutions and students); created
1979.

Education15 encompasses teaching and learning specific skills, and also

something less tangible but more profound: the imparting of knowledge, good judgment
and wisdom. Education has as one of its fundamental goals the imparting of culture from
generation to generation (see socialization).

Training 16
 Activity leading to skilled behaviour
 The result of good upbringing (especially knowledge of correct social behaviour).

Training17 is the teaching of vocational or practical and relates to specific useful

skills. It forms the core of apprenticeships and provides the backbone of content at

14
http://lookwayup.com/ (online 06/07/2005)
15
http://en.wikipedia.org/wiki/Education (online 06/07/2005)
16
http://lookwayup.com/ (online 06/07/2005)
17
http://en.wikipedia.org/wiki/Training (online 06/07/2005)

88
technical colleges or polytechnics. Today it is often referred to as professional
development.

Teaching18
 The profession of a teacher.
 A doctrine that is taught.
 The activities of educating or instructing or teaching; activities that impart
knowledge or skill.

Teaching19 In education, teachers are those who teach students or pupils, often a
course of study or a practical skill, including learning and thinking skills. There are many
different ways to teach and help students learn. This is often referred to as the teacher's
pedagogy. When deciding what teaching method to use, a teacher will need to consider
students' background knowledge, environment, and their learning goals.

Assessment vs. Evaluation

"Evaluation usually occurs when students finish a task, whereas assessment goes
beyond evaluation to include gathering information about student performance as they
work as well as when they are finished. Assessment is also usually done with the student,
while evaluation is done to the students' work." Source: AASL & AECT. (1998).
Information Power, Building Partnerships for Learning. Chicago and London: American
Library Association, page 173.

Media/Technology specialists are usually involved with the assessment of the

students' information and technology skills throughout the process, while the students are
engaged in the construction of knowledge and products. Their observations can be

18
http://lookwayup.com/ (online 06/07/2005)
19
http://en.wikipedia.org/wiki/Instruction (online 06/07/2005)

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documented in the form of a quick checklist (criteria) or other assessment tool. This data
can be used by the classroom teacher as part of the evaluation of the final product.20

4.5. Types of Evaluation Models

4.5.1. Crawford analysis and studies

In his article David Crawford (1998) 21 refers 6 possible methods / frame work for
evaluation based on a Dr. Robert Reineke, Associate Professor, University of Nebraska,
presented overview from the Worthen and Sanders text, Educational Evaluation:
Alternate Approaches and Practical Guidelines, as a presentation to a Michigan State
University, distance education graduate class, Program Evaluation in Adult Education.
Six suggested general evaluation models/frameworks were discussed.

Six General Evaluation Models/Frameworks:

1. Objectives Oriented: where the focus is on specifying goals and objectives and
determining the extent to which they have been attained.
2. Management Oriented: where the central concern is on identifying and meeting
the informational needs of managerial decision makers.
3. Consumer Oriented: where the central issue is developing evaluative information
on educational "products," broadly defined, for use by educational consumers in
choosing among competing curricula, instructional products, and the like.
4. Expertise-Oriented: which depend primarily on the direct application of
professional expertise to judge the quality of educational endeavors.
5. Adversary-oriented: where planned opposition in points of view of different
evaluators (pro and con) is the central focus of the evaluation.
6. Naturalistic and participant-oriented: where naturalistic inquiry and involvement
of participants (stakeholders in that which is evaluated) are central in determining
values, criteria, needs and data for the evaluation.

20
http://www.ncwiseowl.org/kscope/impact/QuickStart/Readme.htm. (online 14/07/2005)
21
Evaluation Exploration, David C. Crawford, http://www.ag.ohio-state.edu/~brick/evalexpl.htm
(online 09/07/2005)

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 In most program and classroom evaluations the objectives oriented model tends to
be utilized. Program or lesson objectives are determined and then are used as the
comparative criteria to attempt to suggest that change has or has not occurred due to
participation.

Evaluation is an ongoing process which should include all stakeholders, i.e.,

program planners, learners, administrators, instructors and founders.

The successful evaluation process should be implemented at the initial

development phase, during the implementation/delivery phase and at the conclusion of
the activity in order to demonstrate or suggest change and outcomes due to participation.
The real challenge is when to begin collecting evidence. Research and Development in
Global Studies suggests there are six appropriate phases to consider collecting evidence
for evaluative purposes:

1. Project Design: The most frequent form of evaluation at this point is a needs
assessment. Program directions can be influenced by the needs of the participants.
2. Resource Development: This involves testing learning materials and delivery
strategies before the start of the program.
3. Program start-up: To establish a baseline to judge changes in knowledge, behavior
or practices of the participants. Another reason is to assess whether resources are
being deployed properly.
4. In-progress: To monitor the actual operations in case adjustments are required and
to prepare for summative evaluation.
5. Program wrap-up: Explores end of program reactions and if objectives were
adequately met.
6. Follow-up: The period after the program has ended. This technique may suggest
long term benefits of the program as evidenced by practice and behavior changes.
(Case, 0.5, 1988).

No program or classroom activity is of the perfect design therefore, evaluators

must be prepared to collect evidence at any point of their effort. The evaluation should
begin ideally at the initial design stages which suggest communication with all
stakeholders. Information collected may also demonstrate a baseline from which to

91
compare and make assessment of outcomes/changes as the project progresses and
concludes.

In his study Crawford make some questions when planning an evaluation, saying
that there are three basic evaluation questions which must be asked:

1. Can the program/lesson be evaluated?

2. What information is needed?
3. How do we get the information?

The previous questions are a simple approach to designing the evaluation. The
questions also lead to selection of the steps of evaluation:

1. Identify purpose & receivers of results.

2. Review purpose with stakeholders.
3. Identify data needed to be collected.
4. Select data collection methods.
5. Select sample/population.
6. Develop data collection instruments.
7. Gather data.
8. Analyze and summarize results.
9. Present the information (Case, 0.8, 1988)22.

Each listed step is a process of it's own. Much time and effort must be exerted at
each step in order to achieve a viable evaluative effort. Involve all the stakeholders
concerned throughout the evaluative process.

4.5.2. William M.K. Trochim studies and approach models – Four proposed
models

Trochim23 says 'Evaluation strategies' means broad, overarching perspectives on

evaluation. They encompass the most general groups or "camps" of evaluators; although,

22
Case, Roland, Andrews, Mary and Werner, Walter . 1988. How Can We Do It? An Evaluation
Training Package for Development Educators. East Lansing: Michigan State University.

92
at its best, evaluation work borrows eclectically from the perspectives of all these camps.
Four major groups of evaluation strategies or models are discussed here.

Scientific-experimental models are probably the most historically dominant

evaluation strategies. Taking their values and methods from the sciences -- especially the
social sciences -- they prioritize on the desirability of impartiality, accuracy, objectivity
and the validity of the information generated. Included under scientific-experimental
models would be: the tradition of experimental and quasi-experimental designs;
objectives-based research that comes from education; econometrically-oriented
perspectives including cost-effectiveness and cost-benefit analysis; and the recent
articulation of theory-driven evaluation.

The second class of strategies is management-oriented systems models. Two of

the most common of these are PERT, the Program Evaluation and Review Technique,
and CPM, the Critical Path Method. Both have been widely used in business and
government in this country. It would also be legitimate to include the Logical Framework
or "Logframe" model developed at U.S. Agency for International Development and
general systems theory and operations research approaches in this category. Two
management-oriented systems models were originated by evaluators: the UTOS model
where U stands for Units, T for Treatments, O for Observing Observations and S for
Settings; and the CIPP model where the C stands for Context, the I for Input, the first P
for Process and the second P for Product. These management-oriented systems models
emphasize comprehensiveness in evaluation, placing evaluation within a larger
framework of organizational activities.

The third class of strategies is the qualitative/anthropological models. They

emphasize the importance of observation, the need to retain the phenomenological quality

23
socialresearchmethods.net/kb/intreval.htm, William M.K. Trochim 2005, (online 07/07/2005)

93
of the evaluation context, and the value of subjective human interpretation in the
evaluation process. Included in this category are the approaches known in evaluation as
naturalistic or 'Fourth Generation' evaluation; the various qualitative schools; critical
theory and art criticism approaches; and, the 'grounded theory' approach of Glaser and
Strauss among others.

Finally, a fourth class of strategies is termed participant-oriented models. As the

term suggests, they emphasize the central importance of the evaluation participants,
especially clients and users of the program or technology. Client-centered and
stakeholder approaches are examples of participant-oriented models, as are consumer-
oriented evaluation systems.

4.5.3. Use of Portfolio Assessment in Program Evaluation - Tony C. M. Lam

and Marcella E. Campbell

In the following sections the portfolios were reported as used for needs
assessment, process or implementation assessment, or outcome or impact assessment in
program evaluation.

Needs assessment

 needs of English students (Wright & Borland, 1993) and gifted art students
(McCaughey, 1997) were identified through the use of portfolios: current abilities
were documented in order to determine appropriate instruction and learning
activities

Process assessment

 portfolio contents were used to provide formative feedback during program

implementation
 (Hannam, 1995; Ingle, 1994; Ponzio, Peterson, Miller, & Kinney, 1994)

Outcome assessment

94
  linking program activities with outcomes (Hannam, 1995; Ingle 1994; Johnson,
Willeke, & Steiner, 1998; Moorcroft, Desmarais, Hogan, Berkowitz, 2000;
Ponzio, Peterson, Miller, & Kinney, 1994)

4.5.3.1. Portfolio-based Program Evaluation Models

Units of measurement for collecting data via portfolios include: individual

participants, intermediate group level, and program level. We conceptualize three
portfolio-based program evaluation models correspond to these three units of
measurement.

The Aggregated Model

 program participants create individual portfolios which are evaluated qualitatively

and/or quantitatively in regards to program process and/or outcomes, and data are
aggregated to or summarized for the program level
 examples: Gaies (1992), Hannam (1995), Johnson, McDaniel, and Willeke
(2000), Johnson, Willeke, and Steiner (1998), McCaughey (1997), Ryan (1991)

The Semi-Aggregated Model

 program evaluators or implementers keep portfolios at a lower group level such as

class, school or program site, which are evaluated qualitatively or quantitatively
and the results are aggregated to or summarized for the program level
 example: Ponzio, Peterson, Miller, and Kinney (1994)

The Non-Aggregated Model (The Program Portfolio)

 program evaluators, implementers, stakeholders create a program portfolio with

entries illustrating or providing evidence of program process and outcomes
 examples: Aitken (1994), Baggett (1994), Bringle, Hatcher, Hamilton, and Young
(2001), Casey and McLaughlin (2000), Chmielewki, Casey, & McLaughlin, 2001,
Hayes (1997), Mergendoller (1993), Mitchell (1995).

4.5.3.2. Advantages of Using Portfolios in Program Evaluation

1. Empower program participants and implementers


95
2. Encourage cooperation among project staff resulting in sound
recommendations for program improvement.
 coordination (Hayes, 1997)
 involvement (Bagget, 1994)
 collaboration (Johnson, Willeke, & Steiner, 1998; Baggett, 1994)
 evaluator and staff relationships (Bagget, 1994)
3. Data provide insights into program strengths & limitations.


identify problems (Hannam, 1995)


staff journals (Hayes, 1997)
alignment with program goals (Baggett, 1994; Johnson, Willeke, &

 record keeping (Bagget, 1994)

Steiner, 1998)

 connectiveness of project activities (Bagget, 1994)

4. Positive impact on program participants or implementers.
 staff become more reflective and proactive (Hayes, 1997)
5. Efficiency of data collection
 concurrent data collection with program activities (Johnson,


Willeke, & Steiner, 1998)


collects information in one place (Bagget, 1994)
condensing documentation (Bagget, 1994)

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 Table 1 – Source: Trochim (2005)

4.5.4. Mızıkacı evaluation model based on the systems approach to Total

Quality Management. 24

The evaluation model introduced in this study was developed based on the
systems approach to Total Quality Management. The model comprises three subsystems;
“social system”, “technical system” and “managerial system”. Thus, the evaluation of
TQM implementation in higher education requires inquiry of these systems components
together.

Evaluation of inputs in a higher education institution is defined as documentation

and appropriateness of student characteristics, faculty characteristics, financial resources,
facilities, programs, and curriculum, courses, schedules and support services.
Transforming process includes design, delivery, and measurement of the outputs and
evaluation of the program, the courses and the faculty. Evaluation of outputs requires the
measurement of academic achievement, graduation, dropout, failure, post graduation and
employment achievements.

In assessing the issues related to the managerial system organizational structure,

mission, vision, goals of the institution and administrative activities should be considered.
Management provides the framework for the policies, procedures, practices, and
leadership of the organisation.

In the need of reforming higher education system in line with the needs and
expectations of the community and business sector, new approaches and practices in
management and industry have appealed decision makers of higher education. Witnessing
the resurgence American companies were enjoying with continuous improvement

24
Fatma Mızıkacı(Ph.D, A Theory-Based Program Evaluation Model for Total Quality Management in
Higher. Education, Baskent University, Ankara, Turkey

97
principles of Total Quality Management, pioneers began to advocate their use in higher
education several universities in the US first, then in Europe and other countries.
Burkhalter (1996) reported that 160 universities in the US were actively involved in TQM
and 50% of universities had established the equivalent of quality councils.

Total Quality Management (TQM) is a management philosophy that focuses on

perpetual process enhancement through the prevention of problems and errors. It requires
the continual monitoring and control of processes, performance and quality, the placing
of the customer at the summit of attention as well as a sense of awareness, commitment
and involvement on the part of management, all the workers, the customers and suppliers
(Waks and Moti, 1999). In other words, TQM is a management process implemented by
any organization through long-term planning, by consistently using long-term plans that
gradually lead the organization towards the fulfilment of its vision.

4.5.4.1. A Theory-based Program Evaluation Model for TQM

For this study, model development was a process mainly based on the search and
analysis of current evaluation models, assessment approach in TQM and the needs of
higher education. Following issues were the focus of model development process:
 Whether the model is appropriate to TQM implementations in higher education,
 What are the implementation models of TQM in higher education institutions?
 Whether the model is appropriate to ISO 9000 standards, and
 Existing program evaluation models

In developing the “theory-based program evaluation model for quality” a

combination of different approaches was used. The underlying approaches are of two.
The first underlying proposition is the “systems approach” developed by Tribus (1990)
on Deming’s teachings.

According to this approach total quality must be seen as a combination of three

separate systems: a social system, a technical system, and a management system. And

98
also the premise is that higher education itself as a system with its inputs, processes and
outputs. The second approach is the higher education application framework. Lewis and
Smith (1994) explain these “program” operations as transforming process that involves:
 Inputs to the organization from the external environment,
 Throughputs or the actual techniques (methods) used to transform (add value to)
the inputs, and
 Outputs represented by the product and/or service provided to members of the
external environment.

This transforming process is reflected in the technical system. A technical system

for a higher education institution involves inputs and methods that transform the inputs
into outputs. Thus the incorporated form of these two ideas leads the model.

Figure 2 - Source: Mızıkacı (2001) TQM approach - System Evaluation for Higher Education

4.5.5. Classroom Assessment Techniques (CATs)

99
 In 1988, Patricia Cross, along with Thomas Angelo, brought together thirty
classroom assessment strategies in Classroom Assessment Techniques: A Handbook for
Faculty. Five years later, the authors published an expanded handbook, Classroom
Assessment Techniques: A Handbook for College Teachers, which includes a 'teaching
goals inventory' so faculty could choose CATs based on expected student learning
outcomes as well as detailed accounts of classroom research projects in twelve discipline
areas and lessons from using CATs over a six-year period. In 1996, Cross and Mimi
Harris Steadman examined the purpose and practices associated with extended classroom
assessment and research projects in Classroom Research: Implementing the Scholarship
of Teaching. Enterprising instructors have also adapted CATs for use in online learning
environments. In learning communities, the use of CATs can contribute to the central
work of creating and belonging to community where deep transformative learning
flourishes.25

With The Classroom Assessment Techniques (1993) – CATs, Angelo and Cross’
26
book reveling several levels of experience detailed, how-to advice on classroom
assessment, showing what it is and how it works to planning, implementing, and
analyzing assessment projects for High School or University programs. The success of
assessment in classroom can be explained using this approach and Angelo and Cross
explain it through their fifty classroom assessment techniques, each including concise
descriptions.

25
http://www.evergreen.edu/washcenter/CAT.htm. Gillies Malnarich, Washington Center for
PEW 2001Summer Institute (online 14/07/2005)
26
Angelo, T. A., and Cross, K. P. (1993). Classroom assessment techniques: A handbook for
college teachers, 2nd edition, San Francisco: Jossey-Boss.

100
 CATs are an efficient way to discover how you are doing as a teacher and how
your students are doing as students. Teachers can assess your students frequently
throughout the semester, using a variety of time-efficient techniques. 27

Angelo and Cross (1993) describe classroom assessment techniques (CATs) as

ongoing formative strategies teachers use to gain feedback on how well students have
learned class material. They suggest that although the use of these techniques is
determined by the teacher, their focus is on "improving learning, rather than on observing
and improving teaching".

Each CAT is composed of a set of common features:

 Focus Questions: Overview of strategy; general requirements and limitations of

implementation.
 Description: Succint but thorough introduction.
 Purposes: Indications of appropriate usage.
 Limitations: Contra-indications and potential problems.
 Teaching Goals: List of course goals addressed by the strategy.
 Suggestions for Use: Friendly "Tips" from an experienced user.
 Step-by-Step: Explicit directions for implementation.
 Variations: Alternative uses and elaborations.
 Analysis: Making sense of the data; uses in evaluation.
 Pros and Cons: Advantages and disadvantages.
 Theory and Research: Conceptual and empirical foundations.
 Links: URLs or email addresses of CAT authors for direct contact by users.
 Sources: Books, papers, related web-sites.
 Author's Story: Personalized description of author and how (s)he came to use
strategy.

This model has faculty characteristics fowling as:

 Provide short-term feedback about the day-to-day learning and teaching process at
a time when it is still possible to make mid-course corrections.

27
http://people.westminstercollege.edu/Departments/IT/CATs/CATPreconception.htm (online
14/07/2005)

101
  Provide useful information about student learning with a much lower investment
of time compared to tests, papers, and other traditional means of learning
assessment.
 Help to foster good rapport with students and increase the efficacy of teaching and
learning.
 Encourage the view that teaching is a formative process that evolves over time
with feedback.

In the other hand and for students CATs can:

 Help them become better monitors of their own learning.

 Help break down feelings of anonymity, especially in larger courses.
 Point out the need to alter study skills.
 Provide concrete evidence that the instructor cares about learning.

This model has a matrix for guideline, see next page.

102
Selected CATs for getting feedback on student learning and response to teaching[1]

Name: Description: What to do with the data: Time required:

Minute paper[2] During the last few minutes of the Review responses and note any useful Prep: Low
class period, ask students to answer on comments. During the next class In class: Low
a half-sheet of paper: "What is the periods emphasize the issues Analysis: Low
most important point you learned illuminated by your students'
today?"; and, "What point remains comments.
least clear to you?". The purpose is to
elicit data about students'
comprehension of a particular class
session.
Chain Notes Students pass around an envelope on Go through the student responses and Prep: Low
which the teacher has written one determine the best criteria for In class: Low
question about the class. When the categorizing the data with the goal of Analysis: Low
envelope reaches a student he/she detecting response patterns.
spends a moment to respond to the Discussing the patterns of responses
question and then places the response with students can lead to better
in the envelope. teaching and learning.
Memory matrix Students fill in cells of a two- Tally the numbers of correct and Prep: Med
dimensional diagram for which incorrect responses in each cell. In class: Med
instructor has provided labels. For Analyze differences both between and Analysis: Med
example, in a music course, labels among the cells. Look for patterns
might consist of periods (Baroque, among the incorrect responses and
Classical) by countries (Germany, decide what might be the cause(s).
France, Britain); students enter
composers in cells to demonstrate
their ability to remember and classify

103
 Name: Description: What to do with the data: Time required:
key concepts.
Directed paraphrasing Ask students to write a layman’s Categorize student responses Prep: Low
"translation" of something they have according to characteristics you feel In class: Med
just learned -- geared to a specified are important. Analyze the responses Analysis: Med
individual or audience -- to assess both within and across categories,
their ability to comprehend and noting ways you could address student
transfer concepts. needs.
One-sentence summary Students summarize knowledge of a Evaluate the quality of each summary Prep: Low
topic by constructing a single sentence quickly and holistically. Note whether In class: Med
that answers the questions "Who does students have identified the essential Analysis: Med
what to whom, when, where, how, and concepts of the class topic and their
why?" The purpose is to require interrelationships. Share your
students to select only the defining observations with your students.
features of an idea.
Exam Evaluations Select a type of test that you are likely Try to distinguish student comments Prep: Low
to give more than once or that has a that address the fairness of your In class: Low
significant impact on student grading from those that address the Analysis: Med
performance. Create a few questions fairness of the test as an assessment
that evaluate the quality of the test. instrument. Respond to the general
Add these questions to the exam or ideas represented by student
administer a separate, follow-up comments.
evaluation.
Application cards After teaching about an important Quickly read once through the Prep: Low
theory, principle, or procedure, ask applications and categorize them In class: Low
students to write down at least one according to their quality. Pick out a Analysis: Med
real-world application for what they broad range of examples and present

104
 Name: Description: What to do with the data: Time required:
have just learned to determine how them to the class.
well they can transfer their learning.
Student- generated test Allow students to write test questions Make a rough tally of the questions Prep: Med
questions and model answers for specified your students propose and the topics In class: High
topics, in a format consistent with that they cover. Evaluate the questions Analysis: High
course exams. This will give students and use the goods ones as prompts for (may be
the opportunity to evaluate the course discussion. You may also want to homework)
topics, reflect on what they revise the questions and use them on
understand, and what are good test the upcoming exam.
items.

[1] Details on these and others available from Angelo & Cross, Classroom Assessment techniques, 1993.
[2] The Bureau of Evaluative Studies and Testing (BEST) can administer the Minute Paper electronically.

Table 2 – CATs - Matrix for Guideline

105
 4.6. Types of Evaluation

There are many different types of evaluations depending on the object being
evaluated and the purpose of the evaluation. Perhaps the most important basic distinction
in evaluation types is that between formative and summative evaluation. Formative
evaluations strengthen or improve the object being evaluated -- they help form it by
examining the delivery of the program or technology, the quality of its implementation,
and the assessment of the organizational context, personnel, procedures, inputs, and so
on. Summative evaluations, in contrast, examine the effects or outcomes of some object -
- they summarize it by describing what happens subsequent to delivery of the program or
technology; assessing whether the object can be said to have caused the outcome;
determining the overall impact of the causal factor beyond only the immediate target
outcomes; and, estimating the relative costs associated with the object28.

Formative evaluation includes several evaluation types:

 needs assessment determines who needs the program, how great the need is, and
what might work to meet the need
 evaluability assessment determines whether an evaluation is feasible and how
stakeholders can help shape its usefulness
 structured conceptualization helps stakeholders define the program or
technology, the target population, and the possible outcomes
 implementation evaluation monitors the fidelity of the program or technology
delivery
 process evaluation investigates the process of delivering the program or
technology, including alternative delivery procedures

Summative evaluation can also be subdivided:

 outcome evaluations investigate whether the program or technology caused

demonstrable effects on specifically defined target outcomes

28
William M. Trochim, What is the Research Methods Knowledge Base? (2005) (online 07/07/2005)

106
  impact evaluation is broader and assesses the overall or net effects -- intended or
unintended -- of the program or technology as a whole
 cost-effectiveness and cost-benefit analysis address questions of efficiency by
standardizing outcomes in terms of their dollar costs and values
 secondary analysis reexamines existing data to address new questions or use
methods not previously employed
 meta-analysis integrates the outcome estimates from multiple studies to arrive at
an overall or summary judgement on an evaluation question

4.7. Performance Evaluation Models at Universities and High Schools

In this study the concern focus the particular way of the performance evaluation at
schools inside classroom or for a course or discipline rather the global performance of the
school. Naturally this particular piece of unit contributes for the whole and of course for
the global School performance and that will be the target at the end.

4.7.1. Evaluating students in the classroom

Classroom assessment is both a teaching approach and a set of techniques. The

approach is that the more you know about what and how students are learning, the better
you can plan learning activities to structure your teaching. The techniques are mostly
simple, non-graded, anonymous, in-class activities that give both you and your students
useful feedback on the teaching-learning process.

The classroom teacher faces a variety of challenges when confronted with the
evaluation of students in the classroom. McKeachie, the author of Teaching Tips,
suggests, "evaluation is a great deal more than giving a grade. In teaching the major part
of evaluation should be in the form of comments on papers, responses to student
statements, conversations, and other means of helping students understand where they are
and how to do better." The educator role is not only to impart knowledge but also to
provide leadership and directions in helping the student learn how to learn and move
towards their potential. The previous statements suggest a somewhat objective approach

107
to evaluating a student. Educators must move towards a subjective process while
empowering the student with the opportunity of achieving their own evaluative marks.

The educator must set and communicate to the learners an absolute standard.
These standards must be developed in coordination with the tested goals and objectives
developed for the specific class. In 1950, Travers proposed one set of absolute standards:
A: All major and minor goals achieved.
B: All major goals achieved; some minor ones not.
C: All major goals achieved; many minor ones not.
D: A few major goals achieved, but student is not prepared for advanced work.
E or F: None of major goals achieved (McKeachie, 1994).

This set of absolute standards enables the educator to develop goals and objectives
which may empower the learners to make decisions regarding the grade earned.
Assigning of grades may consist of a summation of instructor required and student
selected activities, i.e.,
 an ungraded test initially to orient students to educator's testing style and provide
educator with student needs,
 examinations which should consist of a variety of questioning designs, i.e.,
problem solving, short answer, essay, true/false, and multiple choice,
 group activities,
 outside research projects,
 student journal,
 research paper and
 outside reading and reporting assignments (McKeachie, 1994, pp. 117-22).

This combination of instructor required and student selected activities

appropriately empowers the student to achieve their set goals by the selection of activities
to complete, a learning contract. This process suggests the contract grading approach
where the student and the instructor enter into an agreed upon contract with specific
activities, which when completed, will provide the subjective results to compare to the
classroom's previously set absolute standards. Contract grading moves the responsibility
for evaluation towards the accomplishments of the student, thus, enabling the educator to
become more subjective in the evaluative process. Other possibilities of assigning grades

108
may be selected. Competency-based grading, grading group projects, cooperative grading
by peers and grading on the curve are also utilized by various educators. Contract grading
may suggest a more subjective approach and empowers the student with the
developmental process of responsibility, accountability and learning how to achieve
goals.

An educator must continue to learn, not only about their respective discipline, but
also focus on the learner's needs. In order to achieve the goal of an educator, which is to
assist the learner in how to learn, not only what to learn, one must explore various
instructional strategies, evaluative processes and attempt to provide learning
opportunities for all students at all learning levels.29

"Classroom Assessment is a simple method faculty can use to collect feedback,

early and often, on how well their students are learning what they are being taught. The
purpose of classroom assessment is to provide faculty and students with information and
insights needed to improve teaching effectiveness and learning quality. College
instructors use feedback gleaned through Classroom Assessment to inform adjustments in
their teaching. Faculty also share feedback with students, using it to help them improve
their learning strategies and study habits in order to become more independent, successful
learners.... Classroom Assessment is one method of inquiry within the framework of
Classroom Research, a broader approach to improving teaching and learning."30

Seven Principles for Good Practice in Undergraduate Education

1. Encourages contact between students and faculty

29
http://www.ag.ohio-state.edu/~brick/evalexpl.htm#Top%20of%20page, David C. Crawford
(online 07/07/2005)
30
http://www.siue.edu/~deder/assess/catmain.html. Angelo, T.A., 1991. Ten easy pieces: Assessing higher
learning in four dimensions. In Classroom research: Early lessons from success. New directions in teaching
and learning (#46), Summer, 17-31.

109
 2. Develops reciprocity and cooperation among students
3. Encourages active learning
4. Gives prompt feedback on performance
5. Emphasizes time on task
6. Communicates high expectations
7. Respects diverse talents and ways of learning 31

Considering only technological courses usually in Portuguese evaluation models

at High Schools and Universities has a simple configuration but these models had been
improving in last decades. Nowadays at High Schools exams classifications add some
more components like work performance, assiduity and behavior for the global classroom
evaluation.

Auto-evaluation has also an important contribution for the final classification.

Students are invited to auto judge their performance against professor classification and
based on a conventional matrix criteria.

At Universities the evaluation is usually more simple only one or two evaluation
along the semester and then a final exam. Sometimes there is only one final exam.

4.8. Comparisons and Conclusions of Evaluation Models

This section contain comparisons and pros and cons considering collected models
and situations even for Universities, High Schools or other situation where evaluation and
assessment occurs.

4.8.1. Evaluation and Assessment models

Crawford analysis and studies refers the Six General Evaluation

Models/Frameworks which is a very good start to address models to the specific course,
however details are not deep enough.

31
http://www.siue.edu/~deder/assess/catmain.html. .A.W. Chickering & Z.F. Gamson, 1987. AAHE.

110
 Four models studied by William M.K. Trochim shows strategies for a broad
possible situation including all Organizations and referring qualitative/anthropological
models and participant-oriented models more adaptable to classrooms. These models
have also a lack of detail.

Tony C. M. Lam and Marcella E. Campbell’s Portfolio Assessment is an

interesting and different way but very centered on the group it seems that environment is
not present or represented.

Fatma Mızıkacı the author “A Theory-Based Program Evaluation Model for Total
Quality Management in Higher Education” describes quality evaluation in higher
education is a site-specific issue although there occurred some common standards and
procedures. Author also refers that Organizations culture, values, politics of states and
institutions, educational applications, external stakeholders, educational philosophies
adapted are the factors influencing evaluative approach and practices. These aspects need
to be improved by research and practice though the necessity to add some more features
to this model.

CATs techniques are well quoted inside some Universities and it is detailed based
on Patricia Cross and Thomas Angelo’s book and empirical studies. Adding now Web
tools possibilities like FLAG32 it is possible consolidate adding user facilities and easily
put all intervenient together.

4.8.2. Evaluation and Assessment models in Universities and High Schools

For instance teaching and assessment at Executive MBA at London Business

School are not different from almost MBA programs at Portuguese Universities. They
follow traditional assessment like London Business School or Harvard University. As the

32
http://www.flaguide.org/resource/resource.php

111
LBS example each course on the Executive MBA will be assessed using some or all of
the following tools33:
 Individual projects / essays / reports
 Examinations
 Class participation
 Group assignments / reports
 Class presentations

From compiled information (see appendix I) almost foreigner Universities have

the same traditional model for evaluation: examination, individual or group projects,
essays or reports and class participation. Classroom themes and subjects have some
freedom and evaluation also depends on department or teacher.

Only some are improving like Berkley, University of Iowa, Indiana University
Bloomington, Illinois State University or University of Melbourne among other using
different approaches evaluation models or techniques like Cats to adapt evaluation to an
actual environment.

It seems models and assessment in traditional Universities and High Schools are
similar in Portugal or abroad and can combine one or two models like Crawford or
Trochim refer. However the traditional way of evaluation appears to move towards a new
arena joining community’s interests, involving community and looking for signs from
surrounding environment. Technology reveals a good support and acting like a facilitator
helping standardized, changing knowledge and linking communities specially inside
schools.

Frank Bobbitt, Professor of the Michigan State University, stated, "the most
diverse characteristic of an individual in society today is not race, religion, gender, or
socioeconomic status.....it is an individual's learning style.". This can be considered a

33
http://www.london.edu/emba/programmes2044.html. London Business School (online
10/07/2005)

112
challenge for teachers and institutions the question is if our "leaders of tomorrow" are to
develop and become accountable for their choices, actions and educational development,
Crawford (1998).

Learning style combines with learning units or learning organizations where

nowadays organizations are trying this route. Learn from inside and outside environment
get partners and new ideas to improve their performance.

4.9. Some Brief Resuming

There are several approaches for evaluation in education arena, several models,
but it seems CATs is the more adapted to actual days, involving several techniques that
can have practical implementation and with good results for some use on some
Universities and High Schools.

However traditional methods remain in almost investigating schools and they

appear to poor, looking only for the immediate plan, focus on a close group: students and
teacher, very far from possible Organization objectives and away from Communities
wishes.

As mentioned before Education encompasses teaching and learning specific skills,

and also something less tangible but more profound: the imparting of knowledge, good
judgment and wisdom. Education has as one of its fundamental goals the imparting of
culture from generation to generation.

Adding Educating characteristics and their functions: Remembering,

Comprehension, Application, Analysis, Synthesis and Evaluation, they compose a strong
tool to enhance performance and results.

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5. MANAGEMENT PERFORMANCE MODELS

Starting defining keywords this definition were shown at the Best Practices in KPI
National Conference of Key Performance Indicators 2003: Performance measurement is “the
process of determining how successful organizations/individuals have in attaining their
objectives”. It covers all levels, including individuals, teams, processes, departments and
the organization as a whole, with the view of continuous improvement of performance
against organizational objectives. Performance measurement system is a systematized
way of doing this. This is a system that integrates the measurement of performance of all
levels within the organization with the view of continuous improvement of performance
against organizational objectives. The outcome is the establishment of performance
measures – the quantitative indicators that show how well the organization’s objective is
being met.34 Key performance indicators are the performance measures critical to an
organization’s core business.35

In present there are several Management Performance Models. In this study will
consider the most well known models as Value platform or Communities of Practice from
Hubert St. Onge, Sullivan’s intellectual Capital Model, Skandia Navigator, the Sveiby’
Monitor for Intangible Assets or Balanced Scorecard. Almost of these models relays in
Intellectual Capital, Knowledge Management or mixing Strategy, Objectives and Human
Resources themes.

34
David Sinclair and Mohamed Zairi (1995), Effective process management through
performance measurement – Part III, Business Process Re-engineering & Management Journal,
Vol. 1, No. 3, pp 50-65.
35
Best Practices in KPI National Conference of Key Performance Indicators 2003, 21st – 23rd
October 2003. Pan Pacific Hotel, Kuala Lumpur

114
 5.1. Hubert Saint-Onge Communities of Practice

For Hubert Saint-Onge36 Communities of practice (CoPs) can improve

interchange learning movement and integration. He points CoPs have three levels of
impact on the organization:

1. They accelerate the learning of their members;

2. They build relevant knowledge for the organization through the codification
of tacit knowledge;
3. They develop the meta-capabilities for collaboration and learning.
Communities of practice build the organizational capability to constantly
regenerate capabilities at an accelerated pace.

Hubert highlights the business case for communities of practice applied to

enterprises:

 Communities of practice become a key to capability development as markets keep

increasing and as highly capable people become more difficult to stay during a
long period inside a firm.

Having different geographical or sites locations firms have widely dispersed thin
layers of expertise. Problems exist because these individuals frequently do not have the
critical mass or the depth required for development to take place through exchange in the
workplace. A possible solution is online CoPs to approach to overcome this challenge.
Online communities of practice allow for exchanges that overcome both time and
distance.

 As clients want integrated solutions and as the complexity of knowledge keeps

increasing, the need for cross-functional and cross-disciplinary work becomes
fundamental to meeting customer needs and maintaining an effective market

36
http://www.saint-ongetoolkit.com/businesspractice.html (online 14/07/2005)

115
 presence. Learning in communities of practice will provide for an established
platform where this can be readily accomplished.
 A key source of innovation springs from close interaction among participants who
have developed the ability to have productive conversations. These dialogues will
contribute significantly to improve innovation.
 As business networks emerge with the support of new technology, old style
competition more isolated is replaced by complex alliances and relationships that
link organizations to provide greater value to customers. Having experience in
setting up and making cross-functional communities of practice work will place
organizations at an advantage in the development of these alliances.

From this perspective, communities of practice become essential components of

the requirements for competing in the emerging business environment of knowledge
networks.37

CoPs components can be enumerated into eight parts38:

 Governance – community conventions & norms

 Membership – community participants
 Technology – enabling infrastructure
 User support – maximizing collaborative tools
 Content – community knowledge base
 Learning – capability to participate in community
 Facilitation – moving the community forward; realizing purpose
 Communication plan – establishing credibility, sharing the value proposition

37
Hubert Saint-Onge's book "Leveraging Communities of Practice for Strategic Advantage", will
be published by Butterworth-Heinemann in October 2002. (online 14/07/2005)
38
Hubert Saint-Onge and Deb Wallace - KM World Conference, October 29, 2002

116
 Intellectual Capital Definition39

A firm's intellectual capital includes three elements:

Human capital - the capabilities of the individuals required to provide solutions

to customers.

Customer capital - the depth (penetration), width (coverage), attachment

(loyalty), and profitability of customers.

Structural capital - the capabilities of the organization to meet market needs.

Figure 2 – Source Hubert, A firm's intellectual capital includes three elements: Human Capital,
Customer Capital and Structural Capital

There are two levels of knowledge held within these areas: explicit and tacit
knowledge. Explicit knowledge is articulated knowledge-- the words we speak, the books
we read, the reports we write or the data we compile. However the greater level of
knowledge in an organization, as Mr. Hubert refers, is tacit-unarticulated. Tacit
knowledge includes the intuition, perspectives, beliefs, and values that people form as a
result of their experiences. Both are important but the most important is that the tacit

39
http://www.konvergeandknow.com/articles/tacitknow.html (online 14/07/2005)

117
knowledge provides a commonly understood values and assumptions that allow us to
function quickly and reliably without debating each issue or forming a new process for
each action. In contrary tacit knowledge could make us unable to accept the need for
changes.

From Data to Wisdom

The speed of change in this knowledge era requires that we place greater
importance on the systemic renewal of the tacit knowledge for the sustainability of the
firm. Renewing tacit knowledge means finding ways of making meaning from
knowledge. In order to create value in intellectual capital, we must understand how
knowledge is formed and how people and organizations learn to use knowledge wisely.

The speed of the change in this age of the knowledge requires that a greater
importance to find ways of making meaning from knowledge. In order to create the value
in the intellectual capital, we must understand how knowledge is created and how
individuals and organizations learn to use the knowledge correctly or wisely.

The flows from data to wisdom can be identified as following:

 Data arrive in our lives and on our desks as dispersed elements. It is only when we
compile this data into a meaningful pattern that we have information.
 As information is converted into a valid basis for action, it becomes knowledge.
 Upon achieving wisdom, we implicitly know how to generate, access, and
integrate knowledge as a guide for action.

118
 Resuming the Importance of Knowledge to Value Creation 40

As globalization trends increase pressures to adopt world class standards of

performance and innovation, partnerships will become the predominant approach for
optimizing value creation. Dialogues become the means through which the tacit
knowledge of the organization is renewed and aligned.

The leanings that can be gather to enhance the relationship between Organizations
and Customers as not only will serve to leverage the value of the firm at the customer
interface but will point to the kind of leadership approach needed to develop in order to
ensure effective partnering relationships.

The most effective way to foster a durable sense of partnership is to explore

together the possibilities that can be realized with a high level of partnership. This has to
be done in an atmosphere where there is true listening and a commitment to find win-win
solutions.

5.2. Skandia’s Navigator

Skandia is considered the first large company to have made a truly coherent effort
to measure intellectual capital (Bontis, 199641). Skandia became the first company to
issue an intellectual capital addendum accompanying its traditional financial report to
shareholders in 1994. Other companies had trusted on Skandia’s multi-dimensional
conceptualization of organizational value.

40
How Knowledge Management Adds Critical Value To Distribution Channel Management,
http://www.tlainc.com/article1.htm (online 14/07/2005)
41
Bontis, Nick (1996), “There is a price on your head: managing intellectual capital
strategically”, Business Quarterly, Vol. 60 No. 4, pp. 40-47.

119
 Edvinsson42, the principal architect behind the initiatives of Skandia developed a
global dynamic intellectual model called the Navigator with five areas of focus: financial,
customer, process, renewal and development, human capital. This model has the main
objective to identify and measure hidden dynamic factors. In accordance with the
Skandia’s model the hidden factors of the human and structural capital when added
together they archive what is called the intellectual capital (Bontis, 2001).

Human Capital is defined as the combined knowledge, ability, skills,

innovativeness, e ability of the individual employees of the company to perform their
tasks. It also includes the values of the company, culture and philosophy

Structural Capital is the hardware, software, databases, organizational structure,

patents, registered marks, e all more of the organizational potentiality that supports
employees’ activities. The structural capital also provides customer capital, the
relationships developed with key customers. In contrast of the human capital, the
structural capital can be possessed, negotiated or traded.

Intellectual Capital according Edvinsson and Malone (1997) encloses the

applied experience, organizational technology, the professional abilities and customer
relationships providing Skandia market competitive advantage.

Skandia’s value scheme, see figure contains both financial and non-financial
components. This conceptualization is trying to represent a balanced view of organization
resources joining financial and intellectual capital.

42
Edvinsson, Leif and Michael S. Malone (1997), Intellectual Capital: The proven way to
establish your company’s real value by measuring its hidden brainpower, Biddles Ltd, Guildford
and King’s Lynn, London.

120
 Total
Value

Financial Intellectual
Capital Capital

Human Capital Structural

Capital

Competence Attitude Intellectual Relationship Organization Renewal &

Agility Development

Figure 3 - Skandia’s Value Scheme

In trying to use their experience to create a universal intellectual capital report,

Edvinsson and Malone (1997) recommend 112 metrics (these metrics are listed in
Appendix 2: Indicators43). By relying on percentages and ratios, the two authors arrive at
9 indices of an organization’s intellectual capital efficiency. They then choose to combine
the nine percentage measures into a single percentage (i.e., determine the average of the
indices in an effort to represent how effectively the organization is currently using its IC).

43
Evaluating Intellectual Capital In the Hotel Industry.
http://www.mindstep.no/getfile.php/68000.69/Hovedoppgave+Intellektuell+Kapital+2002.doc
(online 05/06/2005)

121
 History
Financial Focus

Customer Human Process Today

Focus Focus Focus
IC

Renewal & Development Focus Tomorrow

Figure 4 - Skandia’s Navigator (Edvinsson and Malone, 1997)

Navigator, the model that Skandia is divided into three sections: history, present,
and tomorrow. Edvinsson uses a house metaphor as an illustration on the organization of
the model, see figure.

The top is the roof, the financial focus, and it consists of the old traditional
accounting and the balance sheet, which is also the history of the organization’s precise
measurement from the past. Moving down on the model there is company’s present
situation, which refers to the walls of the house in Edvinsson’s metaphor. This part
focuses on customers and processes, which measure the structural part. At this stage, the
intellectual capital is present. At the end of the model there is the renewal &
development, which refers to the foundation of the house. By focusing on elements such
as employee training and new product development, this final section aim at disclosing
how well the organization has prepared itself to meet the future (Edvinsson and Malone,

122
199744). Human focus consists of the employees that “run” the house. This part is located
in the middle as the strategic center45.

5.3. Sveiby’ Monitor for Intangible Assets

Sveiby (2003) 46 defines its model - The Intangible Assets Monitor as a method for
measuring intangible assets and a presentation format which displays a number of
relevant indicators for measuring intangible Assets in a simple manner. The choice of
indicators depends on the company strategy. The Intangible Assets Monitor can be
integrated in the management information system. The Monitor itself should not exceed
one page. It should be accompanied by an explanatory text. The most important areas to
cover are growth / renewal, efficiency and stability.

This method was developed for measurement of the intangible in 1996 that
incorporates a format or structure of results presentation. This structure shows a selection
of the most excellent and suitable indicators for the company. Indicators should be
grouped in following the three blocks: internal structure, external structure and
employees’ skills or competences.

Between all of them, to the block of competitions and people it is the relevant aspect,
thus categorize growth and innovation indicators and so that give us an idea of the future
and the potential among efficiency or productivity and stability indicators.

44
Edvinsson, Leif and Michael S. Malone (1997), Intellectual Capital: The proven way to
establish your company’s real value by measuring its hidden brainpower, Biddles Ltd, Guildford
and King’s Lynn, London.
45
Evaluating Intellectual Capital In the Hotel Industry.
http://www.mindstep.no/getfile.php/68000.69/Hovedoppgave+Intellektuell+Kapital+2002.doc
(online 14/07/2005)
46
http://www.sveiby.com/articles/CompanyMonitor.html , Creating Value with The Intangible
Assets Monitor, ©Karl-Erik Sveiby 1996, 1997, 2001, 2003. All rights reserved. (online
14/07/2005)

123
 It emphasizes that it is the first model that differentiates between structural capital
and human capital. It is focused in the measurement and management of the intangible
indicators but its repercussion in the financial results of the company is the greatest
defect.

Figure 5 – Sveiby Intangible Assets Monitor

An example from Sveiby, he had excluded the financial indicators from the examples
below, since they will not differ from traditional ones.

124
 Figure 6 – Sveiby Intangible Assets Monitor - Example

5.4. Technology Broker Model

Annie Brooking, founder in the United Kingdom of "The Technology Broker",

consultant it formed a reflection group whose work is centered inside the company. In
this sense it observes how the measurements of the intellectual capital must serve to
be not only shown the outside, but that must help the directors of the organizations to
be conscious of how it is taken place the process of value creation and which is the
weight that the intellectual capital holds in this process. On the contrary that the other
models, A. Brooking does not enumerate a listing of quantitative indicators but that is
centered in qualitative questions. Part of the idea of the model generalization would
happen first through the definition of a methodology that allowed an "audit of the
information". The intangible assets classify them in four categories, (see Figure), that
it is constitutes the Intellectual Capital.

125
Figure 7 – Annie Brooking (1996) - TECHNOLOGY BROKER (BROOKING, 1996) Model47

 Market Assets (Activos de Mercado): they provide competitive advantage in the

market.
 Intellectual Property Assets (Activos Propriedad Intelectual): they allow an
additional value for the company that supposes the exclusive feature of the
operation of intangible assets.
 Human Assets (Activos Humanos): emphasize people importance in the
organizations by its capacity to learn and to use the knowledge, in fact, the model
sustains that we were with the "worker of the knowledge", to that participation in
the company project will be demanded the capacity to learn continuously.
 Assets Infrastructure (Activos de Infra-estrutura): those that include the methods
and processes, like the technologies, that allow organization works.

47
www.gestiondelconocimiento.com/images/modelos/broker. (online 10/07/2005)

126
 5.5. Balanced Scorecard

Balanced Scorecard as one of helping to create a high-performance organization,

and using the Balanced Scorecard as a framework for aligning the organization and
human capital pieces needed to get to high performance.48

5.5.1. Nolan and Kaplan’s Model

Balanced scorecard methodology is an analysis technique designed to translate an

organization's mission statement and overall business strategy into specific, quantifiable
goals and to monitor the organization's performance in terms of achieving these goals.
Developed by Robert Kaplan and David Norton in 1992, the balanced scorecard
methodology is a comprehensive approach that analyzes an organization's overall
performance in four ways: Financial; R&D; Processes and Clients. Based on the idea that
assessing performance through financial returns only provides information about how
well the organization did prior to the assessment, so that future performance can be
predicted and proper actions taken to create the desired future.

The methodology examines performance in four areas: financial analysis, the

most traditionally used performance indicator, includes assessments of measures such as
operating costs and return-on-investment; customer analysis looks at customer
satisfaction and retention; internal analysis looks at production and innovation, measuring
performance in terms of maximizing profit from current products and following

48
http://www.balancedscorecard.org/files/perform2.pdf, Several Balanced Scorecard Institute
associates contributed to this article, including: Dr. Gerald Turner, Pam Weppler, Kitty McCoy,
Kevin Zemetis, Dr. Kathy Fiedler, Dr. Gardner Shaw, Jeff Parks, and Paul Arveson. Marv
Weidner of Weidner Consulting contributed ideas on performance-based budgeting.

127
indicators for future productivity; and finally, learning and growth analysis explores the
effectiveness of management in terms of measures of employee satisfaction and retention
and information system performance.

As a structure, balanced scorecard methodology breaks broad goals down

successively into vision, strategies, tactical activities, and metrics. As an example of how
the methodology might work, an organization might include in its mission statement a
goal of maintaining employee satisfaction. This would be the organization's vision.
Strategies for achieving that vision might include approaches such as increasing
employee-management communication. Tactical activities undertaken to implement the
strategy could include, for example, regularly scheduled meetings with employees.
Finally, metrics could include quantifications of employee suggestions or employee
surveys.

The balanced scorecard approach to management has gained popularity

worldwide since the 1996 release of Norton and Kaplan's text, The Balanced Scorecard:
Translating Strategy into Action. Kaplan has subsequently published another book on the
subject, called The Balanced Scorecard: You Can't Drive a Car Solely Relying on a
Rearview Mirror. The Gartner Group estimates that at least forty percent of all Fortune
1000 companies are now using the methodology.49

In this model, developed by Kaplan and Norton50 during the first years of 90’s it
was become one of the first investigations that financial perspective was passed by an
integral and systemic vision of organization strategy. It is composed with a set of

49
http://searchcio.techtarget.com/sDefinition/0,,sid19_gci347160,00.html, balanced scorecard
methodology, Jun 09, 2005 (online 14/07/2005)
50
KAPLAN, R. y NORTON, D. (1997): Cuadro de Mando Integral. The Balance Scorecard.
Gestión 2000, Barcelona.

128
enterprise strategy interrelated and connected indicators. It is seen as a very important
advance and an evolution towards a management tool.

It is one of the fist model combining financial and non-financial – intangibles

assets and Intellectual capital. This model groups tangible and intangibles assets as key
indicators and has a strategic and systematic vision of the organization. In addition, BSC
is a management tool, that is to say, it tries that knowledge management analysis and
intellectual capital does not remain a theoretical study, but become an adapted piece for
management development supported by information technologies.

Consequently, in the present study BSC is developed as a system to overlap the

Knowledge Management in the educational activities.

In following epigraphs of this subject will approach the characteristics of BSC, as

well as, its peculiarities that are those that will allow us to extrapolate this tool of
management to the models for small groups, specially educational small activities like
courses or training. In the last chapters of this study will design and adapt BSC for this
particular new model and among other factors a “restyle” BSC methodology will be also
used. A brief resuming for the main components of BSC will be described in the
following paragraphs.

From several users, investigators and enterprises all steps and characteristics of
this Model can be identify and drawn in sequences in this section and following
subsections. Starting with the Clint Burdett Strategic Consulting - The Balanced Score
Card51 is for this firm a good tool for their customers and they refer several benefits of the
BSC.

51
www.clintburdett.com/.../ concepts_10_map.htm, Clint Burdett Strategic Consulting - The
Balanced Score Card (online 14/07/2005)

129
 Figure 3 - Clint Burdett Strategic Consulting - The Balanced Score Card

“Robert Kaplan and David Norton, co-creators of the Balanced Scorecard,

adapted it to create strategy maps. Their map describes the objectives, initiatives,
targets markets, performance measures and links between the strategy elements.
There are four levels:



Financial - revenue and productivity growth strategies
Customers - operational excellence, customer intimacy and product leadership


strategies
Internal Processes - innovation, operational, logistic, regulatory compliance


and environmental management
Learning and Personal Growth - employee competencies, technology and
corporate culture

Each level supports the one above and each critical linkage is defined (in the
example from R&D employees to productivity).”

130
 Considering all the steps for each Balanced Scorecard (i.e. for each employee or
role) it is need to do a visioning and strategy exercise as part of the exercise, this must
drive the construction of the Balanced Scorecard52.

Business Unit The Process of developing the BSC, and

Mission and
Strategy cascading it down the organisation,
Strategic ensures that everyone understands
Objectives the business unit’s long-term
and
Measures objectives, as well as
Departmental the strategy for
OBJECTIVES at all Business achieving them.
Plans
levels should fall into the
four perspectives Team


Business
Financial Plans
 Customer
 Internal Business Processes Individual

Performance
Learning and Innovation Measures

Figure 4 - Process of developing the BSC

Vision and Mission and Strategy

It is important to do or explain the Vision / Mission at first. The vision / mission

provide the unifying themes of purpose in the Balanced Scorecard Strategy. The
initiatives should be designed and assigned to support the multiple objectives for each
perspective. After Vision / Mission definition all the objectives, all the measures, all the
targets should be defined. Typically, the Vision and Mission and Objectives are set top-
down, while the measures, targets and initiatives have more of a bottom up contribution.

52
Corporate Strategy Board, June 1997:3&9, Balanced Scorecard, What, Why, How and When?

131
 Vision / What are the steps we will
Mission be taking to achieve
our vision of
Objectives
Objectives the future?
Objectives
Objectives
Measures
Measures
Measures
Measures
What Targets
will progress Targets
Targets
Targets
towards out vision
Initiatives
of the future look like?

Figure 5 - Balanced Scorecard Planning Process

Objectives – Goals, Measures, Targets, Initiatives and Strategic Alignment

Aligning strategy is one of the most difficult processes for BSC Model. The use of
objectives, measures, targets and initiatives provides a vehicle for articulating the strategy
in a very tangible manner. Communication and explanation of Organization, small group
or units’ strategy throughout the organization, will enable people’s tasks and efforts
alignment with strategy. This is one of the real benefits that Balanced Scorecard offers.

FINANCIAL
FINANCIAL
“To succeed Objectives Measures Targets Initiatives
financially, how
should we
appear to our
shareholders?”

CUSTOMER INTERNAL BUSINESS PROCESSES

CUSTOMER INTERNAL BUSINESS PROCESSES
“To achieve our Objectives Measures Targets Initiatives “To satisfy our Objectives Measures Targets Initiatives
vision, how Vision shareholders
should we Vision
& and customers,
appear to our &
Strategy what business
customers?” Strategy
processes must
we excel at?”

INNOVATION AND LEARNING

INNOVATION AND LEARNING
“To achieve our Objectives Measures Targets Initiatives
vision, how will
we sustain our
ability to
change and
improve?”

132
 Figure 6 – BSC and the four Traditional Perspectives: Financial, Customer, Processes and
Innovation and Learning (sometimes Learning or Research and Development)

According to a Hackett Group53 report titled "Balanced Scorecards: Are Their 15

Minutes of Fame Over?", average companies include nearly nine times too many metrics,
focus heavily on historical finance data and not enough on forward-looking indicators.
Hackett's 2004 Finance Book of Numbers research found that overall nearly two thirds of
typical companies, near 66.7 percent, have some type of BSC program in place or in
development. But Hackett found that only 17 percent of all typical companies have
developed mature BSCs that rely on a mix of financial and operational metrics. World-
class companies are 159 percent more likely to have reached this level in their BSC
efforts - but even at world-class companies, only 44 percent have achieved this goal.
According to Hackett's research, this suggests that most companies are having significant
difficulty taking BSCs from concept to reality.

Most Companies Rely on Far too Many Metrics - Hackett found that companies
report an average of 132 metrics to senior management each month (83 financial and 49
operational). This is nearly nine times the number of measures suggested as appropriate
when the concept of the BSC was introduced in 1992. But according to Hackett's
research, 50 percent of the measures companies currently use are keyed to internal
financial data. Other measures are incorporated, including internal operating statistics (33
percent), external financial data (13 percent), and external operating (4 percent). But
clearly, internal finance data is too heavily weighted to make the scorecards truly
balanced. "Given the way the concept of the balanced scorecard has evolved in practice,
it is no wonder that many financial executives look on the concept as an expensive,
bloated, and useless substitute for the traditional paper reports. Most companies get very

53
Hackett Group. Executives Are Unable to Take Balanced Scorecards From Concept to Reality,
from Hackett Group comment, http://www.bs-news.com. ©2004 BS-news.com - News on the
Balanced Scorecard - Last updated: 17-03-2005 (online 14/07/2005)

133
little value out of BSCs, because they haven't followed the basic rules that make them
effective," said Hackett Senior Business Advisor John McMahan.

Key Indicators - Formalizing Best Practice Key Performance Indicators (KPI)

A best practice set of KPI need to be holistically integrated into the organization
model. This involves looking at three crucial characteristics – formalization, integration
and utilization (see Figure). Formalization deals with the questions:

 What will be measured?

 How will it be measured?

As performance measurement is not an isolated system, best practice KPI must be

developed from the integration between various areas of the business and deploying the
business objectives throughout the organization (tied inherently into the organization
model). The best practice KPI must integrate with the accounting system, the operation
(planning and control) system and the strategic planning. Best practice KPI are therefore
unique in the context of a particular organization. You cannot copy the best practice KPI
but you can learn about the process of developing the KPI.

The third characteristics deal with the purpose of doing the KPI – utilization.
There are basically two reasons: to compare with the competitors and to check the
accomplishment of the organization’s objectives. The idea is to comply, to check and to
challenge in the market.54

54
Best Practices in KPI National Conference of Key Performance Indicators 2003, 21st – 23rd
October 2003. Pan Pacific Hotel, Kuala Lumpur

134
 Figure 7 - Formalizing Best Practice-KPI

Action Plan

Using QPR55 and all the suggested steps to understand BSC the figure points the
following issues:

Create a Balanced Scorecard:

1. You have to identify a vision. Where is the organization going?

2. By identifying strategies you learn about how you will get there.
3. Define Critical Success Factors and perspectives, which mean you have to ask
what we have to do well in each perspective.
4. Thereafter ask how do we measure that everything is going the expected way?
5. Then it is necessary think about evaluating your Scorecard. Consider how do
we ensure that we are measuring the right things?
6. Based on this work you should create action plans and plan reporting and
operation of the Scorecard. How do we manage the Scorecard?
7. Which persons should have reports and what should the reports look like?

55
http://www.qpr.com/balancedscorecard/balanced_scorecard_intro.html. (online 14/07/2005)

135
 Figure 8 – BSC at QPR - Create a Balanced Scorecard

The picture shows a very general example of a Scorecard made through questions
and answers.

 Where are we going? The vision: "We should dominate the market."
8. How? By focusing on cost efficiency, high quality and by investing in new
technologies.
9. In which perspectives should we excel at what? Responsibilities and action
plans for achieving targets set are defined.
10. You can easily create a Scorecard, but to create a manageable scorecard is a
completely different thing and quite complex.

It is a hard task but valuable.

136
 Figure 9 – Source: Johansson, Hallgårde - Studentlitteratur (1999)56. BSC - Questions and Steps

Usually BSC has four perspectives, however like previous figure, each
Organizations has their own pictures and sensibility for what they consider best and more
important perspectives to appear in BSC. Previous figure includes Employees as one
perspective adding the standard BSC perspectives.

Previous figures come from Johansson and Hallgårde Swedish book: Att Införa
Balanced Scorecard: En Praktisk Vägledning), which means Balance Scorecard
Implementation: A Practical Application (1999).

The four main perspectives from original BSC are explained as following.

1. "Client or Consumer Perspective ": What do clients expect from the

company?

56
Johansson, Hallgårde (1999) – BSC, Studentlitteratur editor. (source: Att Införa Balanced
Scorecard : En Praktisk Vägledning)

137
 A good service to the client it is very important and is the base to stay in a
competed market. It is very probable that the Mission of the company emphasizes aspect
particularly, because the clients wait for products of good quality, with a suitable cost,
that they are deliverable on time and that they had a good performance.

It identifies client and market segments in a competitive environment, it measures

clients and market value, evaluates clients’ necessities, like its satisfaction, loyalty,
acquisition and profit in order to align products and services with its preferences. Finally,
it translates the strategy and vision in objectives on clients and segments and defines the
marketing, operations, logistic, products and services processes.

2. "Internal Perspective": In what can we be different from competition?

All the activities should be executed in the best way possible to fulfil the clients’
expectations. Thus, company must study and evaluate all processes to obtain consumers’
satisfaction. Therefore it defines the value chain of processes necessities: innovation
operation, quality, pos-sale service. The objectives and indicators of this perspective are
derived from explicit strategies to satisfy clients’ expectations.

3. “Learning and Growth Perspective”: In what activities, functions or

processes must we continue improving?

It is necessary to have new, innovative products with greater and attractive

capacities, before the competing companies. Therefore, companies need constantly
inducers to obtain results in this perspective, in addition, it should stimulate personnel
performance to reinforce this perspective, by motivation techniques that stimulate and
orient their interests towards the company. Evaluation must be present to know about the
employees, information systems and organizational climate capacities to compare with
personnel motivation and initiatives.

4. "Financial Perspective ": What do shareholders, proprietors and company

management wait for?

138
 It gathers the classic vision of economy analysis of the company, the financial
accounting, the study of ratios: debt, yield, leverages, etc. Therefore, it ties each unit
objectives with the company strategy mainly it serves as convergent approach for all of
the objectives and indicators of all the others perspectives.

The fulfilment and combination of these four pillars, it positively contributes to

increase employees’ motivation, to discover and to improve all the stages of the Porter’s
Value Chain, to satisfy clients’ expectations to obtain its loyalty and to offer greater
dividends to the shareholders.

5.5.2. Third generation of BSC

After ten year from the initial BSC model presented by Norton and Kaplan some
evolutions occurred and now it is considered a third generation of Balanced Scorecard57
which key components are:

 Destination statement: In order to make rational decisions about organizational

activity and not least set targets for those activities, an enterprise should develop a
clear idea about what the organization is trying to achieve. A destination
statement describes, ideally in some detail, what the organization is likely to look
like at an agreed future date. In many cases this exercise builds on existing plans
and documents -but it is rare in practice to find a pre-existing document that offers
the necessary clarity and certainty to fully serve this purpose within an enterprise.
 Strategic Objectives: The destination statement offers a clear and shared picture
of an organization at some point in the future, but it does not provide a suitable
focus for management attention between-now and then. What needs to be done
and achieved in the medium term for the organization to "reach" its destination on

57
http://www.workinfo.com/free/downloads/scorecard.htm. I.M. Cobbold and G.J.G. Lawrie;
2GC Active Management Ltd., Maidenhead, UK (online 14/07/2005)

139
 time is agreed upon in the form of objectives or priorities. By representing the
selected objectives on a “strategic linkage model”, the design team are
encouraged to apply "systems thinking" to identify cause-and-effect relationships
between the selected objectives i.e. what do we need to do to achieve the results
we expect. This approach also helps ensure the objectives chosen are mutually
supportive and represent the combined thinking of the team's high-level
perception of the business model.
 Strategic Linkage Model and Perspectives: The chosen strategic objectives are
spread across four zones or 'perspectives'. The lower two perspectives contain
objectives relating to the most important activities in terms of business processes,
cycle time, productivity etc. (Internal Processes) and what needs to happen for
these processes to be sustained and further developed in terms of people, product
and process development (Learning & Growth). The two top perspectives house
objectives relating to the desired results of the activities undertaken i.e. how we
wish external stakeholders (e.g. the general public, partner agencies and
organizations to perceive us (External Relations) and how this will ultimately
translate into financial results and economic value (Financial).
 Measures and Initiatives: Once objectives have been agreed measures can be
identified and constructed with the intention to support management's ability to
monitor the organization’s progress towards achievement of its goals. Initiatives
are special projects with a finite start and end date and are mapped to strategic
objectives to give an indication of the projects or actions needed in order to
realize the objectives.
 Practical Experiences with 3rd Generation Balanced Scorecards: The first
Balanced Scorecards to have included Destination Statements were designed
during 1998/9. Examples of applications of this new approach are emerging.
These experiences show that the third generation approach to Balanced Scorecard
design and development does appear to have material benefits to organizations

140
 resulting from improved functionality as a strategic management tool, and as a
result of its ability to support a more flexible and engaging approach to design and
development within complex organizations.

During the 10 years since the advent of Balanced Scorecard many changes have
been made to the physical design, utility and the design processes used to create the tool
within organizations. This evolution of Balanced Scorecard, at least in terms of these
three parameters, can be largely attributed to empirical evidence driven primarily by
observed weaknesses in the design process rather than in the architecture of the original
idea. The alignment between developments in Balanced Scorecard principles and the
theoretical aspects of control and management process are a positive indication that the
more modern ideas about Balanced Scorecard design processes and structure are indeed
'better' than the original concept described by Kaplan and Norton, in so far as they are
more likely to have a beneficial consequence for the organization adopting the tool.
However while more recent Balanced Scorecard designs are substantial improvements on
original ideas, there is room for improvement.

5.5.3. BSC inside education business or activities

Some investigators are applying in education environment and in small groups,

the BSC. Svante Gunnarsson (2004) is Using Balanced Scorecard for Program Evaluation
using Dolphin tool as support. Main problems are: Difficult to measure the right things
accurately, limited resources for development and new activities, some cause-effect
relationships not obvious, large time constants and strong external factors.

The Conceive-Design-Implement-Operate (CDIO) model is a model for

engineering education that stresses that the product lifecycle should form the framework
for the design of the engineering educational program. The educational design process is
guided by the CDIO standards, a set of twelve principles that characterizes this
educational model as well as general good practice in education. The fulfillment of each

141
standard is measured by a five-level scale, thus also providing a tool for continuous
improvement. So far, the CDIO standards have been applied for a limited number and
range of educational programs, essentially the collaborators in the CDIO Initiative.
Svante Gunnarsson and al. (2005) paper58, report on a large-scale application of the
CDIO standards, involving approximately 100 educational programs. The context is the
Swedish national evaluation of its “civilingenjör” engineering degree programs. These
programs are 4 ½ year integrated engineering programs roughly equivalent to Master of
Science or Diplom-Ingenieur degrees. The quality of these programs is evaluated by the
Swedish National Agency for Higher Education (Högskoleverket, HSV) every six years.

Briefly the BSC for program Using Balanced Scorecard for program evaluation
will be presented in following topics.

BALANCED SCORECARD AT LiU - Linköpings Universitet (Swedish)

 Measure and improve performance

 The organization is viewed from different perspectives
 Vision and strategic goals
 Based on Cause – Effect relationships (in several steps)
 Feedback structure

58
Use of CDIO Standards in Swedish National Evaluation of engineering educational programs,
J. Malmqvist, K. Edström, S. Gunnarsson, S. Östlund, 1st Annual CDIO Conference Queen’s
University Kingston, Ontario, Canada, June 7 to 8, 2005

142
 External
factors

Efforts
Vision
Visionand
andgoals
goals Management
Management Organization
Organization

Measured outcomes
Figure 10 - Feedback Structure of BSC

Implementation aspects:

 The scorecards are implemented using a commercial software tool (Dolphin).

 Hierarchical structure.
 Data are entered automatically from data bases or by manual input.
 Results from student and alumni surveys will be included in the scorecard.
 The update frequency will be different for different quantities.

All perspectives include: Perspectives: Results, Students, Process, Development,

Staff and Partners.

 Results: No. of graduating student, successful engineers, results from external

evaluations,
 Students: Student satisfaction, international exchange, %-age female students,
 Process: Throughput, well working program and administration, continuous
evaluation of courses etc.,
 Development: Connections to research, routines for starting/closing down courses
or programs,

POSSIBILITIES AND LIMITATIONS

143
 Possibilities:

 A structure for program management and development

 An organized procedure for data collection and presentation

Limitations:

 Difficult to measure the right things accurately

 Limited resources for development and new activities
 Some cause-effect relationships not obvious
 Large time constants
 Strong external factors

BSC AND THE CDIO STANDARDS

Assumptions:

 View the CDIO Standards as goals in the BSC

 Combine each standard with ONE perspective

BSC AND THE CDIO STANDARDS

 Most standards in the process perspective

 Standard 9, 10 in the staff perspective
 No/few in student perspective
 No standard in the result perspective
 No standard in the development perspective

5.5.4. BSC inside Universities

The Balanced Scorecard, or an adaptation of the scorecard, has been used by

many commercial organizations, for example Diageo, Nationwide, Ericsson and Mobil

144
Oil, and by some universities, for example the Open University, Glasgow Caledonian
University, Napier University, Fairfield University, University of Central Florida,
Berkeley University, University of California, University of Edinburgh and Ohio State
University.

Universities like Fairfield University are using BSC for Creating a Continuous
Improvement Program59. The example for BSC is presented in the figure.

Service and Outreach

__________________
Alum
Business
University
Growth and Development Prospective Students Scholarship and Research
__________________ __________________
Professional Development Productivity
(Non-classroom) Impact

Teaching and Learning Financial Resources

__________________ __________________
Pedagogy Revenues
Curriculum Expenditures
Assessment
Student Outcomes

Figure 11 - Dolan School of Business - Fairfield University -

Balanced Scorecard – Draft of April 19, 2002

Other example from University of Central Florida60, an BSC application on

Accounting BA.

59
Charles F. Dolan School of Business Fairfield University. Creating a Continuous Improvement
Program: A Balanced Scorecard Approach. Roselie Mc Devitt, Catherine Giapponi, Norman
Solomon (2003)
60
A Three-Pronged Model for Assessment Planning in Higher Education, Angela R. Albert,
Héctor. López-Román, Uday K. Fair (2003)

145
 Outcomes Measures
Percentage of Students
employed within six months of
graduation

Student Satisfaction Internal Processes

* Satisfaction with Career
Participation rate in:
Advising Services
* Employment fairs
* Career Exploration workshops

Learning & Growth

* Rate of Increase in Industry
Partnerships
* Alumni giving rate

* Adapted from Kaplan and Norton, 1992

Figure 12 - Four Perspectives in the Balanced Scorecard (BSC*)

(Accounting, B.A.)

For Berkeley University BSC was implemented both for Business and
administrations Services61.

61
Using the Balanced Scorecard as a Vehicle for Cultural Transformation, Ron Coley, Associate
Vice Chancellor. American Council on Education, Annual Conference, March 2, 2004.
University of California, Berkeley - Business and Administrative Services - © 2004 UC
Regents. All rights reserved.

146
 Mission
(Purpose)

Perspectives
(Values)

Strategy

Figure 13 - The AVC-BAS Balanced Scorecard: An Organizational Pilot

Put BSC in action as picture refers:

 Strategic
Business
Units (SBU)
Mail

 Metrics
Services

 Initiatives

 Annual Let’
Let’s Hear It! Survey

Figure 14 - Scorecard in Action

For Berkley Academy BSC encapsulate some of the main important activities and
they have a plan for pilot BSC that started in 1999.

147
 University of Edinburgh's Balanced Scorecard62 is another example of BSC
inside Educational environment.

Performance indicators are being calculated at University-level to assist Court in

monitoring the overall management of the University. They are relevant to Court's role in
setting the strategic direction for the University, and in judging the performance of
University management in delivering this. They can also be used to meet external
expectations of performance.

In choosing the suite of performance indicators for the University, the University
has adopted the Balanced Scorecard approach. Developed by Prof. Robert S. Kaplan and
Dr David P. Norton, at the Harvard Business School, the Balanced Scorecard was
designed to improve current performance measurement systems. The Balanced Scorecard
retains the historically widely-used financial measures and supplements these with
measures on customer satisfaction, enhancement of internal processes, and the creation of
capabilities in employees and systems. Thus the Balanced Scorecard tracks key elements
of an organization’s strategy by allowing the organization to view its performance
through multiple lenses. In the case of the University of Edinburgh the University's
strategic goals are being used as the foundation for the development of performance
measures.

The benefits of the approach are that it is based on a balanced set of indicators
covering the entirety of a company's mission and goals, not just financial indicators. This
is particularly important for the not-for-profit sector where financial indicators of
performance are less relevant. In addition, the scorecard attempts to translate strategy into
action and a coherent set of performance measures.

62
http://www.planning.ed.ac.uk/BSC/background.htm (online 14/07/2005)

148
 The context in which the Balanced Scorecard was created was one of corporate
culture, where historically profit driven financial ratios had been used as key performance
measures. Hence the Balanced Scorecard has proved to be popular amongst these profit-
driven companies because it extends performance measurement beyond financial ratios.
However, there still remains a strong emphasis on the corporate company and therefore it
is necessary to adapt the Balanced Scorecard approach for the not-for-profit sector, for
example by identifying financial measures which are appropriate for the Higher Education
Institutions (HEIs) context.

Work is underway to, wherever possible, apply the Balanced Scorecard

retrospectively to the University in order to allow the early establishment of a time series
of performance measurement and hopefully help test the validity/utility of the chosen
measures.

In some cases indicators will be contextual, showing the comparative performance

against other Russell Group or others HEIs. In other cases it may be more appropriate to
choose an institution from further situations, for example Copenhagen, Toronto, MIT,
Stanford, Georgia Tech or New York University, to provide a benchmark for success.
Ultimately Edinburgh is looking for better performance from these institutions in the
areas where they are currently exceeding Edinburgh.

5.5.5. BSC Constrains

BSC has some constrains and Implementing Strategy is one of them with some
barriers as Niven63 refers.

63
Paul Niven. The barriers to implementing strategy.
http://www.balancedscorecard.biz/Introduction_BSC_C1.html, Copyright © Paul Niven &
QPR Software, Plc. (online 20/07/2005)

149
 Figure 15 - The barriers to implementing strategy
Adapted from material developed by Robert S. Kaplan and David P. Norton

The Vision Barrier

One of the most important and big constrain is that the vast majority of employees
do not understand the organization’s strategy. Most companies are still organized for the
industrial era - utilizing command and control orientations that are inadequate for today's
environment.

The People Barrier

Incentive compensation arrangements have been with us for quite some time is
one of the best activities to put employees linked with organizations. However systems
provide rewards for the achievement of short-term financial targets, not long-term
strategic initiatives.

The Resource Barrier

Niven refers that sixty percent of organizations don’t link budgets to strategy.
This finding really should not come as a surprise since most organizations have separate
processes for budgeting and strategic planning.

150
 The Management Barrier

A focus on strategy demands that executives spend their time together moving
beyond the analysis of defects to a deeper understanding of the underlying value creating
or destroying mechanisms in the firm.

The Culture Barrier

Culture barrier can also be added to the four Niven barriers. Communication and
habits of sharing information and knowledge is one problem in almost Organizations,
sometimes due frightening thought of getting fired, sometimes from inefficient
communication channels. This problem underlies a deep problem caused by a week
Organization Culture.

5.6. Conclusions on Management Performance Models

This section highlights some issues compiled from previous paragraphs of this
chapter.

Previous models combines specific characteristics, some are learning oriented

using Human Capital and Intellectual Capital as basis foundations. Some like Hubert
Saint-Onge are using Communities of practice to enhance learning practices and
knowledge transference. Others like Sveiby, Skandia or Technology Broker Model
encourage managers to look Organizations as a holistic structure where all assets must
have a special attention in organizational governance.

In the end BSC crosses these models looking for tangible and non-tangible assets
whatever they exist: Organizations, small units, individuals. More then an holistic view,
BSC can be globalize, being used inside or outside Organizations moving their
characteristics to some other environment where conceptual overview can be adopted
with conversions and adapted to every entity (organization, unit, individual) need.

151
 5.6.1. BSC Management Performance Models Contribution

The competition is ferocious and, for that reason, companies must be apt to
innovate and to improve. As in traditional commerce in firms using BSC, Universities are
implementing BSC generally in a global approach. Reasons as in others Organizations are
the facility that BSC offers for a globally organizational, units or individuals performance
measurement.

Performance measurement is “the process of determining how successful

organizations/individuals have in attaining their objectives”. It covers all levels, including
individuals, teams, processes, departments and the organization as a whole, with the view
of continuous improvement of performance against organizational objectives. This is a
system that integrates the measurement of performance of all levels within the
organization with the view of continuous improvement of performance against
organizational objectives.

Key performance indicators are the performance measures critical to an

organization’s core business.

5.6.2. Alliances, Learning and the Importance of Knowledge to Value

Creation

As business networks emerge with the support of new technology, old style
competition more isolated is replaced by complex alliances and relationships that link
organizations to provide greater value to customers. Having experience in setting up and
making cross-functional communities of practice work will place organizations at an
advantage in the development of these alliances.

The speed of change in this knowledge era requires that we place greater
importance on the systemic renewal of the tacit knowledge for the sustainability of the
firm. Renewing tacit knowledge means finding ways of making meaning from

152
knowledge. In order to create value in intellectual capital, we must understand how
knowledge is formed and how people and organizations learn to use knowledge wisely.

As globalization trends increase pressures to adopt world class standards of

performance and innovation, partnerships will become the predominant approach for
optimizing value creation. Dialogues become the means through which the tacit
knowledge of the organization is renewed and aligned.

The leanings that can be gather to enhance the relationship between Organizations
and Customers as not only will serve to leverage the value of the firm at the customer
interface but will point to the kind of leadership approach needed to develop in order to
ensure effective partnering relationships.

The most effective way to foster a durable sense of partnership is to explore

together the possibilities that can be realized with a high level of partnership. This has to
be done in an atmosphere where there is true listening and a commitment to find win-win
solutions.

5.6.3. Intangibles, Human Capital, Intellectual Assets

Sveiby’ Monitor for Intangible Assets method was developed for measurement of
the intangible in 1996 that incorporates a format or structure of results presentation. This
structure shows a selection of the most excellent and suitable indicators for the company.
Indicators should be grouped in following the three blocks: internal structure, external
structure and employees’ skills or competences. It is focused in the measurement and
management of the intangible indicators but its repercussion in the financial results of the
company is the greatest defect.

Balanced Scorecard as one of helping to create a high-performance organization,

and using the Balanced Scorecard as a framework for aligning the organization and
human capital pieces needed to get to high performance.

153
 The methodology examines performance in four areas: financial analysis, the
most traditionally used performance indicator, includes assessments of measures such as
operating costs and return-on-investment; customer analysis looks at customer
satisfaction and retention; internal analysis looks at production and innovation, measuring
performance in terms of maximizing profit from current products and following
indicators for future productivity; and finally, learning and growth analysis explores the
effectiveness of management in terms of measures of employee satisfaction and retention
and information system performance.

It is one of the fist model combining financial and non-financial – intangibles

assets and Intellectual capital. This model groups tangible and intangibles assets as key
indicators and has a strategic and systematic vision of the organization.

5.6.4. ICT Tools

As a structure, balanced scorecard methodology breaks broad goals down

successively into vision, strategies, tactical activities, and metrics. It is seen as a very
important advance and an evolution towards a management tool, that is to say, it tries that
knowledge management analysis and intellectual capital does not remain a theoretical
study, but become an adapted piece for management development supported by
information technologies.

5.7. Resuming BSC importance and some defaults

Aligning strategy is one of the most difficult processes for BSC Model. The use of
objectives, measures, targets and initiatives provides a vehicle for articulating the strategy
in a very tangible manner. Communication and explanation of Organization, small group
or units’ strategy throughout the organization, will enable people’s tasks and efforts
alignment with strategy. This is one of the real benefits that Balanced Scorecard offers.

154
 A best practice set of KPI need to be holistically integrated into the organization
model. This involves looking at three crucial characteristics – formalization, integration
and utilization.

As performance measurement is not an isolated system, best practice KPI must be

developed from the integration between various areas of the business and deploying the
business objectives throughout the organization. Other characteristics of BSC deal with
the purpose of doing the KPI – utilization. There are basically two reasons: to compare
with the competitors and to check the accomplishment of the organization’s objectives.

It gathers the classic vision of economy analysis of the company, the financial
accounting, the study of ratios: debt, yield, leverages, etc. Therefore, it ties each unit
objectives with the company strategy mainly it serves as convergent approach for all of
the objectives and indicators of all the others perspectives.

The fulfilment and combination of perspectives pillars, it positively contributes to

increase employees’ motivation, to discover and to improve all the stages of the Porter’s
Value Chain, to satisfy clients’ expectations to obtain its loyalty and to offer greater
dividends to the shareholders.

In this present study and in this particular chapter all BSC collected
documentation is focus on BSC characteristics which in final, as ultimate goal, embrace
the Knowledge and Performance Management that should be improved by educational
activities specially for SMME.

In this study all traditional characteristics pointed in BSC appears that can be used
inside Organizations, small groups or individuals with no difference; there is nothing
deeply against this thought. Thus this idea can be probably successful be applied in
SMME using educational or training / teaching / learning activities with a possible
enormous gains.

155
 BSC suffers from uneasy effective acceptance and understanding probably due to
some Knowledge transmission, sharing and trust added by a lack of effective educational
activities in all phases, since mission communication till activities.

Adding understanding difficulties a strong evaluation plan are needed and BSC
makes its evaluation by results but do not prepare employees / students in a pro-active
plan defence. This means that actions will be set only after bad or not too good results,
instead a pro-active educational action to prevent and enhance individuals’ knowledge.

Evolution of Balanced Scorecard, at least in terms of physical design, utility and

process design parameters, can be largely attributed to empirical evidence driven
primarily by observed weaknesses in the design process rather than in the architecture of
the original idea. However while more recent Balanced Scorecard designs are substantial
improvements on original ideas, there is room for improvement64 and this new model can
contribute to this ambition.

64
I. M. Cobbold and G.J.G. Lawrie, “The development of the balanced scorecard as a strategic
management tool" (2002)

156
6. KNOWLEDGE TRANSMISSION AND RETENTION MODEL -
BASED ON EDUCATIONAL ACTIVITIES (EA) AND ON
BALANCED SCORECARD (BSC) CONCEPT

Based in previous investigations this proposed model is based on general BSC

characteristics but focus on small enterprises specially using education and also
knowledge management activities. This is a specific model emphasizing educational
activities where a simple methodology would create friendly adoption and knowledge
retention and transference.

This model should fit more realistic situations embracing a holistic view from
employees / students to community catching their wishes for better future. Main objective
in this study is to achieve a combined model for SMME as the next figure represents, in
order to get better controlled performance in knowledge retention and transference with
educational activities.
MANAGEMENT
COMMUNICATION
COMMUNICATION TECHNOLOGIES

SHAREHOLDERS/COMMUNITY

EDUCATION
R
KNOWLEDGE
INFORMATION AND

C
•LEARNING
KNOWLEDGE
PROCESSES

FINANCIAL

A
CLIENTS

BEST
•TEACHING A
RESULTS
S
•TRAINING E

Empowerment and Enabling

EVALUATION
Remembering; Comprehension; Application;
Analysis; Synthesis; Evaluation

Figure 16 - Schema – Target Goal – Best Results

157
 Education activities are in a very good position for knowledge spreading among
SMME and also for a good way for evaluation issues and this potential should be used
inside SMME. Adding suitable ICT tools this potential can even be enhanced.

It is not enough to have only evaluation or knowledge models or even

performance models. The combination of all elements can reach better performance as a
whole and with sustainable activities very well known by all stakeholders.

As pointed before Performance Measurement is “the process of determining how

successful organizations/individuals have in attaining their objectives”. This phrase
contains the idea of measurement necessities to check objectives. Performance
Measurement covers all levels, including individuals, teams, processes, departments and
the organization as a whole, to get continuous performance improvement against
organizational objectives. The outcome is the establishment of performance measures –
the quantitative indicators that show how well the organization’s objective is being
archived.

There is also the fundamental necessity for having Management Performance

Models to observe and manage activities and resources.

Thirty one years ago Drucker (1974) spoke about productivity and his concern
about evaluation and measurement. Today his underlined expression is still valid:

“Without business objectives we have no direction. Without objectives

measurement we have no control”.

Although this model has Educational Activities (EA) to better support best results,
also a good plan for communication, management and evaluation should complement
those activities.

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 Education activities pillars can transfer and retain information and knowledge
themes and along BSC phases. Learning and growth is enriched by EA and ICT support.
Processes can be improved by better working methods that will bring better quality and
timeless services based on EA. Financial activities to get best results are also
accomplished by EA with specific training to get better knowledge transference and
retention among employees. Clients’ strategic objectives will be enhanced and reached
through EA when performing training and other EA inside SMME to get best strategic
results and so best results to the enterprise.

6.1. Model Step by Step

This model has four steps that contribute to archive the global and main objective
that is to create or improve knowledge inside SMME using educational activities (EA). It
is necessary to establish a formal selection for main activities to analyze, measure,
evaluate and express conclusions from improved performance, thinking also all the
possibilities to incorporate and adjustments for new KPIs, actions, measures and
redefining strategy if necessary.

STEP 1 STEP 2 STEP 3 STEP 4

GENERAL ICT ADJUSTING
COMPILATION IMPLEMENTATION
STUDY EXISTENCE / USE MODEL
ENVIRONMENT INDICATORS MEASURES / SCHEDULER REFINING THE
•Resources Definition ACTIVITIES ACTIVITIES MODEL
•SW type
•Mission / Vision /
•Strategy •Time Scheduler •New actions
Objectives •Quantity
•Industry characteristics •KPI •Activities •Adjusting scheduler
•Main applications
•Surrounding Community and strategy
•Measures •Resources
Characteristics •Global Infrastructure
•Incorporating new
Inquiries / Questionnaires / •Activities •Sponsorship
activities, measures and
documentation
KPIs

Evaluation Remembering Evaluation Remembering Evaluation Remembering Evaluation Remembering Evaluation Remembering

Educational Educational Educational Educational Educational

Activities - Activities - Activities - Activities - Activities -
Knowledge Knowledge Knowledge Knowledge Knowledge
Synthesis Comprehension Synthesis Comprehension Synthesis Comprehension Synthesis Comprehension Synthesis Comprehension
Wheel Wheel Wheel Wheel Wheel
Enabler Enabler Enabler Enabler Enabler

Analysis Application Analysis Application Analysis Application Analysis Application Analysis Application

COMMUNICATION / MANAGEMENT

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 Figure 17 - Model – step by step - BSC based configuration model to get better performance and
knowledge retention and transference using educational activities inside all steps.

First step analyse and define the environment, all the space surrounding enterprise
and also the small group and course characteristics. A future trend should be identified,
and possible scenarios can be built for different actions specially to add competitive
advantage from competitors and for best strategy scenario. Also in this first step it is
identified all subject ICT relation, infrastructure, use, addition, investments and future
tendency. Needs from this area should be shown in this step to better appliance of this
model.

Based on previous study Mission / Vision and global objectives will be defined or
revaluated. These operations are pillars for next steps and to get best results based on
strategic defined results.

To be possible an efficient enhancement process for retain and transference

educational activities in this step will embrace: inquiries and research; ICT tools will help
theses activities mainly office tools; databases documentation; forums and chats also
weblogs. Shareholders groups will perform these activities helped by a teacher on EA.

The second step involves big complexity and hard work to complete, redefine,
create, analyze and establish all activities, KPIs, objectives, measures according mission
and strategy. A good scheduler and orientation adding a powerful group and sponsorship
can reach success on this step. In this field educational activities (EA) almost based on
workshops sessions will produce best results.

Implementation is the third step to go through. In this step a logic sequence

project is required with all inherent steps. EA should be check activities lists, checking
plans; documentation, tracing and also enhance resources schedulers and performance. At
this time all initiatives and their strategic results will be on action.

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 This model finishes with a fourth step for adjustment and revision activities that
will point to the new cycle of study aiming each time cycle a better performance. Here a
broad session meeting; seminary activities bringing knowledge from previous phases will
adjust model for better improvement.

Without evaluation there is no control and without control no direction to go.

Every step should be evaluated and this action must occur based on initial objectives and
activities that were implemented. Here one of the most educational activities –
Evaluation; using tests; quizzes; and improving issues from previous phases evaluations.

A Communication and Management plan are transversal to all steps from the very
beginning until the implementation. Communication is a vital key to involve all
organization members and gather them to go in same strategy direction. All EA are based
on communication and in almost organizations this is a gap, obstructing performance and
goals results.

Management plan and strong leadership no doubt fundamental activities playing a

big role during all BSC phases until the final implementation step. The leadership must
use educational / training/ coaching best characteristics to reach strategic results inside
the organization.

All this model steps aim to reach better results supported by education activities to
get better knowledge achievement and better performance in all activities. The largest
goal from community to community is knowledge achievement. We belong to a specific
community and inside that community most of the projects must succeed and get better
possible performance for the better welfare of the community’s people. All the actors –
intervenient or shareholders should get benefits from this project in direct or indirect way.

Thus a global vision from SMME can be shown and must be one of the main
pieces in the new model and methodology. From community to community conceptual

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vision shows that only a mach with all stakeholders in education processes can reach
better results. Support resources are a combined junction between: ICT tools suppliers,
partners like Institutions, Investigators and Researchers. Organizations where educational
activities take place either in private or public institutions or inside any kind or
organization will have the main role in this scenario. Clients will be students, parents,
tutors, organizations’ employees and in the end all community who will be enriched by
added value from knowledge achievement.

This is a closed circuit that is auto feeding because well supported knowledge will
generate more knowledge.

COACHING

Public
MANAGER STUDENTS
(Parents; Tutors)
TRAINING
TEACHER
SUPPLIERS
CONSULTANT
CLIENTS
PARTNERS
COMMUNITY (individuals; COMMUNITY
ORGANIZATIONS groups;
GOVERNMENT enterprises)
TRAINING
Private MANAGER
STOCKHOLDERS
CONSULTANT COACHING
CUSTOMERS
(public; private)
TEACHER

STAKEHOLDERS

CLOSED CIRCLE

Figure 18 – Actors, Entities or Shareholders – From Community to Community

As knowledge is a foundation for Organizations or at the end for Community,

focus should have to converge to knowledge at the end of all activities: learning,
teaching, education, manager, guidance, control, performance.

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 Following subsection will present detailed specifications from all fourth steps of
the new proposed model.

6.2. STEP 1 - General Study and ICT Existence and Use

This phase has the main objective on analysis and evaluation of the present
situation, environment and ICT recourses. Several techniques are used in this step like
SWOT technique, inquiries, benchmark, documentation analysis and further methods.
One of the main goals is the stat of art on present situation and to find a new strategy
based on Mission / Vision or at least readjust the previous one.

6.2.1. General Study

Even for big or SMME it is impossible in present days to work isolated from
surrounding environment. Competition, community needs and deficiencies, government
rules, international impacts and ICT huge development and use mold every organization.

In this initial stage it is crucial to define the work group elements that have
important functions like establish tasks for each element and get essential resources:
technological, office materials and financial.

First step evaluate the environment, all the space surrounding enterprise and also
inside and outside SMME. Future trend will be identified and also possible depending on
different actions specially to add competitive advantage.

6.2.1.1. Team and project strategy

Team composition is essential for the initial start because there are lots of tasks
involving environment analysis and further tasks in following steps. A convincing
strategy should be taken and explained to all team.

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 Strategy will consist in two main orientations and tough work: quite clear
activities, resources and timing definitions and a very good management, communication
and evaluation plan.

6.2.1.2. Teams

Team elements represent a key for success so, a good management and according
skills should mach as much as possible. There are two main roles: management role
which principal activities are conducting their team, be pro-active as much as possible
and controlling accurately scheduler resources and timing. Execution group should
develop analysis and evaluation activities. From empiric studies Florentino (2000) it
seems that best group elements should be those who are inside studied processes, they
feel like something belonging to them and this can gather them and push them to work as
one.

Depending on dimension and need SMME can have one or more teams for
specific EA.

6.2.1.3. Main rules and practices

Available resources evaluation determine accurately: time, objectives and

activities. This primarily analyses aims to determine risk and possible scenarios at a first
glance. How many people are involved, what kind of ICT infrastructure stage is
available, what kind of skills are we dealing with, what kind of rules should be pointed,
some formal guide must also be available for better understanding of sequence activities
and roles and a clear and effective communication strategy should be presented at this
model stage.

At this time classroom dimension and teachers skills are defined and also course
planning. Tradition courses have at least five keys underlined:
1. Course objectives, defining main goals of this educational activity;

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 2. Students main skills, for this course several characteristics are asked;
3. Archived competencies, at final this course should provide special skills
adapted to this specific course;
4. Methodology, broad explanation for context environment, program, staff
support, resources, bibliography and evaluation rules
5. Evaluation, considering knowledge transference and retention, work on
classroom, examination, participation and innovative activities pointing
mainly knowledge activities (externalization, socialization, internalization and
combination)

Teachers / Coachers can be another group element inside team with representatives
joining contribution and knowledge to the team. Their characteristics and guidelines
should be presented at first stage when team start to work. They act as join elements
bringing experiences and knowledge from other teams.

Teacher / Coach /
Manager /
Consultants or
representatives
Institution
elements or
Small Training
representatives
Group
(employees /
students and
teacher) Community
elements or
representatives

Figure 19 – Team Group

It is necessary to bring institution knowledge relevant characteristics inside group to

adapt rules and make formal guides. Ending with the surrounding Community also
need to understand rules and highlights from it to better organize team processes and
attributions activities and roles.

Main role here is to spread knowledge and evaluate course and subjects that will
target strategic results for the SMME. Course, teachers and students / employees
should be evaluated according final goals. These groups can create a small ball with

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 huge energy to spread knowledge, strategic issues having a strong communication
empowerment.

6.2.2. ICT Existence and Use

On this first step evaluation takes place and identifies all subject ICT relation,
infrastructure, use, addition, adoption, investments and trends. Needs from this area
should be shown in this step to better appliance of this model.

Infrastructure can be divided into 4 parts: Hardware (HW), Software (SW), Web
and Communications and Data. Assessment and material need for this model must be
identified in the first stages. In this model ICT resources are explained for each scenario
in the following table, identifying that scenario 1 is for ICT courses or courses with a
strong ICT content and scenario 2 is for non ICT courses.
Infrastructure Scenario 1 Scenario 2
Hardware (HW) All intervenient have 1 1 personal computer (PC) for
personal computer (PC) or at 5 person; 1 datashow; 1 printer
least 1 PC for 2 person;
1 datashow; 1 printer
Software (SW) Internet browser, MS Office or Internet browser, MS Office or
similar, BSC SW, similar, BSC SW,
communication tools * communication tools *
Web and Communications Internet access, internal Internet access, internal
network access network access.
Data DB or Files and SW for data DB or Files and SW for data
management (if possibility) management (if possibility)

* - chats, forums, weblogs, wikis, websites, portals

Table 3 – ICT resources for new proposed model – 2 scenarios

The good understanding of ICT for better support new model activities will
produce better knowledge retention and transferring. Partnership or alliances are helpful
in this context specially for future maintenance. HW material is very important but also
good SW and specially Databases can produce an adding value to this model. Knowledge
must be in a repository with particular functionalities like: data retrieve, storage and

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exploitation and these characteristics exist in DB or Data Warehouses (DW) management
SW tools. A simple file solution is also possible depending on data amount but of course
people’s work will be more difficult and hard thus automatic database management are
not available. A structured data base is very important for these tasks for they save lots of
time in searching, storage and avoid errors, faults or data duplications.

SW requirements have a first layer which is office and Internet access but second
layers (deep IT use) are a good solution for evaluation and management activities using
appropriate SW. All SW that can support BSC concept or methodology can help
dramatically this new model.

Communications and associated tools are very important and should be available
because they can promote high speed knowledge transference. Chats, forums, websites,
portals or workgroups tools provide people enhancement communication.

6.3. STEP 2 - Compilation

The third step involves big complexity and hard work to complete, redefine,
create, analyze and establish all activities, KPIs, objectives, measures according mission
and strategy. A good scheduler and orientation adding a good performance group
activities and sponsorship can reach success on this step.

Mission must be always in team and group horizon and must also be
communicated to everybody. Strategy will interiorized and drill down until be
representative or translated on SMME objectives. These objectives should be defined
among team, group and institutions. Objectives definition must be a participative task for
a win-win goal specially in course members when alumni and teacher are involved.

As objectives have to be measured, at same time appropriated measures should be

defined and accurately thought.

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 Mission is defined for the organization but objectives are defined from top to
individuals as their measures. This can be a complicated task for there are lots of
possibilities for groups / teams / courses and for each case, objectives can be different and
also the correspondent measures depending on each strategic theme.

In addition all activities and initiatives to promote and reach goals are defined
based on objectives and at the end all team have to consider that evaluation and
management are always a baseline orientation and effective tasks to do. So several
objectives will have lots of activities and lots of work on evaluation and management and
for this reason a good and health mind must exist to avoid pitfalls when considering lots
of combinations.

Key Performance Indicators (KPI) will express main objectives and should be
measured by efficient measures that can be qualitative or quantitative but both aiming the
best adjustment for KPI assessment, see table - Mission, Objectives and Perspectives for
Education Activities.

Activities consist in a huge amount of tasks to reach goals and for this reason a
good definition adding good communication channels and report repository can avoid
difficulties in evaluation, control, management and knowledge transmission and
retention. Sometimes if a fluid communication is usual, a proactive action can be
performed and a possible good solution or efficient work will be archived, see tables -
Activities and Measures for Education Activities, Objectives and Activities – Control for
Education Activities and Objectives and Activities - ICT support for Education Activities
in Organization / Institution or Courses.

In this particular step more than others educational issues can take the first role
and contribute for a better achievement results ant the end of all process. They
incorporate knowledge transference and retention, communication and evaluation. So it

168
seems to be a very good way to get better strategic results and in intermediate phases sub-
strategic results.

6.4. STEP 3 - Model Implementation helped by EA

Implementation is the fourth step to go through. In this step a logic sequence

project is required with all inherent steps. Behind this project implementation there are
three main components: management, control and planning.

Evaluation and decision making are also standard activities. At implementation

level, there are two separate sides: Global Model and ICT project implementation. Global
Model will run as defined phases’ references in previous paragraphs. Inside this model
implementation a subset is concerned to ICT implementation complementing all
proposed model.

This model - BSC based model to get better performance and knowledge retention
and transference using Educational Activities (EA) inside Small, Medium and Micro
Enterprises (SMME), can be enhanced by technologies and main detailed activities for
ICT project will be needed: Initialization, Planning, Implementation, Control and
Implantation, traditional tasks for an ICT project.

Considering ICT Project Definition:

 Sponsorship, sponsor for the accomplish and project acceptance
 Team group – definition based on best collected skills from available resources, a
subgroup from the small group investigation.
 Chief Project and Technical Chief will define the most suitable and the best life
cycle for the ICT project.

It should be use and selected best methodologies to perform the three relevant
issues:

Strategy – Align ICT plan with global organization and community strategy and
objectives;

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 Requirements – ICT development aligned with organization structure and
architecture where applications can be together and adapted to strategy and objectives;
ICT should perform all defined tasks for SMME on study.

Resources – Resources allocation to adapt and develop ICT operations and

manage all involved applications.

For better understanding following picture describes all ICT project planning and
its phases. Task planning during the whole project time will be done using MS project,
Excel or other suitable tools for project management and control.

PROJECT LIFE CYCLE Pos-Implementation

CE
E R GE

Help-Desk
EN

N
NE NSF ED

IO

Implantation
A WL

AT
O

Documentation
TR NO

phase
TI

Implementation
O
K

Management
QUALITY CONTROL AND

Requirements Acceptance and

tests Acceptance
ASSURANCE

tests

Architecture System
tests

Design Integration
tests

Parameterization Parameter
tests
NEGOTIATIONS, COMMUNICATION AND KNOWLEDGE TRANSFERENCE BETWEEN DIFERENT AREAS

PLANNING AND CONTROL TOOLS

Figure 20 – ICT Project Planning

For each action: documentation, requirements, architecture, design or

parameterization a correspondent test plan evaluates these actions.

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 Documentation will be present in whole project since the beginning until the end
of the ICT project. Also after implantation and pos-implementation documents are
needed for maintenance an errors reporting and also pos-implementation evaluation
should continue periodically to better understanding of model performance.

Requirements are too important so all careful tasks in this matter are always
necessary. Dealing and negotiating with clients (employees / students), teachers,
organization’ managers also community entities will provide a good source and
foundation to accurate requirements. What do employees / students expect, what is
teacher’s ambition inside training / course and all Educational Activities, what is the goal
for the organization based on educational activities, what did community need? Reliable
requirements come from those questions which answers must be perceived, understand
and perfectly transferred among shareholders.

Architecture and design are probably simple thus there are no software
development only parameterizations and adjusts, however as better defined and integrated
ICT with “business” operations better results will be achieved at the end. This ICT
project is process driven so phases and ICT activities systematization and team
understanding play the main role.

At the end of this stage, team group is able to completely understand and perform
their tasks and activities. They also had completed tests and accepted previous model
process steps.

6.4.1. Evaluation helped by EA

At this stage, model is already implemented and now educational team group will
perform evaluation and management tasks in every suitable phase.

BSC methodologies and knowledge management solutions through EA perform

best solution for these model evaluation activities. Concept and methodology used in

171
BSC will be applied in this model adding knowledge management techniques to get
better performance with these educational activities inside SMME.

Repeating again one key sentence that: without evaluation there is no control and
without control no direction to go, at this third step, all evaluation must occurs based on
initial objectives and activities that were implemented.

This model finishes with a fourth step for adjustment and revision ICT and non-
ICT activities that will point to the new cycle of study aiming a new better performance
cycle.

This model – BSC based model to get better performance and knowledge
retention and transference using Educational Activities (EA) inside Small, Medium and
Micro Enterprises (SMME), must be accomplish with formal Management and
Evaluation activities in all layers. A friendly framework should help execution in all
manager or evaluation activities for all stages. Questions and suitable answers will help to
check Mission and evaluated it, same for strategy and perspectives (they should be really
the best chosen), KPI, measures, and action plans will be checked with questions why,
how, when, why not and related answers to “educate” new model’s users. Sample
examples are exemplified in this section (see tables).

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 MISSION
VALUES VISION VALUES

EDUCATIONAL ACTIVITIES
STRATEGY
Remembering
PERSPECTIVIES

Client Comprehension
STRATEGYC STRATEGYC STRATEGYC
THEMES THEMES THEMES
Financial Objectives; KPI; Objectives; KPI; Objectives; KPI;
Application
Measures; Measures; Measures; Analysis
Process Actions Actions Actions
L& G Synthesis
COMMUNICATION
Evaluation
MANAGEMENT
ICT
EDUCATIONAL EDUCATIONAL EDUCATIONAL
ACTIVITIES ACTIVITIES ACTIVITIES
Clients; Financial; Processes; Learn & Remembering; Comprehension; Application;
Growth Analysis; Synthesis; Evaluation

Figure 21 - Educational Activities in Every Phases Of The Model

Learning, training and other education activities are some of the most important
components of knowledge, but guidance like management and global evaluation must
appear to control and adjust performance and results.

This model uses EA in each main BSC steps. Like traditional BSC there are
perspectives, objectives, KPI, measures and action plans for all drill down entities from
community to employees / students. An example for each case must be constructed for a
friendly users help on implementation and maintenance in this particular model.

Main objective of this model, the focus and study of this investigation, is to
retain and transfer knowledge to get better performance using specific
methodologies: using BSC methodology through all scorecards from surrounding
environment till individuals, supported by educational activities that will enhance
Knowledge, Evaluation, Communication and Management issues.

173
 COMMUNITY INSTITUION

E P F P
F – Financial

R&D C R&D P – Process

R&D – Research
and Development
STUDENT / EMPLOYEE SBU / SMALL GROUPS C – Client
E – Environment /
F P F P Shareholders

R&D C R&D

Figure 22 -Proper Perspectives for all Layers

Starting from Community scorecard also referred by several authors and

consultants (Brink (2004), Groh and al (2004), Hubbard, Edward E. (2005), Reyes
(2003))65 there are three perspectives included: Environment / Client / Shareholders /
Community perspective where analysis will show main objectives correlated with
institution, course and SMME elements (students / employees); Process from community
point of view, bringing best bridge between nearby community and all shareholders;
R&D represents knowledge enhancement captured from all actors activities.

Organization are represented by a generic organization, an institution or a school

and here basic and normal four perspectives are: Financial represented by suitable KPI
financial indicators; Clients, in this case employees, students, managers, organization or
shareholders; Process where main KPIs are the flexibility on dealing with ICT and heath
communication among all actors and R&D also with suitable KPIs showing relevant
knowledge enhancement, retention and transferences.

65
Feasibility of a Responsive Business Scorecard – a pilot study, Frans Van
Der Woerd and Timo van den Brink, Journal of Business Ethics Issue: Volume 55, Number 2 , 2004

174
 Small Business Unit (SBU) / Small Groups (SG) scorecard has also four
perspectives namely: Financial where profitability is the main concern: Clients in this
study, internal ones hope to be satisfied with good SBU / SG services; Process explained
by efficiency KPIs; R&D using knowledge and ICT key indicators to represent effective
ICT and knowledge use and finally Financial perspective should have cost-effective
control and so this could be the strategic objective.

Teacher / Manager (TM) scorecard it is not represented but can be a different one
or can be combined with the course or training event. It means desires and hopes from
this group to better obtain their objectives aligned with course, institution, community
and students wishes and hopes. This scorecard can have four perspectives: Financial
represented by investment versus results KPIs; Processes showing best way to achieve
results based on effective communication, efficient evaluation processes and management
rules; Client concerns on Teacher / Manager point of view showed by confidence and
trust KPIs and R&D also like on course scorecard, using knowledge and ICT key
indicators to represent effective ICT and knowledge use, retention and transference. As
this model is EA oriented this scorecard can be applied if enterprise is a medium one. For
Micro and Small ones all issues can be joined with SBU / SG scorecard.

The final scorecard is students / employees’ representative hopes and whishes

where there are only three perspectives: Financial with identical SBU / SG KPIs that is to
say, investment versus results; Processes with KPIs related with effective use of materials
and learning processes and R&D with ICT efficient use KPIs and knowledge
representative KPIs for efficient use, retention and transference.

Processes for knowledge improvement will be made in all steps and all scorecards
but particularly inside the SBU / SG where knowledge phases: externalization,
socialization, internalization and combination will be achieved by specific activities
shown in following sample table.

175
 Activities Socialization: tacit -> tacit - Externalization: tacit -> Combination: explicit -> Internalization: explicit -> tacit
observation, imitation, and explicit - process of explicit - Individuals exchange - "learning by doing."
practice articulating tacit knowledge and combine knowledge media
into explicit concepts
Chat and forums Process capture tools - search Internet Knowledge networks: shared
engines: google; yahoo experiences, examns and results
from databases among small
group
Face-to-face communication Query tools Web foruns Datamining / textmining and
other mining activities
Showing examples Databases management tools Databases use and sharing Knowledge is verbalized or
documentation diagrammed into documents or
SMME -
oral stories
educational
Narratives and stories Wikis, weblogs, forums Using and sharing documents, Video/audio of presentations /
activities
meetings, and conversations visualization
Conversion among team Uses of metaphors, analogies, Document categorization Read
members, responding concepts, hypothesis, or models and study documents from a
to questions number of different
databases.
Answering questions / Text search
Annotations
Evaluation Evaluation Evaluation Evaluation

Table 4 – Knowledge Activities used in all steps of BSC model at SMME, enhanced by Educational
Activities

These activities are complemented with BSC activities as following tables show
for a pilot example and future implementation.

The term tacit knowledge is conventionally opposed to explicit knowledge, and is

used to describe knowledge which cannot be explicitly represented. Common examples
of tacit knowledge include the knowledge of how to ride a bicycle, how to knead bread,
how to use a word processor ((Polanyi, 1958), (Nonaka, 1995)).

Narrative is one of the most powerful means of expressing and transmitting

knowledge but they are not a free good for the institution which attempts to preserve
them. Although stories or narratives circulate freely and informally within organisations,
it requires skilled work to provide occasions for storytelling, and even more effort to
capture, record and make appropriate stories available in a usable and credible form 66.

66
Narrative and Social Tacit Knowledge - Charlotte Linde, In Journal of Knowledge
Management, Special Issue on Tacit Knowledge Exchange and Active Learning, 5 (2), 2001.

176
 The most typical way in which tacit knowledge is built and shared is in face-to-
face meetings and shared experiences, often informal, in which information technology
(IT) plays a minimal role Marwick (2001)67, however some ICT tools can improve a little
bit knowledge transference.

In this model will apply these observation, imitation, and practice activities for
Socialization (tacit to tacit). Adding also some interactions related within SMME
education activities like: chat and forums, face-to-face communication, showing
examples, narratives and stories, conversion among team members and responding
to questions.

Externalization (tacit to explicit) can be achieved through conceptualization,

extraction and ultimately articulation, typically in collaboration with others. Some
examples for this model can be: Process capture tools - search engines: Google; Yahoo,
Query tools, Databases management tools, wikis, weblogs, forums, uses of metaphors,
analogies, concepts, hypothesis or models and answering questions / annotations.

Combination (explicit to explicit) - Individuals exchange and combine knowledge

and in this phase explicit knowledge can be shared in meetings, via documents, e-mails,
etc., or through education and training inside the SMME. The use of technology to
manage and search collections can be done by sharing documents database. There are
specific activities namely: Internet, Web forums, Databases use and sharing
documentation, Using and sharing documents, meetings, and conversations, Document
categorization and Text search.

Internalization (explicit to tacit) "learning by doing." involves creating their own

tacit knowledge. By reading documents, it is possible to have a feeling like others

67
Knowledge management technology - A. D. Marwick (2001), IBM Systems Journal, Vol 40,
No 4, 2001

177
experience from what others previously learned. By reading documents from many
sources, it is possible to have the opportunity to create new knowledge by combining
existing tacit knowledge with the knowledge of others. This process is becoming more
challenging because individuals have to deal with larger amounts of information.

In this explicit to tacit operation, a typical activity would be to read and study
documents from a number of different databases and DB management tools will help to
be more efficient in these tasks. In this examples there are some activities that can be
applied here: Knowledge networks: shared experiences, exams and results from databases
among small group; datamining / textmining and other mining activities; knowledge is
verbalized or diagrammed into documents or oral stories; video/audio of presentations /
visualization; read and study documents from a number of different databases.

As one of the most hurdles is knowledge transference and retention, also with
communication issues; educational activities will enhance and clearly get better
improvement over knowledge process.

Teacher / Manager will better conduct these events for better understanding and
best results in the end.

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 Mission
Give Employee / Alumni an easy and quick knowledge actualization adding activities using actual methodologies and easy ICT tools
Type:
Current Risk Factors Objective
CSF Description Perspective Inside - Added Value
(External) Code
Outside
Give alumni adjusted
Ratio = Price Quality Economic Recession 1 Client I
market knowledge
Gap content vs. Market
Share experiences inside
Content deficient matched programs in 2 Client I
Classroom / Small Group
market)
Central competences
ICT Competition 3 Client I
acquisition
Promote Institution good
name outside Organization
Teaching Quality Missing atractive cintents 4 Process I Client Satisfaction;
and particular in
Management areas SBU /SG Satisfaction;
Institution Satisfaction;
Missing target profissional Empower Skills for job /
Employee / Alumni Quality 5 Client I Community Satisfation
applyance tasks
and Better Results
Promote teacher in the
Environment Conditions 6 market both educational R&D O
and inside enterprises
Get a positive profit margin
Classroom / room Conditions 7 Financial I
in the market average
Support Materials (books,
8 ICT use since possible R&D I
documentation, ICT access)
Retain Knowledge inside
Scheduler 9 R&D I
Institution
* internal ones can be
considered those that may
Accessibility
cause negative impact on
CSF

Table 5 – Mission, Objectives and Perspectives for Education Activities

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 1 Activity Measure Detail - Measure Owner Timing

Alumni / Employee Evaluation - Alumni /

Punctuation 0-20 Scale [ 0-20] 1 day
Self-evaluation Employee

Teachers evaluation: on total of sessions exact

Average Evaluation - Average=40%*work+30%test+30
classroom work, exercises, Teacher identification of course
grading balance %Examn; scale [0-20]
exams sessions or hours)

Job adaptation;
Career progression:
Scale [0-5] not apt - excellent; total of sessions exact
Inquiries / questionnaire / year on same
Give Alumni / Qualitative: rotation in other Clerical identification of course
enterprise meetings function; quantity of
Employee functions with or without evolution sessions or hours)
different functions,
adjusted market jobs, enterprises
knowledge
Participation evaluation through total of sessions exact
observation on: exercises, new Qualitative: Scale [Insufficient-very good] Teacher identification of course
solution, new ideas sessions or hours)

Academic and
professional
Track Alumni / Employee components. Nº of CV analyze; Alumni Employee
Clerical 3 days per 15 alumni
professional route courses; Nº of jobs; Inquiry
Internationalization
;Languages

Table 6 – Activities and Measures for Education Activities

180
Objective Control Control
Description Activities - Actions - Metrics
Code Examples Owner
Clerical
Teachers Participation Track alumni
Give alumni / employee Alumni / Employee Name -
evaluation: on Enterprise measurement through / employee
1 adjusted market Evaluation - Self- Teachers /
classroom work, Inquiries observation; work professional
knowledge evaluation Manager /
exercises, exams grading; tests; exercises route
Coach Name
Teachers Participation /
Alumni / Employee
Share experiences evaluation: on Communication - Clerical
2 Evaluation - Self- Assiduity
inside Classroom classroom work, measurement through Name
evaluation
exercises, exams observation
Teachers Track alumni
Alumni / Employee Participation - Teachers /
Central competences evaluation: on / employee
3 Evaluation - Self- Assiduity measurement through Manager /
acquisition classroom work, professional
evaluation observation Coach Name
exercises, exams route
Diffuse Institution good
name outside Alumni / Employee
Enterprise Clerical
4 Organization and Evaluation - Self-
Inquiries Name
particular in evaluation
Management areas
Diffuse teacher in the
Alumni / Employee
market both Clerical
5 Evaluation - Self-
educational and inside Name
evaluation
enterprises
EBIT =
Get a positive margin Receiving - Clerical
6 Measure profit margin
in the market average Costs - Name
Amortizations

Teachers
Alumni / Employee Teachers /
evaluation: on Measure ICT
7 ICT use since possible Evaluation - Self- Manager /
classroom work, used tools
evaluation Coach Name
exercises, exams
Scheduler timings
Retain Knowledge Create and maintain a Monitorize Errors or faults Clerical
8 for KB
inside Institution Knowledge Base (KB) the KB quantification Name
actualization

Table 7 – Objectives and Activities – Sample for each step – Enhancement with Education Activities

181
Objective
Description Activities - Actions - Metrics ICT - Examples
Code
Track
Participation
Alumni / Employee Teachers evaluation: on alumni /
Give alumni / employee adjusted Enterprise measurement through Office; Internet; Intranet;
1 Evaluation - Self- classroom work, employee
market knowledge Inquiries observation; work grading; BSC
evaluation exercises, exams profession
tests; exercises
al route
Participation /
Alumni / Employee Teachers evaluation: on
Share experiences inside Communication - E-LEARNING; email;
2 Evaluation - Self- classroom work, Assiduity
Classroom measurement through forums; weblogs
evaluation exercises, exams
observation
Track
Alumni / Employee Teachers evaluation: on Participation - alumni /
3 Central competences acquisition Evaluation - Self- classroom work, Assiduity measurement through employee SPSS; SAS
evaluation exercises, exams observation profession
al route
Diffuse Institution good name Alumni / Employee
Enterprise EXCEL; SPECIFICS
4 outside Organization and Evaluation - Self-
Inquiries EIS; BSC; ERPs
particular in Management areas evaluation
MS PROJECT: EXCEL;
Diffuse teacher in the market Alumni / Employee
SPECIFICS
5 both educational and inside Evaluation - Self-
PROGRAMS; EMAIL;
enterprises evaluation
IM
EBIT =
EXCEL; ACCESS; SAP;
Get a positive margin in the Receiving -
6 Measure profit margin or other account
market average Costs -
application
Amortizations
Alumni / Employee Teachers evaluation: on EXCEL; ACCESS;
Measure ICT
7 ICT use since possible Evaluation - Self- classroom work, SPECIFICS EIS; BSC;
used tools
evaluation exercises, exams ERPs
INTERNET (information,
email, forums, weblogs,
Retain Knowledge inside Create and maintain a Scheduler timings for KB Monitorize the Errors or faults
8 wikis, chats); Data
Institution Knowledge Base (KB) actualization KB quantification
Bases; Knowledge
Bases; Phone contacts

Table 8 – Objectives and Activities - ICT support using Education Activities in SMME

182
 The figure shows the global idea for this model, a possible knowledge process
through BSC from people-Community to people-Community pyramid. This circle
concept explained in above paragraphs that starts in Community – Employees / Students
– SBU /SG – Institution and then again Community, will help to retain knowledge and
get more knowledge from cycle to cycle. This can be pictured as a Knowledge
Equilibrium figure helped by Educational Activities (EA).

EA COMMUNITY

EA INSTITUTION / SMALL
ORGANIZATION / SMME

EA SBU / SG

EA STUDENT / EMPLOYEE

Figure 23 - BSC Layers – using EA in every stages - Knowledge Equilibrium

In Knowledge Equilibrium picture the possible four are built containing bottom-
up student / employee, SBU / SG, institution and community. For all layers will have
Education Activities (EA) and BSC concept and methodology embedded, with all
indicators, measures and action plans and all combine to pursuit organization mission and
strategy. For each layer specify strategy should also be formally indicated and every EA
should be presented and explained in formal way.

Learning, training and other education activity are some of the most important
components of knowledge, they support and sustain knowledge. So a knowledge base
should exist containing all information and for employees / students point of view it will

183
be possible to manager their whishes, tendencies, skills and though manager their career
combined with community and market needs.

This kind of information and knowledge achievement will be collected from

people, databases, inquiries, strategies or plans as steps one and two point. For evaluation
and better management properly indicators must also be collected also previously referred
in this model steps one and two.

Key success factors of this new model are: methodology and friendly tools to get
more simplification. Also an efficient and easy implementation and easy way of working
would be expected based on educational activities.

6.5. STEP 4 - Adjusting Proposed Model

These model pursuits a continued improvement so after finishing one cycle a new
reevaluation should occur. This kind of process will correct errors, defaults and will
adjust strategy, objectives or activities considering embedded knowledge provided from
previous courses and cycle. Also EA will be adjusted with suitable changes depending on
evaluation.

Pursuing permanent improvement and knowledge by past knowledge experiences

and activities, this model can permanently be improved.

6.6. Some concerns and strategies when applying this model

In Portugal, the use of the BSC is not very common although recent effort to
implement these methodologies. If the target are big Organizations the BSC
implementation can be easier: there are more money for investments, rules quite well
defined, more understanding of culture problems and more capable to get training, so in
sum, there are strong probabilities to implement and have success with BSC in large
Organizations.

184
 Problems may occur inside SMEs or micro enterprises (SMME) as this study is
concerned. Here problems are multiplied by the lack of easy and cheap tools and by an
easy implementation guide. Also the understanding of what is a BSC and the positive
value for the actors (stakeholders) is fundamental and it is one of the main problems even
big enterprises or SMME.

At this point several important topics must be considered: Mission, strategy,

objectives, and activities for practical and starting point. Secondary evaluation of these
objectives must be done continuously for improvement. Third, managing them is
fundamental in order to guide or for the governance of the group. This sequence when
perfectly adjusted and interiorized using small team groups performing and transferring
knowledge through educational activities will be easy to understand and will be easy to
implement and maintain. ICT tools must also be adopted in this process.

The idea of Norton and Kaplan to go down into unit business and at the end
individuals can be theoretical applied to the SMME added by education activities:
training, courses, traditional educations issues. This concept can probably be tested on
SME or micro Enterprises. One of the golden rules will be friendly use of ICT, clear
understanding of an “easy BSC” combined with educational activities behind this model.

Some examples were constructed for possible test on a pilot approach, see
previous tables. The sequence and methodology will be quite simple and typified
according groups. A Guide Operation for these SMME should be available for the
complete understanding and for steps implementation and at the same time to interiorize
knowledge inside the organization.

Pilot tests in SMME for this methodology will be refined and adjusted to typical
situations.

185
 Specially for SMME where management activities are not embedded, an easy
framework and easy methodology is fundamental, so it is one of this model main target.

Other important issue is partnership between SMME and suppliers when

concerning ICT applications. It is very difficult and expensive to be at a good stage or
positioning with technologies. They grow and develop in a high rate so partnership or
alliances between institutions and suppliers are one key issue in this model.

Always pointing Human and Technologies resources as a very important asset and
dignifying work through organization, all employees and shareholders should pursuit and
contribute with ideas and initiatives to a common objective - welfare people’s
organization and communities. This concept can lead initiatives to get effective
knowledge diffusion through community, organizations, courses and individuals.

186
7. CONCLUSIONS

After accomplish all objectives defined in the beginning it is possible to conclude

that the proposed model has good characteristics to get better performance using
educational activities focus on training, teaching or learning processes combining an
hybrid performance, evaluation and management model.

Based on the objectives it is possible to check and resume all of them as pointed
on first chapter of this study and in the following order.

1. Analyze Portugal Information and Technological development and trends – Focus

on Enterprises and Families:

 Low investment in ICT and innovation;

 ICT use is basically for information search and emailing.

2. Collect and analyze Educational Activities (EA) characteristics, models and

applications:

 Lack between environment and EA content;

 EA seems to be a very good way for knowledge actions as enabler and
evaluation propose.

3. Analyze knowledge management models, methodologies, tools and their

characteristics:

 Lack on effective evaluation procedures;

 Knowledge models are an effective way to transfer and retain knowledge
even with some difficulties in sharing and trust feelings.

4. Collect management performance models:

 Lack on effective evaluation procedures;

 Lack on knowledge transmission and retention specially in BSC model;
 Difficulty on implementation process specially in BSC model;
 BSC seems to be a very good model integrating all organization levels
towards its strategy and objectives.

5. Models pros and cons analysis and evaluation;

 Some defaults in every studied models show a sustainable possibility to

create a new integrated model overcoming defaults in previous models

187
  Summarizing good and relevant characteristics from previous studies:

1. EA seems to be a very good way for knowledge actions as enabler

and evaluation propose;

2. Knowledge models are an effective way to transfer and retain

knowledge even with some difficulties in sharing and trust
feelings;

3. BSC seems to be a very good model integrating all organization

levels to the same strategy and objectives.

6. Suggesting a Knowledge Transmission and Retention Model - Based on

Educational Activities (EA) and on Balanced Scorecard (BSC) concept where
main steps are:

 Environment analysis and evaluation using EA

 ICT evaluation using some EA
 BSC adapted model to archive Organization strategic goals where EA acts
in all steps
 Feedback and realignment sustained by EA

7.1. Analyzing Portugal Information and Technological development

situation and its trends

Compiling statistics from UMIC, OCED, INE and other reliable sources it seems
that Portugal are in a difficult situation conducting a crisis or probably a weak situation
for further development.

Considering that the richer Countries are the best investors in technologies and the
most developed, and so the ones that better support companies’ future. Portugal does not
seem to be betting in technologies investment nor obtaining good results with existing
technologies when data analyses is observed from the last past years.

Training and education sustain better performance on companies. Considering

professionals’ investment in training and qualifications, Portugal is moved away from the
European average and has several negative indicators that can be a very bad situation if a
turn over was not considered. More efficient and efficacy methodologies should be

188
applied in order to really sustain development insuring good practices with well known
management and evaluation models.

Globalization impacts and the New Technologies in Portugal is presented misty

and without indication of fast improvement in short term. It does not have sustainability
so that the Portuguese Society, the enterprises and the Portuguese economy can prosper
presently facing these data and results. Without efficient and accurate investments and
efficient strategy we will be kept out of best European performance countries or even
their average and far away from developed countries in the World.

Portugal investment is not archiving good results in investigation and technologies

use. These conclusions are very disclosed to positive values because modernization,
competitiveness and productivity of Portugal indicators seems very low comparing all
Europe.

The main indicators that support these characteristics show that Portugal is in the
Europe last positions and so the perspectives are not good. One concludes that everything
leads to believe that Portugal development is to get behind itself. The ICT are not to be
profitable, the investment is very low, evolution is very slow and thus we can be
convicted to a disqualified manpower and possible escape with better chances of the best
Portuguese know-how to other countries.

The Globalization will probably lead Portuguese Economy in a worse situation

and slowing down even more the Portuguese development, smashing the actual poor
Portuguese Welfare unless a “tough hand” with formal rules and efficiency methods
appears from Government and Organizations.

Measuring, evaluating and applying good practices of management integrating all

stakeholders is a possible successful way for get better conditions and a better future for
Portuguese Organizations and Society in general.

189
 7.2. Evaluation Models in Education

In recent years, a need for a renewing focus on education has been felt.
Universities, High Schools and other schools seek for more effective systems to eliminate
the increasing dissatisfaction with the performance of almost education systems.

In educational terms, there has been a shift away from traditional models in which
most students might have been viewed as passive recipients of teaching, absorbing
information in an uncritical way to a growing enthusiasm for active, independent
learning, which encourages deep, rather than surface, processing of information.

The initial purpose of evaluation is to measure and assess, by comparison of

information. More specifically, "true" evaluation consists of an establishment of criteria,
collection of evidence to compare with the set criteria (baseline) and the arrival of a value
judgment (Cookson, p. 13:3,1996)68.

As William M.K. Trochim (2005) 69 says, evaluation is a methodological area that

is closely related to, but distinguishable from more traditional social research. Evaluation
utilizes many of the same methodologies used in traditional social research, but because
evaluation takes place within a political and organizational context, it requires group
skills, management ability, political dexterity, sensitivity to multiple stakeholders and
other skills that social research in general does not rely on as much. Here it is introduced
the idea of evaluation and some of the major terms and issues in the field.

In Portuguese Universities there were four important objectives70:

a) To promote better quality in development activities

b) To inform and explain all educational and Portuguese communities;
c) To assure precise knowledge and transparency between Universities

68
http://www.ag.ohio-state.edu/~brick/evalexpl.htm#Top%20of%20page, David C. Crawford
(online 07/07/2005)
69
http://www.socialresearchmethods.net/kb/intreval.htm, William M.K. Trochim, 2005 (online
07/07/2005)
70
Evaluation Lei 38/94, artigo 4º, de 21 de Novembro e no Decreto-lei nº 205/98, de 11 de Junho,

190
 d) To contribute to Universities net reorder

The evaluation must contribute for the certification and titles recognition in
Europe. In the other side can be a precious tool for controlling resources activities and for
the financial and human efficiency71

As David C. Crawford (2002) refers from his studies there are various reasons or
purposes why the process of evaluation occurs. The purpose of the evaluation may
include one or more of the following:
 to confirm learners' needs- this may suggest the direction of the formation of
course/program objectives;
 to mobilize learner participation- this may assist in identifying and targeting
learners' interests which may initiate a motivational response;
 to document learning outcomes- the most utilized approach in classroom
evaluation, this may suggest change has occurred due in part to participation;
 to identify needed program changes- which can be utilized to re-direct the
program or lesson to the needs and interests of the learner while still achieving
previously set objectives;
 to communicate accountability to founders, administrators and others. (Case,
1988).

If correctly make and well implemented an evaluation system is useful. Also

should have as main objective to improve institutions quality and their different aspects:
education, investigation, community services, management and should not be a punitive
tool. Implementation should be slow and careful because the final product is a quality
culture inside organizations. Methodology for this achievement should involve all
stakeholders linked all together and thinking as something good for everybody.

In some cases when financial requisites are involved and related with
performance, indicators can appear as current costs per student, abandon ratios, time to
conclusion, graduate employment and student’s satisfaction (Cave et al, 1997). However
none of these indicators is a feasible measure of education quality because they do not
measure the University or institution contribution for the intellectual and personal
student’s development. Generally these indicators represent efficiency like ratios

71
http://www.fup.pt/admin/fup/docs/ca/Guiao_AE_Univ.pdf Conselho Nacional de Avaliação do
Ensino Superior (2000). Processo de Avaliação do Ensino Superior

191
professor / student, cost per student, cost per graduate or efficacy (number of graduations,
employment, etc). 72

There are several approaches for evaluation in education arena, several models,
but it seams CATs is the more adapted in present days, involving several techniques that
can have practical implementation and with good results for some use on some
Universities and High Schools.

However traditional methods remain in almost investigating schools and they

appear to poor, looking only for the immediate plan, focus on a close group: students and
teacher, very far from possible Organization objectives and away from Communities
wishes.

So there is a need for new ways or new models not just evaluation but to integrate
evaluation inside a broad environment must more important that is the Organization and
at the end the Community.

Courses, training, classroom, students, teachers and all closed actors in training,
education or teaching activities is no more an island, like enterprises were two or three
decades ago.

Today trends are reinforce forces, partnership, social values and these means get
new models combining for instance evaluation and best management practice in order to
get main objectives goals for the Organization. This also means that it is not enough
evaluation models it is necessary add management and specially knowledge management
to empower Organization and at the end of the line get better performance involving all
of the stakeholders.

72
Centro de Investigação de Políticas do Ensino Superior (CIPES), Fundação das Universidades
Portuguesas (FUP). http://www.fup.pt/admin/fup/docs/ca/Relatorio%20Cipes%20CRUP.pdf (online
13/07/2005). Alberto Amaral e Maria João Rosa (2004). Fundação das Universidades Portuguesas 22 de Maio de
2004. A alteração do relacionamento entre as instituições de ensino superior e o Estado e as suas consequências em
termos da qualidade.

192
 7.3. Knowledge Management Models

Knowledge needs assessment so the alignment of knowledge management

systems (KMS) with enterprise's strategy requires a continual assessment made by human
competencies and enterprise information requirements. Each value added enterprise
activities, should be assessed for its knowledge needs to respond competently to the
current and future challenges and opportunities.

Although the big importance of ICT as enabler, the critical issues of knowledge
transfer are cultural and people-intensive. It is essential a culture of knowledge sharing
and knowledge seeking, based on trust for effective and rewarding networking and for the
improvement of knowledge alliances between communities of knowledge workers. This
can be the most difficult problem in KM – people trusting in each other in this so
individual and aggressive world.

However KM is getting more importance and its use inside Organizations prove
its value and show its real value on contribution for effective better work Organizations.
As a culture characteristic - it takes some time to gain roots, also KM is a medium – long
term process, Organizations take some years to real interiorize KM and act natural with
its kind of issues.

7.4. Management Performance Models

Management Performance models combines specific characteristics, some are

learning oriented using Human Capital and Intellectual Capital as basis foundations,
others like Hubert Saint-Onge are using Communities of practice to enhance learning
practices and knowledge transference. Others like Sveiby, Skandia or Technology Broker
Model encourage managers to look Organizations as a holistic structure where all assets
must have a special attention in organizational governance.

In the other hand BSC can cross all models looking for tangible and non-tangible
assets whatever they exist: Organizations, small units, individuals. More then an holistic
view, BSC can be “globalize”, being used inside or outside Organizations moving their
characteristics to some other environment where conceptual overview can be adopted,

193
adapted or transformed with convenient good sense over any entity (organization, unit,
individual).

The relevancy of these models is they see Organization not just like an island,
isolated, but encapsulated or merged inside dense and complex environment. These
models are also very difficult to implement though they mold culture and change habits
and rules, however the results are much more consistent and much more adjusted to
actual Organizations reality.

Universities like Fairfield are using BSC for Creating a Continuous Improvement
Program73. Other example come from University of Central Florida74 for Accounting BA
studies in BSC application, Berkley University BSC which was implemented both for
Business and Administrations Services75 or Berkley Academy BSC that encapsulate some
of the main important activities. They have a plan for pilot BSC started in 1999.

Some investigators have applications for small groups in education like the
Swedish’s’ Johansson and Hallgårde in their Balance Scorecard Implementation -
Practical Application (1999) or Svante Gunnarsson (2004) in Using Balanced Scorecard
for Program Evaluation using ICT tool Dolphin as support.

The Balanced Scorecard seems to have almost ingredients and a complete

methodology to embrace Organizations, from global till individual strategic objectives
whelming to challenge future. This methodology combines all entity members from top
management, strategic positions through operational sectors throughout pre-active,
controlling and managing activities to reach global or sector objectives.

73
Charles F. Dolan School of Business Fairfield University. Creating a Continuous Improvement
Program: A Balanced Scorecard Approach. Roselie Mc Devitt, Catherine Giapponi, Norman
Solomon (2003)
74
A Three-Pronged Model for Assessment Planning in Higher Education, Angela R. Albert,
Héctor. López-Román, Uday K. Fair (2003)
75
Using the Balanced Scorecard as a Vehicle for Cultural Transformation, Ron Coley, Associate
Vice Chancellor. American Council on Education, Annual Conference, March 2, 2004.
University of California, Berkeley - Business and Administrative Services - © 2004 UC Regents.
All rights reserved.

194
 The main problem of BSC is the inexistence of a simple and cheap tool specially
for SMME. Other big and important hurdle is culture and knowledge; there are some
concepts that should be quite well understood, management concepts and sharing culture.
To these problems add a deeper one that is Knowledge retention. Without efficient tools
most of archived knowledge can easily vanish.

7.5. BSC based model to get better performance and knowledge

retention and transference using Educational Activities (EA) inside
Small, Medium and Micro Enterprises (SMME)

Main objective in this study is to achieve a combined or hybrid model as the next
figure conceptualize, in order to get better controlled performance. This is a specific
model emphasizing educational activities where a simple methodology would create
friendly adoption and knowledge retention and transference. The big difference relays on
the integration of EA in every steps of BSC application and early stages of th
implementation.
MANAGEMENT
COMMUNICATION
COMMUNICATION TECHNOLOGIES

SHAREHOLDERS/COMMUNITY

EDUCATION
R
KNOWLEDGE
INFORMATION AND

C
•LEARNING
KNOWLEDGE
PROCESSES

FINANCIAL

A
CLIENTS

BEST
•TEACHING A
RESULTS
S
•TRAINING E

Empowerment and Enabling

EVALUATION
Remembering; Comprehension; Application;
Analysis; Synthesis; Evaluation

Figure 24 - Schema – Target Goal – Best Performance

It is not enough to have only evaluation or knowledge models or even

performance models. The combination of all elements can reach better performance as a
whole and with sustainable activities very well known by all stakeholders.

195
 Models even different can’t be isolated. They are a single block for functions
Organization maintenance. Management will rule good practice and guidance while
Evaluation points the right way to the best performance.

This model has four steps that contribute to archive the global and main objective
that is to create or improve knowledge inside SMME using educational activities (EA). It
is necessary to establish a formal selection for main activities to analyze, measure,
evaluate and express conclusions from improved performance, thinking also all the
possibilities to incorporate and adjustments for new KPIs, actions, measures and
redefining strategy if necessary

It is necessary to establish a formal selection for main activities to analyze,

measure, evaluate and express conclusions from improved performance, thinking also all
the possibilities to incorporate and adjustments for new KPIs, actions, measures and
redefining strategy if necessary.
STEP 1 STEP 2 STEP 3 STEP 4
GENERAL ICT ADJUSTING
COMPILATION IMPLEMENTATION
STUDY EXISTENCE / USE MODEL
ENVIRONMENT INDICATORS MEASURES / SCHEDULER REFINING THE
•Resources Definition ACTIVITIES ACTIVITIES MODEL
•SW type
•Mission / Vision /
•Strategy •Time Scheduler •New actions
Objectives •Quantity
•Industry characteristics •KPI •Activities •Adjusting scheduler
•Main applications
•Surrounding Community and strategy
•Measures •Resources
Characteristics •Global Infrastructure
•Incorporating new
Inquiries / Questionnaires / •Activities •Sponsorship
activities, measures and
documentation
KPIs

Evaluation Remembering Evaluation Remembering Evaluation Remembering Evaluation Remembering Evaluation Remembering

Educational Educational Educational Educational Educational

Activities - Activities - Activities - Activities - Activities -
Knowledge Knowledge Knowledge Knowledge Knowledge
Synthesis Comprehension Synthesis Comprehension Synthesis Comprehension Synthesis Comprehension Synthesis Comprehension
Wheel Wheel Wheel Wheel Wheel
Enabler Enabler Enabler Enabler Enabler

Analysis Application Analysis Application Analysis Application Analysis Application Analysis Application

COMMUNICATION / MANAGEMENT

Figure 25 - Model – step by step implementation. Examples of Evaluation on Environment and ICT –
Incremental Add Value Cycle

First step analyse and define the environment, all the space surrounding enterprise
and also the small group and course characteristics. A future trend should be identified,

196
and possible scenarios can be built for different actions specially to add competitive
advantage from competitors and for best strategy scenario. Also in this first step it is
identified all subject ICT relation, infrastructure, use, addition, investments and future
tendency. Needs from this area should be shown in this step to better appliance of this
model.

Based on previous study Mission / Vision and global objectives will be defined or
revaluated. These operations are pillars for next steps and to get best results based on
strategic defined results.

To be possible an efficient enhancement process for retain and transference

educational activities in this step will embrace: inquiries and research; ICT tools will help
theses activities mainly office tools; databases documentation; forums and chats also
Weblogs. Shareholders groups will perform these activities helped by a teacher on EA.

The second step involves big complexity and hard work to complete, redefine,
create, analyze and establish all activities, KPIs, objectives, measures according mission
and strategy. A good scheduler and orientation adding a powerful group and sponsorship
can reach success on this step. In this field educational activities (EA) almost based on
workshops sessions will produce best results.

Implementation is the third step to go through. In this step a logic sequence

project is required with all inherent steps. EA should be check activities lists, checking
plans; documentation, tracing and also enhance resources schedulers and performance. At
this time all initiatives and their strategic results will be on action.

This model finishes with a fourth step for adjustment and revision activities that
will point to the new cycle of study aiming each time cycle a better performance. Here a
broad session meeting; seminary activities bringing knowledge from previous phases will
adjust model for better improvement.

Without evaluation there is no control and without control no direction to go.

Every step should be evaluated and this action must occur based on initial objectives and

197
activities that were implemented. Here one of the most educational activities –
Evaluation; using tests; quizzes; and improving issues from previous phases evaluations.

A Communication and Management plan are transversal to all steps from the very
beginning until the implementation. Communication is a vital key to involve all
organization members and gather them to go in same strategy direction. All EA are based
on communication and in almost organizations this is a gap, obstructing performance and
goals results.

Management plan and strong leadership no doubt fundamental activities playing a

big role during all BSC phases until the final implementation step. The leadership must
use educational / training/ coaching best characteristics to reach strategic results inside
the organization.

All this model steps aim to reach better results supported by education activities to
get better knowledge achievement and better performance in all activities. The largest
goal from community to community is knowledge achievement. We belong to a specific
community and inside that community most of the projects must succeed and get better
possible performance for the better welfare of the community’s people. All the actors –
intervenient or shareholders should get benefits from this project in direct or indirect way
they should also know all about small group activities and the same for community,
organization, SBU and individuals wishes and hopes.

Thus a global vision from SMME can be shown and must be one of the main
pieces in the new model and methodology. From community to community conceptual
vision shows that only a mach with all stakeholders in education processes can reach
better results. Support resources are a combined junction between: ICT tools suppliers,
partners like Institutions, Investigators and Researchers. Organizations where educational
activities take place either in private or public institutions or inside any kind or
organization will have the main role in this scenario. Clients will be students, parents,
tutors, organizations’ employees and in the end all community who will be enriched by
added value from knowledge achievement.

198
 Figure 26 – Team Group

Teacher / Coach /
Manager /
Consultants or
representatives
Institution
elements or
Small Training
representatives
Group
(employees /
students and
teacher) Community
elements or
representatives

It is necessary to bring institution knowledge relevant characteristics inside group

to adapt rules and make formal guides. Ending with the surrounding Community also
need to understand rules and highlights from it to better organize team processes and
attributions activities and roles.

Thus a global vision from close cycle can be shown in the next figure and must be
one of the fundamental pieces in this new model and methodology.

COACHING

Public
MANAGER STUDENTS
(Parents; Tutors)
TRAINING
TEACHER
SUPPLIERS
CONSULTANT
CLIENTS
PARTNERS
COMMUNITY (individuals; COMMUNITY
ORGANIZATIONS groups;
GOVERNMENT enterprises)
TRAINING
Private MANAGER
STOCKHOLDERS
CONSULTANT COACHING
CUSTOMERS
(public; private)
TEACHER

STAKEHOLDERS

CLOSED CIRCLE

Figure 27 – Actors, Entities or Shareholders – From Community to Community

As knowledge is a foundation for Organizations or at the end Community, focus

should have to converge to knowledge at the end of all activities: learning, teaching,
educating, training, manager, guidance, control, performance.

199
 For this new model BSC must be accomplish with formal Management and
Evaluation activities in all layers. A friendly framework should help execution in all
activities of manager or evaluation for all stages. Questions and suitable answers will
help to check Mission and evaluated it, same for strategy and perspectives (they should
be really the best chosen), KPI, measures, and action plans will be check with questions
why, how, when, why not and related answers to “educate” new model’s users. A pilot
example for activities, objectives and measures is exemplified in previous section (see
tables).

Learning, training and other education activities are some of the most important
components of knowledge, but guidance like management and evaluation must appear to
control and adjust performance.

This model – BSC based model to get better performance and knowledge
retention and transference using Educational Activities (EA) inside Small, Medium and
Micro Enterprises (SMME), must be accomplish with formal Management and
Evaluation activities in all layers. A friendly framework should help execution in all
manager or evaluation activities for all stages. Questions and suitable answers will help to
check Mission and evaluated it, same for strategy and perspectives (they should be really
the best chosen), KPI, measures, and action plans will be checked with questions why,
how, when, why not and related answers to “educate” new model’s users. Sample
examples are exemplified in previous section.

200
 MISSION
VALUES VISION VALUES

EDUCATIONAL ACTIVITIES
STRATEGY
Remembering
PERSPECTIVIES

Client Comprehension
STRATEGYC STRATEGYC STRATEGYC
THEMES THEMES THEMES
Financial Objectives; KPI; Objectives; KPI; Objectives; KPI;
Application
Measures; Measures; Measures; Analysis
Process Actions Actions Actions
L& G Synthesis
COMMUNICATION
Evaluation
MANAGEMENT
ICT
EDUCATIONAL EDUCATIONAL EDUCATIONAL
ACTIVITIES ACTIVITIES ACTIVITIES
Clients; Financial; Processes; Learn & Remembering; Comprehension; Application;
Growth Analysis; Synthesis; Evaluation

Figure 28 - Educational Activities in Every Phases Of The Model

Learning, training and other education activities are some of the most important
components of knowledge, but guidance like management and evaluation must appear to
control and adjust performance.

Educational Activities importance can enhance Knowledge Transference and

Retention through their activities and at same time get SMME better results due an
efficient evaluation since mission till activities. Educational Activities main functions -
Knowledge wheel enabler and Evaluation:


Socialization (Tacit to Tacit): Meetings and team work discussions


Externalization (Tacit to Explicit): Dialogues; answering questions
Combination (Explicit to Explicit): Share documentation; e-mail; education;


training involving documents
Internalization (Explicit to Tacit): Leaning from a registry.
1. Remembering - recalling of appropriate, previously learned information: define;
describe; enumerate;
2. Comprehension - understanding the meaning of informational materials: classify;
convert; describe; discuss;
3. Application - The use of previously learned information in new and concrete
situations to solve problems: act; articulate; assess; chart; collect; compute;
operationalize;
4. Analysis - The breaking down of informational materials into their component
parts, to find evidences: break down; correlate; diagram; differentiate;
discriminate;

201
 5. Synthesis - Applying prior knowledge and skills to produce a new or original
whole: adapt; anticipate; categorize; collaborate; combine; communicate;
6. Evaluation - Judging the value of material based on personal values/opinions:
appraise; compare & contrast; conclude; criticize; decide; defend.

Evaluation Remembering

Educational
Activities -
Synthesis Knowledge Comprehension

Wheel
Enabler

Analysis Application

Figure 29 – Educational Activities as Knowledge Wheel Enabler

This model uses EA in each main BSC steps. Like traditional BSC there are
perspectives, objectives, KPI, measures and action plans for all drill down entities from
community to employees / students. An example for each case must be constructed for a
friendly users help on implementation and maintenance in this particular model.

Combining several more activities pointed in Knowledge Management Models

inside BSC activities and supported by ICT tools will probably accelerate knowledge
retention and transfer. As learning is also achieved in both EA and BSC, potential
positive results are expected based on this new model.

7.5.1. Enhancing Organization Results

 Aligning strategy is one of the most difficult processes for BSC Model but
can be enhanced by Educational Activities. The use of objectives,
measures, targets and initiatives provides a vehicle for articulating the
strategy in a very tangible manner. Strategy communication and
explanation using Educational Activities inside Organization, small group
or units will enable people’s tasks and efforts alignment with strategy.
 Educational Activities can be quite adopted inside Organizations they will
combine the major functions of Education: Remembering,
Comprehension, Application, Analysis, Synthesis and Evaluation with
Community and Organizations Mission, Vision, Values, Strategic
Objectives and Activities in a better integrated combination.

202
  As one of the most hurdles is knowledge transference and retention, also
with communication issues; educational activities will enhance and clearly
get better improvement over knowledge process in all model steps towards
better results

7.5.2. Other Possible Effects

The figure shows the global idea for this model, a possible knowledge process
through BSC from people-Community to people-Community pyramid. This circle
concept explained in above paragraphs that starts in Community – Employees / Students
– SBU /SG – Institution and then again Community, will help to retain knowledge and
get more knowledge from cycle to cycle. This can be pictured as a Knowledge
Equilibrium figure helped by Educational Activities

EA COMMUNITY

EA INSTITUTION / SMALL
ORGANIZATION / SMME

EA SBU / SG

EA STUDENT / EMPLOYEE

Figure 30 - BSC Layers – Course Application - Knowledge Equilibrium

In Knowledge Equilibrium picture the possible four are built containing bottom-
up student / employee, SBU / SG, institution and community. For all layers will have
Education Activities (EA) and BSC concept and methodology embedded, with all
indicators, measures and action plans and all combine to pursuit organization mission and
strategy. For each layer specify strategy should also be formally indicated.

203
 COMMUNITY INSTITUION

E P F P
F – Financial

R&D C R&D P – Process

R&D – Research
and Development
STUDENT / EMPLOYEE SBU / SMALL GROUPS C – Client
E – Environment /
F P F P Shareholders

R&D C R&D

Figure 31 - Proper Perspectives for all Layers

Learning, training and other education activity are some of the most important
components of knowledge, they support and sustain knowledge. So a knowledge base
should exist containing all information and for employees / students point of view it will
be possible to manager their whishes, tendencies, skills and though manager their career
combined with community and market needs.

Some examples were constructed for possible test on a pilot approach, see
previous tables in previous section where BSC based model to get better performance and
knowledge retention in educational activities small groups using knowledge management
is described. The sequence and methodology will be quite simple and typified according
groups. A Guide Operation for these small groups should be available for the complete
understanding and steps implementation and at the same time to interiorize knowledge
inside the group.

If Educational Activities are quite adopted inside Organizations they will combine
the major functions of Education: Remembering, Comprehension, Application, Analysis,
Synthesis and Evaluation with Community and Organizations mission, vision, values,
strategic objectives and activities in a better integrated combination.

Education encompasses teaching and learning specific skills, and also something
less tangible but more profound: the imparting of knowledge, good judgment and

204
wisdom. Education has as one of its fundamental goals the imparting of culture from
generation to generation (see socialization).

Educational Activities combined with the major functions of Education:

Remembering, Comprehension, Application, Analysis, Synthesis and Evaluation will
help BSC implementation with successful results specially for SMME.

Main objective of this model, the focus and study of this investigation, is
knowledge retention and transference to get better performance and results, using
specific methodologies: using BSC methodology through all scorecards from
surrounding environment till individuals, supported by educational activities that
will enhance Knowledge, Evaluation, Communication and Management issues.

Contextual key success factors of this new model are:

 a methodology and friendly tools to get more simplification
 an efficient and easy implementation
 an easy way of working would be also expected

In Portugal, the use of the BSC is not very common although recent effort to
implement this methodology. If the target are big Organizations the BSC implementation
can be easy: there are more money for investments, rules quite well defined, more
understanding of culture problems and more capacity to get training, so in sum, there are
strong probabilities to implement and have success with BSC in large Organizations
adding also an expensive technology tool like Oracle; SAS; QPR or other big BSC tools
suppliers.

Problems may occur inside SMME or micro enterprises, or inside small work
groups. Here problems are multiplied by the lack of easy and cheap tools and by an easy
implementation guide. Also the understanding of what is a BSC and actors - stakeholders
(see figure) positive value are fundamental and it is one of the major problems even in
big or small groups or enterprises. This concept after a pilot test can probably be tested on
SME or micro Enterprises. One of the golden rules will be friendly use of ICT, clear
understanding of an “easy BSC” and all the activities behind this model.

205
 So with all model steps, the idea is construct a small but efficient roadmap, a
guideline for the:

1. understanding BSC methodologies benefits;

2. apply a framework for checking activities;

3. add a friendly tool with pilot models just ready for appliance;

4. use a friendly guidance for scheduling model implementation

5. make available a friendly guidance for scheduling model maintenance

6. use an easy framework for evaluation BSC activities and resources

Specially for Education where tradition lays in small groups and specific skills
where management activities are not embedded, an easy framework and easy
methodology are fundamental.

Other important issue is partnership and alliances between small groups on

Education or other activity when concerning knowledge share but particularly for ICT
applications. It is very difficult and expensive to be at a good level or positioning in
technologies. They grow and develop in a high rate so partnership and alliances between
institutions and suppliers are one key issue in this model.

Always pointing Human and Technologies resources as a very important asset and
dignifying work through organization, all shareholders should pursuit and contribute with
ideas and initiatives to a common objective - welfare people’s organization and
community. This concept can lead initiatives to get effective knowledge diffusion
through organizations or small groups.

This new model main goal is its appliance on small groups inside enterprises or
educational organizations always focused on educational activities.

206
8. FUTURE STUDIES

Studies are always incomplete, changes are faster and there are always things to
collect, other view, other investigations other thoughts.

For this investigations however, some more information should be collected and
analyzed and further investigation should be done specially on these themes always
pointing BSC new model improvement:
 Improve CoPs area – the contribution of communities for better sustain
knowledge and diffusion will help Organizations, small groups or units and even
individuals;
 Improve Web tools to enhance communication and share knowledge: weblogs,
forums, e-learning, wikis, chats;
 Improve Mobil tools to enhance communication and share knowledge: messaging,
photos, resumes;
 Possible integration of CRM, SCM, ERPs systems. CRM for instance will permit
to know trends and help employees / students career combining with community
needs.
 Searching for new ICT tools to support BSC inside SMME
 Evaluate and check new possibilities for standards and frameworks for SMME
and small groups
 Test this model in different contexts.

207
9. REFERENCIES AND ACTIVITIES

9.1. Publications

BALANCED SCORECARD NAS PEQUENAS, MÉDIAS E MICRO EMPRESAS.

(Balanced Scorecard at SMME). Diário Económico, Lisboa 4-8 de Agosto de 2005.

MODELO ESTRATÉGICO DE COMUNICAÇÃO, REFLEXOS NUMA

SEGURADORA PORTUGUESA. APSI - 5ª Conferência da Associação Portuguesa de
Sistemas de Informação. Proceedings APSI 2004, Lisboa.

IMPROVING MODELS AND TOOLS TO BETTER EXPLORE AND IMPLEMENT

KNOWLEDGE MANAGEMENT AT ORGANIZATIONS. Teresa Florentino and Luis
Joyanes.3rd International Workshop on Practical Applications of Agents and Multi-Agent
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LA REIFICACIÓN EN EL SENO DE LAS COMUNIDADES DE PRATICA.

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MODELO ESTRATÉGICO DE COMUNICAÇÃO, REFLEXOS NUMA

SEGURADORA PORTUGUESA (STRATEGIC MODEL FOR COMMUNICATION
AT A PORTUGUESE INSURANCE COMPANY). APSI - 5ª Conferência da Associação
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Técnico, Lisboa.

WEBSITES, WIKIS, WEBLOGS, AS COMUNIDADES DE PRÁTICA E O

CONHECIMENTO. APSI - 5ª Conferência da Associação Portuguesa de Sistemas de
Informação 5th November 2004 IST – Instituto Superior Técnico, Lisboa.

WEBSITES, WIKIS, WEBLOGS, AS COMUNIDADES DE PRÁTICA E O

CONHECIMENTO. APSI - 5ª Conferência da Associação Portuguesa de Sistemas de
Informação. Proceedings APSI 2004, Lisboa.

208
QUALIDADE: A INTERPRETAÇÃO POPULAR E A INTERPRETAÇÃO
PROFISSIONAL - QUALIDADE INFORMÁTICA - ENTRE O CIENTÍFICO E O
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INFLUÊNCIAS DE UM EIS NUMA EMPRESA SEGURADORA, FOR THE BOOK

"NOVA ECONOMIA E TECNOLOGIAS DE INFORMAÇÃO - DESAFIOS PARA
PORTUGAL - (Impacts of an EIS in an Insurance Company – New Economy and
Information Technology: Challenges to Portugal), do Prof. Valadares Tavares, edição
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IMPACTES DO SISTEMA DE INFORMAÇÃO PARA EXECUTIVOS (EIS) NUMA

COMPANHIA DE SEGUROS.BENEFÍCIOS NA PRODUTIVIDADE E
QUALIDADE COMO CONSEQUÊNCIA DA INTRODUÇÃO DE UM EIS NUMA
EMPRESA DE SEGUROS. THESIS UCP - Lisboa, 1999.

STUDY OF EXECUTIVE INFORMATION SYSTEM – EIS, SOME STUDIES

ABOUT THE USE OF EIS AND IT PROCESSES OF IMPLEMENTATION AND
KNOWLEDGE DIFFUSION. Tranquilidade enterprise journal, 1998

9.2. Talks

SISTEMAS DE SUPORTE À DECISÃO MARKETING E VENDAS: Tirar Vantagens

Através Das Tecnologias – Decision Support Systems, Marketing and Sells – Taking
advantages through technologies. Seminar Presentation at IPAM – Instituto Português
de Administração e Marketing, Lisboa – Portugal in 2005.

DATA WAREHOUSE - COMO GARANTIR A SUA EVOLUÇÃO E RETORNO

(HOW TO GO FORWARD WITH PROFITS) - The case study of Tranquilidade
Insurance - management of its data warehouse. Presentation at conference of NPF -
Lisboa 2003.

209
PRESENTATION AND PREPARING QUALITY - CHALLENGES AT
UNIVERSITY. Instituto Superior de Gestão - ISG. Lisboa, 2001.

EIS – O SISTEMA DE EXECUTIVOS NA TRANQUILIDADE, in Lisboa at

Conferência Anual do SAS Institute, 1998.

9.3. Talks and Publications

WEBSITES, WIKIS, WEBLOGS, COMMUNITIES OF PRACTICE AND

KNOWLEDGE. International Association for Development of the Information Society.
ISBN: 972-9824-00-3. Algarve – Portugal. Presentation at IADIS International
Conference – Applied Computing 2005.

ADDING NEW FEATURES AND TOOLS TO KNOWLEDGE MANAGEMENT

MODELS AND PORTALS. International Association for Development of the
Information Society. ISBN: 972-9824-00-3. Algarve – Portugal. Presentation at IADIS
International Conference – Applied Computing 2005.

IMPACTS OF AN EXECUTIVE INFORMATION SYSTEM IN AN INSURANCE

COMPANY IN PORTUGAL. Proceedings of IADIS International Conference – Applied
Computing 2004. International Association for Development of the Information Society.
ISBN: 972-98947-3-6. Lisboa 26th March 2004.

MODELO ESTRATÉGICO DE COMUNICAÇÃO E INICIATIVAS. 2º Congresso

Nacional de Administração Pública: projectos de Mudança - Artigo Proceedings INA
Instituto Nacional de Administração, Lisboa, 3rd November 2004.

EIS, ESTUDO DE CASO NA TRANQUILIDADE. Guimarães 1ª Conferência de

Sistemas de Informação, da Associação Portuguesa de Sistemas de Informação –
November, 2000.

SISTEMAS E TECNOLOGIAS DE INFORMAÇÃO - Desafios para o Século XXI.

Specialized Conference – Challenges in XXI Century, UCP Lisboa, October 1999.

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218
Vector21 (2004). “4_Estudos_Anuais_Unicre_Vector21_Os_Portugueses_e_as_Compras_na_internet.pdf”,
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10.1. More often accessed Internet links

http://knowledge.wharton.upenn.edu

http://www.ag.ohio-state.edu/~brick/evalaee3.pdf. slides avaliação da performance

http://www.ag.ohio-state.edu/~brick/Matrix.PDF. matrix de avaliação da performance

http://www.cdio.org/meetings/sept04/balancedscorcards.ppt

http://www.cio.com – CIO magazine

http://www.fup.pt - Centro de Investigação de Políticas do Ensino Superior (CIPES), Fundação das Universidades
Portuguesas (FUP)

http://www.konvergeandknow.com/articles/tacitknow.html

http://www.london.edu/emba/programmes2044.html

http://www.mindstep.no/getfile.php/68000.69/Hovedoppgave+Intellektuell+Kapital+2002.doc

http://www.saint-ongetoolkit.com/businesspractice.html

http://www.socialresearchmethods.net/kb/intreval.htm, introduction to evaluation

http://www.balancedscorecard.org - The Balanced Scorecard Institute - Provides training, consulting and guidance on
the balanced scorecard for strategic transformation of government and business.

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11. APPENDIXES

11.1. Appendix: Defining Enterprises - Definição de Empresas

The definition of SMEs according to the European Commission recommendation

2003/361/EC

Source: 2nd OECD CONFERENCE OF MINISTERS RESPONSIBLE FOR SMALL

AND MEDIUM-SIZED ENTERPRISES (SMEs) - Istanbul, Turkey 3-5 June 2004

11.2. Appendix: ICT (Tecnologias da Informação e da Comunicação)

Table 4 - Tecnologias da Informação e da Comunicação nas empresas com dez e mais pessoas ao serviço,
em 2004, segundo a dimensão da empresa (%)

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 Table 5 - Tecnologias da Informação e da Comunicação nas empresas com dez e mais pessoas ao serviço,
em 2004, segundo a actividade económica da empresa (%)

Empresas com ligação à Internet, por número de pessoas ao serviço (2001-2003) (%)

Universo de Análise para 2001 e 2002: empresas com 10 e mais trabalhadores e secções da CAE Ver. 2: D, G, H (551+552), I, J (apenas
67) e K; Universo de

Análise para 2003: empresas com 10 e mais trabalhadores e secções da CAE Ver. 2: D, F, G, H (551+552), I, J, K, O (921+922).

Sources:

INE/OCT, Inquérito à Utilização das Tecnologias da Informação e da Comunicação nas Empresas, 2001;

INE/UMIC, Inquérito à Utilização das Tecnologias da Informação e da Comunicação nas Empresas, 2002;

INE/UMIC, Inquérito à Utilização das Tecnologias da Informação e da Comunicação nas Empresas, 2003.

Figura 1 – Source: UMIC (2004) - Empresas com Banda Larga – por tipo de empresa (%)

Actividades desenvolvidas através da Internet, em 2003 (%)

Base: Empresas com Ligação à Internet (com e sem ligação através de Banda Larga)

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Universo de Análise para 2003: empresas com 10 e mais trabalhadores e secções da CAE Ver. 2: D, F, G, H (551+552), I, J, K, O
(921+922).

Sources:

INE/UMIC, Inquérito à Utilização das Tecnologias da Informação e da Comunicação nas Empresas, 2003.

Figura 2 – Source: UMIC (2004) – Actividades com o uso da Internet (%)

Empresas com Comércio Electrónico, em 2003 (%)

Base: Empresas com Ligação à Internet (com e sem ligação através de Banda Larga)

Universo de Análise para 2003: empresas com 10 e mais trabalhadores e secções da CAE Ver. 2: D, F, G, H (551+552), I, J, K, O
(921+922).

Sources:

INE/UMIC, Inquérito à Utilização das Tecnologias da Informação e da Comunicação nas Empresas, 2003.

Figura 3 – Source: UMIC (2004) – Actividades com o uso da Internet (%)

222