With the development of economy globalization and multiculturalism, the concept of Communities of Practice (CoPs) has been widely spread in order to improving performance and driving innovation. Users rely on these communities to achieve their needs of working with groups. Practices aim to solve problems, request information, seek experience, coordination and synergy, discuss developments, document project mapping knowledge and identify gaps.
However, current critiques point that the concept is deficient. Managers typically have problems with their internal evaluation and external impact. Further doubts involve coherence lost and analytical power shortage.
1.2. Terms of References
This report is to identify what CoPs are and how they can increase productivity and improve organizational performance followed by strengths analysis. It should also be noted that CoPs’ implications and application will be discussed as request. Recommendations are applied to weight key factors for successful implementation and evolution within technology management aspect through the case of KPMG.
2. What are Communities of Practice (CoPs)?
Communities of practice are groups of people who share a concern or a passion for something they do and learn how to do it better as they interact regularly (Wenger, 2006). A group of accountants can work on similar problems. A network of IT staffs may explore new techniques. A gathering of managers are able to communicate and help each other better.
CoPs may act as corporate memories, mechanisms for situated learning of practice, and foci for innovation (Jakovljevic, Buckley and Bushney, 2013, pp.1108-1109). It can exist in every place with a purpose of sharing information and setting up a useful community. Participations do not require to work at the same department and can join the community by individuals. For example, to invite external groups to attend conferences and business meetings can give benefits of exchanging information with clients, possible competitors and government. Informal conversations can make idea generation effectively.
CoPs are essential knowledge resources and they are difficult to identify in organisations (Wenger, 1999). These communities are not bound by official organizations and participations are voluntary. Informal personal workgroups with particular technology may diversify institutional structures and internal hierarchies.
2.1. The Characteristics and Key Drivers of CoPs
Wenger (1998) characterised CoPs by a domain, community and practice. He stated that a CoP is a group of individuals with a shared domain of interest, or a common responsibility, united by a joint desire to develop and grow by sharing ideas and best practices. Participations select a CoP by themselves from other groups and networks, such as workplace groups or department networks, and practice their new knowledge. They focus on the execution rather than the theory, and aim to create an ongoing cycle of practicing. A community carries trusted relationship among members naturally. The sustainable rewards of social community and collaboration bring participations confidence that it is worthy for them to join the group.
Economic benefits, globalization, high-speed technology development, the changing dynamic of the workplace and the war for talent are all the factors driving the demand for CoPs (Cegos, 2012, pp. 6). With the global economic slowdown, organizations reply on CoPs to seek more flexible and low cost-efficient tools in order to remain employees’ productivity and monitor core activities’ efficiency in the workplace. The rise of the internet and new technology towards today’s global multi-cultural 24/7 business environment. CoPs can widen networks and reduce training costs through collective collaboration in product development and customer services. The changing dynamics of the workplace require a CoP to get a balance of cross-generational concepts gaps so that employees can seek common ground while reserve differences and maximize effectiveness at work.
2.2. The Strengths of CoPs
CoPs provide a whole host of benefits such as reducing costs and improving performance. Key benefits can be concluded as the passion of the community, the knowledge sharing locally or globally and the ability to connect people from different departments, organizations, geographical regions and other specific boundaries.
Wenger and Snyder (2000, pp. 140) said that ‘people in communities of practice share their experiences and knowledge in free-flowing, creative ways that foster new approaches to problems’. CoPs support people to experts so that the learning curves of new employees get decreased. Rework and ‘reinvention of the wheel’ can also be reduced and prevented as an advantage of CoPs. The informal communication builds a strong social networking environment so that individuals from different levels within or even outside an organization can bring knowledge together. Greater innovation can be achieved, not only in a typical workplace but also in that particular industry, based on the trusted relationship and shared ideas of problems solving and creation.
2.3. Key Factors for Successful Implementation
Cegos Group (2012, pp. 12) summarized ten guiding principles for establishing a successful CoP in Asia. In a global perspective, there are a number of points that can sustain and enhance CoPs’ implementation.
Setting up a clearly stated purpose of a CoP and identifying valuable participations are fundamentally important for starting a good community. It is worth noting that the purpose for building a CoP is to foster instead of control as this is for learning not fulfilling. Organizations are focusing on technical solutions and tools, rather than the social or environmental factors. The needs and capabilities of both the group and members’ should be determined. The power of defining key roles and responsibilities should not be underestimated as it maintains the community and has to thrive business outcomes. A kick-off meeting is required to mention duties to all the members and build trusted relationships for both individuals and the community. CoPs also need to establish behaviour from the outset, especially if the organizations or members are new to the approach. Two-way learning may be useful for a CoP to balance members and reifications. For example, a community may lose time concerning too much on participation instead of sharing information with each other. A good CoP must monitor the balance between two sides.
More than that, CoPs run more efficient and effective through the promotion in internal and external propaganda with marketing department. Faster advertisement in the early stage wins as it can attract numbers of people in a high speed so that a new
community can be strong in a short time. Maintaining connectivity is necessary for keep the participants closing to the community. Both face-to-face activities and online activities are suggested to establish in order to target long-term success. Effectiveness evaluation should be monitored regularly and aims to solve problems and upgrade qualities, which can be assessed through the performance review and test for continued relevance.
2.4. The Evolution of CoPs
However, each coin has two sides. CoPs bring knowledge, policy and practice closer, they also widen the gaps among these three. Closed communities can reject new ideas and suffer from ‘groupthink,’ paralysing their ability to respond to external input (Nemeth, 1987). CoPs are advised to adopt the minority views and encourage critical thinking and recommendations. Moreover, the amount of time people invest in their communities also tends to be an issue along with the technology development. In particular with online participations, the cost of online communities should be at a low level so that some people could attend more than three or four communities at the same time. But the cost of actual participation is very high. The commitment and resources invested in the CoPs reduces as members are supposed to contribute value while the community is to gain value.
Wenger in 2005 indicated that difficulties with technology will inhibit participation in an online community of practice. Technology is to respond the real activities in the society globally, rather than to define an experience for participations. People may face technical difficulties such as unable to access the live meeting or did not know how to use a specific software. KPMG invented a global CoP in the name of K-World in 1999, which is a knowledge management system to enhance knowledge sharing and collaboration between KPMG partners, employees and clients all over the world (KMWorld, 1999). K-World offers a virtual extension for its internal and external participations with an easy click.
3. Recommendations
CoPs can be found within business, across business units and across company boundaries. KPMG established K-World as people determining solving problems together. Information can be processed constantly within a proper CoP. Both internal and external participations do not need to reserve any information by themselves as this kind of communal memory can be found through the K-World system in accordance with their different demands.
Marketing people who keep in touch with different businesses as a representative of the company should form CoPs to share updated information with their clients and sustain their expertise. For example, the CoP Marketing department built can run a business fair for promoting new services that no other departments with the company are able to handle this by themselves.
Furthermore, a CoP created by HR department can be useful as they are working across company functions. With changes made in the transfer of employees, HR managers may set up a CoP to keep up with constant HR movements.
Wenger in 1998 acknowledged that different members of organizations can support CoPs in their own domains so that advantages can be maximized. Consulting managers must ensure that their team employees are able to join the right CoPs so they can continue providing professional services to their clients. IT managers must confirm that knowledge is a thing, which towards sustaining social and technical
ecology in accordance with the mission of knowledge. HR departments have a very good system that training new employees in practice and a typical CoP for them can enhance the community between new employees and veteran employees. Senior management board should be beneficial from the information collected through the CoPs. Online feedbacks and comments bring two-way connections between the CoP and organizational strategies in a global perspective. As a professional accounting firm, KPMG accountants have already realised the potential capital could be generated running a system like K-World in an early stage. A strong CoP can create more economic benefits for an organization.
In fact, KPMG was using a vision called ‘Shadow Partner’ during 1980s. That knowledge management system did not perform well so that KPMG fell behind the other professional services firms. The shortage of global knowledge management capabilities to KPMG was not able to support this company in sharing information and making decisions on the largest engagements across the world at that time. A new system was much needed in the global competitive environment in order to precede virtually all other professional accounting firms.
Consequently, ‘Shadow Partner’ was moved away and K-World improved the quality of KPMG’s CoPs on the basis of adopting cultural diversity. This new technology model was implemented that it could move users across the life cycle in parallel to system developments and evolution (O’Leary, 2008, pp.16). Further feedbacks in the recent years confirmed that K-World system guides internal employees and external clients in an electronic path to the growth capital and spot news.
Besides, Microsoft software, such as Outlook, Windows NetMeeting, Exchange, Site Server, Office and Internet Explorer were also introduced into interactive communication activities and daily networking as collaborative tools. Since Microsoft Exchange 2000 Server was designed to build a secure and easily monitored environment for organizational communication, KPMG enhanced its collaboration abilities with clients replying on this software. This global professional firm starts to work more effective and efficient for their partners and clients across proper boundaries in the world.
"With the launch of K-World, we will leverage the intellectual capital of everyone in KPMG and enable our practitioners to better serve our clients locally and globally," said KPMG CEO Paul Reilly two weeks before K-World launched in 1999. Shared experience in the past ten years proved that K-World did bring all the advantages to KPMG workers of running conferences and business activities, updating and customizing both internal and external news, and evaluating breaking news globally.
As Gerry Murray, director of knowledge technologies at IDC, predicted in 1999, $100 million revenues invested by KPMG over that year in innovating its worldwide knowledge management system is worthy as this system does offer a high quality service to its clients after K-World launched. The resources the system disposed and the vision also bring a huge number of benefits for partners and internal users. The design widely used in a short time generates not only economic benefits but also potential wealth for KPMG.
Even so, client privacy and search are the two key issues in the current system. Confidential knowledge must be confirmed that it is not included among knowledge management resources. It cannot be reviewed easily as it assures client confidentiality. On the other hand, K-World faces a tough test as the continuously increased number of documents reveals the system storage shortage. Leaving client information out finally could be barrier for search as long as the number of clients constantly expands. Although different countries have tried to improve the current system with their solutions, further changes for K-World should be taken into consideration.
As a professional leading company in the world, KPMG pays particular attention on the evolution and innovation. K-Client will be the next stage on the strong basis of K-World. It can be seen as a more protective design to revolutionize KPMG’s communication style with its clients. K-Client is expected to build up a new communication standard and share up to date information with clients in the world. KPMG is seeking for the most effective way, such as using the Web Storage System, advanced search functions and security options, with Microsoft in order to sustain its collaboration space.
4. Conclusions
CoPs plays a valuable role in today under the conditions of individuals operation within their workplace, networking and shared interest. Although working attitudes and environment may be revealed through workplace context, appropriate CoPs offer many benefits to individuals, groups and organizations on an internal and external perspective. CoPs aim to connect people in passion to drive business efficiency and increase productivity. They are the antidote to the financial crisis and need to span continuously in order to innovate and create economic growth with the concern on employee engagement for the future.
It is unclear whether KPMG can overcome the competition with K-World or not. It is obviously that they have implemented and evolved a system, which gathers disparate systems and supports collaboration for global decision making. Eventually, evolving new and emerging changes for W-World are in demand.
In another word, appropriate CoPs provide substantial benefits within collaboration and improve consistency and quality of innovative solutions. Companies, who clearly integrate CoPs as part of their culture and structure in their business, are able to acquire long-term investment returns in the years to come.