Posts Tagged ‘ change management ’

Changing a Practice through Experience Capitalization

Change is everywhere and happens all the time…well except for corporations, where changing a practice, procedure, process is a rare phenomenon and there is no consensus on how to bring about it. Too many variables, too many factors since change always rattles the culture which is hard to define, let alone adapt.

Among many techniques for change, including management controls, dictatorship, incentivization, germination and gamification, one instrument is Experience Capitalization.

A technique from Knowledge Management which enables Knowledge Capture, Transfer and Utilization all in one with defined outcomes leading to Lessons Learned and ‘Good Practices’ with the stakeholders ready to buy-in and adapt for change.

Doesn’t that just sound great! Well, that’s the target anyways….

The essence to enable change, one has to institutionalize shared knowledge among the stakeholders based on their experiences and consensus.

We know that Knowledge Transfer is a core function of successful innovative companies. The “Flow” enables us to co-create, institutionalize knowledge and get a real feel of knowledge worthiness.

Knowledge Transfer takes place for a host of reasons like succession planning, product training, new employee ramp up, brewing up best practices, abandoning bad practices but when knowledge is systematically converted into capital to enable process improvement and structural change, it is often called ‘Experience Capitalization’.

Although ‘Experience’ is known to be the least effective knowledge acquisition tool since it carries a high risk of not learning anything further, or of carrying the ‘wrong’ experience, one which is made due to bad habits of short term quick and dirty fixes but here the term ‘Experience Capitalization’ refers to collective, institutional learning which overcomes such ‘Competency Traps’. In most if not all cases, Organizational Learning is a better critical success factor. Here Experience Capitalization focuses on Organizational Learning.

The philosophy is that by capitalizing on (latent) experiences, changes can be brought about since it is the (latent) experiences which are ignored and sidelined without this process, blocking the impetus to change.

Experience capitalization is a learning process but differs from personal learning in that the expereince is summarized and belongs to the whole group, reached through a concensus and thus reducing the resistence to change. Another fundamental difference from other forms of Organizational Learning is that experience capitalization usually focuses on the experiences of the stakeholders only without involving third parties. This ensures that the summation of the experiences are ‘local’ to the stakeholders who have to undergo change. Experience Capitalization cannot be delegated but third parties can be invoked only as facilitators.

The Swiss Agency for Development and Coperation defines it as:

Experience capitalization refers to the transformation of (individual and institutional) knowledge into capital by those directly involved in order to change a collective, institutional practice. It aims at changing one’s own practices or structures.

Read more about Experience Capitalization at their website.

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Re-Structure, Re-engineer Not. Recycle!

I had been getting constant reminders this week to attend a very important meeting arranged by the shareholders of my company. The entire board and staff were invited to attend. Today, amongst all the hype of the meeting, I inquired about the agenda from the office administrator. He doesn’t converse much in english and said the company is going through recycling!

Yep, you’ve heard it, and are probably thinking it as well, he actually meant ‘restructuring’. However, coming to think of it, business should be actually recycling rather than restructuring or re-engineering.

Recycle in webster is defined as:

to pass again through a series of changes or treatments: as

  1. To process (as liquid body waste, glass, or cans) in order to regain material for human use
  2. Recover
  3. To reuse or make (a substance) available for reuse for biological activities through natural processes of biochemical degradation or modification
  4. To adapt to a new use : alter


On the other hand, Change Management is defined as:

“Change management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment. ” – Wikipedia.

The overly painful and agonizing transition to this desired state with many a casualty, uncertain future, distration from focus, and a sense of panic which has haunted change management initiatives across the world simply misses the important mottos:

  • “To Regain”,
  • “To Adapt”,
  • “Recover”.

Thats the essence of Recycling! Well ofcourse to some degree, Adaptation is implied in Re-Engineering (Process Re-Engineering) activities, it is the explicit nature of subconcious ‘allegations’ that ‘as-is’ is below the required mantle while ‘to-be’ is in all its might, superior than the ‘as-is’, Thats why people in the middle of it despise change. Coming to think of it, the term recycling comes much closer to the point than restructuring for any possitive change management.

The goal for any organization to employ any change management initiative should to be

  1. To conserve its morale (or improve it), as it is the fundamental energy,
  2. To reuse this energy and materials, thats the lessons learned, the knowledge and the ‘what works’ in an organization using its existing people
  3. And finally it is to ‘Recover’ whats lost…, corporate focus! (The enthusiasim and drive which was once set long ago in entreprenueral utopia.)

Go Green, dont restructure or re-engineer but recycle your business!