Understanding Knowledge Management with North’s Stairway Model

In the second part of the Knowledge Stairway, North describes how knowledge develops further and what effects it has. When generated knowledge is applied to a specific use case, ability emerges. This ability becomes visible in explicit actions. The prerequisite: the will to carry out these actions. A person may know how a process works, but not perform it themselves. Only when the person is willing to apply the knowledge can ability – and, ultimately, competence – arise. If an organisation can demonstrate many unique competences, it becomes competitive. At this point, the highest level of North’s Stairway Model is reached. The stairway thus illustrates how knowledge (and the management of knowledge) leads to competitive advantages.

The model distinguishes between two types of knowledge management: operational and strategic. Both are meant to complement one another and are based on the assumption that fields of action can be derived from the Knowledge Stairway.

Fields of action in operational Knowledge Management

Operational knowledge management moves up the stairway from bottom to top. Its central question: How is individual knowledge transferred into collective knowledge? It examines the process of linking knowledge, ability and action. From this, measures for knowledge development and knowledge transfer should be derived. Operational practice therefore also focuses on creating systems that encourage the application of acquired knowledge. Incentives might include providing staff with greater freedom or offering further training opportunities.

Fields of action in strategic Knowledge Management

Strategic knowledge management begins with a different question: What knowledge is required to become competitive? Here, the stairway is approached from top to bottom. The aim is to identify weaknesses in the processes of knowledge development and application. At all times, the organisation’s knowledge goals must be considered. These should be derived from overall organisational objectives and defined based on core competencies and core processes. In strategic knowledge management, concrete measures for improving the process are then determined. The exact form of these measures should be tailored to each organisation. For, just as each organisation is unique, so too should its knowledge goals be.

For the stairway to be climbed at all, one thing is essential: successful data management. This begins with dedicated IT solutions that simplify knowledge management. On specific platforms, knowledge can be stored, shared and exchanged, allowing competencies within the organisation to be expanded. Naturally, knowledge management does not depend solely on such a system. A wide range of additional factors and best practices also affect its success. When processes are clearly structured, both operational and strategic knowledge management become easier.

To achieve competitiveness through knowledge-oriented organisational leadership, you should address every stage of the Stairway Model. Identify what already works well and where there is still room for improvement. Then try to find explicit methods to improve these processes. Staff often lack the motivation to translate their ability into action. Yet this is essential if competences are to develop. This is where leaders must intervene and emphasise the value this brings to the organisation.

Structured knowledge management on interactive platforms also makes it possible, for instance, to monitor certain processes: Are information and documents actually being stored in a way that allows individual – and later collective – knowledge to develop at all? Always keep the entire process in view. Various factors can disrupt knowledge management, including organisational culture. If staff are not willing to exchange knowledge and collaborate, all efforts will ultimately fall flat.

When all members of your organisation understand the benefits of Knowledge Management, the next steps become much easier. With forward-looking action in line with the Knowledge Ladder, you can significantly influence how successfully Knowledge Management unfolds in your organisation. You can learn more in our blog post “How to prepare your organisation for Knowledge Management.”

North’s Knowledge Stairway is a simple model that everyone can understand quickly, yet it neatly summarises how the complex process of knowledge creation can benefit an organisation. Even though real-life processes are far more complex than the model suggests, it still serves well as a guide. It helps you understand not only how knowledge emerges, but also how it can be used to secure the long-term and sustainable success of your organisation.