The Knowing Doing Gap: How Smart Companies Turn Knowledge into Action

By Reported by Alan Young-Pugh, CMC, Western Management Consultants and Bill Liabotis, The International Group, Inc. Summarized from a Strategic Leadership Forum Book Group discussion. by Jeffrey Pfeffer and Robert I. Sutton "We wrote this book because we wanted to understand why so many managers know so much about organizational performance, say so many smart things about how to achieve performance, and work so hard, yet are trapped in firms that do so many things they know will undermine performance." (Pfeffer and Sutton) The Strategic Leadership Forum's Book Group discussion, held on May 17, 2001, added fresh insights and new connections to the issues beyond the level of the book. Several interesting questions were discussed, including the following: Can talk substitute for action? The Book Group explored the value of and extent to which leaders are (or should be) involved in actual work processes - "the doing." One of the book group members cited his experience as a leader: The challenge was to affect a significant cultural change - encourage more "doing." To do this, a great deal of time was spent talking with staff - trying to understand why there was a bias to inaction. Another member commented on his experiences in the banking community. Leaders in the bank believe there is benefit in regularly talking to and serving customers directly. Another member spoke of the benefits of engaging in conversations to drive action. He added that in addition to Pfeffer and Sutton's concern for the knowing-doing gap there is also a doing-knowing gap that can lead to ineffective action. What factors cause the knowing-doing gap? The authors suggest that internal competition makes it even more difficult to turn knowledge into action. The group critically dissected the proposition, discovering that reality is not so simple. For example, internal competition has several forms, some of which are productive and others that are not. Experience shows that two divisions competing for capital can enhance performance, whereas zero sum competitive pay structures can tear a team apart. The authors also blame bad performance measures for the knowing-doing gap. They say that overly complex and short-term financial indicators widen the gap. In the Book Group discussion, the point was made that, indeed, high-performing organizations must focus on top and bottom line measures ("What's the good of a nice place to work if I can't pay the bills?") But we must also pay attention to the more risky leading indicators such as recruitment and staff development (not "retention" please!); and relate performance to meaningful incentives. (Fooz ball tables and

golf shirts are fine, but development and career opportunities add real meaning to working life.) Does good planning help with the knowing-doing gap? Participants discussed the time lag between strategic planning and action. A useful insight into this issue can be learned from how strategy is taught at Babson College (Wellesley, MA). Students are given seed capital to actually start a company. "You can't teach strategic thinking it's all about practice, practice, practice." If the way to teach planning is by giving students insight into implementation, what are the implications for those responsible for strategic planning in corporations? Must they become "doers" as well? What is the real value of training programs today? The Book Group discussion confirmed that training can be effective if:

It has a short-term (just-in-time) focus, The training includes achieving an end result, It entails practice (experiences) on how to do something of value, Attendees of conferences and training programs are given time immediately following the event to determine how the newly acquired knowledge might actually be applied to their job.

According to one participant, the program must be designed with "KUBA" in mind.

Know it. Understand why it is important. Believe the "knowing" can contribute. Act, or Do it.

The knowing-doing gap might be defined in terms of the absence of "U" and "B." As another participant put it, "Leaders must get the organization fired up and then provide relevant training focused on getting the ball over the line." Reported by Alan Young-Pugh, Western Management Consultants, and Bill Liabotis, The International Group, Inc. This article originally appeared in the June, 2001, edition of "Focus on Strategy" the quarterly newsletter of The Strategic Leadership Forum, The Toronto Society for Strategic Management. Reprinted with permission. Western Management Consultants is an independent, full service management consulting firm serving clients across Canada from offices in Toronto, Saskatoon, Edmonton, Calgary and Vancouver. Our primary practice areas include general management and strategy, executive search, organization effectiveness, human resources and information technology.