Internal Knowledge Markets not Knowledge Management

In the last issue of The McKinsey Quarterly the article "Making a market in a knowledge" discusses that knowledge management software applications have failed to create and disseminate knowledge throughout the organization.  Knowledge management applications are simply a centralized buttjam of information.  To attempt to track every single piece of knowledge, data and information is counter-productive.  The systems force users to input information into a computer rather than discussing it with their colleagues and share it via...umm...talking, discussing and hashing it out.   In my opinion, technology can sometimes hinder innovation if we have to follow its system.  Ideally, the system should follow us!  To lock in a particular process of decision making is dangerous because the process changes constantly.  

The idea of internal knowledge markets is exciting!  Every large company wants to act small.  How do small companies act?  They share information quickly.  They inform others of what they are working on.  Everyone shares a sense of urgency,  the continual push of moving toward the goal and realizing the vision.  A great example is when a former business partner decided to withhold information from me and the team about his business dealings, it was detrimental to the entire organization because he was doing his job in a vacuum.  Had he copied us on emails we could have assisted him or at the very least stayed informed.  In small businesses everyone is transparent and interdependent. If everyone is informed then each person feels like they have the ability to create value for the customer or make an impact on the organization.

In order for internal knowledge markets to work inside a company, the company must have an innovative corporate culture, healthy conflict and a flexible organizational structure comfortable with rapid change.