Organizational knowledge cannot merely be described as the sum of individual knowledge, but as a systematic combination based on social interactions shared among organizational members.
Executives should look at three-step processes of knowledge accumulation, integration, and reconfiguration. This model for managing knowledge reflects a more strategic and practical perspective, as it is process-oriented and most applicable for leading organizations.
Executives today are more focused on strategic management decision-making due to the hypercompetitive global environment as well as public and private sector evaluation and opinion. Public organizations are attempting to function as private profit-wise, while public companies have the Wall Street analysts continuously evaluating their every strategic move. It is important for management consultants to build a climate of openness for individuals to exchange ideas.