FOREWORD
 When we use the term “Knowledge Management” (KM), some readers may have the
impression that it is a very difficult topic to understand. I believe, however, that the
principle is not difficult but rather a simple one that anyone can easily understand.
The principle of KM can be likened to applying the Japanese proverb “Sannin yoreba
monju no chie” (a gathering of three people will result in wisdom equivalent to that of
Monju Bodhisattva) to business management. Monju Bodhisattva is the well-known
Buddhist deity of wisdom. The proverb indicates that if three ordinary people come
together, great ideas will be created which could not be conceived by a single individual
alone. As I understand it, the essence of KM is applying this proverb to business
management today.
However, the simplicity of the principle does not necessarily mean that it is easy to
utilize KM fully. Similar to 5S and kaizen (continuous improvement), understanding
the principle is easy but putting them into practice on the job is not.
When applying the principle of KM, we collectively gather ideas first, and the level of
the success depends upon the degree of communication inside the organization.
In this regard, small and medium-sized enterprises have an advantage over major
corporations with several thousand employees. However, many small and medium-sized
enterprises experience difficulties in communication between the top management and
employees, so-called poorly ventilated space. In such cases, communication must be
improved first, which often requires organizational change or reallocations of work
space.
The power of IT to smooth internal communication is overwhelming. Due to the rapid
evolution of IT, even a tiny company today would find it difficult to function without
relying on IT. However, IT is not omnipotent and is not the equivalent of KM. Much more
information can be communicated face-to-face than by sending e-mail. Opportunities to
create new ideas also increase through face-to-face communication. However, no one
should think that KM is not suitable for his or her organization due to a fact that a huge
budget is not available to invest in IT.
The applications of IT for accumulating information and knowledge continue to increase.
However, I believe that a small organization can document information in the absence
of sophisticated IT hardware without diminishing its value. The APO, an international
organization of which I am the Secretary-General, is currently sharing publications to
member countries. This Practical KM Guide for SME Owners and Managers is a concrete
example of gathering knowledge without using IT and sharing it with all who are
interested.
Finally, there is no absolute formula to ensure “wisdom,” i.e., processes that create new
ideas and innovation, unlike the communication and accumulation of information.
The only thing we can do is to foster an environment conducive to the development of
such ideas. While this may not appear sufficient, in the long run, the percentage of
innovative ideas created will be much greater in organizations that continue such KM
efforts. This will in turn result in an increased number of companies that incorporate
incentive systems for appropriate proposals or that develop a culture that accepts and
learns from failure.
Owners and managers of small and medium-sized enterprises can learn a lot and derive
many benefits from KM. The examples included in these cases are not abstract theories,
but rather introduce practical guide for KM application. The “wisdom of Monju” is hidden
in each example. I hope that these cases will be used for further KM improvement.
Shigeo Takenaka
Secretary-General
Tokyo, September 2010
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