Knowledge services: Financial strategies and budgeting

Information Outlook, June, 2002 by Guy St. Clair, Martina J. Reich

Budgeting Begins with Buy-In

FOR THOSE WHO HAVE MANAGEMENT RESPONSIBILITY (AND ACCOUNTABILITY) for providing knowledge services to their organization, financial strategy builds on the understanding that advocacy and political sponsorship are valid--indeed critical--elements in the overall management picture. This subject has often been given attention in the specialized library community. It is now commonly understood and accepted by those who manage specialized libraries, information centers and knowledge centers that power and influence are not simply obscure concepts to be invoked by "somebody else." They are core competencies, and are so recognized in SLA's famous Competencies for Special Librarians for the 21st Century--the document that provided specific and codified direction for those who employ specialist librarians. Published as a monograph that provided background information about competencies and the value of competency-based management, this statement has become a standard tool for describing what specialist librarians do. In the document, the specialist librarian is defined as a knowledge professional who uses "appropriate business and management approaches to communicate the importance of information services to senior management...an effective member of the senior management team and a consultant to the organization on information issues" (Spiegelman, 1997).

Even earlier, though, the terms had been defined: ... advocacy and political sponsorship can be defined as those efforts, taken by the information services practitioners in an organization, community, or enterprise, to encourage others to support the work of the information services department and, at the same time, to encourage... relationships which can have a positive influence in the decision-making process for allocating resources for the funding of information services (St. Clair, 1994, P. 10).

Obviously, since specialized librarianship and information management have evolved into knowledge services, the language of eight years ago must be updated, but whether we are speaking of "information services" or "knowledge services," the essential fact hasn't changed. The enterprise must buy into what is being provided through the knowledge services function (whether it be a specialized library, knowledge center, corporate archives or any other operational function that provides information or knowledge services delivery for the organization). There are specific people in the organization--its advocates and champions--who understand the role and the value of the operation. Successful financial strategy and budgeting for knowledge services depends on this recognition.

Knowledge services, as an operational function, has now been defined and is being increasingly adopted in organizations seeking to embrace enterprise-wide excellence in information management and delivery. Basically, knowledge services is a management approach that brings information management, knowledge management and strategic (performance-centered) learning together into an enterprise-wide, holistic and wide-ranging function. This convergence of related, but previously separate activities, results in high-quality service delivery for all information stakeholders. As mentioned above, the operational unit can be any unit responsible for information management, knowledge management or strategic learning, or one that is, ideally, responsible for all three functions (St. Clair, 2002).

There are people, certainly within the parent organization but perhaps including external stakeholders and observers, who are interested and committed observers of the work provided by the knowledge services operation. They understand the role of knowledge services, and they are willing to use their influence to see that the operation is supported. In managing knowledge services, identifying those with power in the organization is critical, and establishing relationships that benefit from that power is basic. This is a much misunderstood but elementary first step, which if not taken, can undermine the success of the operation. Of course, we optimists like to believe everyone functions for the common good and all of our efforts are undertaken because we can do some good. In fact, scratch even the most hardened knowledge services employee and you'll discover the reason he or she is in this line of work is because, as a knowledge service professional, he or she can make a difference. Without question, that is w hat drives most knowledge professionals to do the work they do.

But such lofty aspirations are often offset by less charming realities: there are cultural barriers, there are professional (or personal) agendas that inhibit collaboration and there are organizational and structural barriers, including financial restraints. Every organization or business has its own culture that contributes to the list of reasons why this or that activity cannot be undertaken. Regardless of the reasons, barriers do exist. In the management of knowledge services, there will be pockets of resistance. What can be done about those limitations is fairly straightforward: those with responsibility for managing the knowledge services function must find advocates and champions to aid them in achieving their objective.