Knowledge Management's Social Dimension

I recently read a article that takes a look at the company Nucor, a large steel company started in the late 60's when the steel company first started facing tough economic times because of substitution from other materials, foreign competition, and strained labor relations. Despite these obstacles Nucor has risen above the troubled industry and has enjoyed a annual compound sales growth of 17% all generated internally without Nucor making any acquisitions. Nucor acheived its success by excelling at a single task: becoming and remaining the most efficient steel producer in the world. It did so by developing and constantly upgrading competencies that were both strategic and proprietary: plant construction and start up know how, manufacturuing-process expertise and the ability to adopt breakthrough technologies earlier and more effectively than competitors.

The authors in this article talk about building a social ecology - that is, the social environment within which people operate - is a crucial requirement for effective knowledge management. Nucor was and still is a prime example of a compnay that took this to heart and ran with it. Nucor's social ecology was one that can be modeled for any company wanting to reach higher success and a more productive and happier workforce. The determinants of social ecology are culture, structure, information systems, incentives, structure, people, and strong leadership. To gain a sustainable advantage over competition Nucor had a workforce that was very smart at using the technology they were supplied with and all in part of the social ecology of the organization