Large organizations –important industries, the banks, ministries, government agencies– play a decisive role in shaping society. These organizations define the overall trends of labor markets, they adopt or reject diverse organizational models, orient the general direction of the national vocational and professional training system, and take advantage of new forms of connectivity, among other things; thus, their impact on the development of a learning society is undeniable.

It is therefore important to reflect on how learning takes place within businesses and organizations, and how in this learning process, information and knowledge transfers influence management results. From this standpoint, the learning circle’s reflection has sought to analyze those institutional factors inside organizations which leverage (or inhibit) information transfers and the appropriation of knowledge, in other words, the state of "knowledge management" within large organizations in El Salvador.

In terms of information and knowledge, the nature of interactions among large organizations can be studied on the basis of three fundamental issues: in the first place, positive attributes[1] in terms of information flows and knowledge transfer that organizations currently lack and which they should in fact possess in support of building a learning society in El Salvador; in the second place, the negative attributes that Salvadoran organizations currently possess and ought not to; and thirdly, on the basis of the first two points, the ideal attributes of an organization based on appropriate knowledge management and national realities.

Our assessment of Salvadoran organizations in terms of information and knowledge is divided into two basic areas: internal factors, and a general analysis of the organizational environment.

In the first area, we identified the strengths and weaknesses of Salvadoran organizations which influence the factors making up the knowledge cycle. The positive characteristics identified, or strengths, are:

• A higher awareness in Salvadoran organizations of the need for change and constantly improving processes. In other words, this means that for a large number of organizations, the idea of "change" is understood as a factor which enhances competitiveness and efficiency. This is probably due to increased levels of competition in the majority of markets, as well as the integration of new generations of managers.

• There are now experiences and initiatives in El Salvador aimed at enhancing synergies among institutions, particularly in the public sector, for example the National Competitiveness Program based on collaboration between the public and private sector. By the same token, programs to modernize the public sector (for example, the Integrated Financial Administration System [SAFI]) owe their success to better cooperation among public institutions.

• Salvadoran organizations are adopting the custom of positioning themselves for the medium and long term (strategic thinking).

• There is greater access to an increasing quantity and better quality of information.

• The culture of creativity and communication is making progress.

• There have been successful examples of efficient organizations which are also competitive at the regional and international levels.[2]

The general weaknesses identified among Salvadoran organizations are the following:

• Lack of policies aimed at developing human resources.

• Organizational structures are generally rigid and traditional.

• A "client-centered" organizational vision, based on customer satisfaction, is still generally lacking.

• There are strong forces resisting change within organizations.

• There is usually poor management of information and technology (adoption without appropriation).

• There is no tradition of teamwork or delegation of responsibilities based on trust for others.

On the other hand, the broad external trends which influence organizational knowledge-management capabilities in El Salvador were grouped into positive tendencies labeled "opportunities", and limiting tendencies labeled "threats".

The principal opportunities identified are:

• The skills and talents of Salvadoran workers, acknowledged internationally, which attract foreign investments and which underlie exports of manufactured products.

• Certain aspects of globalization, such as the opening of foreign markets.

• The image of El Salvador is improving, which attracts foreign investment.

• Neighboring countries, and a significant number of trade partners, speak our language.

• There is a variety of market niches in which organizations can operate: ethnic markets in the United States, handicrafts, etc.

The threats identified are:

• Pressure to adopt certain kinds of knowledge and technologies without adequate assimilation.

• Other aspects of globalization, such as very heavy competition in certain sectors (agro-industry).

• Anarchical growth of the informal sector.

• The lack of a National Plan, a vision shared among all national sectors and actors.

• El Salvador’s vulnerability to international changes (monetary policies, external economic shocks) due to the small, open nature of its economy.

• Persistent poverty, which limits efforts towards change due to the economic and social consequences it entails.

Above and beyond the aforementioned characteristics, the learning circle identified areas, or critical issues, which must be overcome among private and public organizations in order to build a learning society.

• Non-existence of planning for institutional development
• Organizations do not develop a vision of what they do and why
• Despite certain progress, strategic planning is not a frequently-used tool in Salvadoran organizations

• Poor use of the organization’s budget
• Administrative deficiencies due to a lack of technical planning based on need
• Investment priorities are not set

• Directors’ performance not adequately targeted to institutional goals, instead more oriented toward personal and political ends
• Utilization of professional positions for non-institutional purposes

• Organizations do not provide ongoing education and training programs to help develop an intelligent organization
• Weak training of administrative personnel
• Weaknesses in the design and application of many personnel training programs
• Lack of training in new techniques
• No self-evaluation processes

• Lack of recognition or incentives for innovative professionals
• Salaries are not commensurate with performance
• Lack of motivation due to lack of incentives

• Lack of leadership
• Prevalence of authoritarian attitudes
• Unequal distribution of work
• Lack of consultative processes and participation in decision-making

• Obsolete regulations
• Inefficient bureaucratic procedures
• Frequent lack of rational processes in administrative decision-making
• Excessive centralization
• Laws and bidding procedures are obsolete
• In the public sector, low degree of fulfillment of its basic function: to offer an efficient service to the public
• Lack of transparency
• Authoritarian attitudes toward information access
• Lack of inter-institutional coordination as a result of poor information management
• Lack of institutional interest in disseminating information

• Poor assimilation of new administrative procedures
• Access to public information is restricted despite legislation

• Inadequate monitoring of financial administration
• Declining quality of service to the public

• Information storage is deficient and disorganized
• Information storage is obsolete and dysfunctional
• Deficient handling of databases and registries
• Obsolescence or poor use of of technology

Based on the identification of these critical issues, the learning circle identified strategic initiatives which could serve as the cornerstone for developing projects in this area.

Development of an "Innovation Club"

Based on the above critical issues, the learning circle has discussed the idea of founding and promoting an "Innovation Club" or "Organizational Innovation and Knowledge Network", with the goal of becoming a space in which the groundwork is laid for leveraging innovation and knowledge (creation, transfer, and capitalization) and for the use of technology in public and private organizations in El Salvador.

Objectives:

The principal objective of the Innovation Club is to promote "teams of champions" within Salvadoran public and private organizations. This work will take place in the form of three broad, strategic goals: developing awareness-raising activities, undertaking innovative and creative activities, and promoting an innovation network in El Salvador.

Participants:

The club is open to all public and private institutions. The services of the club are not without cost; there are different levels of membership, the cost of which varies according to the services offered. There are tentatively three levels of membership planned.

• International monitoring of information and knowledge management issues (abstracts of new publications, reports on events, information on the Web).

• Develop analyses on the use of knowledge management instruments in selected Salvadoran organizations.

• Investigate technologies in use in both administrative and productive spheres in order for organizations to experiment with them, validate them, and adopt them in support of their development and competitiveness.

• Design a system of incentives in the form of prizes, contests, dissemination of best practices in knowledge management and of the benefits of applying them in an organizational setting.

• Organize and promote courses related to information and knowledge management.

• Promote alliances between public and private sectors around topics of knowledge management.

B. Other initiatives

Two additional initiatives have been recommended to support El Salvador’s evolution into a learning society, but still require further precision before implementation:

• Define mechanisms which would allow knowledge management topics to be added to professional training programs at different levels. One first step could be the construction of a Website with links to relevant external sites. Informational material in Spanish should also be produced, and in general, efforts must be made to sensitize top public and private management around this issue. There should also be incentives for educational institutions to introduce knowledge management subjects into the curriculum.

1. Positive and negative attributes: institutional, cultural, infrastructural, and value factors within an organization which enhance or weaken knowledge management.  [return]