We develop and illustrate a performance-centered design (PCD) methodology for structuring knowledge-intensive, ill-defined processes. PCD provides a holistic view of a performance environment by considering the complex interdependencies between the organizational context, business processes, and individual performers. The context for our theoretical exposition is the fuzzy front-end of the new product development (NPD) process. Despite the fact that front-end concept definition and selection is central to a firm's innovation capability, these activities are ill-structured and typically the most poorly managed in the entire innovation process. Through a case study, we illustrate the proposed PCD methodology as applied to the fuzzy front-end and additionally illustrate how electronic performance support technology can be utilized to support the fuzzy front-end process. Although specifically applied within the context of one firm, we contend that the PCD methodology is applicable to other knowledge-intensive and relatively unstructured processes.
From 1994 through 2000, Nortel Networks transformed itself from a technology-focused to an opportunity/customer-focused company. By 2000, Nortel was a profitable, innovative leader in the telecommunications industry. The change was the result of an ambitious effort to redesign its entire new product development (NPD) process such that time-to-market was significantly reduced. NPD is highly knowledge-intensive work based on the individual and collective expertise of employees. The primary focus of this case study is on Nortel's efforts to reengineer the front-end of its NPD process and capitalize on knowledge assets. This effort was built around a process-oriented knowledge management (KM) strategy, involving a tripartite and systematic focus on process, people, and technology. Through our case analysis we develop a model of KM success by exploring Nortel's KM strategy and the managerial, resource, and environmental factors that influenced Nortel's success. Nortel's experiences suggest lessons for other firms attempting to manage knowledge assets in core business processes.