Everything we do at Macroinnovation Associates is predicated on the important distinction we make between Knowledge Management, Knowledge Processing and Business Processing in organizations (see Figure 1). In the Knowledge Processing Environment, people engage in learning and problem solving activities, out of which comes the production of new knowledge. New knowledge is, in turn, put into practice in the Business Processing Environment.

According to this view, 'Knowledge Management' is a misleading term. It is arguably more useful to think of KM as the practice of 'Knowledge Processing Management,' since the purpose of KM is to enhance the quality of Knowledge Processing and its outcomes. Thus, Knowledge Management's influence is direct only with regard to Knowledge Processing and its outcomes, not Business Processing. This changes everything.

Armed with this insight, our firm's entire methodology amounts to an intervention strategy that practitioners can use to enhance Knowledge Processing and its Outcomes. Improvements in Business Processing can then follow.

.