Proceedings of the 11th European Conference on Knowledge Management
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1 Proceedings of the 11th European Conference on Knowledge Management Universidade Lusíada de Vila Nova de Famalicão Portugal 2-3 September 2010 Volume Two Edited by Eduardo Tomé
2 Copyright The Authors, All Rights Reserved. No reproduction, copy or transmission may be made without written permission from the individual authors. Papers have been double-blind peer reviewed before final submission to the conference. Initially, paper abstracts were read and selected by the conference panel for submission as possible papers for the conference. Many thanks to the reviewers who helped ensure the quality of the full papers. These Conference Proceeding have been submitted to the Thomson ISI for indexing. Further copies of this book can be purchased from ISBN: (CD) Published by Academic Publishing Limited Reading UK
3 Vikobama: Introducing a new Approach to a Knowledge- Based Vision Development Process Alexander Kaiser and Birgit Fordinal Vienna University of Economics and Business, Vienna, Austria alexander.kaiser@wu.ac.at Abstract: In his recent work, Nonaka argues that what differentiates firms from one another is their vision of the future and their practical ability to act out and to realize that future vision (Nonaka / Toyama 2008:2). Thus, the development process of a future vision is crucial for the long-term well-being of a company or of an organization. The purpose of this paper is to introduce a new method of a knowledge-based vision development process called VIKOBAMA (Vision development and knowledge-based management). The main focus of this new approach is on the development of a knowledge vision, together with a mission statement on a collective level (of organizations, firms, teams or communities). There are three important and groundbreaking aspects of VIKOBAMA: the creation of self-transcending knowledge is most vital for the whole process the individual visions of the employees are of high importance, and are therefore well integrated into the overall vision of the system a radical bottom-up approach is implemented on a collective level These three aspects are essential steps for the development of a sustainable overall vision of any system. Furthermore, this paper describes some experiences with the method of VIKOBAMA, mainly taken from several case studies with medium-sized companies in Austria. In addition, the paper at hand is one of a few studies which both, theoretically and practically, deals with the aspect of self-transcending knowledge in the context of vision development processes and knowledge-based management on the individual level as well as on the collective level. The paper is organized into three parts. Part 1 points out the importance of a sustainable knowledge vision in companies and gives a short overview on how to create a knowledge vision in the context of the SECI/ba model of Nonaka and his colleagues as well as on the context of the fifth disciplines of organisational learning (system thinking) by Senge. Part-2 introduces the VIKOBAMA method itself and describes the main steps of this knowledge-based vision development process. Moreover it deals with the most important aspects of the creation of self-transcending knowledge, as well as with knowledge transfer and with knowledge distribution of implicit and explicit knowledge. In part-3 several case studies with medium-sized companies in Austria will be analysed, in which we have applied the VIKOBAMA method. Keywords: knowledge vision; self-transcending knowledge; knowledge-based management; concept of ba; 1. Introduction In his recent book Managing Flow Ikujiro Nonaka points out the importance of a knowledge vision for any company. What differentiates firms from one another is their vision of the future and their practical ability to act to realize that future by using aesthetic sensibilities to create knowledge (Nonaka / Toyama 2008: 2). Thus, a vision development process is crucial for the long-term prosperity of an organization. Furthermore it is very important that the employees share a strong sense with the vision of the company. To achieve this goal, the employees have to be involved in the development of the vision. This paper will introduce a new method of a knowledge-based vision development process. 2. Knowledge vision The development of a vision can never be seen as an isolated project, as it is always part of a process. The starting point that is needed in order to work on a vision is the overall purpose of a company. Only a shared basic understanding and shared general values can provide the basis for working on a common vision. Consequently, objectives for the next steps and action strategies can be derived from this vision. For an organization the knowledge vision is a direction giving roadmap for the knowledge creation of the organisation. The knowledge vision acts as the logical starting point for all activities related to knowledge management. Instilling a knowledge vision is one of the key enabling conditions for the creation of knowledge. It gives its business plans a heart and a soul, it is the raison d être of the organisation. More practically spoken, a knowledge vision provides the organizational members with a 520
4 mental map of three inter-related domains: (1) the world they live in, (2) the world they ought to live in, and (3) the knowledge they should seek and create (Von Krogh / Ichijo / Nonaka 2000: ). The essential questions that are asked when formulating a knowledge vision are What do we exist for? Where should we live? Why do we create knowledge? Therefore a knowledge vision is a vision that transcends the existing boundary. A vision that can be accepted by many and that can inspire the people with various contexts (Nonaka 2007: 9). Van Krogh et al. (Von Krogh / Ichijo / Nonaka 2000: 104) ) state seven criteria for a good knowledge vision: commitment to a direction, generality, a specific style, a focus on restructuring the current knowledge system, a focus on restructuring the current task system, external communication of values, and a commitment to shaping competition. For a successful creation of a sustainable vision, open space is necessary where these processes can take place. In the theory of organizational knowledge creation, Nonaka and his associates have identified the importance of the physical or virtual space of interaction called ba, that is the context for knowledge creation (Nonaka / Toyama 2008: 34). It can be thought of as a shared space for emerging relationships. Figure 1: A process model of the knowledge-based firm (Nonaka / Toyama 2008: 27) Figure 1 shows the model of a knowledge-creating firm, where knowledge is created through dynamic interaction with the environment. Another important approach that describes the role that visions play in the context of companies can be found in the work of Peter Senge (1990) who defines five disciplines that form the framework for organizational learning. The four core disciplines are personal mastery, mental models, shared vision and team learning. They are completed by the fifth discipline, the system thinking, which according to Senge (1990: 12) is the discipline that integrates the disciplines, fusing them into a coherent body of theory and practice." In Senge's approach vision development is thus always embedded into the disciplines of a learning organization. Based on the individual vision, which is part of the development in the discipline of personal mastery, a common vision within the company may arise subsequently. People with high levels of personal mastery are continually expanding their ability to create the results in life they truly seek. From their quest for continual learning comes the spirit of the learning organization (Senge 1990: 141). Personal mastery encompasses two main behaviors: first, continually clarifying what is really important, and secondly, to clearly perceive the reality and to openly deal with problems. The personal vision, the expression of what is really important, is one of the key pieces of personal mastery. The personal vision as a juxtaposition to the current reality creates a condition which Senge calls "creative tension": a force to bring them together, caused by the natural tendency of tension 521
5 to seek resolution. The essence of personal mastery is learning how to generate and sustain creative tension in our lives (Senge 1990: 142). Figure 2: Creative tension (Senge et al. 1994: 195) People with a high level of personal mastery have a special sense of purpose that lies behind their visions and goals. For such a person, a vision is a calling rather than simply a good idea. They see the current reality as an ally, not an enemy (Senge 1990: 142). These people realize that personal mastery is an ongoing development process in which the journey is the reward. The personal vision is always connected with the idea of the general purpose. By purpose Senge means, an individual s sense of why he is alive (Senge 1990: 148). It can truly be said that nothing happens until there is vision. But it is equally true that a vision with no underlying sense of purpose, no calling, is just a good idea all sound and fury, signifying nothing. Conversely, purpose without vision has no sense of appropriate scale (Senge 1990: 149). The discipline shared vision is the logical consequence of organizations and answers the question "What do we want to create?".senge (1990: 206) has come to believe that one of the reasons why people seek to build shared visions is their desire to be involved in an important undertaking. ( ) A shared vision is a vision that many people are truly committed to, because it reflects their own personal vision. Senge also describes an organizational equivalent to the personal mastery concept of creative tension : the innate pull that emerges when we hold clear pictures of our vision juxtaposed with current reality (Senge et al. 1994: 299). 3. Knowledge vision and self-transcending knowledge The concept of self-transcending knowledge was first introduced by Nonaka et al. (Nonaka et al. 2000: 8) and by Scharmer (Scharmer 2001). Nonaka and his colleagues describe knowledge creation as a continuous, self-transcending process through which one transcends the boundary of the old self into a new self by acquiring a new context, a new view of the world, and new knowledge. They describe it as a journey from being to becoming (Nonaka et al. 2000: 8). Scharmer cited Michelangelo s words about his sculpture of David: David was already in the stone. I just took away everything that wasn t David (Scharmer 2001: 138). The ability to see a David where others just see rock is the essence of self-transcending knowledge. Today s leaders are often faced with the challenge of figuring out what in their environment may contain the potential new David and how to take away everything that is not David. Scharmer argues that discussions about and research into knowledge management in the future will revolve around the interplay of the three forms of knowledge explicit, tacit and self-transcending (Uotila / Melkas 2008: 226) and he proposes a distinction between two types of tacit knowledge: tacit-embodied knowledge on the one hand, and not-yet-embodied knowledge called self-transcending knowledge on the other. Figure 3 shows the three forms of knowledge. 522
6 Figure 3: The three forms of knowledge (Scharmer 2001: 138) Self-transcending knowledge is the ability to sense the presence of the potential, to see what does not yet exist (intuition and hunches) (Uotila / Melkas 2008: 225). Self-transcending knowledge captures knowledge of the sources or places where thought and action come into being (Scharmer 2001: 141). In other words, self-transcending knowledge is the knowledge of the highest future possibility. Therefore an appropriate space is needed to generate this kind of knowledge. Ba may also be thought of as the space that allows you to bring your self into reality (Scharmer 2001: 148). Knowledge creation can be thought of as a process of realizing one s vision of the future or personal belief through interaction with others and with the environment (Nonaka 2007: 371). Therefore, creating a sustainable vision is essential for accessing self-transcending knowledge. To sum up, it seems that an interaction between self-transcending knowledge, a sustainable vision and a space, where these processes can take place, is fundamental for a successful vision development process. In the next section we will illustrate these theoretical findings with practical examples. 4. Knowledge-based vision development processes at a collective level 4.1 A first overview of VIKOBAMA In the following section we will introduce a new method of a knowledge-based vision development process called VIKOBAMA (Vision development and knowledge-based management). The main focus of this method is the creation of a knowledge vision and a mission statement on a common level (organizations, firms, teams, communities). There are three important and groundbreaking aspects of VIKOBAMA: the creation of self-transcending knowledge is most vital for the whole process the individual visions of the employees are of high importance, and are therefore well integrated into the overall vision of the system a radical bottom-up approach is implemented on a collective level These three aspects are essential steps for the development of a sustainable overall vision of any system. As a key success factor, a lot of room is given to the development process of the individual personal visions. Based on this personal vision each individual is able to formulate a vision for the company, reflecting the key essentials of one s personal vision affecting the company, which we call the personal system vision. The various resulting personal system visions then form the basis for preparing an overall knowledge vision for the company. During the whole process the personal vision is continuously action-guiding and constantly used as a corrective. The purpose of VIKOBAMA as a knowledge-based vision development process is the formulation of an overall system vision where the individual personal system visions are reflected to the highest possible extent. The method of VIKOBAMA consists of three consecutive steps: 1. formulation of a personal vision 2. formulation of a personal system vision 523
7 3. building of an overall knowledge vision for the corresponding system The essential components of the overall vision of the system are the personal system visions of the individuals acting and working in this system. The essential component of the personal system vision of each individual is the personal vision of each individual. 4.2 A methodological view of VIKOBAMA Figure 4: The three steps of VIKOBAMA As mentioned above, Nonaka argues that knowledge creation can be thought of as a process of realizing one's vision of the future or personal belief through the practice of interaction with others and the environment" (Nonaka 2007: 371). Following this definition of Nonaka, VIKOBAMA can be seen as a process method of knowledge-based vision development that provides an enabling space for both: generating a knowledge vision on one hand and creating, converting and distributing knowledge on the other hand. In addition, our claim was to enable the development of an intrinsically motivated and therefore sustainable knowledge vision. This is achieved by connecting the overall knowledge vision of the system with the personal vision of each employee. As a consequence of these goals the design of VIKOBAMA has to be a bottom-up approach containing workshops with all members of the system as well as sufficient space for the creation of the personal vision Therefore we have chosen a process combining workshops attended by all members collectively with individual one-to-one sessions for every single member of the system. This approach proved to be very helpful and effective in practice. In the following we will describe the main stages of VIKOBAMA, assuming a small or medium-sized company with about 10 to 20 employees. Workshop-1: Kick-off workshop with all members of the system In this first workshop we introduce the method of VIKOBAMA, the main steps of the process and the underlying philosophy and ideas. Furthermore the importance of a sustainable knowledge vision in a company is pointed out and some short inputs about knowledge-based management and the methods of systemic coaching and Vocation-coaching WaVe are given. Workshop-2 with all members of the system and three coaching sessions with each member of the system The main focus in workshop-2 and its accompanying individual three coaching sessions is to support the employees in finding a personal vision for the future, the generation of need knowledge and the increase in awareness of one s personal resources. To reach this goal we are working with the method of Vocation-coaching WaVe (for a detailed description of this method see Kaiser and Fordinal 2010, Kaiser 2005a, Kaiser 2005b, Kaiser 2007, Kaiser 2008). Vocationcoaching WaVe is a need-oriented process-model and is focused on the recognition of one s own substantial needs. What do I need to be happy? that is the central action-guiding question. Methodologically, Vocation-coaching WaVe is based on the approach of systemic-constructivist coaching, takes all important aspects of systemic-constructivist coaching methods and enlarges these methods with several techniques from the fields of spirituality, holism and knowledge-based management. The method of Vocation-coaching WaVe enables and supports a special kind of ba, which we call vocation ba (Kaiser and Fordinal 2010). Within this vocation ba the access to self-transcending knowledge and the conversion to embodied knowledge are supported. Figure 5 gives a short overview of the vocation ba. 524
8 In the three coaching sessions and of course in workshop-2, each member of the system is supported by the coaches when writing the visions. One is the personal vision, which describes a scenario in the future based on their vocation which can be realized in the future. This vision includes the main substantial needs of the person in the context of a fulfilling life and the main resources of the person as well as it implies strategies to transform these needs and resources in everyday life. Figure 5: vocation ba The second vision that has to be written is the personal system vision. The personal system vision describes a scenario in which the main aspects of the personal vision of an employee can be realized in the company the employee is working in. Therefore the personal system vision is a vision for the company which contains all the substantial aspects of the personal vision such as need knowledge, knowledge about wishes, knowledge about resources, etc. Workshop-3 with all members of the system In Workshop-3, lasting for two days, the personal system visions of each employee form the starting point for preparing an overall vision for the company. These various personal system visions are shared with the other members of the system while the personal visions remain private for each employee. In a multilevel process the personal system visions are aggregated and thus form the essential components of an overall knowledge vision for the system throughout the whole process, the private personal vision is continously action-guiding, and constantly used as a corrective. So the overall vision created for the system is highly intrinsically motivated and strongly connected to the personal vision and the individual needs. At the end of this workshop, the group is able to define main aspects of a knowledge-based vision which is attractive for all system members and gets the commitment by all of them.. As the personal system visions are based on the personal visions of each individual, the connection to several outcomes of the individual vocation ba need knowledge, knowledge about wishes, knowledge about resources, etc. is realized in an optimal way. Sometimes an additional workshop with all members of the system (workshop-4) might be helpful. In this case in workshop-4 a detailed plan for the implementation of the overall vision of the system can be developed. Figure 6 shows the main stages of VIKOBAMA, figure 7 shows the process of VIKOBAMA and table 1 gives an short overview about the main topics of each step. 525
9 Figure 6: Methodological view of knowledge-based vision development process with the method VIKOBAMA Figure 7: Knowledge-based vision development process with the method VIKOBAMA 526
10 Table 1: The main topics of each step of VIKOBAMA Workshop-1 (half-day) Workshop-2 (one-day) Information about attitudes, methods and instruments. Get together Discovery of the personal vocation. Remembering the highlights in the company s past and making them explicit Vocation-Coaching Sessions Further steps of the vocation-coaching-process at the individual level, thus giving support for creating the personal vision and the personal system vision (homework) Workshop-3 (two day) optional Workshop-4 (one-day) Creating an overall vision for the company based on all personal system visions of the employees Developing a detailed plan for the implementation of the overall vision 4.3 Knowledge-based management aspects of VIKOBAMA In the following section we will analyse the aspects of VIKOBAMA in the context of knowledge-based management. Thereby we place a special focus on the aspect of knowledge creation, knowledge conversion and knowledge sharing. Knowledge creation: Within the vocation ba, the self-transcending process, through which one transcends the boundary of the old self into a new self by acquiring a new context, a new view of the world and at least some new knowledge (Nonaka et al. 2000: 8), is strongly supported. Therefore we can say that self-transcending knowledge is created. The generation of explicit knowledge of one s own substantial needs in the context of a fulfilling life and fulfilling work is strongly supported. Therefore we can say that need knowledge is created in this process. The ability to formulate personal visions on the basis of one s own vocation is strongly supported. This ability enables the person as well as the system to learn and act from the future as it emerges, making it possible to access self-transcending knowledge. Knowledge of how to become aware of one s own intuition and knowledge about a better utilization of intuition in everyday life are created. Furthermore knowledge about a better application of implicit / tacit knowledge in everyday life is created. Knowledge about the basic orientation of the system is created, which can be used to find suitable new staff for the system in the future. Knowledge about the priority of tasks in the near future and the goals that have to be achieved is created. Knowledge conversion: Especially in the context of one s own resources and the resources of the system the conversion of implicit / tacit knowledge into explicit knowledge is strongly supported. The internalization of explicit knowledge during the time, thus making it implicit on a higher level, is strongly supported. Knowledge sharing: During the collective workshops attended by all system members knowledge sharing and knowledge distribution of explicit knowledge takes place. These aspects are particularly encouraged through the work in small groups and the exchange between the members of the system during the workshops. Furthermore the knowledge transfer and knowledge distribution of implicit and tacit knowledge within the workshops with all members of the system takes place. Therefore an increased awareness of the group s tacit knowledge of the company and the use of this knowledge is strongly supported. 527
11 5. Some findings from several case studies with small and medium-sized companies in Austria In the European Union there are 18.7 million companies. 99.8% of these companies are small and medium sized companies. 92.4% of these companies are companies with less than 10 employees. Overall there are working million employees in the European Union. 69.8% of the employees are working in small and medium sized companies, 39.7% of the employees are working in companies with less than 10 employees (BMWA 2008: 92-93). Due to the great importance of small and medium sized companies in the European Union it is highly valuable to focus on a bottom-up approach in the context of knowledge-based management and vision development. The following results are based on observations during vision development processes with small and medium-sized companies in Austria. The processes took about six months. In the following we will summarize some results of three case-studies. Two studies describe the work with companies: a research and consulting institute for sustainability with 19 employees,, and a second company with 6 employees operating in the area of training and coaching. Thus both companies are knowledge-intensive companies. A third case-study describes the process with a newly founded research-group at the university. A bottom-up approach in developing a knowledge vision has the advantage that most of the employees are included in the vision development process. As a result we could observe the following beneficial impact: An increased corporate togetherness within the company. This feeling of solidarity was strongly connected with purpose and meaning and produced a higher state of satisfaction for employees and entrepreneurs. An improved communication within the company and an appreciable excitement and enthusiasm within the work which resulted in a general increase in productivity. Although the staff knew each other for a long time, they could gain new knowledge from each other. This new knowledge could be used in new projects. A clear view about structural changes in the company that could be helpful in the short term. Practical knowledge of who should take which position in the company. In the larger company new additional employees have been hired and two former employees left the company. The vision created in the process is now being used as a basis to take important decisions. Updated knowledge about the company s past highlights and points of success. Furthermore both companies gained explicit knowledge of how it was possible to achieve these successes and are now able to use this knowledge in the future. Some very concrete actions that were implemented immediately after the end of VIKOBAMA processes: new design of workplaces, decision for a new time management tool, decision for enabling sabbatical months for employees. 6. Conclusion In this paper we proposed a new method for a vision development, the knowledge-based vision development process. We have argued that a bottom-up approach has the advantage that it allows the integration of most of the employees into the vision development process. This integration causes a great identification with the emerging vision and therefore the work in the company is meaningful for the employees. Especially in small and medium sized companies a bottom-up approach is highly valuable and can be easily implemented. Furthermore we have shown that along the process model of VIKOBAMA several aspects of knowledge creation, knowledge conversion and knowledge sharing are supported. A vision of a company will be a sustainable and attractive vision if it transcends existing boundaries. Therefore the focus on self-transcending knowledge and learning from the future seem to be important and crucial to the long-term prosperity of an organization. In our method, both aspects have been taken into account..the results of the case-studies with small and medium sized companies have been very encouraging. Our further research and further work will focus on transforming the main aspects of VIKOBAMA to larger systems. Of course some of the tools of VIKOBAMA have to be adapted when working with systems with more than 30 members. But the main direction namely a bottom-up approach should be maintained. 528
12 Acknowledgements Alexander Kaiser and Birgit Fordinal The authors would like to thank Stefan Gächter and Birgit Feldhusen for helpful comments on the paper. References BMWA (2008), Mittelstandsbericht 2006/07, Bericht über die Situation der kleinen und mittleren Unternehmungen der gewerblichen Wirtschaft; Bundesministerium für Wirtschaft und Arbeit, Abteilung I/6 [Report about the situation of small and medium-sized companies in Austria] Kaiser, A. (2005a), Berufungscoaching: Systemisches Coaching in Phasen der (beruflichen) Neuorientierung OSC Organisationsberatung-Supervision-Coaching Heft 4/2005, pp [Vocation-coaching: systemic coaching in phases of reorientation] Kaiser, A. (2005b): Unternehmensmission und Unternehmensvision im Kontext von Wissensmanagement und Spiritualität - ein disziplinenübergreifender Ansatz, in Tomaschek, M. (Hrsg.), Management und Spiritualität Sinn und Werte in der globalen Wirtschaft, Kamphausen, Heidelberg, pp [The mission and the vision of the company in the context of knowledge management and spirituality - an interdisciplinary approach] Kaiser, A. (2007), Berufung, Kommunikation und Coaching, LO Lernende Organisation. Zeitschrift für systemisches Management und Organisation. Nr. 38, pp [Vocation, communication and coaching] Kaiser, A. (2008): Berufungscoaching und E-Coaching im Blickwinkel des Wissensmanagements, in Geißler,H. (Ed.), E-Coaching, Schneider Verlag Hohengehren, Kaiserslautern, pp [Vocation-coaching and E-Coaching in the context of knowledge management] Kaiser and Fordinal (2010): Creating a ba for generating self-transcending knowledge, Journal of Knowledge Management, accepted for publication; forthcoming. Melkas,H. and Harmaakorpi,V. (2008), Data, information and knowledge in regional innovation networks, European Journal of Innovation Management, Vol. 11, pp Nonaka, I. and Takeuchi, H. (1995), The Knowledge-Creating Company, Oxford University Press, Oxford. Nonaka, I. and Konno, N. (1998), The Concept of Ba : Building a Foundation for Knowledge Creation, California Management Review, Vol. 40, No. 3, pp Nonaka, I. et al. (2000), SECI, Ba and Leadership: a Unified Model of Dynamic Knowledge Creation, Long Range Planning, Vol. 33, pp Nonaka, I. and Toyama, R. (2005), The theory of the knowledge-creating firm: subjectivity, objectivity and synthesis, Industrial and Corporate Change, Vol. 14, pp Nonaka, I. and Toyama, R. (2008), Managing Flow. A Process Theory of the Knowledge-Based Firm, Palgrave, New York. Peschl, M.F. (2006), Modes of knowing and Modes of coming to know. Knowledge creation and coconstruction as socio-epistemological engineering in educational processes, Constructivist Foundations, Vol. 1, No 3, pp Peschl, M.F. and T. Fundneider (2008), Emergent Innovation and Sustainable Knowledge Cocreation. A Socio-Epistemological Approach to Innovation from within, in M.D. Lytras, et al. (Eds.), The Open Knowledge Society: A Computer Science and Information Systems Manifesto, Springer, New York, Berlin, Heidelberg, pp Scharmer, C. O. (2001), Self-transcending knowledge: sensing and organizing around emerging opportunities, Journal of Knowledge Management, Volume 5, Number 2, pp Scharmer, C. O. (2006), The 4 th proposition. Presencing: Human Purpose and the Field of the Future, WIE unbound online broadcast media; available at: (accessed 08 February 2010) Scharmer, C. O. (2007), Theory U. Leading From the Future as it Emerges, SOL, Cambridge, Massachusetts. Senge, P. (1990), The Fifth Discipline, Doubleday Business, New York. Senge, P. et al. (1994), The Fifth Discipline Fieldbook, Nicholas Brealey Publishing, London. Uotila, T. and Melkas, H. (2008), Complex Knowledge Conversion Processes and Information Quality in Regional Innovation Networks, Knowledge and Process Management, Vol. 15, pp Von Krogh, G. / Ichijo, K. / Nonaka, I. (2000), Enabling Knowledge Creation. How to unlock the mystery of tacit knowledge and release the power of innovation, Oxford University Press, Oxford. 529
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