Abstract
Software-intensive organizations that intend to excel in the twenty-first century must learn to manage change in dynamic situations. Rather than seeking stability, they should focus on creating software engineering knowledge and mind-sets that embrace environmental change. The model developed in this chapter supports this shift by directing attention to the need for communication, coordination, and collaboration. The key to successful knowledge creation is continuous and simultaneous dialectic interplay between the knowledge that the organization has established over time, and the knowing of the organization's members in their respective contexts.