Towards a Knowledge Management Ecology in

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• Towards a Knowledge Management Ecology in
• a Deregulated Electric Utility Environment

• Robert Thomas, Southern California Edison
• Lara Preiser-Houy, Cal Poly Pomona University
• ISOneWorld 2005
• April 1st, 2005
• Las Vegas, Nevada

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Presentation Agenda

• Introduction
• Research question
• Theoretical background
• Methodology
• Framework of Knowledge Management Ecology
• Findings
• IT and Organizational infrastructures
• Discussion
• Conclusion
• Evolution of a social ecology
• Technology
• Implementation strategy
• Current state
• Implications for practice and future research

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INTRODUCTION

• Purpose of the case study
• Development of a conceptual framework of KME at
  SCE
• To implement the framework to improve customer
  service in a newly deregulated environment
• Case study context
• 1998 deregulation in the EU industry
• New market structures and dynamics new
  customer-SCE relationships
• The need to create, integrate and distribute
  knowledge within SCE to better serve the customer

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INTRODUCTION

• Case Study Context
• Technical Support Group (TSG) Turnaround
  Quadrant 6 entities
• Design/Engineering services, Field Engineering,
  Facilities Analysis, RFP Response, PM (Bypass),
  PM (Energy Advisors)
• Problems
• Lack of knowledge sharing across TSG units
• Lack of data and information integrity throughout
  TSG
• Lack of report and analysis standardization
• Fire fighting environment
• Ineffective us of resources human and technical
• The Need
• To integrate the TSG resources and to develop a
  uniform KM strategy, systems and processes

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RESEARCH QUESTION

• What KM strategy, organizational, and technical
  infrastructures need to be implemented to allow
  the TSG better share its collective knowledge to
  better address customer and industry issues in
  the deregulated environment?

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THEORY

• Knowledge Management (KM) (ODell et al., 1996
  Duffy, 2000)
• Balance between ridged business processes and
  free flow of knowledge sharing
• Six base strategies form the building blocks of
  most successful KM systems
• Knowledge Management as a Business Strategy
• Transfer of Knowledge and Best Practices
• Customer-Focused Knowledge
• Personal Responsibility for Knowledge
• Intellectual Asset Management
• Innovation and Knowledge Creation
• Cultural Dynamics (Gupta and Govindarajan, 200)
• Cultural change and acceptance is the leading
  cause of success or failure
• Knowledge based social ecology is critical to
  overcoming negative cultural pathos
• The social ecology is comprised of the total
  business environment
• Comprehensive and Coherent KM Strategy (Storck
  and Hill, 2000 Pan and Scarbrough, 1999)
• Successful KM strategies incorporate a clear
  understanding of
• Strategic relevance of the KM initiative
• Corporate culture with respect to the initiative
• Acceptance can be improved through a Strategic
  Community structure

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METHODOLOGY
Perspective of Current Desired Processes
Capabilities and Functionalities
Gap analysis of procedures, technologies,
cultural dynamics for the current and desired
states
Secondary Research of Established KM Processes
and Technologies
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FindingsIT Infrastructure
Current State IT Systems
Desired State IT Systems

• Designed for deregulated environment
• Data mining instant portal capability
• Dynamic Ad-hoc capability
• Groupware capabilities

• Designed for regulated environment
• Primarily for billing
• Limited Ad-hoc capability
• Groupware capabilities

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FindingsOrganizational Infrastructure

• Current State
• Knowledge forms the groups primary business
  responsibility
• TSG provides a broad spectrum of knowledge
• Natural paths for KM exist
• Primary relationships
• Secondary relationships
• Strong creation acquisition of Knowledge
• Limited distribution
• Rewards system focus on individual

• Desired State
• Employ a knowledge sharing structure
• Conduits between entities
• KM strategies to set the environment of knowledge
  sharing
• Knowledge Councils
• Entity level knowledge leaders
• Shared knowledge resources
• Secondary relationship entities
• Rewards based on KM participation
• HR policies
• Distribution, transfer, acceptance

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FindingsKM Strategy
Strategic Relevance Turnaround Quadrant Future
Importance Relative to Current Requirements

• Strengths
• Acquisition and generation of knowledge
• Customer focus on issues
• Broad spectrum of knowledge

• Desired State
• Knowledge Management as a Business Strategy
• Transfer of Knowledge and Best Practices
• Customer Focused Knowledge

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Knowledge Management Ecology Framework
Knowledge Councils
Technical Infrastructure
Rewards
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DISCUSSIONInformation Systems

• Current systems
• Loosely connected analytical tools
• Centralized planning
• Communications tools used for basic communication
• Groupware capability available but used to a
  limited extent
• Current system generally suited for knowledge
  creation
• Desired state
• Complement existing state with
• Workflow and groupware packages
• Form the conduit for knowledge sharing and
  collaboration
• Provide effective data mining and multiple data
  base query capability
• Meet resource constraints

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DISCUSSIONProposed Structure

• The proposed structure must satisfy competing
  forces
• Entities primary roles
• Need to extend and share knowledge
• The Proposed structure must
• Extend across entities to allow meaningful
  knowledge sharing
• While not stifling the individual social ecology
  of each entity
• Overcome negative pathos that curtail knowledge
  sharing
• not invented here, knowledge is power
• Provide a more efficient an dynamic response to
  industry forces

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DISCUSSIONKM Strategies

• KM as a Business Strategy
• Precise fit with internal goals and competencies
• Knowledge champions greatly improve the
  collection, storage, and distribution knowledge
  Primary offering
• Transfer of Knowledge and Best Practices
• Reduces affect of negative social pathologies
• Strengthens ability to meet core responsibilities
• Customer Focus Knowledge
• Clear alignment with primary goals
• Understanding customer issues
• Developing customer specific solutions

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CONCLUSIONKM Ecology Framework within TSG

• Reorganize to capitalize on the existing Primary
  and Secondary relationships
• Primary relationship entities should identify
  knowledge leaders for each activity task in which
  a primary relationship exists
• Secondary relationship entities should be
  structured to enable their resources to serve as
  knowledge centers to be shared among the entities

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CONCLUSIONCreating a Social Ecology

• KM Strategies
• Leverage strengths
• Recognize strategic needs
• Knowledge Management as a Business Strategy
• Transfer of Knowledge and Best Practices
• Customer Focused Knowledge
• Cultural Issues
• Restructure performance review process to reward
  knowledge creation and sharing
• Create team performance goals based on knowledge
  creation and sharing
• Create conduits for unstructured knowledge sharing

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CONCLUSIONTechnology

• Reintroduce Lotus Notes database applications
• With formal training and proper infrastructure
• Discussion database, Document Library, and
  TeamRoom
• Deploy a web-based direct feedback system for
  customers to contact Tech- Support
• Designed for the more sophisticated customers who
  require precise technical or regulatory responses
• Current systems capabilities must be upgraded to
  account for the increasing importance of
  information systems
• Turnaround quadrant of the Strategic Relevance
  Grid.

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CONCLUSIONImplementation Strategy

• Employ the structure of a Strategic Community
• Primary element of the cultural ecology
• Establish a knowledge council to include
  knowledge leaders from each of entity
• Establish the initial framework of the KM effort
• The strategy, cultural, and technology
  infrastructures
• Account Management Teem must be included in the
  community and culture as a Primary relationship
  entity
• Extend the Strategic Community structure to the
  IS Department

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CONCLUSIONCurrent State

• The current electric utility environment requires
  accelerated creation, acquisition and
  distribution of knowledge generally distributed
  through
• Email, Groupware and Shareware software
• Knowledge leaders Pointer Systems , Job
  Shadowing etc.
• Emergence of Division-wide knowledge conduits
  leaders
• Performance review plan in some groups reflect
  the emergence of a social ecology
• Team oriented goals to complement individual
  goals
• Cultural issues continue to slow general adoption
  in some areas
• IT tools used to overcome some cultural barriers
• TSG is moving towards the Theoretical Framework
  of Primary and Secondary entities

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ConclusionImplications for practice and research

• Non-punitive leveraging structures or systems to
  overcome cultural barriers to KM
• Creation of a social ecology in an environment of
  unwilling employees adamant about knowledge
  retention Retainers
• Creation of knowledge conduits between Retainers
  and others that ensure full and complete
  knowledge sharing.
• Test the proposed KM Ecology framework in other
  business contexts

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Conclusion

• A living breathing social ecology relies on
  willing active participation, IT systems that can
  be readily adopted by participants, and a
  business environment that rewards and encourages
  knowledge sharing.

End of the Presentation