6. Knowledge Management

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6. Knowledge ManagementWorkshop

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Acknowledgements

• The material presented here was originally
  prepared by
• Robert J. Osterhoff (2003)
• www.osterhoff.com

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• Agenda
• Workshop Discussion Participant Expectations
• Background to Knowledge Management
• Purpose and Outcome of KM Project
• KM Methodology
• Phase I Design and Implementation
• Phase II Total Integration
• Phase III Return on Investment
• Workshop Discussion Current State Assessment
  of KM Activities
• Workshop Discussion Selection of Pilot Project
• Characteristics of Effective KM Implementation
• Workshop Discussion Developing a Project
  Implementation Plan
• Workshop Discussion Key Success Factors
• Next Steps Implementation and Evaluation

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Workshop Discussion Participant Expectations
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Background to Knowledge Management
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KM A Definition
The process through which organizations generate
value from their intellectual and knowledge-based
assets. -- Knowledge Management
Research
Center
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Knowledge Assets
The term knowledge assets refers to the
accumulated intellectual resources of your
organization. It is the knowledge possessed by
your organization and its employees (staff) in
the form of information, ideas, learning,
understanding, memory, insights, cognitive and
technical skills, and capabilities. Employees
(staff), software, patents, databases, documents,
guides, policies and procedures, and technical
drawings are repositories of an organizations
knowledge assets. Knowledge assets are held not
only by an organization but resides within its
customers (patients), suppliers, and partners as
well. -- 2003
Baldrige Criteria
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Knowledge Assets
Knowledge assets are the know how that your
organization has available to use, to invest, and
to grow. Building and managing its knowledge
assets are key components for your organization
to create value for its stakeholders. -- 2003
Baldrige Criteria
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Where Organizational Knowledge Resides
Paper Documents
Employee Brains
Electronic Documents
Sharable Electronic Knowledge Base
Source Survey of 400 Executives by Delphi
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Primary Means of Knowledge Transfer
Personal Experience
OTJ Training
Formal Training
Other
Structured Knowledge Base for Sharing
Source Survey of 400 Executives by Delphi
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Knowledge is Different from Data and Information
Data
Information
Knowledge
Data Arranged / Processed Into Meaningful Patterns
Unorganized Numbers, Words, Sounds, Images
Information Put Into Productive Use, Made
Actionable
Source E Y
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KM is Different from Information Management
Knowledge Management
Information Management
Emphasizes Adding Actionable Value to Content by
Filtering, Synthesizing, Interpreting, Adding
Context Balanced Focus on Technology and
Culture/Work Practice Requires Ongoing Human
Inputs and Linkage to Worker Communities
Emphasizes Delivery and Accessibility of
Content Heavy Technology Focus Assumes
Information Capture can be Standardized and
Automated
Source E Y
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Framing Knowledge Management. . . 10 Domains
Sharing Knowledge Best Practices
Instilling Responsibility for Knowledge Sharing
Leveraging Intellectual Assets
Arthur Andersen
Chevron
Booz Allen
Capturing Reusing Past Experiences
Understanding Measuring the Value of Knowledge
Dow
Accenture
Hughes
Bechtel
Kaiser
Hoffman LR
NSA
Monsanto
Pricewater.
Building Mining Customer Knowledge Bases
Embedding Knowledge in Products, Services,
Processes
Sequent
British Pet.
Teltec
Skandia
EY
TI
Microsoft
USAA
Xerox
HP
Producing Knowledge as a Product
Mapping Networks of Experts
Driving Knowledge Generation for Innovation
Source Xerox
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Our Focus

• b

Sharing Knowledge Best Practices
Instilling Responsibility for Knowledge Sharing

• 2

Leveraging Intellectual Assets
Arthur Andersen

• 2

Chevron
Booz Allen
Capturing Reusing Past Experiences
Understanding Measuring the Value of Knowledge
Dow
Accenture
Hughes
Bechtel

• 2

Kaiser
Hoffman LR
NSA
Monsanto
Pricewater.
Building Mining Customer Knowledge Bases
Embedding Knowledge in Products, Services,
Processes
Sequent
British Pet.
Teltec
Skandia

• b

EY
TI
Microsoft
USAA
Xerox
HP
Producing Knowledge as a Product
Mapping Networks of Experts
Driving Knowledge Generation for Innovation
Source Xerox
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Translating Theory into Action
What?
How?
4
5
6
Recognition and Reward
Learning
Measurements
World Class KM Environment
Transition and Behavior Management
Process and Tools
Communication
1
2
3
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Why KM The Benefits

• Encourages innovation within a sharing
  environment
• Respects employee knowledge and therefore value
  of your people
• Creates processes which reduce redundancy and
  eliminates waste
• Creates value by better knowing your customers
  and their requirements
• Avoids solving the same problem twice

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Purpose and Outcome of KM Project
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Purpose of KM Project

• Provides an understanding of the concept of
  Knowledge Management (learn by doing)
• Effectively translates theory into action
• Creates an environment to experiment (pilot)
• Delivers immediate value to your organization

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Criteria for Project Selection

• Contributes to organizational improvement
• Recognized as a need by your people
• Project fully supported by senior leadership of
  the organization
• Capable of implementation (driven by scope of
  project)

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Project Output

• At least one (1) deliverable identified that
  can contribute to improved results
• Deliverable is documented and supported by an
  Action Plan
• Project can be measured against established
  success factors
• Clear measurements identified
  

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KM Methodology Phase I Design and
Implementation
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KM Cycle of Implementation
Recognition and Reward
Learning
Measurements
World Class KM Environment
Transition and Behavior Management
Process and Tools
Communication
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KM Cycle of Implementation
5
Measurements
Process and Tools
3
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Transition and Behavior Management
1

• Two components to Step 1
• Transition Behavior Management
• Driven by Culture of Organization

1
2
Infrastructure to put a Plan in place
Interventions to change behavior
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Transition

• Secure senior management support and
  participation
• Establish a team to create a KM core competency
• Ensure a means of implementation assessment
• Identify critical success factors for
  implementation

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Behavior Management

• Senior management serves as role models for KM
  
• Create an environment where employees can
  question existing methods of operation
• Encourage employees to experiment in new
  techniques
• Behaviors of KM match the culture
• Alternative is to introduce interventions
  (coaching)

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Organizational Implications

• Rigid structure hierarchy?
• Inflexible leadership?
• Open to change?
• Validate that your organization is ready for KM
  implementation

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Communication
2

• Inform all employees of KM (what, why, when,
  how)
• Be clear in your definition
• Explain employee relevance
• Put in print, video, Intranet
• Include organizational model of KM

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Communication

• Media use is critical, but.
• .Behaviors are the most effective communicator
• Reinforced
• Continuous

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Process and Tools
3

• The core of Knowledge Management
• Internal sharing
• IT tools
• Communities of Practice (CoP)
• Design and use of the Internet / Intranet

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Process and Tools

• Internal Sharing
• Create the physical environment for the
  exchange of knowledge (facilities modification)
• Creation of Knowledge Network
• Sharing of best practices
• Linked to self-assessment
• Open sharing system
• Seminars and forums

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Process and Tools
Best Practice Sharing
Tacit
Facilitated Transfer
Results
Explicit
Resources Required
Source APQC
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IT Tools

• Guided and supported by professional IT
  suppliers
• MS Share Point
• Smart KM
• ShareWare (Lotus Notes, NetMeeting)
• Data Mining
• Knowledge of your customers
• Use as sales/marketing tool

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Community of Practice A Definition
In an organization, a community of practice is a
group of people who care about a common set of
issues, share and develop knowledge in that
domain, and thus steward a competence critical to
the success of the organization.
-- The Communities of Practice
Consortium
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Communities are Different from Groups/Teams
Communities
Workgroup / Teams
Emerges Through Interaction Can be Detected and
Supported Shared Interests,
Practice Legitimate Peripheral Participation,
Apprenticeship Technology Supports Legitimate
Access, Membership and Peripheral Awareness
Created to do Tasks Can be Designed and
Created Shared Responsibilities, Plans Team
Participation and Leadership Technology Supports
the Execution of Cooperative Tasks
Source E Y
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Communities are Different from Groups/Teams
Communities
Teams

• Driven by deliverables
• Shared goals and results
• Value defined by charter
• Value in result delivered
• Defined by task
• Interdependent tasks
• Clear boundaries
• Develop by workplan
• Everyone contributes
• Managed by goals plan
• Team leader or manager
• Bound by commitment
• Mutual accountability for subtasks
• Trust based on explicit agreement
• Sense of achievement

• Driven by value
• Shared domain of practice
• Value discovered / evolves
• Value in ongoing process
• Defined by knowledge
• Interdependent knowledge
• Permeable boundaries
• Develop through learning
• Variable contributions
• Managed by making connections
• Coordinator with core group
• Bound by identity
• Mutual accountability for the domain
• Trust based on reciprocity
• Sense of belonging

Source The CoP Consortium
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CoP Typical Activities

• Members of a community of practice typically

• spend time together doing, thinking, talking
• help each other solve problems
• share information, insight and advice
• create shared artifacts
• over time, they develop a shared history
• a communal identity around a shared passion
• relationships, roles, and ways of interacting
• common knowledge, practices, and approaches

Source The CoP Consortium
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CoP An Evolution in Organizational Design
The functional organization
The team-based organization
The multimembership organization
The market-oriented organization
Communities of practice weave the organization
around competencies without reverting to
functional structures.
Source The CoP Consortium
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CoP Organizational Fit

• Within business units and projects
• Across business units and projects
• At the boundaries of organizations
• Across distinct organizations

Source The CoP Consortium
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CoP Pitfalls to Avoid

• An interim step is required (i.e. establishment
  of a team-based structure)
• Restrictive by management
• Working environment not ready

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Use of the Internet/Intranet

• Data base (mapping) of experts
• Inventory of best practices within the
  organization
• What is incentive to populate data base?
• What is incentive to use the stored knowledge?
• How is it maintained?

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Process and Tools

• Process Documentation (mapping and
  flowcharting) essential
• How to share knowledge
• How to become a member of a CoP
• Guidelines for use of the Intranet

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Learning

• Create an awareness of Knowledge Management
  concepts
• Integrate KM with current training programs
• Train masters of Knowledge Management

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Learning

• Formal training vs. learning
• Traditional classroom vs. virtual
• Create curricula pertinent to KM strategy of
  the organization
• Concepts of KM that are trainable

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Measurements

• In-process measurements vs. results

• Intranet hits growth
• Number of CoPs as of population
• Best practices adapted
• Staff turnover

• Revenue growth
• Staff morale
• Customer loyalty
• Return on Assets

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Measurements
Source U.S. Dept. of the Navy Study
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Measurements
Source U.S. Dept. of the Navy Study
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Measurements
Example of a Flow Framework for a Community of
Practice
Source U.S. Dept. of the Navy Study
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• Develop an incentive for sharing knowledge
• Develop a disincentive for hoarding knowledge
• Emphasize sharing in organizational meetings
  and forums
• Recognize behaviors and activities

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Recognition and Reward
Successful Examples

• Sharing forums (booths)
• Discussion forums for use and re-use of
  knowledge
• Integrated as part of normal recognition and
  reward scheme
• Recognize behaviors and activities
• Customer, supplier, partner events

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KM Methodology Phase II Total Integration
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Characteristics of Total Integration
Observations

• Internal assessment system reflects knowledge
  management
• Multiple knowledge management projects in place
  and successful
• There is an organized forum for sharing
  knowledge
• A high level award/recognition includes
  knowledge management accomplishments

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Characteristics of Total Integration
Observations

• Performance appraisal evaluation includes
  knowledge management accomplishments
• Highly visible knowledge management projects
  aggressively communicated
• Tools and technology in support of knowledge
  sharing appropriately displayed and supported by
  collateral material
• Studies on knowledge management pervasively
  shared with others

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Characteristics of Total Integration
Observations

• Pay and recognition systems reflect Knowledge
  Management
• Customer events, executive keynote speeches,
  customer advertising and public relations support
  Knowledge Management

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KM Methodology Phase III Return on
Investment(Payback)
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KM Return on Investment

• Difficult to quantify
• Longer term payback horizon
• Certain trust level needed by management
• but the impact is experienced by customers,
  employees and stakeholders

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Cost and Benefits of Effective Knowledge Sharing

• Examples of These Costs
• Lost Market Opportunity
• Redo / Reinvent
• Customer Dissatisfaction
• Lost Productivity
• Unsolved Problems
• Reduced Customer Value

A

• Examples of Investments
• Communications
• Learning Costs
• K.S. Specialists
• Systems Enhancements
• Recognition Costs
• Time To Share

Costs
Costs
Investments in Knowledge Management
Costs Incurred Because Knowledge is Not Shared
B
low
high
low
high
Knowledge Sharing Intensity
Knowledge Sharing Intensity
A. Investments are required to achieve higher
levels of Knowledge Management effectiveness and
pervasiveness. B. As Knowledge Management
intensity and effectiveness increases, costs
incurred due to lack of Knowledge Management are
reduced. C. An optimal investment in Knowledge
Management can yield significant benefits in
reduced Total Costs and improved results.
C
o
Costs
o
Cost of Sharing
Cost of Not Sharing
low
high
Knowledge Sharing Intensity
Source Xerox
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Three Step Process to Improve Knowledge Management
o
Cost of Not Sharing
Costs
o
o
Cost of Not Sharing
Cost of Sharing
Cost of Not Sharing
Cost of Sharing
Cost of Sharing
low
high
low
high
low
high
Knowledge Sharing Intensity
Knowledge Sharing Intensity
Knowledge Sharing Intensity
1
2
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Find ways to reduce the cost associated with
Sharing Knowledge to achieve higher levels of
Knowledge Sharing at lower costs. This creates a
new optimum point and lower the Total Cost even
further. As the Costs Associated with Not
Sharing increase with market demands and
advances in competition, moving to higher levels
of Knowledge Sharing becomes increasingly
critical.
Create an understanding and recognition that
Knowledge Sharing investments are currently
suboptimal and that an increase in Knowledge
Sharing intensity will yield significant
reductions in the Costs Associated with Not
Sharing Knowledge (e.g., Reduced Customer Value,
Lost Market Opportunity, Redo, Reinvention, Poor
Business Results).
Increase resources and investments in Knowledge
Sharing (e.g., dedicated resources,
communications, system enhancements, etc.) to
significantly reduce the Costs Associated with
Not Sharing Knowledge and therefore reduce the
Total Cost and significantly improve results.
Source Xerox
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Workshop Discussion Current State Assessment
of KM Activities
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Workshop Instructions

1. Based on the background lecture of Knowledge
   Management, list your organizations activities
   that could be classified under the definition of
   KM, if any.
2. Were any of these KM activities successful? Why
   or why not?

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Workshop Discussion Selection of Pilot Project
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Project Selection Guidelines

• First priority Current KM activities
• Determine scope of project
• Technology and/or cultural change
• Budgetary constraints
• Employee/staff engagement
• Time limitations
• Expanded participation (suppliers, etc.)
• Assess your process capability

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Is there something missing from the Domains
listing that could be a potential project?
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Workshop Discussion Developing a Project
Implementation Plan
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Implementation Plan Guidelines

• Be as specific as possible
• Dont assume actionsdocument them!
• Ensure a method of inspection is in place
• Monthly review of activities and milestones
• Accountability challenged
• Discipline towards implementation

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Implementation Plan Guidelines
Who, by name, is accountable for milestone
success?
What are your key milestones for completion, by
date?
Activity Means to Achieve Timeline Resources Responsibility Status





What do you expect to accomplish?
What in-process assessment steps are being
taken?
What man- power, IT, other investment is required?
What specific actions, listed in detail, must you
complete?
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Key Success Factors

• Is the project results-driven?
• Does the outcome produce real value for the
  enterprise?
• Can the project be measured?
• Do you have support and acceptance of
  management?
• Is the project relevant to your enterprise?

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Workshop Discussion Key Success Factors
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Workshop Instructions

1. Using the activities you identified in your
   Action Plan, what are your primary
   characteristics of a successful KM
   implementation?
2. What are the barriers to successful
   implementation? How can these barriers be
   overcome?

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Knowledge Management Resources
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Resources

• Internet
• Books
• The Knowledge Creating Company (Nonaka and
  Takeuchi)
• The Social Life of Information (Brown and
  Duguid)
• Smart Business (Botkin)
• Intellectual Capital (Stewart)
• If Only We Knew What We Know (ODell and
  Grayson)
• Periodicals (magazines and white papers)

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Next Steps Implementation and Evaluation
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Next Steps

• Implementation
• Follow the Action Plan!
• Perseverance
• Evaluation
• Review milestone progress monthly
• Solicit feedback from KM consultant

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Thank You!