10 Strategies for Successful Knowledge Sharing at Ford

Overview Comments n Ford has many Knowledge Sharing Processes: Enterprise Portals, Document Repository, GIS,

Achieved Vision n Robust business process for the collection and approval of high value

History n Jun ’ 95: Informal process of faxing practices amongst vehicle operations. n

History (Contd. ) n Feb ’ 01: Adapted process for replicating key findings of

Principles n Capture only proven, high value practices. n Quantify value-add to the business.

Typical Community of Practice Senior Leadership Community Gatekeeper Site 2 Site 1 Focal Point

Selection and Replication of Proven Practices at Ford SOURCES OF IDEAS Task 6 -Sigma

Create & Capture Knowledge: BPR Steps 1 -3 # 1: Draft Practice: Focal Point

Communicate & Leverage Knowledge: BPR Steps 4 -6 # 4: Automatic email notification of

Manage and Recognize: BPR Steps 7 -9 # 7: Feedback: At each location, Focal

Results Summary n n 10, 000+ replications/yr. 2800+ active high value practices have resulted

10 Strategies for Successful Knowledge Sharing # 10: Tell stories, with sufficient details. #

10 Strategies for Successful Knowledge Sharing # 7: System must be able to capture

10 Strategies for Successful Knowledge Sharing # 4: Provide peer-recognition of people who share

10 Strategies for Successful Knowledge Sharing # 1: Culture of knowledge sharing must exist.

Conclusions 1. Capture Hi-Value, Proven Practices. 2. Recognize participants 3. Culture of knowledge sharing

Contacts Stan Kwiecien skwiecie@ford. com Best Practice Replication Deployment Manager Sanjay Swarup sswarup@ford. com

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10 Strategies for Successful Knowledge Sharing at Ford Sanjay Swarup, Specialist, Process Reeng. & Knowledge Management, Ford Motor Company KMWorld 2002, Santa Clara, CA October 29 -31, 2002

Agenda n n n Ford Profile, Comments Achieved Vision, History Principles and Process of BPR Results 10 Strategies… Conclusion Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

Ford Profile n Ranked #4 by Fortune 500 n 2001 Global Revenues -- $162 Billion n 2001 Global Unit Vehicle Sales – 7 million n 354, 000 Employees Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

Overview Comments n Ford has many Knowledge Sharing Processes: Enterprise Portals, Document Repository, GIS, e-Books, Best Practice Replication(BPR)… n Write, Search, and Read access to BPR is limited to Ford Employees, with valid ID and who have received proper training. n Detailed BPR Process is considered confidential information. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

Achieved Vision n Robust business process for the collection and approval of high value practices that can be shared and implemented throughout the enterprise. n Establish Collaborative Capabilities and build people relationships by sharing valuable knowledge. n Technology to enable nimble and intuitive communication of knowledge. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

History n Jun ’ 95: Informal process of faxing practices amongst vehicle operations. n Jun ’ 96: Launched BPR across vehicle operations – 53 plants globally. n Feb ’ 00: Derivative of process for Health and Safety for communicating concerns and incidents. Developed and Launched BPR version 2. 0 n Dec ’ 00: Derivative of the process for Environmental application. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

History (Contd. ) n Feb ’ 01: Adapted process for replicating key findings of 6 -Sigma projects. n Aug ’ 96 – Present: Launched 53 Communities of Practice: Product Development, Ford Land, HR, Quality, Service, Finance, MP&L, Ford Production System, Recruiting, Plant IT, Paint, Final Area, Body, Machining, Facilities Engineering, Engine Design…. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

Principles n Capture only proven, high value practices. n Quantify value-add to the business. n Manage the process. n Business Partners provide the people and the content, IT group provides the enabling tool. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

Typical Community of Practice Senior Leadership Community Gatekeeper Site 2 Site 1 Focal Point Knowledge Workers etc. Site 3 Focal Point Knowledge Workers Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved Focal Point Knowledge Workers

Selection and Replication of Proven Practices at Ford SOURCES OF IDEAS Task 6 -Sigma Lessons Learned Site Visits CPIPS FPS 8 D’s Dreams Nightmares IMPLEMENTATION PROVEN VALUED PRACTICES BEST PRACTICE REPLICATION PROCESS WITH PRESCRIBED ROLES & RESPONSIBILITIES COLLECT APPROVE & DISTRIBUTE LOCAL REVIEW Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved FEEDBACK MANAGEMENT REVIEW OF RESULTS

Create & Capture Knowledge: BPR Steps 1 -3 # 1: Draft Practice: Focal Point at a Location enters Proven Practices into BPR. # 2: Review Draft Practice: Gatekeeper reviews Draft Practices for clarity and completeness. Collaborates with Subject Matter Experts. # 3: Approved Practice: Gatekeeper approves only High-Value Proven Practices. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

Communicate & Leverage Knowledge: BPR Steps 4 -6 # 4: Automatic email notification of Approved Practices to all the Community Focal Points at each Location. # 5: Practices reviewed by team members at each location to determine applicability. # 6: Adopt/ Not Adopt Decision: At each location Leadership decides priorities of applicable practices. “Copy with Pride” Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

Manage and Recognize: BPR Steps 7 -9 # 7: Feedback: At each location, Focal Point provides feedback to the System - adoption decision and value of the adoption. JAN FEB MAR IN RECOGNITION OF REPLICATING HIGH VALUE IDEAS # 8: Reports: Location Summary Report, Community Summary Report, etc. , available to any Ford Employee. # 9: Recognition of both the Best Practice Creator as well as the Replicator – Placards. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

Results Summary n n 10, 000+ replications/yr. 2800+ active high value practices have resulted in: n $1. 5+ Billion of identified value n $1 Billion of actual value added to the company n 53 Communities of Practice launched with 2115 Focal Points. n Health & Safety and Environmental derivates of the process proactively distribute incidents and corrective actions. n Patents have been applied for the software and process derivatives. n Process licensed to Shell Oil, Nabisco, and Kraft Foods. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

10 Strategies for Successful Knowledge Sharing # 10: Tell stories, with sufficient details. # 9: Establish a process for filtering out trivial, low-value practices. # 8: If you build it they will not come. Push the knowledge to users. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

10 Strategies for Successful Knowledge Sharing # 7: System must be able to capture the value of the practice. # 6: Senior Leadership sponsorship is necessary, but not sufficient. # 5: The system must be available to the grass-roots level. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

10 Strategies for Successful Knowledge Sharing # 4: Provide peer-recognition of people who share knowledge. # 3: Hi-Tech works only if there is Hi-Touch. # 2: System must have automatic feedback. Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved

Contacts Stan Kwiecien skwiecie@ford. com Best Practice Replication Deployment Manager Sanjay Swarup sswarup@ford. com Specialist: Process Reeng. , & Knowledge Management Robyn Valade rvalade@ford. com Best Practice Integration Manager Dar Wolford dwolford@ford. com Manager, Venture Transitions and Knowledge Management Copyright 1998. 1999, 2000, 2001, 2002 Ford Motor Company, All Rights Reserved