knowledge management Successfully Implementing Knowledge Management Best Practices

knowledge management Successfully Implementing Knowledge Management Best Practices and Lessons Learned Carla O’Dell, Ph. D. President, APQC www. apqc. org KM WORLD October 30, 2001 1

The Story Today knowledge management • KM reaches the Tipping Point • A Road Map for Successfully Implementing KM • Best Practices • Lessons Learned 2

APQC Key Milestones knowledge management • Founded in 1977 - funded by 100 corporations – Non-profit, tax-exempt 501(c)(3) • The White House Conference on Productivity • Malcolm Baldrige National Quality Award • Groundbreaking Research • International Benchmarking Clearinghouse • Knowledge Management Initiative 3

Knowledge Management knowledge management Systematic approaches to enable information and knowledge to grow, flow and create value. 4

Where are Early KM Adopters Now? Organization Chevron Target Value Proposition Approach Communities of Reduce Operating Costs Practice (COPs), Growth facilitate transfer of Best Practices (BP) knowledge management Technology Results Microsoft $2 billion Platform, reduction in Plumtree Portal annual operating costs Faster Revenue COPs, central Cap Gemini Growth, Lower KM managers, Ernst & Young Cost Content Management Microsoft Platform and Exchange 10 -fold growth in revenue with 5 fold increase in employees. Knowledge in the hands of employees and customers Web Enabled $75 M 1 st year savings; $100 M customer savings (proj. ) Schlumberger Technical COPs, intranet & vortal 5

KM Approaches are More Mature knowledge management Transfer of Best Practices Tacit Co. Ps Self. Service + Explicit HIGH Technology Enablement LOW 6

In. Touch – KM in Schlumberger knowledge management • Goal – Create a quantum leap in operational efficiency and service to our customers • Strategy – Direct access to information, by connecting – technology centers ↔ field – field ↔ field 7

knowledge management What have we learned about KM? 8

APQC’s Work in KM knowledge management • Focus on KM since 1993: Eight consortia since 1995 – Over 220 firms in APQC’s KM Consortia – 60+ Best Practice firms studied in detail • Shared knowledge with thousands of KM practitioners – Publications and Conferences – Certified KM Practitioner – COP Implementation Guide • Helping firms implement KM using best practices • Creating the Knowledge Sharing Network For Education (KSNE) 9

APQC KM Consortium Studies knowledge management • Retaining Valuable Knowledge (November, 2001) • Managing Content and Knowledge (2001) • Building and Sustaining Communities of Practice (2000) • Successfully Implementing KM (19992000) • Creating a Knowledge Sharing Culture (1998 -99) • Expanding Knowledge Externally (1998) • Europe - The Learning Organisation & 10

There is a Roadmap To KM Results knowledge management 11

Stage 1: Getting Started knowledge management Best Practices • Connect with a real business problem • Find the executive sponsor • Capitalize on the technology • Create a compelling picture and tell the stories The Main Tent 12

Stage 2: Develop Strategy knowledge management Best Practices • Form a cross functional KM steering team • Develop the KM Strategy • Select pilots and KM Initiatives • Find resources 13

Stage 3: Design and Launch knowledge management Best Practices • Form Design Teams • Launch the pilots and initiatives • Capture lessons learned • Land the results 14

Early Successes knowledge management • Chevron’s energyuse network generated an initial $150 million savings YR 1 • Savings since 1991 are $650 million 15

Stage 4: Expand knowledge management Best Practices • Evolve the vision • Develop an expansion strategy • Define governance and roles • Communicate and market • Create a balanced set of measures 16

Stage 4 Issues knowledge management • Sustain the core team • Pass on the passion • Form network of business unit KM managers • Avoid – Isolation – Potential reinvention – Disconnected multiple initiatives – Regressing to where you started 17

Best Buy’s KM Journey knowledge management • Stage 1 – November 1999 – Identified executive champions – Created core group – the KM PMO • Stage 2 Develop Strategy – January 2000 – Formed Steering and Advisory Committees – Defined Co. P pilot selection criteria – Launched 3 pilot communities 18

Best Buy’s KM Journey knowledge management • Stage 3 Pilots – August 2000 – Observed, measured and enhanced content, tools, and functionality for three pilot communities – Standardized processes and community technology – Initiated 8 new communities • Stage 4 Expansion - April 2001 to present – 6 nation-wide store-based sales communities – Integration with existing retail systems & processes – Product content – Move toward a complete “employee toolkit” 19

Stage 5: Institutionalize knowledge management Best Practices • Incorporate KM in the business model • KM = the way we work • Realign structure and budget • Monitor and measure • Align rewards and performance evaluation 20

Communities of Practice knowledge management Best Practices • A central building block of dynamic knowledge creation • Select communities on the basis of business opportunity and link to strategy • The community leader and adequate resources are the most critical drivers of value creation for members and the organization. 21

Lessons Learned: Content Management Systems knowledge management • Creating and Acquiring Content – Conduct a content audit – Prune ruthlessly – Authors own the content • Content Management Processes – Create content stewards in each domain / unit – Allocate enough time to these roles • Content Delivery – No dead ends; always have a. APQC help desk Source: Study somewhere Report and Vendor 22

Lesson Learned: Measure! knowledge management KM Measurement Bell Curve Stage 2 Explore and Experiment Stage 3 Discover and Conduct Pilots Stage 4 Expand Support Stage 5 Institutionalize Importance Stage 1 Enter and Advocate Time 23

knowledge management KM and Learning are Converging Connecting people to the best practices, knowledge, and expertise they need 24

Just-In-Time Knowledge knowledge management • …Just in time, just enough, just for me – Deliver knowledge needed to perform a task when it is needed … in context • …Time to Competence — 16 weeks (1998) 8 weeks (2001) —Synchronous & asynchronous distance learning • …Time and Money • …Simple, Single Access 25

Lesson Learned Good technology really does matter. knowledge management • Every important business process is IT enabled. • KM is not ONLY technology, but it is enabled by it. 26

knowledge management Process Enablement Customer Enablement E Business E Learning Knowledge Management 27

knowledge management Retaining Valuable Knowledge: Proactive Strategies To Deal With Today’s Shifting Work Force 28

Knowledge Attrition – The Big Picture knowledge management • Retirement—people leaving, knowledge leaving with them (oil & gas, government) • Knowledge loss within the organization—people changing jobs, moving from one project to another (all industries) • Downsizing—the current economy is causing havoc (all industries) • Turnover—some industries are just prone to high turnover (retail) 29

Study Scope Focus Area One knowledge management • Focus Area 1: Identifying the Knowledge and the Need • Focus Area 2: Capturing Knowledge • Focus Area 3: Transferring and Accessing Knowledge 30

Current Study Participants • Study Sponsors: – Air Products & Chemicals Inc. – Deere & Co. – Dept. of Veterans Affairs (Colorado Healthcare System) – Intel Corp. – Schlumberger Oilfield Services – Union Pacific Railroad – U. S. Dept. of the Navy. ARO – U. S. General Services Administration – U. S. National Security Agency – U. S. Social Security Administration knowledge management • Best-Practice Partners: – Tennessee Valley – – Authority The World Bank Corning Inc. Best Buy Northrop Grumman 31

APQC Resources in KM • Information on our website knowledge management – www. apqc. org/knowledge — Briefings, white papers, overview of Stages, surveys, presentations, publications — Best Practice Study Reports • • KM Practitioner Training and Certificate Program Community of Practice Handbook Content Management Vendor Assessment Conferences – May 2 -3, 2001 Washington, D. C. • Electronic newsletters: – Center. View – “APQC on KM” white papers • Call us to help you develop your KM initiative – 800 -776 -9676 32