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knowledge management

Successfully Implementing Knowledge Management Best Practices and Lessons Learned

Carla ODell, Ph.D. President, APQC www.apqc.org KM WORLD October 30, 2001
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The Story Today

KM reaches the Tipping Point A Road Map for Successfully Implementing KM Best Practices Lessons Learned

knowledge management

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APQC Key Milestones

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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

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Knowledge Management

knowledge management

Systematic approaches to enable information and knowledge to grow, flow and create value.

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Where are Early KM Adopters Now?

Organization
Chevron
Target Value Proposition

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Approach

Technology

Results

Communities of Reduce Operating Costs Practice (COPs),

Growth

facilitate transfer of Best Practices (BP)

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
Knowledge in the hands of employees and customers Technical COPs, intranet & vortal

Microsoft Platform and Exchange

10-fold growth in revenue with 5fold increase in employees.

$75 M 1st year savings; $100M customer savings (proj.)

Web Enabled

Schlumberger

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KM Approaches are More Mature

Tacit

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Transfer of Best Practices

CoPs
SelfService +
Explicit
HIGH

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Technology Enablement

LOW

InTouch KM in Schlumberger
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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

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knowledge management

What have we learned about KM?

APQCs Work in KM

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Focus on KM since 1993: Eight consortia since 1995 Over 220 firms in APQCs 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)

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APQC KM Consortium Studies

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Retaining Valuable Knowledge (November, 2001) Managing Content and Knowledge (2001) Building and Sustaining Communities of Practice (2000) Successfully Implementing KM (1999-2000) Creating a Knowledge Sharing Culture (1998-99) Expanding Knowledge Externally (1998) Europe - The Learning Organisation & KM (1997) Using Information Technology for KM (1997) Emerging Best Practices in KM (1996) 10

There is a Roadmap To KM Results

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Stage 1: Getting Started

Best Practices
Connect with a real business problem Find the executive sponsor Capitalize on the technology Create a compelling picture and tell the stories

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The Main Tent

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Stage 2: Develop Strategy

Best Practices Form a cross functional KM steering team Develop the KM Strategy Select pilots and KM Initiatives Find resources

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Stage 3: Design and Launch

Best Practices
Form Design Teams Launch the pilots and initiatives Capture lessons learned Land the results

knowledge management

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Early Successes
Chevrons energy-use network generated an initial $150 million savings YR 1 Savings since 1991 are $650 million

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

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Stage 4 Issues

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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

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Best Buys KM Journey

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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 CoP pilot selection criteria Launched 3 pilot communities

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Best Buys KM Journey

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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

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Stage 5: Institutionalize
Best Practices
Incorporate KM in the business model KM = the way we work

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Realign structure and budget

Monitor and measure Align rewards and performance evaluation

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Communities of Practice

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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.

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Lessons Learned: Content Management Systems

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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 help desk somewhere

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Source: APQC Study Report and 22 Vendor Assessment

Lesson Learned: Measure!

KM Measurement Bell Curve

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Stage 1 Enter and Advocate

Stage 2 Explore and Experiment

Stage 3 Discover and Conduct Pilots

Stage 4 Expand and Support

Stage 5 Institutionalize

Importance

Time

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knowledge management

KM and Learning are Converging

Connecting people to the best practices, knowledge, and expertise they need

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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

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Lesson Learned

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Good technology really does matter.

Every important business process is IT enabled. KM is not ONLY technology, but it is enabled by it.

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knowledge management

Process Enablement

Customer Enablement

E Business
E Learning Knowledge Management

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Retaining Valuable Knowledge: Proactive Strategies To Deal With Todays Shifting Work Force

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Knowledge Attrition The Big Picture

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Retirementpeople leaving, knowledge leaving with them (oil & gas, government) Knowledge loss within the organizationpeople changing jobs, moving from one project to another (all industries) Downsizingthe current economy is causing havoc (all industries) Turnoversome industries are just prone to high turnover (retail)

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Study Scope Focus Area One

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Focus Area 1: Identifying the Knowledge and the Need

Focus Area 2: Capturing Knowledge

Focus Area 3: Transferring and Accessing Knowledge

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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 Xerox

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Best-Practice Partners: Tennessee Valley Authority The World Bank Corning Inc. Best Buy Northrop Grumman

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APQC Resources in KM
Information on our website

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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: CenterView APQC on KM white papers Call us to help you develop your KM initiative

800-776-9676

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