16 years, 7 lessons

Basic principles for KM

Nick Milton, Knoco Ltd

IAPG - Primeras Jornadas de Gestión del

Conocimiento en Exploración y Producción

13 June 2008

© Knoco Ltd – all rights reserved

Who am I?

Nick Milton

Geologist by training

KM consultant by vocation

Director of Knoco Ltd

7 years working KM in BP

9 years as consultant to a variety of companies and industries

Based in England nick.milton@knoco.co.uk

www.knoco.co.uk

© Knoco Ltd – all rights reserved

Key messages

1.

Knowledge management is a component discipline of good management practice; the component that drives continuous improvement

2.

Focus on the business outcome for your company. Be clear on the drivers for KM. Support the business outcome, and nothing else.

3.

Focus on the critical knowledge, and manage the knowledge of highest value.

4.

Technology is part (but not all) of the answer

5.

The KM "system" needs to be complete, and performance managed. You can’t “half do” knowledge management

6.

Accountabilities are key. Knowledge needs to be looked after by people with defined roles and accountabilities.

7.

Embed KM in the business process, with clear minimum conditions of satisfaction.

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Apply

Knowledge Performance

Learn

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Data, Information,

Knowledge

Data

A pressure reading, in one place, at one time

Information

Data structured in such a way as to “tell you something”

Knowledge?

What does this mean?

What action should I take?

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Knowledge Management

Knowledge Management (KM) is the management ‘system’ that supports the creation, sharing, validation, application and refreshing of knowledge.

(Definition from BP)

People

Process

Technology

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1. KM is a component discipline

Contract Mgt

Knowledge Mgt

Safety Mgt

Cost Mgt

Project

Risk Mgt

Document Mgt

Quality Mgt

Schedule Mgt

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From Wikipedia

A project is a carefully defined set of activities that use resources ( money , people , materials , energy , space , provisions , communication , motivation , etc.) to achieve the project goals and objectives.

Knowledge

Knowledge

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Implications

KM is a key component of good management practice. Therefore

It needs discipline and rigour

It needs to be a business requirement

It can be governed the same way as other disciplines

And it needs integrating with the other disciplines

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2. Focus on the business outcome

a) Operational efficiency

$

Time

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Focus on the business outcome

b) Operational consistency

Unit d

Unit c

Unit b

Unit a

0

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10 20 30 40

Time

Quality

Cost

Focus on the business outcome

c) Demographics

35 60

30

50

40

25

20

30

15

20

10

10

5

0

21-24 25-29 30-34 35-39 40-44 45-49 40-54 55-60

Challenge 1 – decreasing the time to competence

0

21-24 25-29 30-34 35-39 40-44 45-49 40-54 55-60

Challenge 2 – retention of the critical knowledge

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Implications

Operational efficiency

Focus on learning from projects, and cross-project transfer – Example, BP

Operational consistency

Focus on learning from operations, and the development and deployment of operational standards and best practices – Example, Schlumberger, Halliburton

Decreasing time to competence

Focus on development of excellent training and reference systems – Example, developing-world companies,

Schlumberger

Retention of Critical Knowledge

Focus on the development of Knowledge Assets from the departing experts – Example, Shell

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Example - Schlumberger

“The InTouchSupport.com system in Schlumberger is our flagship solution.

It cost $160 million

It saves us $200 million each year

It cuts 95% from the time it takes to answer a technical question

It provides 24x7 technical and operational support for

Schlumberger technology”

InTouch service is built on a number of elements:

•the Schlumberger secure global network infrastructure, a single portal into the technical resource base

•technical helpdesks located at technology centers in London and

Houston

•validated knowledge repository in a centralised database.

Mike Atkinson

Head of KM

Schlumberger/Sema UK

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3. Focus on the critical knowledge

What knowledge do you need to manage?

What knowledge will deliver the greatest value?

What is the strategic knowledge for your organisation?

You don’t need to manage it all with equal rigour!

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What is your critical knowledge?

High cost repetitive activity

Offshore drilling

Development projects

Business critical activity

Service delivery

Production operations

Growth activity

Replicating proven business in a growing market

Breakthrough innovation

New products, new markets

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Implications

Make sure your critical knowledge is owned and maintained

Ask yourself – “who looks after this knowledge?”

Company experts?

Communities of Practice?

Functional departments?

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Example – FMCG manufacturer

Company objective – Growth

Growth Market – the developing world

Key knowledge – how to market, distribute and sell product in the developing world

Solution – small focused community, charged with developing and deploying this knowledge

Result - turnover doubled from $950m to

$1.8bn, share of profits risen from 6.6% to

10%

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4. Technology

“Technology is the answer”

“Technology is not the answer”

“Technology is part of the answer”

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4 areas of technology

Technology to store and find validated knowledge, and new lessons

Technology to find and connect people

Technology to discuss new knowledge and ideas

Technology to distribute new knowledge

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Example - BBC

A corporation of communicators!

BBC Gateway Intranet – a reference and elearning library

“Connect” – a tool to find individuals with knowledge, anywhere in the organisation

Talk.Gateway – discussion forums and questions/answer forums on technical topics

Blogs and Wikis as a way of publishing new knowledge

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5.1 A complete system

Push

Model copyright BP

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Pull

5.2 Double knit learning

Business units and projects

The knowledge management system needs to address knowledge in 2 dimensions

1. Within the projects and business

2. Between and across the projects and business

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5.3 A complete system

Access and

Apply

Best Practice

Activity

Review and capture

New Learning

Validate and update

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Implications

Knowledge Management needs to operate both within the business teams, and across the business teams

The loop needs to be closed, between creation of the learning, and re-use of the learning.

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Example – MW Kellogg

MW Kellogg hold post-project retrospects

These are followed by “Validation and

Distillation” meetings with high-level functional chiefs

Immediate lessons for other teams are identified, and shared

Any necessary changes to company practice are agreed and made

(text courtesy of MW Kellogg)

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6. Clarify accountability.

Executive KM team

Division 1 Division 2

Head of

Function 1

Head of

Function 2

Business unit 1

Project 1

Business unit 2

Project 2

SME 1 Community 2

Accountability for compliance with

KM expectations in the line

Accountability for maintaining the corporate knowledge

Accountability for providing KM capability, and for monitoring the two accountabilities above

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Implications

Knowledge management will work when

The necessary roles are in place,

People are clear about their role,

People are assessed against their role

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Example – Shell roles

13 online communities of practice (SIGN –

Shell International Global Networks)

Each network has

One global coordinator, to run the network

A number of designated subject matter experts, to gather and package the knowledge

One designated focal point per operating unit, to be the link between the network and the operating unit

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7. Clear expectations for KM

Create KM plan

Update KM plan

Knowledge capture

Team learning

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Implications

If people know the expectations for KM activity, then they are more likely to comply

KM activity, like other project management activity, has a timetable, a rhythm, a proactivity and predictability

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Example – BP Drilling and

Completions

As part of “Beyond the best Common Process” minimum conditions of satisfaction – every significant well will

Create a knowledge management plan to access lessons

Capture and share lessons at the end of the well and may

Hold Peer Assists on critical areas of knowledge

Capture knowledge after hole sections/casing runs using

After Action reviews

Make use of the drilling community forum

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Key messages

1.

Knowledge management is a component discipline of good management practice; the component that drives continuous improvement

2.

Focus on the business outcome for your company. Be clear on the drivers for KM. Support the business outcome, and nothing else.

3.

Focus on the critical knowledge, and manage the knowledge of highest value.

4.

Technology is part (but not all) of the answer

5.

The KM "system" needs to be complete, and performance managed. You can’t “half do” knowledge management

6.

Accountabilities are key. Knowledge needs to be looked after by people with defined roles and accountabilities.

7.

Embed KM in the business process, with clear minimum conditions of satisfaction.

© Knoco Ltd – all rights reserved

Questions

nick.milton@knoco.co.uk

www.knoco.co.uk

© Knoco Ltd – all rights reserved