Knowledge Management
Seminar
Webster University
Janet Guptill, President
KM At Work, Inc.
Knowledge Management Seminar
• Class member introductions
• What is “knowledge” and what are attributes of
valuable knowledge?
• What is “knowledge management” (KM)?
• Where has KM been used in companies?
• What are examples of KM tools and
technologies?
• What are examples of KM results?
• What are barriers to effective implementation
of KM?
• Small group case study break-outs
2
KM Seminar Outline
• What is KM? (slides 5-11)
• Fundamentals to drive KM (12-25)
• Components of a KM program
–
–
–
–
–
Communities (26-31) - CHI
Content Mgt (32-34) – AH
Capability Transfer (35-40) – BSHSI, Christus
Metrics (41-47) – VA, CHI, AH
Infrastructure (48-52) – AFMS
• Lessons Learned (53-77)
– ROI (65-66)
– Case Study Reports (71-76)
3
Playing with words
EgIoGgHoT
EgIoGgHoT
EgIoGgHoT
EgIoGgHoT
Fe Fe
Fe Fe
Fe
Fe
Fe Fe
Fe Fe
issue issue
issue issue
issue issue
issue issue
issue issue
Fairy, Wolf
and Duckling
habirdnd =
bu2sh
10 SNE1?
ALLworld
mce
mce
mce
VAD ERS
4
Knowledge Management
• What is it?
• How does Knowledge get transferred –
in general? In an organization?
• Why might it be relevant to transfer
Knowledge within your type of
organization?
• What makes this process complex?
5
“Land, labor, and capital now pale in
comparison to knowledge as the
critical asset to be managed in
today’s knowledge economy.”
Peter F. Drucker
6
Knowledge Management - A Definition
“KM is the systematic processes by which
knowledge needed for an organization
to succeed is created, captured,
shared, and leveraged.”
The Complete Idiot’s Guide to Knowledge
Management,
Melissie Rumizen
What does this mean to you??
7
Best practice sharing
Knowledge transfer
Innovation diffusion
Performance improvement
How do these relate to each other?
8
Perspectives…
“Every day that a better idea goes unused is a lost
opportunity. We have to share more, and we have to share
faster. I tell employees that sharing and using best
practices is the single most important thing they can do.”
-Ken Derr, former Chairman and CEO, Chevron Corporation
“Knowledge transfer is a strategic imperative. It is our
stewardship responsibility to share and adopt ‘best
practices’ that have already been identified within our
system. Knowledge sharing is no longer a ‘nice to have’,
it has become a ‘must have’.”
- Chris Carney, CEO, Bon Secours Health System, Inc.
What prevents organizations like hospitals from
effectively sharing their knowledge?
Perspectives…
“Diffusion is the process by which an innovation is
communicated through certain channels over time
among the members of a social system.”
-Everett Rogers, ‘Diffusion of Innovations’
“Ideas and products and messages and behaviors spread
just like viruses do.”
-Malcolm Gladwell, ‘The Tipping Point’
How can we orchestrate how knowledge gets
shared within an organization to impact results?
Group Exercise
• Illustration of knowledge exchange
• Class participants describe their organization:
– Business type
– Size
– Type of organization structure
– Your role in the organization
• Form groups of 4; tell a story (60 seconds) that
illustrates the problems that arise from inadequate
knowledge sharing
• Change groups, tell the same story
• Find the person whose story affected you the most
• What made these stories compelling?
11
Fundamentals of Knowledge Management
LEADERSHIP
CULTURE
•Leadership/Management
•Culture/People
TECHNOLOGY
• ProcessPROCESS
• Technology
Developed by: Janet Guptill and Douglas E. Goldstein, 2003
Leadership
Knowledge transfer will only succeed if
accountability and authority are clearly
defined and imbedded in existing
operational decision making structures.
13
Discussion
• How do leaders transfer their
Knowledge?
• How do they model how others share
Knowledge?
• What are potential barriers to sharing
Knowledge in an organization?
14
Culture
Knowledge transfer will only be effective if
managers find the process a useful and
productive way to meet performance
objectives.
15
Discussion
• What is an example of organizational
culture?
• How does culture get shaped?
• How does one go about changing an
organization’s culture?
• How might a KM strategy affect culture
– and vice versa?
16
Process
Knowledge transfer must become the way
performance is awarded and managed, not
an “extra” task or process.
17
• Transferring knowledge is often not enough; need to
figure out how to transfer capabilities as well through
human and technology enabled support systems
• Getting an organization to adapt new ideas requires a
process of re-invention—people need to own the result
10 Critical Dynamics of Innovation
as their own idea-1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Diffusion:
Relative Advantage
Trialability
Observability
Communications Channels
Homophilous Groups
Pace of
Innovation/Reinvention
Norms, Roles, and Social
Networks
Opinion Leaders
Compatability
Infrastructure
Source: Diffusion of Innovations,
Everett Rogers, 1995
18
Basic Steps to Innovation Diffusion--
Set goals,
look for
solutions
Evaluate
alternatives
Decide: adopt,
reject,
redefine,
restructure
Clarify,
implement
Evaluate,
confirm,
routinize
Centralized/Decentralized Continuum to Diffusion Process-Centralized:
Mandated
targets
Mgt endorsed
best practice
Decentralized:
Awards,
incentives
Knowledge
exchange
Dedicated
execution
resources
CoP best practices
Proscribed
approach
Peer
consultation
Performance linked
to transfer success
Scorecard
results
Developed by Janet Guptill and Douglas E. Goldstein, 2003, adapted from Diffusion
of Innovations, Everett M. Rogers, 1995
19
Technology
Managers will need to develop an “electronic
attitude” which will require an investment
in collaboration technology infrastructure,
and training and modeling on how to work
in a new web-centric manner.
20
Best
Practice &
Innovation
Database
(Web)
Web and Multi-media Technology
– Intranet critical for supporting KTPI
– Best Practice DB of Resources, Assets & Tools
21
Connecting people through online/offline communities of
practice involves building a set of tools that simplify
communication, link people to content, and provide
measurements of value and impact-Key Technology Considerations
for Supporting Communities of
Practice
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Presence and visibility
Rhythm
Variety of interactions
Efficiency of involvement
Short-term value
Long-term value
Connection to the world
Personal identity
Communal identity
Belonging and relationships
Complex boundaries
Evolution: maturation and
integration
Active community-building
Source: Etienne Wenger, Supporting 22
Communities of Practice, March 2001
A Knowledge Management Infrastructure Requires These Elements
What is Knowledge Management (cont.)?
What is Knowledge
Management?
Strategic Leadership
•
An organizational
investment designed to help the company achieve
• Knowledge envisioned as a strategic asset
its business strategy more
effectively
and culture
efficiently
sharing
part
of corporate
A systematic process• Knowledge
for identifying,
organizing,
and applying the
• Continual
innovation
competitive
• intellectual
A systematic
mechanism
for capturing
market intelligence and
capital
of a company,
tofor
result
in:bothadvantage
internal experiences in order to derive new insights and yield better
business
decisionsand reduced cost of doing business
• Improved
efficiencies
• A tool for organizing data and information to avoid “re-inventing the
Collaboration
Content Creation and Use
wheel”, share lessons learned, and build on one another’s
• Faster innovation of new products to generate new sources of
experiences
• Peer to peer interaction and collaboration
• Core work
products organized for broad access
revenue
• Internal knowledge
education and competency development
• Aknowledge
strategy
forcontinually
makingupdated
more tangible the unique
• Experience
base
•
New
product
designserve
and development
• Internal andresources
external “bestwithin
practices”
theresearch
company to attract and continually
• Enhanced marketing of unique capabilities and competitive
customers
advantage to grow market share
• An approach that ensures that the organization retains key
Systems
Integration
knowledge when there is
turnover,
and that new members can
benefit quickly from prior experience
• Communication and collaboration tools
• Data storage, indexing, and retrieval
• KM templates, tools, and
2 technologies
1
23
3
Community Activation
and
Leadership
Support
and
Management
Content
Management
People/Culture
Infrastructure
and
Support Center
Technology
Tracking
and
Results Metrics
Process
Knowledge and
Capability Transfer
24
Health System KM Examples…
• Catholic Health Initiatives — 67 hospitals in 19 states,
67,000 employees, $6 billion annual operating revenues –
focus on Knowledge Communities
• Ascension Health —67 hospitals in 20 states, 100,000
employees, $9 billion annual operating revenues – focus on
Content Management
• Bon Secours Health System Inc. – 24 hospitals in 8
states, 27,000 employees, $2.3 billion annual operating
revenues – focus on Capability Transfer
• CHRISTUS Health –34 hospitals in 5 states and Mexico,
25,000 employees, $2+ billion annual operating revenues –
focus on Best Practices Knowledge Transfer
• Veterans Health Administration — 23 integrated
service networks, $24 billion in annual operating expenses –
focus on Tracking and Metrics
• Air Force Medical Service –74 hospitals and clinics
distributed all over the globe, $6.2B expenses, 39,000
employees – focus on technology and support infrastructure
25
Community
Operations
and
Support
1. Sponsorship, facilitation,
support, accountability, and
authority
2. Integration with Strategic Plan
3. Member participation, roles,
and guidelines; naming
conventions; content
ownership
4. Communities of Practices (CoP)
start-up, operations and sunset
26
Vision for Knowledge Management at
CHI
To improve the quality of our health care
system, by enhancing the ability for CHI to
access and share actionable information,
and creating a culture that allows every part
of CHI to have the strength and wisdom of
the whole.
27
CHI KM Strategy: Focus is on
supporting…
with the intent to
integrate knowledge sharing & learning
into the CHI organization.
28
National Groups
Existing CHI national resource teams;
formal groups; share similar work roles
and a common context
HR, Clinical Services,
Strategy, Performance
Management, Finance,
Legal, Mission, Operations,
IT, etc.
Affinity Groups
Networks of resources organized
around common themes such as job
function or a specific initiative
CHI Pharmacy Community,
Healthy Communities,
Clinical Quality Directors,
Emergency Physician’s
Task Forces
Formal, usually cross-functional teams
formed for a specific purpose or
initiative; pre-determined life span
PACS, eLearning Work
Group, Mid- management
development panel, Culture
Integration Team
Formal, usually cross-functional,
standing groups formed to provide
direction and advice regarding a
specific topic or initiative
National Pharmacy Council,
KM Steering Committee,
Advocacy Advisory
Committee, Genetics
Advisory Group, Physician’s
Executive Council
Advisory Panels
Examples of CHI Knowledge Communities – 4 Types29
Stage
Behavior
CHI Communities
Potential
Community Leader identified;
Motivated to form community
FY 03: 12 (29%)
FY 04: 24
Example:, On-line Ed Adv Panel, IHI teams, ER Dirs,
Hospitalists, Med Staff Lead, Intens, Cardiac Surg, Clin
Comp Prog, Ortho, Nurs Execs, Fin Rptg, Pt/Fin Svs
Building
Proof of existence / Action taken
FY 03: 11 (27%)
FY 04: 22
Example:, Rad Dirs, Lab Dirs, PlaceWare Org, Ethics,,
Qual Dir,, Clin Eng, Phys Prac, Res Ctrs, IRBs,
Reimbur, Tax, Treas
Engaged
Peer-to-Peer Interaction &
Established Pattern of
Communication
FY 03: 15 (36%)
FY 04: 30
Example:, CROs, Regional Rx Dirs, Clin Perf Impro,
PEC, Integr Hlth, Learning Network, CVA Team,
Healthy Communities, Cost Acctg, Spir/Past Care, Med
Staff Coord, Inf Cont, JCAHO, Qual Dirs, Home Health
Strategic
Adoption / Measurable Outcomes
FY 03: 3 (7%)
FY 04: 6
Example: Natl Pharmacy Council, ACST, Clin Coord
Total
FY 03: 41 (100%)
FY 04: 82 (target)
30
Quotes from various CHI Knowledge
Community Members
• “I am learning practical skills, such as how to get
people to volunteer, that I could not have done as
effectively without the insights and lessons learned
that have been shared in this learning group.”
• “This Healthy Communities Course is a rich treasure
trove of resources; there is no way, with my busy
schedule, that I could possibly have pulled together
this set of reference documents on my own, much
less have created such a valuable peer learning group
with similar values and goals.”
• “There would be a rebellion if we disbanded this
group.”
• “This is the value-add of belonging to a national
system.”
31
1. Build and manage virtual library of
knowledge assets and resources
Content
Management
2. Content accuracy, currency, and linkage
to Strategic Plan
3. “Best practices” vetting process
4. Alerts & content tailored to Communities
5. Search, retrieval, and use
6. Public /private sharing
7. Innovation / leading practice
identification and profiling
32
Ascension Health Exchange Home
33
Search…of internal
resources is
always available!
Community
specific Alerts,
Calendar,
Surveys and
Private
Database are
Available
Special
Collaboration
Tools to
facilitate
sharing and
problem solving
CNEs from local
hospitals serve
as Mayors and
Topic Leaders
for critical
issues
34
Knowledge
and
Capability
Transfer
1. “Triage” and “diagnostic” processes
to apply successful practices
2. Extending human resources
(internal/external SMEs)
3. Replication processes and resources
4. eLearning tools and system
5. Integrated Performance
Improvement staff and resources
35
Approaches for Embedding Knowledge Management
Centralized:
Decentralized:
Mandated
targets
Strategic
Goals,
performance
incentives
Mgt endorsed
best practice
Tools and
resources
posted on
intranet
Dedicated
execution
resources
CoPs “vet”
best practices
Proscribed
approach
Peer SME,
and
external
consultation
Performance
linked to transfer
success
Performance
Reporting on
intranet to
strategic
targets
Example-Year 1: Focus on Centralized diffusion: top-down “push”
Year 2: Expand functions and number of KM efforts based on
strategic priorities – use mix of diffusion strategies
Year 3: Decentralized (pull; peer-to-peer). KM is woven into
the culture
Developed by: Janet Guptill and Douglas E. Goldstein, 2003
36
Bon Secours Health System - Pilot
37
Increasing Retention Rate
DMAIC Execution - Quality Project Tracker
 BB Project
Problem Statement:
 GB Project
Turnover Rate Of 28% In ‘97 Too High
Project Scope:
See Process Map - HR Dept. Process
Impacts On Employee Life Cycle
Define
Start Date: 3/1/98 Assemble
Team & Assign Roles
 ID Project Scope
 Develop Team Charter
 Create Project Timeline
 ID Customer CTQ’s
 ID Compliance CTQ’s
 High Level Process Map
 Estimate Benefits
 Formal Champion
Approval
Champion:
Sunita Holzer
MBB:
Brian Swayne
Project Leader: Sunita Holzer
Team: John Kenny, Josh Friedlander
Jane Decolvenaere, Rocco Cocchiarale
Measure
Start Date: 5/30/98
 Select Key
Product/Process
 Create Product
Tree/Process Map
 Define Performance
Variables
 Baseline Performance
Measures
 Develop & Execute Data
Collection Plan
 Formal Champion
Approval
End Date: 5/30/98
Analyze
Start Date: 5/30/98
 Map CTQ’s to
Function/Process
 Select Key Performance
Variable/Sub process
 Benchmark Performance
 ID Variation Sources &
Improvement
Opportunities
 Root Cause Analysis
 Define Performance
Objective
 Formal Champion
Approval
End Date: 6/30/98
End Date: 6/30/98
Tools/Attachments:
• Charter
• High Level Process Map
• CTQ Matrix
 Not Complete
 Complete
 Not Applicable
Tools/Attachments:
• HR One Page Plan
• Sigma / DPMO
Calculations
CTQ:
Defect:
Beginning DPMO:
Final DPMO:
Retention Rate
< 80% Annual
720,000
242,000
Estimated Benefits:
$ 200,000
Actual Benefits:
$ 908,000
Improve
Start Date: 5/30/98
 Diagnose Variable
Performance
 Establish Operating
Tolerances
 Develop Solution
 Cost Benefit Analysis
 Develop & Implement
Execution Plan
 Formal Champion
Approval
Control
Start Date: 6/30/98
 Validate Control System
 Develop & Implement
Monitoring Plan
 Implement Sustainable
Process Controls
 Develop & Deploy
Response Plan
 Standardize & Translate
 Net Income Benefit
Tracking System In Place
 Formal Champion
Approval
End Date: 12/15/98
End Date: 9/1/98
Tools/Attachments:
Tools/Attachments:
• HR One Page Plan
• Sigma / DPMO
Calculations
• Workforce
Optimization
Directions:
 Replace All Of The Italicized, Blue Text With Your Project’s Information
 Fill in  by clicking on item then clicking on Format / Bullet… / then clicking
onas appropriate (look in the lower right hand corner for  symbols)
Tools/Attachments:
• Monthly Retention
Tracking Tool & Review
Author: Sunita Holzer
Date: December 16, 1998
CHRISTUS Intranet for Sharing
39
CHRISTUS Best Practice Sharing
The 2003 winners include:
Clinical Quality
CHRISTUS Medical Group – CHRISTUS Southwest
Community Health Center in Houston: Diabetes
Management in an Immigrant Population
Service Quality
Baptist St. Anthony Health System: How We Got to 90
Percent in Patient Satisfaction and Stayed There
Business Literacy
CHRISTUS Health Ark-La-Tex – CHRISTUS St. Michael
Health System: Linen Management Program
Community Value
CHRISTUS Spohn Health System - CHRISTUS Spohn
Hospital Alice: Jim Wells County Healthy Families Project:
Domestic Violence Program
Spirit Exchange
CHRISTUS Health Gulf Coast – CHRISTUS St. Catherine
Hospital: Up-Front Cash Collections
40
1. Linkage to Strategic Plan
Tracking
and
2. Dashboard and performance
Results Metrics
reporting
3. KTPI effectiveness measures
4. Tied to formal and informal
rewards
5. Technology infrastructure and
reporting module
41
“VHA’s integrated
health information system,
including its framework for using
performance measures to improve
quality, is considered one of the best in
the nation.”
Institute of Medicine (IOM) Report, Leadership by
Example: Coordinating Government Roles in
42
Improving Health Care Quality (2002)
Drivers for health
• Maximize the health & abilities of all persons,
incl. 26M veterans & esp. 4+M needing care
• Maximize satisfaction
• Maximize quality of health care
• Maximize accessibility & portability of care
• Maximize affordability to key stakeholders
• Maximize patient safety & minimize system
“defects” (defects/errors to zero)
• Minimize time between disability & illness and
maximized function & health (time to zero)
• Minimize inconvenience (inconvenience to zero)
• Maximize security & privacy
43
CHI Benefits & Measurable Outcomes
• Increase in the # of supported KC’s
– From 3 pilot KC’s to 40 KC’s
– 19 Potential KC’s
• eLearning impact
– 98% of MBOs utilizing LMS for compliance education
– Cost savings from utilizing on-line learning for
mandatory education
• Cost Savings
– Pharmacy Therapeutic Initiatives program: $17M
– Pharmacy Community & Xigris Cost Avoidance
– Decreased travel and labor costs from increased use of
web-conferencing tools: 10:1
44
CHI Knowledge Community Evaluations
•KC Satisfaction examples
–Pharmacy
•75% agree the program has increased
communication & sharing
–Cost Accounting
•68% agree has helped to do job better
•66% agree improved relevant knowledge sharing
–Healthy Communities Course
•100% agree that what they learned through the
course will improve their daily work
45
↑ system wide safety
It
works
!
↑ system wide access
Patient
Physician
Ministry
Sponsor
Partner
Satisfaction
↑ customer centric service design
↑ time with the patient
↑ ability to retain and recruit
↑ revenue, ↑ margin,
↑ market share, ↑ capital resources
↓ duplication, ↓ waste,
↓operating costs
46
Initiation
Implementation
Causal ambiguity
**
**
Unproven knowledge
**
+
Source lacks motivation
Source lacks credibility
**
**
*
*
*
**
Recipient lacks
motivation
Recipient lacks
absorptive capacity
Ramp-up
**
**
**
**
**
Insufficient
organizational context
for change
**
Legend:
**p<.01 *p<.05
+p<.10
*
*
*
Recipient lacks
retentive capacity
Insufficient trust
relationship between
source and recipient
Integration
**
**
Barriers to Effective Knowledge Transfer Differ by Stage of Transfer Process
47
Source: Sticky Knowledge – Barriers to Knowing in the Firm, Gabriel Szulanski, Sage Publications, 2003
Exchange
and
Support
Center
1. Technology infrastructure,
applications and user interface
2. Support systems and staffing for
operations, evolution and results
reporting
3. Knowledge and resource
library/database levels
4. Alignment and integration with
Intranet and eLearning Systems
48
Knowledge
Junction TM
Concept
AFMS Knowledge Exchange
Execution Strategy
Expertise
Locator
Collaboration
Areas
Document
Repository
People with
Known Expertise
& Know-how
Threaded
discussions,
email, etc.
Keywords,
Concepts
& Phrases
SCORM
(Learning
Objects)
Learning
Mgmt
System
Hierarchical
Site Map
All Documents Related
to the Node (Explicit)
External Links
related to the Node
(Explicit)
Education & Training Topics
Relevant to the Node
(Explicit)
Knowledge
Junction
Communities and
Affinity Groups within
the Node (Tacit)
People with Experience &
Know-how Concerning the
Node (Tacit)
Collaboration Concerning the
Node’s Business (Tacit)
Enterprise Taxonomy
49
How do I make
my knowledge
workers more
productive?
How do I bring
new employees
up to speed
more
effectively?
How can I support
geographically distributed
cross-functional teams?
Knowledge
Portals
How can I
Collaborative increase team
productivity and
Workspaces
decrease cycle
times?
How can I
How can I
Communities Expertise
leverage the
ensure that
Location
of Interest
expertise
everyone knows
and Practice
resident in the
what we know
organization?
and where to
How do I
find it?
minimize costly
How can I form more
rework?
effective teams with the
How do I capture the tacit
appropriate skill sets?
knowledge of my retirees?
50
Adapted from Newell, 2002
Marketplace of KM Tools
Supporting communities of practice
a survey of community-oriented technologies
Etienne Wenger, March 2001
51
“Typical” KM Toolkit
• Desktop of the knowledge worker: complete portallike applications for managing participation in
multiple groups
• Online project spaces for team work
• Website communities, such as customer
communities, where the management of
membership is important
• Discussion groups typically targeted at communities
of interest with little commitment to a shared
practice
• Synchronous meeting facilities, online auditoriums,
conference rooms, and chat
• Community-oriented e-learning systems
• Access to expertise, through questions or expert
profiles
• Knowledge repositories
52
Recap—What have we learned about
KM so far?
•
•
•
•
•
•
•
•
•
•
•
Works differently in different organizations
Starts with a definition of what problem exists now in how
key knowledge is used and shared
It is enabled by technology but IT is not a substitute for KM
When it is truly successful, KM becomes the way people
work; the filter they apply to make sure they are working
smarter not harder
Directory of expertise within the organization is key
How to manage “intellectual capital” in a practical sense
Need to prove its value financially in order to justify the
investment
Everyone has unique knowledge to share
Having a forum to share knowledge is important
KM can help an organization be more proactive
KM reduces the sense of “competition” in an organization –
broadens the focus on the whole organization rather than the
individual or the team
53
What is KM?
• How do these relate: Knowledge
Management, Information Management,
Learning Management?
• What is organizational knowledge? Where
does it reside? Why is managing it so
difficult?
• What is a CKO?
• What else have you learned about defining
knowledge management?
54
What are examples of KM approaches?
•
•
•
•
•
•
Best practice sharing
Work process documentation
Information repository
Information technology and infrastructure, tools
Knowledge communities
Top-down and bottom-up accountability – mandates
vs. awards
• Cultural change
• Focus on “fixing problems”
• Measuring the impact of effective knowledge
transfer – pre and post metrics
55
How do you get started with KM?
• Developing a strategy
• Building the infrastructure
• Identifying relevant communities of
practice
• Facilitating connections between
knowledge and people
• Understanding the role of leadership
and culture
• Identifying measures of success
56
What are examples of KM tools?
•
•
•
•
•
•
•
•
•
•
•
•
Data mining and data warehouse
CRM
Expertise Locator
Web portals (Ch 12)
Document management systems
Collaboration tools (Ch 13)
Online meeting tools
Electronic whiteboard/brainstorming – digitized
information
Handhelds and phones that integrate with central
databases
GPS systems and mapping
Location microchips in vehicles, animals, even people
What else?
57
Examples of KM in Practice
•
•
•
•
•
•
•
World Bank
Daimler-Chrysler
Buckman Labs
Shell
Red Cross
Catholic Health Initiatives
HP and BP (Chapter 4)
58
KM Results
•
•
•
•
•
•
Cost savings
New revenue generation
Innovation
Efficiencies
Soft and hard ROI measures
What else?
59
The value of Knowledge Management
• Improved operating performance as a
result of effective knowledge sharing and
adoption of best practices
• More rapid decision-making and innovation
adoption as a result of decentralized
approach to problem resolution
• Enhanced competitive positioning as a
result of synergistic use of external
intelligence and internal experience
60
Calculating ROI on KM
•
Cost Savings — Estimate time spent in unnecessary
meetings, manual collection and retrieval of key
information, duplication of effort, expertise location—
typically 10-20% of payroll cost
•
Revenue Enhancements — Identifying, sharing, and
adopting better practices can result in diffusion of
innovative new ideas, resulting in either increased revenues
or reduced costs— typically 16% of annual operating
revenues are attained
•
Intrinsic knowledge management value and
centralization of intellectual capital —minimizes risk of
losing critical organizational knowledge with employee
turnover, improved ability to transfer leading practices with
the relevant context and experience to speed adoption and
reduce error, can even result in increased retention and
therefore decreased recruitment costs
61
KM ROI:
• According to International Data Corporation (IDC),
the average annual cost per employee for
redundant effort is estimated at over $5,850
• A KPMG survey found that 60% of employees
spend more than 1 hour per day duplicating work
of others costing roughly $12,500 per employee
• Northrop Grumman's Air Combat Systems division
concluded that the average employee spends at
least 4-8 hours per week searching for information
or knowledge to help them complete work
Source: International Federation of Accountants (1998)
62
Group Exercise
• Form 2 groups
• Utilize the information provided to
solve the puzzle
• How did this exercise apply to KM?
• What did you learn?
63
What have been some lessons learned
in the process of KM implementation?
• Every KM solution is unique because it
depends on that organization’s strategic goals
• Knowledge communities are usually key
building blocks in any KM strategy
• Tools do not need to be overly sophisticated; it
is best not to over-engineer a KM approach
• Start small and let the approach evolve based
on participant feedback
• Utilize existing staff and systems but redefine
their roles and use
64
Critical Success Factors for KM
• Link to organizational strategy
• Focus of initial KM efforts on critical business issue with
high visibility
• Start with minimal initial investment and develop a
roadmap over time
• Allow it to evolve organically
• Make sure it is meaningful to grass roots participants
• Requires education and training process
• Publicize key metrics, get buy-in beforehand, track
results over time
• Need someone clearly responsible for the KM program
• Demonstrated cause and effect of knowledge sharing
• What else?
65
Other lessons learned about KM
• Communities need formalized roles and
readily available communication and
collaboration tools
• Content needs to be continually reviewed
for completeness, accuracy, and relevance
• Employee rewards for knowledge exchange
might consist of points redeemable for
conference fees or knowledge-related tools
• Formal training on KM tools is essential; a
link between KM and eLearning is key
66
KM is NOT “one size fits all”
• KM is a concept, not a cookbook
• KM is an approach that helps the organization
achieve its goals more quickly, more
effectively, and more systematically
• KM prevents disparate but related business
units from re-inventing the wheel
• KM delivers the wisdom of the whole to an
individual issue
• KM speeds decision-making and best practice
adoption, and spurs innovation
• KM is all about changing the organization’s
culture to one of collaboration
67
Case Study Example
Midwest Pharmaceuticals
68
Small Group Case Studies
• Describe the situation and the problem to
be solved with KM
• Explain what results are anticipated as a
result of the KM approach
• What are possible barriers to a KM program
in this organization?
• Define the KM approach
• Estimate what resources will be required;
estimate a timeline; explain the
implementation process
• Sell it to the group
69
Small Groups Report Out
• What are the different KM approaches
presented?
• What are the barriers/obstacles? How can
the barriers be overcome?
• How will KM bring value to these
organizations?
• If you were to present this to your
organization on Monday, what would be
the reaction?
• How can you already apply what you have
learned about KM?
70
Written Assignment
• 3-5 single-spaced typewritten pages
• Demonstrate your ability to apply what you
have learned about KM
– What is KM? Why is it important? Why now?
– What does a KM program look like?
– What are the critical success factors for KM and how
can you ensure that these are met?
– Describe a real or theoretical application of KM that
incorporates the principles that you have learned in
the class
• How will you apply the principles of KM that
you learned in this class?
– Assuming the resources were available to you, what
would you do in your organization to further the
aims of knowledge management?
71
KM At Work, Inc.
Knowledge Management Consulting
Janet Guptill, President
314-963-7710
82 Yorkshire Ln Ct STL 63144
janet.guptill@kmatwork.com
www.kmatwork.com