nick milton: the business value of knowledge management. videndanmark. 30 maj 2012

© Knoco Ltd – all rights reserved

Business Value of Knowledge Management

Nick MiltonKnoco Ltd

www.knoco.comwww.nickmilton.com

http://www.knoco.com/

http://www.nickmilton.com/

Copyright Knoco Ltd, all rights reserved

Knowledge and Performance

KnowledgeKnowledge PerformancePerformance

Learn

Apply


A story

John Henderson, BostonSpeaking at BP, 1997

Copyright Knoco Ltd. All rights reserved

The rationale behind KM

Get A from B to C As effectively and efficiently as possible

Where A is the critical knowledge that decision makers at all levels need

B are the decision makers C is the source of the knowledge


Transfer of practice from one site to another


Demonstratingthe value

With no knowledge

Using all knowledge and best practice


AAR – Jwaneng mine

Additional UpgradeAdditional UpgradeProject At Same TimeProject At Same Time

GA GB GC GD GE GF GG

190h

70h

TIM

E /

CO

ST

Knowledge Opportunityfor VALUE add

Main Treatment Plant - Double-Deck Screen Replacement Project


What’s different about knowledge?

DataA pressure reading, in one place, at one time

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

Knowledge?What does this mean? What action should I take?


Where knowledge comes from

Data Info

knowledge

experience

decision action

PerformancePerformanceReflection/

Analysis

Reflection/ Analysis


How does KM work?


A series of knowledge-focused roles

Planning and coordinating KM

activities at project level

Provide KM Leadership

Acknowledge experience sharing

Setting clear expectations SENIOR MANAGER

Maintaining the “knowledge bank”

for their practice – up to date, useful

accessible materialPRACTICE OWNER

Ensuring use of, and sustainability of,

the KM FrameworkKM TEAM

Building the experience-sharing

networks, managing the

conversationsCOP LEADER

PROJECT K MANAGER


KM processes embedded into the working cycle

OpsStart-upExecFEL3FEL2FEL1

Mandatory activity

Optional activity

Lessons Learned Reviews

Create KM plan, review at each new stage

Peer Assist

After Action Review


A suite of Technology

Knowledge Library

• Guidance documents

• Best Practices• Working

Examples

For Community of Practice (Open

discussion)

Company lessons management system

• Lessons applicable to region/function

Project lessons management system

• Lessons Learned From projects

For knowledge capture and re-

use(Written

Document)


Governance Clear KM expectations. Policies and Standards for Experience Management

Support, including training, reference and coaching

KM performance metrics, linked to recognition and reward


What Knowledge?

Three Questions to deliver business value

© Knoco® Ltd.


Q1 What do we need to be able to do?

© Knoco® Ltd.


Q2 What do we need to know?

© Knoco® Ltd.


Q3 – how do we manage it?

Answer – it depends on the knowledge

Knowledge end-members

Basic, static Basic process

knowledge Standard practice Training, supervision Classroom or e-

learning Manuals, instructions Traditional role of L&D

Improving, evolving New knowledge, tips,

hints, improvements Best practice Knowledge sharing Learning from peers

and experience CoPs, wikis, lessons Traditional role of KM


Four casesNew,

Improving

Basic, Static

High level of knowledge in the business

Low level of knowledge in the business

© Knoco® Ltd.


Innovation and Knowledge Acquisition

New, Improving

Basic, Static



© Knoco® Ltd.


Develop and build Networks to develop “best practice”

New, Improving

Basic, Static



© Knoco® Ltd.


Protect against loss, standardise and deploy

New, Improving

Basic, Static



© Knoco® Ltd.


Outsource and Quality Assure

New, Improving

Basic, Static



© Knoco® Ltd.


Example 1

Mars, new markets Strategy – Growth What do we need to know? – how to

distribute and sell “impulse goods” in the 3rd world

The knowledge – new/improving, dispersed, relatively few people know it


Mars New Markets“In 2004, the Mars, Inc Presidents identified a

challenge in our newer markets in the developing world.

These are markets where the bulk of consumer spending occurs in small local shops.

We wanted to achieve a step-change in the number of small retail outlets which sell our products, and so drive a rapid increase in sales in these markets.

The challenge covered 12 markets, in which there are approximately 12 million shops, and 3.5 billion potential consumers of Mars products”

Linda Davies of Mars, writing in “KM for teams and projects”, Nick Milton


The solution

A Knowledge Sharing Network – the New Markets Global practice group

meets every 6 months, face-to-face, hosted by one of the markets.

The meetings are focused on sharing, learning lessons, and discussing


Meeting structure


The resultsIn the 5 years this network has existed, sales in the

small retail channel in the 12 markets have trebled and the percentage profit has more than doubled, adding around $250 million to the bottom line.

“Whilst it would be unfair to claim this was entirely

due to knowledge sharing, the GPG members themselves clearly point to the ideas and lessons they have gained from others as fundamental to their success”.

Linda Davies of Mars, writing in “KM for teams and projects”, Nick Milton


A systematic framework

Learnduring

Learnafter

Leveraging Leveraging & Using& Using

KnowledgeKnowledgePeople

& Teams

Goals $ResultsLearnbefore


Framework 2

Knowledge Bank Knowledge Assets

Learnduring

Learnafter


KnowledgeKnowledgePeople

& Teams

Goals $ResultsLearnbefore


Framework 3

Communities of Practice

Learnduring

Learnafter


KnowledgeKnowledgeBusiness

rolesGoals $Results

Learnbefore

Knowledge Assets


Example 3 – cautionary tale

Boeing Strategy – maintain and grow sales What do we need to know? – build and

deliver planes The knowledge – basic knowledge, held

by ageing workforce


Early Retirement at Boeing When Boeing offered early retirement to 9,000 senior

employees during a business downturn, an unexpected rush of

new commercial airplane orders left the company critically

short of skilled production workers.

The knowledge lost from veteran employees, combined with

the inexperience of their replacements, threw the firm’s 737

and 747 assembly lines into chaos. Overtime skyrocketed and

workers were chasing planes along the line to finish assembly.

Management finally had to shut down production for more than

three weeks to straighten out the assembly process, which

forced Boeing to take a $1.6 billion charge against earnings and

contributed to an eventual management shake-up.

Press and Journal Scotland, 1/9/2008


Questions?

[email protected] www.knoco.com www.nickmilton.com


Introducing KM

A change-focused approach


The culture shift - a change in emphasis

“I know” “Knowledge is mine” “Knowledge is personal” “Knowledge is owned” “Knowledge is personal property” “Knowledge is personal

advantage” “I defend what I know” “Not invented here (i.e. by me)” “New knowledge competes with

my personal knowledge” “Other people's knowledge is a

threat to mine“ “I won’t tell if I’m not asked” “Asking is a sign of weakness” Not a priority to share and learn

“We know” “Knowledge is ours” “Knowledge is inter-personal” “Knowledge is shared” “Knowledge is collective/ community

property” “Knowledge is company advantage” “I am open to better knowledge” “Invented in my community” “New knowledge improves my

personal knowledge” “Shared knowledge helps me" “I will share whether I am asked or

not” “Asking is the first step to learning” Sharing and learning is High Priority,

for me and for the company



How big is the culture gap?

20 cm



So how do we change the culture?

Photo from Flickr under a creative commons licence, originally uploaded by AndYaDontStop

20 cm at a time!


The personal balance

KM takes Time.KM takes Effort.KM takes Thought.KM is Exposing.KM requires Change.I don’t know how.Nobody else is doing it.My manager doesn’t care about KMI can get away with not doing it

KM helps me do my jobKM helps the companyKM gives me a higher profileIt’s easy – I’ve been trainedMy peers are doing itMy manager expects itKM is rewardedIf I don’t do it, my career will suffer



A Change Program


laggards

The majority

First followers

Your strategy

% change

Time

Introduce framework

Introduce performance mgt

Introduce pilots



Change factors

Logic

Emotion

Expectation

Peer pressure



Apply KM Pilots To key business problems Where you find the first followers

Introduce the elements of KM Deliver value Recognise the followers Publicise the results Be visible – be easy to follow Appeal to EMOTION

First followers



Be Visible

Be Easy to Follow


The majority will “do KM” if it is part of the job So make it part of the job! Develop and roll out a framework for managing

knowledge Embed it into normal processes such as project

management, performance management, customer management

Appeal to EXPECTATION

The majority



Standards, expectations, accountabilities

Each project will do the following minimum ……

……

…… Lessons will be identified as follows …… Each key knowledge area is owned by ........ The KM team will ........ Corporate Knowledge will be retained as

follows ……



Measure the use of KM Publicise the results Use PEER PRESSURE Get tough with the people who don’t

comply

The laggards



KM Metrics and reward – Conoco example

Metrics gathered on an annual basis and reported to steering team and sponsor Community activity Community Maturity Community Value Added

Annual awards program for Knowledge Management – “Archimedes Awards” SUCCESS STORY OF THE YEAR NETWORK OF YEAR GIVE GET GATHER GUTS

http://www.conocophillips.com/EN/about/company_reports/spirit_mag/Documents/spiritMagazine1Q10.pdf


Link to career progression

“If you are not willing to contribute or participate, then you should understand that the many opportunities open to you in the past will no longer be available”

Bob Buckman, Buckman labs, memo to associates, quoted in Journal of KM

“Our approach is far more Stick than Carrot. We say “Sharing knowledge is your job. Do it! As a reward, you may keep your job”

Melissie Rumizen, Buckman Labs Knowledge strategist



AssessmentAssessment Strategy

Development

StrategyDevelopment

SystemTesting andPiloting

SystemTesting andPiloting Roll-out

Roll-outOperation

Operation

Staged approach to implementation

Do we have anagreed plan?

Is the modelrobust?

Is roll-out complete?


Change process

% In

volv

emen

t

Test, pilot, prove the concept

Roll out the KM framework

Apply and monitorthe framework

Time

Supporte

rsN

eutra

lLa

ggard

s

44

22

33

11

55

Assessmentand Strategy

nick milton: the business value of knowledge management. videndanmark. 30 maj 2012

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