Overview of KM Measurementsin some APO Member Countries

Dr. Serafin D. TalisayonChief Expert and Editor, APO KM Survey Project

Rapporteur and Editor, APO IPC 2007 Conference

Sources of Information

• APO survey of status of KM in 9 selected Asian member countries (August 2006 – December 2007)

– India ‒ Singapore

– Indonesia ‒ Taiwan

‒

‒

‒

– Indonesia ‒ Taiwan

– Korea ‒ Thailand

– Malaysia ‒ Vietnam

– Philippines

• IPC 2007 Conference “Knowledge Management – from Brain to Business” (Bangkok, 18-19 January 2007)

– 2006 Asian/Global MAKE winners: Tata, Toyota, Buckman Labs (Singapore)

Asian Case Studies

• Originally 10 countries were identified by APO Secretariat as active in KM

• Japan and Hong Kong were not represented

• Cases selected arbitrarily by each National Expert• Cases selected arbitrarily by each National Expert

• At least 2 case studies per country and 1 national overview article

• A section on measurements and indicators was suggested to National Experts; not all case studies covered it and many did not describe the methodology in detail

Most common approach: Performance and output measures

• Bank Negara Malaysia: KPIs are based on a KM framework

• Bank Indonesia: Internal measures of “improvements in work processes”; measures of customer satisfaction by work processes”; measures of customer satisfaction by independent auditors

• Siriraj Hospital in Thailand: KPIs to track progress and outcomes and learning/growth perspective in BSC– Number of CoP members and core team members– Number of visitors to KM website– Interaction on the web-board– Number of uploads/downloads from the KM website

Sources: Boondee Bunyagidj: “Faculty of Medicine, Siriraj Hospital, Mahidol University”; Ida Yasin: “Bank Negara Malaysia”; Andiral Purnomo et al. “Bank Indonesia” (parts of book to be published by APO)

What is Knowledge?

“…justified belief that increases an entity’s capacity for effective action.”

“I define knowledge as Ikujiro Nonaka

Karl-Erik Sveiby

“I define knowledge as a capacity to act.”

“Knowledge is information that changes something or somebody — either by becominggrounds for action, or by making an individual (or an institution) capable of different or more effective action.”

Peter Drucker

Most common approach: Performance and output measures

• Bank Negara Malaysia: KPIs are based on a KM framework

• Bank Indonesia: Internal measures of “improvements in work processes”; measures of customer satisfaction by

KPI: result of

an action

work processes”; measures of customer satisfaction by independent auditors

• Siriraj Hospital in Thailand: KPIs to track progress and outcomes and learning/growth perspective in BSC– Number of CoP members and core team members– Number of visitors to KM website– Interaction on the web-board– Number of uploads/downloads from the KM website

Sources: Boondee Bunyagidj: “Faculty of Medicine, Siriraj Hospital, Mahidol University”; Ida Yasin: “Bank Negara Malaysia”; Andiral Purnomo et al. “Bank Indonesia” (parts of book to be published by APO)

KPI: result of

an action

KPI: progress

of an action

judge of “effectiveness”

Learning and Growth Perspectivein Balanced Scorecard (Siriraj Hospital)

Be Ranked As One of The

Leading Faculties of Medicine in

S/E Asia

Have The Most Published and Cited

Research of Medical Sci. in S/E Asia

Be Recognized for Quality

Patient Care with High

Innovation in S/E Asia

S2. Medical School of Choice

S1. Deliver Quality Graduates

Health Care Service Providers / Students

Medical &

Granting AgencyResearcher

S3. Produce S4. Provide The

S5. Build Enduring Relationships

with Stakeholders

Patients, Families & Public

Medical Institute of Excellence in Southeast AsiaMedical Institute of Excellence in Southeast AsiaMedical Institute of Excellence in Southeast AsiaMedical Institute of Excellence in Southeast Asia

Source: Boondee Bunyagidj: “Faculty of Medicine, Siriraj Hospital, Mahidol University” (parts of book to be published by APO)

Build A Sufficient Financial Base To Sustain Our Mission & Achieve Our Vision

L3. Create An Environment to Support EmployeeEngagement

L1. Recruit, Train & RetainTalented Staff

L2. EnhanceResearch Society

Human Capital

L5. DevelopLearning Organization

With KnowledgeManagement

L4. Create Customer-Centric Culture With Competency-based

HRD

L6. Initiate & Implement Health

Leadership

Organization Capital

L7. LeverageICT to Drive Bu. Operation & Growth

Information Capital

I6. Perform Continued Clinical

Excellence

I7. Provide Extraordinary Customer Service

Strive For Operational Excellence (OPEX)

I5. Develop Res. Opportunities &

Environment to Develop Researchers Who Are in

Targeted Growth Area

I4. CreateNetworking & Partnerships

with Domestic & International

Medical Agencies

I1. Apply Medical School

Quality Assurance Criteria

I3. CreateMore CME

I2. DevelopFlexible&DynamicsCurriculum

School of Choice

Advanced

Technology

Advanced

Knowledge

Quality Graduates S3. Produce Impact

Research

S4. Provide TheQualified & NeededMedical Knowledge& Technology

Reasonable

Price

Diverse

Broad Service

Keep in

Touch withPublic

Deliver Superior Values Of Services & Products To Targeted Stakeholders

Develop Productive Organization Fundamentals

I8. Certified & Surveillance by External Agencies

F1. Financial Surplus

F2. Asset Efficiency

F3. LiquidityF4. Capital Structure

F5. Financial Flexibility

I have asked many groups* this

workshop question:

“What helps you do your job well?”

Their answers always fall into 5 clusters

*Bureau of Agricultural Research, Department of Agriculture

MPM class, Development Academy of the Philippines

Asian Development Bank

KM Systems Bureau, House of Representatives

Department of Health KM Team

Health IT Professionals

City Development Strategies, League of Cities of the Philippines

UP TMC KM classes, 4 semesters

Commission on Information and Communication Technologies

Canada International Development Agency, 4 batches

Philippine Business for Social Progress

Baganuur Joint Stock Company

Davao City Chamber of Commerce and Industry

National Water Resources Board

Peace and Equity Foundation

PMAP Executive KM Course

Definitions: Intellectual Capital, Knowledge Management

Better

Performance

Human Capital

Structural Capital

Intellectual Capital or

Knowledge Assets

Knowledge

Management:

sourcing and

deploying

knowledge assets Performance

Stakeholder Capital

Tangible Assets

Motivational

and other factors

knowledge assets

for better

performance

Link to Balanced Scorecard categories

Better

Performance

Human Capital

Structural CapitalInternal process

perspective

Learning and growth

perspective

Performance

Stakeholder Capital

Tangible Assets

Motivational

and other factors

Financial

perspective

Customer

perspective

perspective

Most common approach: Performance and output measures

• P.T. Wijaya Karya in Indonesia: a custom tailored scorecard called “WIKA scorecard” (patterned after BSC) and an Indonesian rating system called “Pefindo”

• Techcombank in Vietnam• Techcombank in Vietnam

• Thailand survey on KM:– KM items in employee performance measurement system– KM measurements: “least developed” area among

respondents

• Infosys in India: statistics on “data usage, utility, currency and benefits” are automatically tracked and reported in an executive dashboard called KEnterprise

Sources: Boondee Bunyagidj: “Knowledge Management in Thailand”; Vu Hong Dan: “Techcombank”; Andiral Purnomo et al. “Wika” ; Siddharth Sharma: “Infosys Technologies Ltd.” (parts of book to be published by APO)

Individual level

ICT support system

Cluster #2: Structural Capital(also called Process Capital or Internal Capital)

Human Capital

Structural Capital

Examples of knowledge assets under

Cluster #2:

• Operating procedures, best practices

• Manuals, formulas, work templates

• Intranet: databases, directories, documents

• Guidelines, policies, management systems

• Management information systems, intranet

Stakeholder Capital

Motivational

and other factors

Tangible Assets

Information vs. Knowledge

InformationKnowledge translation

Explicit Knowledge

Practice

Actionable Information

• what is• know what

Tacit Knowledge(expertise, experience)

Practice

• what works• know how

Most common approach: Performance and output measures

• Goldsun in Vietnam: impact indicators at the activity level:

– Knowledge contributed, e.g. number of lessons learned that were contributed

– Knowledge utilized, e.g. time spent accessing the system

– Satisfaction with the system, e.g. feedback via a satisfaction survey

Source: Vu Hong Dan: “Techcombank” (part of book to be published by APO)

Note the stages:

1. knowledge output

2. utilization of knowledge ���� the point or stage when value is created

3. evaluation by user of knowledge (customer’s satisfaction: a sign that

value had been created)

Most common approach: Performance and output measures

• Airtel in India: measurement is linked to KM objectives which are related to business objectives; evaluates business units’ performance. Examples:

– People engage and orientationBusiness objective

�

(Business unit,– People engage and orientation

– Number of knowledge sharing

– Number of knowledge replications with results

– Number of ideas received and implemented

– Unique visitors transacting on the portal

– Total hits in the KM portal

– CSMM: Customer Satisfaction Measurement Metrics (conducted by independent auditors)

Source: Siddharth Sharma: “Infosys Technologies Ltd.” (part of book to be published by APO)

(Business unit,

Business process)

�

KM objective

SAIT Model

Performance

Metrics:

KM Performances

Business

Performances

Metrics: Metrics: