Measuring the Impact of KM

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KM Chicago (June, 2009)

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  • Focus on one component of Knowledge Management – Knowledge Exchange Short, efficient, with minimal impact on employees Short survey Use branching logic to ask relevant questions Strategic random sampling Sampling across people and time Survey only KX users Sample without replacement (no one is sampled twice) Report Key Metrics at each level Process should be generalizable to other KM initiatives (e.g. CoPs, other KM tools or systems) Credible process and metrics Conservative assumptions for ROI Fully-loaded costs of the KM solution Non-respondents assumed to have zero business impact Error of estimate considered for time savings estimates Scalable Minimize manual processes Continuous measurement model Provide standardized reporting for enterprise, and by group Provide time series and summary reports of impact and ROI Include qualitative data and follow-up strategy
  • Methodology has potential for follow-up – Quality/Sales – Follow-up strategy
  • Measuring the Impact of KM

    1. 1. Measuring the Impact of Knowledge Management (KM) Steve Kaukonen - Accenture Chicago KM Community, June 9 th , 2009
    2. 2. Agenda <ul><li>Accenture Overview </li></ul><ul><li>Metrics & Measurement </li></ul><ul><li>ROI of Knowledge Management </li></ul>Copyright © 2008 Accenture All Rights Reserved.
    3. 3. Accenture Overview <ul><li>Accenture is a global management consulting, technology services and outsourcing company. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world's most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. </li></ul>Copyright © 2008 Accenture All Rights Reserved. <ul><li>Over $19.7 Billion in Revenue (FY07) </li></ul><ul><li>Over 178,000 Professionals in 49 Countries </li></ul><ul><li>94 of the Fortune Global 100 </li></ul><ul><li>2/3 of the Fortune Global 500 </li></ul><ul><li>All of our top 100 clients have been clients for at least five years, and 85 have been clients for at least 10 years </li></ul><ul><li>Over $500M in R&D expenditures </li></ul><ul><li>Over $500M in Training expenditures </li></ul>Consulting More than 90% of the world’s top companies benefit from our insights and solutions. Technology Our experienced professionals bring the latest technology to deliver solutions, no matter how complex or risky. Outsourcing Using our global delivery network, we can help clients focus on their core business. Bottom Line – People and Knowledge are our most important assets
    4. 4. Copyright © 2008 Accenture All Rights Reserved. Knowledge Sharing at Accenture revolves around the sharing of information, expertise, knowledge & assets to enable project teams to sell & deliver work more efficiently & effectively. <ul><li>Example: Sales team at client ‘X’ is looking to sell ‘offering Y’ – they are able to: </li></ul><ul><ul><li>See where we have done similar work before </li></ul></ul><ul><ul><li>Access & leverage previously developed sales decks, point-of-views, sales collateral </li></ul></ul><ul><ul><li>Collaborate with experts via people profiles, discussions, blogs, wikis </li></ul></ul>Knowledge Sharing at Accenture
    5. 5. KM ‘Organization’ at Accenture Copyright © 2008 Accenture All Rights Reserved. Technology Accenture Learning KM Services Capability Development CIO (including Tech Labs) Asset Development Strategy Content People/Skills Research Global KM
    6. 6. <ul><li>Metrics & Measurement </li></ul>Copyright © 2008 Accenture All Rights Reserved.
    7. 7. KM Measurement Framework (V-model applied to KM) Copyright © 2008 Accenture All Rights Reserved.
    8. 8. Reporting Capabilities Copyright © 2008 Accenture All Rights Reserved. End User Input (i.e. Site/ Document Embedded Feedback, Surveys Transaction Reporting Capabilities Integration of systems/cost data
    9. 9. Taking Action <ul><li>Team Leads </li></ul><ul><li>Tying strategy to metrics – example: capability blueprints </li></ul><ul><li>Evaluating effectiveness of KM tools/programs </li></ul><ul><li>Providing input for recognition programs </li></ul><ul><li>Measuring effectiveness of ‘marketing knowledge sharing’ activities </li></ul><ul><li>Content Owners </li></ul><ul><li>Evaluating Content </li></ul><ul><li>Managing Content on topic pages </li></ul><ul><li>Measuring effectiveness of knowledge harvesting activities </li></ul>Copyright © 2008 Accenture All Rights Reserved.
    10. 10. Copyright © 2008 Accenture All Rights Reserved. ROI for Knowledge Management
    11. 11. Accenture’s KM Impact Study <ul><li>Recognized as the &quot;2007 Best Impact Study&quot; by the ROI Institute at the 2007 Global ROI Conference in Chicago </li></ul><ul><ul><li>The annual Best Impact Study award recognizes the study that ‘best exemplifies successful use and application of ROI Methodology.’ </li></ul></ul>Copyright © 2008 Accenture All Rights Reserved.
    12. 12. Key success factors Copyright © 2008 Accenture All Rights Reserved. <ul><li>Focus on one component of Knowledge Management – Knowledge Exchange, specifically People to Content </li></ul><ul><li>Focus on single benefit (Time Savings) with ability to follow-up to gather additional benefits </li></ul><ul><ul><li>Process should be ‘transferable’ to other KM initiatives (e.g. CoPs, other KM tools) </li></ul></ul><ul><li>Short, efficient survey with minimal impact on employees </li></ul><ul><ul><li>Use branching logic to ask relevant questions </li></ul></ul><ul><li>Report Key Metrics at each V-model level </li></ul><ul><li>Credible process and metrics </li></ul><ul><ul><li>Strategic random sampling </li></ul></ul><ul><ul><li>Scalable, Continuous measurement model </li></ul></ul><ul><ul><li>Minimize manual processes </li></ul></ul>
    13. 13. Accenture’s Knowledge Exchange Copyright © 2008 Accenture All Rights Reserved. <ul><ul><li>The Knowledge Exchange (KX) is the place where an exchange of ideas, content, information & knowledge takes place by connecting People to People and People to Content to help Accenture sell and deliver work to our clients . </li></ul></ul><ul><ul><li>A “one-stop-shop” for employee knowledge needs including: </li></ul></ul><ul><ul><ul><li>Materials to support proposal development </li></ul></ul></ul><ul><ul><ul><li>Information about Accenture’s diverse market offerings </li></ul></ul></ul><ul><ul><ul><li>Delivery tools and sample deliverables </li></ul></ul></ul><ul><ul><ul><li>Discussions/blogs/wikis </li></ul></ul></ul><ul><ul><ul><li>People profiles </li></ul></ul></ul>
    14. 14. Return on investment (ROI) - Time Savings Copyright © 2008 Accenture All Rights Reserved.
    15. 15. Select Questions Copyright © 2008 Accenture All Rights Reserved. <ul><li>Please try to remember documents or other information you've obtained by using the Knowledge Exchange, during just the last two weeks. Which of the following are true about your use of the KX? </li></ul><ul><ul><li>I found useful information that I have applied directly in my work. </li></ul></ul><ul><ul><li>I found useful information that I have NOT been able to apply directly to my work. </li></ul></ul><ul><ul><li>I strengthened my business network. </li></ul></ul><ul><ul><li>None of the above. </li></ul></ul><ul><li>Please estimate the amount of your time that you saved during the last two weeks as a result of this information. </li></ul><ul><ul><li>&quot;During the last 2 weeks, this information saved me AT LEAST:&quot; </li></ul></ul><ul><ul><li>&quot;During the last 2 weeks, this information saved me AT MOST:&quot; </li></ul></ul>
    16. 16. Key Metrics Copyright © 2008 Accenture All Rights Reserved. *Sample figures due to sensitivity of data Key Impact Metrics* Level FIND useful information as a result of KX 78% 2 APPLY information found through KX to work 75% 3 Build business NETWORK through KX 28% 4 SAVE TIME as a result of KX 67% 4 Increased QUALITY of work as a result of KX 55% 4 Overall SATISFACTION with KX % 80% 1-3 Overall SATISFACTION with KX, mean 4.19 1-3
    17. 17. <ul><li>Knowledge Exchange Design, Development, Maintenance </li></ul><ul><li>Global KM Salary & Benefits* </li></ul><ul><li>Outsourced KM Salary & Benefits* </li></ul><ul><li>Deployed KM Teams Salary & Benefits* </li></ul><ul><li>Other Global Administration and Evaluation </li></ul>Costs Copyright © 2008 Accenture All Rights Reserved. *Portion Allocated to Knowledge Exchange activities (includes activities such as Content Management, Topic Pages; does not include activities such as Communications, Communities of Practice, Discussions)
    18. 18. ROI Summary* Copyright © 2008 Accenture All Rights Reserved. *Sample figures due to sensitivity of cost information
    19. 19. Applying Sample to Population for ROI Copyright © 2008 Accenture All Rights Reserved. 3,294 Sample Size 626 – Never Accessed the KX – No Benefit 1904 – Accessed the KX, but did not respond to survey – No Benefit 387 – Accessed the KX, Responded to Survey, indicated 0 time savings – No Benefit 388 (11.7%) – Accessed the KX, Responded to Survey, indicated ‘x’ time savings – Benefit Only 14,841 (11.7%) Benefit 111,159 Employees No Benefit 126,000 Target Population of the KX
    20. 20. Overall ROI for the Knowledge Exchange Copyright © 2008 Accenture All Rights Reserved. ROI, based on time savings attributable to the Knowledge Exchange For every $1.00 spent, we see a benefit of $25.06 ROI minimum estimate (based on &quot;least&quot; time savings estimate) ROI maximum estimate (based on &quot;most&quot; time saved estimate) ROI (based on “average” time savings attributable to KX)
    21. 21. What does this mean in financial terms? <ul><li>Spend $10,000,000* </li></ul>Copyright © 2008 Accenture All Rights Reserved. Benefit of $250,600,000* *Sample figures due to sensitivity of cost information
    22. 22. <ul><li>Questions? </li></ul>Copyright © 2008 Accenture All Rights Reserved.

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