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  1. 1. KM Metrics CCTP 670 – Session 13
  2. 2. Context for Measuring KM <ul><li>Knowledge management is always undertaken in a context – business goals, business strategy, knowledge strategy </li></ul><ul><li>Measure progress in achieving KM strategy, business strategy & business goals </li></ul><ul><li>Also measure to manage the KM implementation process, measure the value of the implementation decision & lessons learned, and to develop benchmarks </li></ul><ul><li>There is no one ‘right’ set of metrics – combination of measurement types and classes is generally required </li></ul>
  3. 3. Metrics, Metrics Everywhere <ul><li>There are many measurement approaches available to assess knowledge management </li></ul><ul><li>How do you select approaches that are suited to your context? </li></ul><ul><li>Understand the context </li></ul><ul><li>Select measures that are actionable </li></ul>
  4. 4. Five Steps to Defining KM Metrics <ul><li>Having already defined business objectives and the KM strategy </li></ul><ul><li>Step 1 – Who are the stakeholders & what do they need to know? </li></ul><ul><li>Step 2 – Which framework is best? </li></ul><ul><li>Step 3 – What should you measure? </li></ul><ul><li>Step 4 – How should you collect and analyze the measures? </li></ul><ul><li>Step 5 – What do the measures tell us and how should we change? </li></ul>
  5. 5. Before You Start – Review Your Objectives <ul><li>What were you trying to achieve with a KM strategy? </li></ul><ul><li>What were your business applications? </li></ul><ul><li>Before you begin the KM measurement process you need to put the task in context – in order to get the measurement process right </li></ul><ul><li>Dept. of Navy identifies three types of business objectives that can benefit from KM strategies </li></ul><ul><ul><li>Program & process management? </li></ul></ul><ul><ul><li>Program execution & operations? </li></ul></ul><ul><ul><li>Personnel and training? </li></ul></ul>
  6. 6. Program & Process Management <ul><li>Focus on strategic organizational objectives such as leveraging best practices and transferring lessons learned </li></ul><ul><li>Help to solve issues such as achieving consistency across the organization and preventing duplication of effor </li></ul>
  7. 7. Program Execution & Operations <ul><li>Focus on connecting people with experts, transferring expertise, getting the right operational knowledge to people in the field when they need it </li></ul>
  8. 8. Personnel & Training (Learning) <ul><li>Personnel & learning issues such as acquiring and retaining intellectual assets and improving the quality of life for employees </li></ul>
  9. 9. KM Measurement Process
  10. 10. Step 1 - Stakeholders <ul><li>Tailor your measures to meet the stakeholders needs </li></ul><ul><li>Stakeholders – who will use the measures you select? </li></ul><ul><li>What are the most important questions the stakeholders have? </li></ul><ul><li>What are the most important decisions the stakeholders will make – how will they use the measures/information you give them? </li></ul>
  11. 11. Step 2 - Framework <ul><li>Define a measurement framework consistent with the business objectives </li></ul><ul><li>Should be suited to your overall performance measurement framework </li></ul><ul><li>Different ways to construct a framework – best is the one that makes it easiest to understand the relationship of your KM processes to your business goals </li></ul>
  12. 12. Framework Examples <ul><li>Flow framework – traces KM activities to impacts – illustrates KM benefits </li></ul><ul><li>Matrix measure shows the rationale for prioritizing among a group of KM projects – illustrates relationship between several factors </li></ul><ul><li>Causal loop diagrams illustrate relationships between key parts of a ‘system’ </li></ul><ul><li>Balanced scorecard provides a view of business performance by combining customer perspective, internal perspective, innovation/learning perspective, financial perspective </li></ul>
  13. 13. Balanced Scorecard Example <ul><li>Aligns measures with strategies in order to track progress, reinforce accountability and prioritize improvement opportunities </li></ul><ul><li>Integrates: </li></ul><ul><ul><li>Customer perspective – how customers see you </li></ul></ul><ul><ul><li>Internal perspective – what should you excel at? </li></ul></ul><ul><ul><li>Innovation & learning perspective – continuous improvement & value creation </li></ul></ul><ul><ul><li>Financial perspective – how look to stakeholders </li></ul></ul>
  14. 14. Applied Balanced Scorecard
  15. 15. Measuring from Different Perspectives <ul><li>Outcome measures </li></ul><ul><ul><li>enterprise level value </li></ul></ul><ul><ul><li>Impact of KM on the organization </li></ul></ul><ul><li>Output measures </li></ul><ul><ul><li>project or task level value </li></ul></ul><ul><ul><li>Measure process output for users </li></ul></ul><ul><li>System measures </li></ul><ul><ul><li>relate performance of IT to KM </li></ul></ul><ul><ul><li>Indirect indication of knowledge sharing & reuse </li></ul></ul>
  16. 16. Step 3 – What to Measure? <ul><li>Does the metric tell you whether knowledge is being shared and used? </li></ul><ul><li>Metrics should be tied to the maturity of the KM process – may need to change in each stage of the KM life cycle </li></ul><ul><li>Quantitative measures – evaluate performance over time, show trends </li></ul><ul><li>Qualitative measures - provide context & meaning for quantitative measures, & helps to describe intangible benefits </li></ul>
  17. 17. Measuring Intangible Assets <ul><li>Typical metrics can account for asset use by depletion </li></ul><ul><li>Intellectual assets, though, grow when they are used </li></ul><ul><li>Four examples of metrics for intangible assets: </li></ul><ul><ul><li>Intangible Asset Monitor (Sveiby) </li></ul></ul><ul><ul><li>Skandia Navigator </li></ul></ul><ul><ul><li>Intellectual Capital Index </li></ul></ul><ul><ul><li>Storytelling </li></ul></ul>
  18. 18. Intangible Assets Monitor <ul><li>People are only true agents in business </li></ul><ul><li>All assets result from the actions of people </li></ul><ul><li>Focuses on – individual competence, internal structure, external structure </li></ul>
  19. 19. Skandia Navigator <ul><li>Combines Intangible Assets Monitor with Balanced Scroecard approach </li></ul><ul><li>Defines two components of intellectual capital </li></ul><ul><ul><li>Human Capital </li></ul></ul><ul><ul><li>Structural Capital </li></ul></ul>
  20. 20. Intellectual Capital Index <ul><li>Flows & stocks of intellectual capital </li></ul><ul><li>Roos index measures </li></ul><ul><ul><li>Human capital (competence, attitude, intellectual agility, knowledge capital, skill capital) </li></ul></ul><ul><ul><li>Structural capital (external relationships, internal organization, renewal and development, strategic processes, flow of products and services) </li></ul></ul>
  21. 21. Storytelling <ul><li>Used in conjunction with other measurement approaches </li></ul><ul><li>Stories capture context which gives them meaning </li></ul><ul><li>People make sense out of things by telling stories </li></ul>
  22. 22. Step 4 – How to Collect & Analyze Data? <ul><li>Before you implement your KM program, you should have an idea of what you will need to measure & how you will collect data for the measures </li></ul><ul><li>Data collection methods typically used in organizational management are suitable for KM data collection </li></ul><ul><li>For example, surveys, interviews, workshops, focus groups, organizational records & strategies, </li></ul>
  23. 23. Step 5 – Learning How to Change <ul><li>Dynamic nature of a KM process means that you should always be open to learning: </li></ul><ul><ul><li>What should be changed </li></ul></ul><ul><ul><li>How to change it </li></ul></ul><ul><ul><li>When to introduce the changes </li></ul></ul>