Nick Milton: The Business Value of Knowledge Management. VidenDanmark. 30 maj 2012

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VidenDanmark afholdt den 30. maj 2012 møde om The Business Value of Knowledge Management, hvor Nick Milton, Knoco var inviteret til at give indlæg.

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  • There will need to be a number of roles and accountabilities defined within the organisation, as a part of the EM framework. The exact number, nature and position of these roles may vary from Sales to Service to R&D.
  • Four main EM technologies are required. These fall either into the “tacit” [left-hand side] or “explicit” [the right hand side] side of the picture. The question and response forums and yellow pages support open discussion, and the exchange of knowledge through communication. The local and regional lessons systems and the knowledge library support the capture of knowledge and the creation of a written record. All of these technologies are linked by a common practice-based taxonomy.
  • http://www.youtube.com/watch?v=hO8MwBZl-Vc
  • Leadership needs to be very clear about their expectations for knowledge management. What are the standards, or the minimum conditions of satisfaction, which everybody is required to follow in terms of KM? Statements such as the one on this slide can clarify these expectations
  • Management encouragement also has its darker side; its stick as well as carrot. Bob Buckman at Buckman labs encourages both through rewarding the top knowledge sharers, and through warning those who do not share their knowledge.
  • Nick Milton: The Business Value of Knowledge Management. VidenDanmark. 30 maj 2012

    1. 1. Business Value of Knowledge Management Nick Milton Knoco Ltd www.knoco.com www.nickmilton.com © Knoco Ltd – all rights reserved
    2. 2. Knowledge and Performance ApplyKnowledge Performance Learn Copyright Knoco Ltd, all rights reserved
    3. 3. A story John Henderson, Boston Speaking at BP, 1997 Copyright Knoco Ltd, all rights reserved
    4. 4. 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 Copyright Knoco Ltd. All rights reserved
    5. 5. Transfer of practicefrom one site to another Copyright Knoco Ltd. All rights reserved
    6. 6. Demonstratingthe value Using all knowledge and best practiceWith noknowledge Copyright Knoco Ltd. All rights reserved
    7. 7. AAR – Jwaneng mine Knowledge Opportunity 190h for VALUE add Additional Upgrade TIME / COST Project At Same Time 70h GA GB GC GD GE GF GGMain Treatment Plant - Double-Deck Screen Replacement Project Copyright Knoco Ltd. All rights reserved
    8. 8. What’s different aboutknowledge? Data A pressure reading, in one place, at one time Information Data structured in such a way as to “tell you something” Knowledge? What does this mean? What action should I take? Copyright Knoco Ltd. All rights reserved
    9. 9. Where knowledge comesfrom Data Info knowledge decision action experience Reflection/ Performance Analysis Copyright Knoco Ltd. All rights reserved
    10. 10. How does KM work? Copyright Knoco Ltd. All rights reserved
    11. 11. A series ofknowledge-focused roles Provide KM Leadership Acknowledge experience sharing SENIOR Setting clear expectations MANAGER Maintaining the “knowledge bank” for their practice – up to date, useful PRACTICE accessible material OWNER Ensuring use of, and sustainability of, the KM Framework KM TEAM Building the experience-sharing networks, managing the COP LEADER conversations Planning and coordinating KM activities at project level PROJECT K Copyright Knoco Ltd. All rights reserved MANAGER
    12. 12. KM processes embeddedinto the working cycle FEL1 FEL2 FEL3 Exec Start-up Ops Lessons LearnedMandatory Reviewsactivity Create KM plan, review at each new stage Peer AssistOptionalactivity After Action Review Copyright Knoco Ltd, all rights reserved
    13. 13. A suite of TechnologyFor Community of For knowledge Practice (Open capture and re-use discussion) (Written Document) Knowledge Library • Guidance documents • Best Practices • Working Examples Company lessons management system • Lessons applicable to region/function Project lessons management system • Lessons Learned From Copyright Knoco Ltd. All rights reserved projects
    14. 14. Governance Clear KM expectations. Policies and Standards for Experience ManagementSupport, includingtraining, referenceand coaching KM performance metrics, linked to recognition and reward Copyright Knoco Ltd. All rights reserved
    15. 15. What Knowledge?  Three Questions to deliver business value Copyright Knoco Ltd. All rights reserved© Knoco® Ltd.
    16. 16. Q1 What do we need to be able to do? Copyright Knoco Ltd. All rights reserved© Knoco® Ltd.
    17. 17. Q2 What do we need to know? Copyright Knoco Ltd. All rights reserved© Knoco® Ltd.
    18. 18. Q3 – how do we manageit? Answer – it depends on the knowledge Copyright Knoco Ltd. All rights reserved
    19. 19. Knowledge end-membersBasic, static Improving, evolving Basic process  New knowledge, tips, knowledge hints, improvements Standard practice  Best practice Training, supervision  Knowledge sharing Classroom or e-  Learning from peers learning and experience Manuals, instructions  CoPs, wikis, lessons Traditional role of L&D  Traditional role of KM
    20. 20. Four cases New, Improving Low level of High level of knowledge in knowledge in the business the business Basic, Static Copyright Knoco Ltd, all rights reserved© Knoco® Ltd.
    21. 21. Innovation and Knowledge Acquisition New, Improving Low level of High level of knowledge in knowledge in the business the business Basic, Static Copyright Knoco Ltd, all rights reserved© Knoco® Ltd.
    22. 22. Develop and build Networks to develop “best practice” New, Improving Low level of High level of knowledge in knowledge in the business the business Basic, Static Copyright Knoco Ltd, all rights reserved© Knoco® Ltd.
    23. 23. Protect against loss, standardise and deploy New, Improving Low level of High level of knowledge in knowledge in the business the business Basic, Static Copyright Knoco Ltd, all rights reserved© Knoco® Ltd.
    24. 24. Outsource and Quality Assure New, Improving Low level of High level of knowledge in knowledge in the business the business Basic, Static Copyright Knoco Ltd, all rights reserved© Knoco® Ltd.
    25. 25. 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 Copyright Knoco Ltd. All rights reserved
    26. 26. 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 Copyright Knoco Ltd. All rights reserved
    27. 27. The solutionA Knowledge Sharing Network – the New Markets Global practice groupmeets every 6 months, face-to-face, hosted by one of the markets.The meetings are focused on sharing, learning lessons, and discussing Copyright Knoco Ltd. All rights reserved
    28. 28. Meeting structure Copyright Knoco Ltd. All rights reserved
    29. 29. 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 Copyright Knoco Ltd. All rights reserved
    30. 30. A systematic framework Learn during LeveragingPeople $ Learn Learn Goals & Using Results before after Knowledge &Teams Copyright Knoco Ltd. All rights reserved
    31. 31. Framework 2Knowledge Bank Knowledge Assets Learn during LeveragingPeople $ Learn Learn Goals & Using Results before after Knowledge &Teams Copyright Knoco Ltd. All rights reserved
    32. 32. Framework 3 Knowledge AssetsCommunities of Practice Learn during Leveraging Business $ Learn Learn Goals & Using Results before after Knowledge roles Copyright Knoco Ltd. All rights reserved
    33. 33. Example 3 – cautionarytale Boeing Strategy – maintain and grow sales What do we need to know? – build and deliver planes The knowledge – basic knowledge, held by ageing workforce Copyright Knoco Ltd. All rights reserved
    34. 34. Early Retirement atBoeing 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 Copyright Knoco Ltd. All rights reserved
    35. 35. Questions?  nick.milton@knoco.com  www.knoco.com  www.nickmilton.com Copyright Knoco Ltd. All rights reserved
    36. 36. Introducing KMA change-focused approach © Knoco Ltd – all rights reserved
    37. 37. The culture shift - achange in emphasis  “We know”  “I know”  “Knowledge is ours”  “Knowledge is mine”  “Knowledge is inter-personal”  “Knowledge is personal”  “Knowledge is shared”  “Knowledge is owned”  “Knowledge is collective/ community  “Knowledge is personal property” property”  “Knowledge is personal  “Knowledge is company advantage” advantage”  “I am open to better knowledge”  “I defend what I know”  “Invented in my community”  “Not invented here (i.e. by me)”  “New knowledge improves my  “New knowledge competes with personal knowledge” my personal knowledge”  “Shared knowledge helps me"  “Other peoples knowledge is a  “I will share whether I am asked or threat to mine“ not”  “I won’t tell if I’m not asked”  “Asking is the first step to learning”  “Asking is a sign of weakness”  Sharing and learning is High Priority,  Not a priority to share and learn for me and for the company Copyright Knoco Ltd. All rights reserved © Knoco Ltd – all rights reserved
    38. 38. How big is the culturegap? 20 cm Copyright Knoco Ltd. All rights reserved © Knoco Ltd – all rights reserved
    39. 39. So how do we changethe culture? 20 cm at a time! Photo from Flickr under a creative commons Copyright Knoco Ltd. All rights reserved licence, originally uploaded by AndYaDontStop
    40. 40. The personal balance KM takes Time. KM helps me do my job KM takes Effort. KM helps the company KM takes Thought. KM gives me a higher KM is Exposing. profile KM requires Change. It’s easy – I’ve been I don’t know how. trained Nobody else is doing it. My peers are doing it My manager doesn’t My manager expects it care about KM KM is rewarded I can get away with not If I don’t do it, my doing it career will suffer Copyright Knoco Ltd. All rights reserved © Knoco Ltd – all rights reserved
    41. 41. A Change Program Copyright Knoco Ltd. All rights reserved
    42. 42. Your strategy laggards Introduce % performance mgt change The majority Introduce framework First followers Introduce pilots Time Copyright Knoco Ltd. All rights reserved © Knoco Ltd – all rights reserved
    43. 43. Change factors Logic EmotionExpectationPeer pressure Copyright Knoco Ltd. All rights reserved © Knoco Ltd – all rights reserved
    44. 44. First followers 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 Copyright Knoco Ltd. All rights reserved © Knoco Ltd – all rights reserved
    45. 45. Be VisibleBe Easy to Follow Copyright Knoco Ltd. All rights reserved
    46. 46. The majority 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 Copyright Knoco Ltd. All rights reserved © Knoco Ltd – all rights reserved
    47. 47. 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 …… Copyright Knoco Ltd. All rights reserved © Knoco Ltd – all rights reserved
    48. 48. The laggards Measure the use of KM Publicise the results Use PEER PRESSURE Get tough with the people who don’t comply Copyright Knoco Ltd. All rights reserved © Knoco Ltd – all rights reserved
    49. 49. 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  GUTShttp://www.conocophillips.com/EN/about/company_reports/spirit_mag/Documents/spiritMagazine1Q10.pdf Copyright Knoco Ltd. All rights reserved
    50. 50. Link to career progression“If you are not willing to contribute or participate, then youshould understand that the many opportunities open to you in thepast 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 “Sharingknowledge is your job. Do it! As a reward, you may keep yourjob”Melissie Rumizen, Buckman Labs Knowledge strategist Copyright Knoco Ltd, all rights reserved © Knoco Ltd – all rights reserved
    51. 51. Staged approachto implementation System Strategy Assessment Testing and Roll-out Operation Development Piloting Do we have an Is the model Is roll-out agreed plan? robust? complete? Copyright Knoco Ltd, all rights reserved
    52. 52. Change process 5 Laggards Apply and monitor the framework 4 % Involvement Neutral Roll out the KM frameworkAssessment 3 Supportersand Strategy Test, pilot, prove the concept 1 2 Time Copyright Knoco Ltd, all rights reserved

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