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Measuring the value of KM

Measuring the value of KM






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    Measuring the value of KM Measuring the value of KM Presentation Transcript

    • Measuring the value of KM David Gurteen Gurteen Knowledge www.gurteen.com
    • Objectives
      • Take a look at the many things you need to think about when ‘measuring’ anything but in particular KM
      • Look at the role of rewards in motivating people
        • Create measures, set targets, reward people when they meet them!
    • Two things can be measured
      • Measure the knowledge of an organization
        • Intellectual capital
      • Measure outcomes of ‘knowledge in action’
        • Say a KM initiative
      • My interest is in outcomes – demonstrating the value of a KM initiative
      • The value of knowledge is contextual!
        • You can have all the knowledge in the world and still do nothing with it
    • Some considerations when measuring things!
    • Beware the word “Measure”
      • Beware the word “measure”!
      • Other words: performance indicator, metric, ROI
      • Performance indicator is usually best
      • Measures and metrics imply an exactness that is usually not achievable
      • Its ok 'to measure' but you don't create 'a measure‘ but an ‘indicator’
    • Why measure?
      • Could be for one of several purposes
        • To conform to laws or regulations
        • To deliver on a promise or agreement
        • To meet a service level agreement
        • To justify your existence
        • To enforce performance
        • You have been told to
        • To prove to yourselves you are not wasting time
        • To provide feedback that facilitates learning
    • Keep asking the question why!
      • What are your real objectives and are measurements the best way of achieving them?
      • Don’t measure for its own sake!
    • Beware not measuring
      • Your manager may not have asked for measures
      • But when the going gets touch you had better be able to justify your existence
      • Change of Management!!
      • Your manager’s manager may have different ideas
      • When cuts have to be made – KM is high on the list! (KM means Kill Me!)
    • Plan to measure before you start
      • You should plan to measure before you start a project or initiative- not after
      • What you measure and how you measure will affect how you do things!!
      • Too often Knowledge Managers don’t plan to measure up front!
    • There are multiple stakeholders
      • Multiple stakeholders will 'measure' you or want to see different measurements from you depending on their perspective
      • Don’t assume:
        • you know what the right measures are. Ask your stakeholders!
        • they will tell the truth or measure you by the measures you have agreed to provide them
      • You need to understand what is important to them
      • At the end of the day you will probably be measured on their 'gut feel‘ (How might you influence this!)
    • Two Stakeholders
      • Senior management
        • Sell & measure on business outcomes
      • Staff
        • Sell & measure on what's in it for them
    • Two types of measure
      • There are two types of measure
        • you can measure activity
        • or you can measure business outcomes
      • Business outcomes are best by FAR
      • Setting up say 10 communities of practice is an outcome but is NOT a business outcome
      • Business outcomes: increased revenue; decreased cost; improved bid to win ratio
    • Focus on Outcomes not Activities
      • Too often we measure activity rather than outcome
      • And we try to measure & justify KM initiatives on activity rather then outcome
      • Sometimes activity is the only proxy we have but too often we focus on activities at the expense of outcomes
    • Examples of Measure of Activity
      • Number of documents captured in a database
      • Number of times a document is read
      • Number of meetings held
      • Number of active communities of practice
      • Time taken to complete a task
    • Examples of Measure of Outcome
      • Bid to win ratio
      • Increased sales
      • Decreased costs
      • Improved quality
      • Reduced development time
      • Reduced staff turn over
      • Percentage of customers happy with service according to customer satisfaction survey
    • Beware of Targets
      • People are often given ‘targets’ by which they are ‘measured’
      • Often a command & control way of trying to force people to change
      • All imposed measures or targets will be gamed
      • They rarely work well
        • e.g. NHS
      • Targets need to be agreed and bought into
    • Examples of Poor Measures/Targets
      • First piece of baggage should arrive in arrival hall within 10 minutes of plane touching down
      • Patients when booking an appointment should not have to wait more than 3 days to see their doctor
      • In-patients in A&E should be seen by someone within 30 minutes of arrival
    • General Rule of Measurement
      • Any measure that is based on a simple metric such as a number or time interval is probably a bad one as it can be too easily “gamed”
        • too simple to reflect the complexity - the multidimensional & contextual aspects of life
        • a simple ‘satisfaction survey’ that measure ‘customer perception’ is better
        • difficult to game ‘perception’
    • Some things cannot be measured
      • Cynefin domains
        • Simple
        • Comlpicated
        • Complex
        • Chaotic
      • You cannot correlate cause & effect in the complex domain
      • You cannot say this was an outcome of my activity
      • And thus things cannot be directly measured
    • Cannot measure the new
      • If doing something new
      • Cannot plan to measure
      • As unsure of the outcomes
      • Act on gut feel
      • Can only measure in retrospect
    • Measures Distort
      • Measures distort behaviour
        • and have unintended and unimagined side-effects
        • always detrimental to the whole!
    • Softer Measures
      • Outcome based measures
      • Activity based measures
      • Anecdotal stories
        • Success stories
        • Focused on outcomes
      • Surveys and polls
        • Can provide numbers
    • Best Measures
      • To provide feedback to facilitate learning
      • NOT for control or conformance
      • Must be developed, owned and bought into by the people involved otherwise they will be ‘gamed’
      • They are personal learning tools!
    • When a measure becomes an objective it ceases to be a good measure!
    • What and How?
      • Only now think about what you are going measure and how you plan to do it!!
    • Rewards?
    • Don’t reward people!
      • Rewarding people for meeting targets is detrimental to
        • Quality
        • Motivation
        • Pride in work
      • Leads to gaming
      • What about sales?
        • Highly quantifiable outcome
        • But even then has side-effects
    • Here is what Alfie Kohn has to say about rewards To the best of my knowledge, no controlled scientific study has ever found a long-term enhancement of the quality of work as a result of any reward system http:// www.alfiekohn.org
    • Rewards Punish
      • Threats & coercion destroy motivation and so do rewards
      • Rewards are manipulative
      • “ Do this and you will get that” is not much different to “Do this else here is what will happen to you”
      • When people do not get the reward they hoped for they feel punished
      • The more desirable the reward the more demoralizing it is to miss out
    • Rewards rupture relations
      • Excellence depends on teamwork
      • Rewards destroy cooperation
        • Especially if scarce or valuable
      • Incentive driven employees will not ask for help from their manager when they need it
      • They will conceal problems from their manager to appear infinitely competent
    • Rewards ignore reasons
      • To solve problems people must understand the causes
      • They ignore the complexities of the problems
      • Each situation calls for a different response
      • Rewards tend to blindly promote a single solution
    • Rewards deter risk-taking
      • People are less likely to take risks; to explore possibilities; to play hunches
      • The No. 1 casualty of rewards is creativity
    • Rewards undermine interest
      • Loving what you do is a more powerful motivator than any goody including money
      • Rewards are controlling!
      • If people focus on getting a reward they tend to feel their work is no longer freely chosen and directed by them
      • If they have to bribe me to do it - it must be something I don’t want to do!
    • Summary
      • Beware of measures!
      • Think carefully!
      • Measure outcomes not activities
      • Chose measures that can not be easily gamed
      • Measures are best as learning tools 
      • Don’t reward outside the normal ‘appraisal system’
    • David Gurteen
      • Knowledge Networker
      • Knowledge Website
        • www.gurteen.com
      • Knowledge Community and Knowledge Letter
        • 13,000 people
        • 145 countries
      • Knowledge Cafés
        • London, Liverpool, Bristol, New York, Adelaide, Zurich
      • Educator, speaker, facilitator, coach, consultant
    • www.gurteen.com David Gurteen Gurteen Knowledge United Kingdom Tel: +44 1252 812 878 Email: david.gurteen@gurteen.com