Measuring the value of KM David Gurteen Gurteen Knowledge www.gurteen.com
Objectives <ul><li>Take a look at the many things you need to think about when ‘measuring’ anything but in particular KM <...
Two things can be measured <ul><li>Measure the knowledge of an organization </li></ul><ul><ul><li>Intellectual capital </l...
Some considerations when measuring things!
Beware the word “Measure” <ul><li>Beware the word “measure”! </li></ul><ul><li>Other words: performance indicator, metric,...
Why measure? <ul><li>Could be for one of several purposes </li></ul><ul><ul><li>To conform to laws or regulations </li></u...
Keep asking the question why! <ul><li>What are your real objectives and are measurements the best way of achieving them? <...
Beware not measuring <ul><li>Your manager may not have asked for measures </li></ul><ul><li>But when the going gets touch ...
Plan to measure before you start <ul><li>You should plan to measure before you start a project or initiative- not after </...
There are multiple stakeholders <ul><li>Multiple stakeholders will 'measure' you or want to see different measurements fro...
Two Stakeholders <ul><li>Senior management </li></ul><ul><ul><li>Sell & measure on business outcomes </li></ul></ul><ul><l...
Two types of measure <ul><li>There are two types of measure </li></ul><ul><ul><li>you can measure activity </li></ul></ul>...
Focus on Outcomes not Activities <ul><li>Too often we measure activity rather than outcome </li></ul><ul><li>And we try to...
Examples of Measure of Activity <ul><li>Number of documents captured in a database </li></ul><ul><li>Number of times a doc...
Examples of Measure of Outcome <ul><li>Bid to win ratio  </li></ul><ul><li>Increased sales </li></ul><ul><li>Decreased cos...
Beware of Targets <ul><li>People are often given ‘targets’ by which they are ‘measured’ </li></ul><ul><li>Often a command ...
Examples of Poor Measures/Targets <ul><li>First piece of baggage should arrive in arrival hall within 10 minutes of plane ...
General Rule of Measurement <ul><li>Any measure that is based on a simple metric such as a number or time interval is prob...
Some things cannot be measured <ul><li>Cynefin domains </li></ul><ul><ul><li>Simple </li></ul></ul><ul><ul><li>Comlpicated...
Cannot measure the new <ul><li>If doing something new </li></ul><ul><li>Cannot plan to measure </li></ul><ul><li>As unsure...
Measures Distort <ul><li>Measures distort behaviour </li></ul><ul><ul><li>and have unintended and unimagined side-effects ...
Softer Measures <ul><li>Outcome based measures </li></ul><ul><li>Activity based measures </li></ul><ul><li>Anecdotal stori...
Best Measures <ul><li>To provide feedback to facilitate learning </li></ul><ul><li>NOT for control or conformance </li></u...
When a measure becomes an objective it ceases to be a good measure!
What and How? <ul><li>Only now think about what you are going measure and how you plan to do it!! </li></ul>
Rewards?
Don’t reward people! <ul><li>Rewarding people for meeting targets is detrimental to </li></ul><ul><ul><li>Quality </li></u...
Here is what Alfie Kohn has to say about rewards To the best of my knowledge, no controlled scientific study has ever foun...
Rewards Punish <ul><li>Threats & coercion destroy motivation and so do rewards </li></ul><ul><li>Rewards are manipulative ...
Rewards rupture relations <ul><li>Excellence depends on teamwork </li></ul><ul><li>Rewards destroy cooperation </li></ul><...
Rewards ignore reasons <ul><li>To solve problems people must understand the causes </li></ul><ul><li>They ignore the compl...
Rewards deter risk-taking <ul><li>People are less likely to take risks; to explore possibilities; to play hunches </li></u...
Rewards undermine interest <ul><li>Loving what you do is a more powerful motivator than any goody including money </li></u...
Summary <ul><li>Beware of measures! </li></ul><ul><li>Think carefully! </li></ul><ul><li>Measure outcomes not activities <...
David Gurteen <ul><li>Knowledge Networker </li></ul><ul><li>Knowledge Website </li></ul><ul><ul><li>www.gurteen.com </li><...
www.gurteen.com David Gurteen Gurteen Knowledge United Kingdom Tel: +44 1252 812 878 Email: david.gurteen@gurteen.com
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Measuring the value of KM

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Measuring the value of KM

  1. 1. Measuring the value of KM David Gurteen Gurteen Knowledge www.gurteen.com
  2. 2. Objectives <ul><li>Take a look at the many things you need to think about when ‘measuring’ anything but in particular KM </li></ul><ul><li>Look at the role of rewards in motivating people </li></ul><ul><ul><li>Create measures, set targets, reward people when they meet them! </li></ul></ul>
  3. 3. Two things can be measured <ul><li>Measure the knowledge of an organization </li></ul><ul><ul><li>Intellectual capital </li></ul></ul><ul><li>Measure outcomes of ‘knowledge in action’ </li></ul><ul><ul><li>Say a KM initiative </li></ul></ul><ul><li>My interest is in outcomes – demonstrating the value of a KM initiative </li></ul><ul><li>The value of knowledge is contextual! </li></ul><ul><ul><li>You can have all the knowledge in the world and still do nothing with it </li></ul></ul>
  4. 4. Some considerations when measuring things!
  5. 5. Beware the word “Measure” <ul><li>Beware the word “measure”! </li></ul><ul><li>Other words: performance indicator, metric, ROI </li></ul><ul><li>Performance indicator is usually best </li></ul><ul><li>Measures and metrics imply an exactness that is usually not achievable </li></ul><ul><li>Its ok 'to measure' but you don't create 'a measure‘ but an ‘indicator’ </li></ul>
  6. 6. Why measure? <ul><li>Could be for one of several purposes </li></ul><ul><ul><li>To conform to laws or regulations </li></ul></ul><ul><ul><li>To deliver on a promise or agreement </li></ul></ul><ul><ul><li>To meet a service level agreement </li></ul></ul><ul><ul><li>To justify your existence </li></ul></ul><ul><ul><li>To enforce performance </li></ul></ul><ul><ul><li>You have been told to </li></ul></ul><ul><ul><li>To prove to yourselves you are not wasting time </li></ul></ul><ul><ul><li>To provide feedback that facilitates learning </li></ul></ul>
  7. 7. Keep asking the question why! <ul><li>What are your real objectives and are measurements the best way of achieving them? </li></ul><ul><li>Don’t measure for its own sake! </li></ul>
  8. 8. Beware not measuring <ul><li>Your manager may not have asked for measures </li></ul><ul><li>But when the going gets touch you had better be able to justify your existence </li></ul><ul><li>Change of Management!! </li></ul><ul><li>Your manager’s manager may have different ideas </li></ul><ul><li>When cuts have to be made – KM is high on the list! (KM means Kill Me!) </li></ul>
  9. 9. Plan to measure before you start <ul><li>You should plan to measure before you start a project or initiative- not after </li></ul><ul><li>What you measure and how you measure will affect how you do things!! </li></ul><ul><li>Too often Knowledge Managers don’t plan to measure up front! </li></ul>
  10. 10. There are multiple stakeholders <ul><li>Multiple stakeholders will 'measure' you or want to see different measurements from you depending on their perspective </li></ul><ul><li>Don’t assume: </li></ul><ul><ul><li>you know what the right measures are. Ask your stakeholders! </li></ul></ul><ul><ul><li>they will tell the truth or measure you by the measures you have agreed to provide them </li></ul></ul><ul><li>You need to understand what is important to them </li></ul><ul><li>At the end of the day you will probably be measured on their 'gut feel‘ (How might you influence this!) </li></ul>
  11. 11. Two Stakeholders <ul><li>Senior management </li></ul><ul><ul><li>Sell & measure on business outcomes </li></ul></ul><ul><li>Staff </li></ul><ul><ul><li>Sell & measure on what's in it for them </li></ul></ul>
  12. 12. Two types of measure <ul><li>There are two types of measure </li></ul><ul><ul><li>you can measure activity </li></ul></ul><ul><ul><li>or you can measure business outcomes </li></ul></ul><ul><li>Business outcomes are best by FAR </li></ul><ul><li>Setting up say 10 communities of practice is an outcome but is NOT a business outcome </li></ul><ul><li>Business outcomes: increased revenue; decreased cost; improved bid to win ratio </li></ul>
  13. 13. Focus on Outcomes not Activities <ul><li>Too often we measure activity rather than outcome </li></ul><ul><li>And we try to measure & justify KM initiatives on activity rather then outcome </li></ul><ul><li>Sometimes activity is the only proxy we have but too often we focus on activities at the expense of outcomes </li></ul>
  14. 14. Examples of Measure of Activity <ul><li>Number of documents captured in a database </li></ul><ul><li>Number of times a document is read </li></ul><ul><li>Number of meetings held </li></ul><ul><li>Number of active communities of practice </li></ul><ul><li>Time taken to complete a task </li></ul>
  15. 15. Examples of Measure of Outcome <ul><li>Bid to win ratio </li></ul><ul><li>Increased sales </li></ul><ul><li>Decreased costs </li></ul><ul><li>Improved quality </li></ul><ul><li>Reduced development time </li></ul><ul><li>Reduced staff turn over </li></ul><ul><li>Percentage of customers happy with service according to customer satisfaction survey </li></ul>
  16. 16. Beware of Targets <ul><li>People are often given ‘targets’ by which they are ‘measured’ </li></ul><ul><li>Often a command & control way of trying to force people to change </li></ul><ul><li>All imposed measures or targets will be gamed </li></ul><ul><li>They rarely work well </li></ul><ul><ul><li>e.g. NHS </li></ul></ul><ul><li>Targets need to be agreed and bought into </li></ul>
  17. 17. Examples of Poor Measures/Targets <ul><li>First piece of baggage should arrive in arrival hall within 10 minutes of plane touching down </li></ul><ul><li>Patients when booking an appointment should not have to wait more than 3 days to see their doctor </li></ul><ul><li>In-patients in A&E should be seen by someone within 30 minutes of arrival </li></ul>
  18. 18. General Rule of Measurement <ul><li>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” </li></ul><ul><ul><li>too simple to reflect the complexity - the multidimensional & contextual aspects of life </li></ul></ul><ul><ul><li>a simple ‘satisfaction survey’ that measure ‘customer perception’ is better </li></ul></ul><ul><ul><li>difficult to game ‘perception’ </li></ul></ul>
  19. 19. Some things cannot be measured <ul><li>Cynefin domains </li></ul><ul><ul><li>Simple </li></ul></ul><ul><ul><li>Comlpicated </li></ul></ul><ul><ul><li>Complex </li></ul></ul><ul><ul><li>Chaotic </li></ul></ul><ul><li>You cannot correlate cause & effect in the complex domain </li></ul><ul><li>You cannot say this was an outcome of my activity </li></ul><ul><li>And thus things cannot be directly measured </li></ul>
  20. 20. Cannot measure the new <ul><li>If doing something new </li></ul><ul><li>Cannot plan to measure </li></ul><ul><li>As unsure of the outcomes </li></ul><ul><li>Act on gut feel </li></ul><ul><li>Can only measure in retrospect </li></ul>
  21. 21. Measures Distort <ul><li>Measures distort behaviour </li></ul><ul><ul><li>and have unintended and unimagined side-effects </li></ul></ul><ul><ul><li>always detrimental to the whole! </li></ul></ul>
  22. 22. Softer Measures <ul><li>Outcome based measures </li></ul><ul><li>Activity based measures </li></ul><ul><li>Anecdotal stories </li></ul><ul><ul><li>Success stories </li></ul></ul><ul><ul><li>Focused on outcomes </li></ul></ul><ul><li>Surveys and polls </li></ul><ul><ul><li>Can provide numbers </li></ul></ul>
  23. 23. Best Measures <ul><li>To provide feedback to facilitate learning </li></ul><ul><li>NOT for control or conformance </li></ul><ul><li>Must be developed, owned and bought into by the people involved otherwise they will be ‘gamed’ </li></ul><ul><li>They are personal learning tools! </li></ul>
  24. 24. When a measure becomes an objective it ceases to be a good measure!
  25. 25. What and How? <ul><li>Only now think about what you are going measure and how you plan to do it!! </li></ul>
  26. 26. Rewards?
  27. 27. Don’t reward people! <ul><li>Rewarding people for meeting targets is detrimental to </li></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Motivation </li></ul></ul><ul><ul><li>Pride in work </li></ul></ul><ul><li>Leads to gaming </li></ul><ul><li>What about sales? </li></ul><ul><ul><li>Highly quantifiable outcome </li></ul></ul><ul><ul><li>But even then has side-effects </li></ul></ul>
  28. 28. 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
  29. 29. Rewards Punish <ul><li>Threats & coercion destroy motivation and so do rewards </li></ul><ul><li>Rewards are manipulative </li></ul><ul><li>“ Do this and you will get that” is not much different to “Do this else here is what will happen to you” </li></ul><ul><li>When people do not get the reward they hoped for they feel punished </li></ul><ul><li>The more desirable the reward the more demoralizing it is to miss out </li></ul>
  30. 30. Rewards rupture relations <ul><li>Excellence depends on teamwork </li></ul><ul><li>Rewards destroy cooperation </li></ul><ul><ul><li>Especially if scarce or valuable </li></ul></ul><ul><li>Incentive driven employees will not ask for help from their manager when they need it </li></ul><ul><li>They will conceal problems from their manager to appear infinitely competent </li></ul>
  31. 31. Rewards ignore reasons <ul><li>To solve problems people must understand the causes </li></ul><ul><li>They ignore the complexities of the problems </li></ul><ul><li>Each situation calls for a different response </li></ul><ul><li>Rewards tend to blindly promote a single solution </li></ul>
  32. 32. Rewards deter risk-taking <ul><li>People are less likely to take risks; to explore possibilities; to play hunches </li></ul><ul><li>The No. 1 casualty of rewards is creativity </li></ul>
  33. 33. Rewards undermine interest <ul><li>Loving what you do is a more powerful motivator than any goody including money </li></ul><ul><li>Rewards are controlling! </li></ul><ul><li>If people focus on getting a reward they tend to feel their work is no longer freely chosen and directed by them </li></ul><ul><li>If they have to bribe me to do it - it must be something I don’t want to do! </li></ul>
  34. 34. Summary <ul><li>Beware of measures! </li></ul><ul><li>Think carefully! </li></ul><ul><li>Measure outcomes not activities </li></ul><ul><li>Chose measures that can not be easily gamed </li></ul><ul><li>Measures are best as learning tools  </li></ul><ul><li>Don’t reward outside the normal ‘appraisal system’ </li></ul>
  35. 35. David Gurteen <ul><li>Knowledge Networker </li></ul><ul><li>Knowledge Website </li></ul><ul><ul><li>www.gurteen.com </li></ul></ul><ul><li>Knowledge Community and Knowledge Letter </li></ul><ul><ul><li>13,000 people </li></ul></ul><ul><ul><li>145 countries </li></ul></ul><ul><li>Knowledge Cafés </li></ul><ul><ul><li>London, Liverpool, Bristol, New York, Adelaide, Zurich </li></ul></ul><ul><li>Educator, speaker, facilitator, coach, consultant </li></ul>
  36. 36. www.gurteen.com David Gurteen Gurteen Knowledge United Kingdom Tel: +44 1252 812 878 Email: david.gurteen@gurteen.com

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