Richard Mcdermott Mc 1


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  • Richard Mcdermott Mc 1

    1. 1. Knowing Organizations Richard McDermott McDermott Consulting [email_address] 303-545-6030 Thanks to Anders Hemre, Ericsson Research Canada, for contributing to the thinking for this presentation.
    2. 2. McDermott Consulting <ul><ul><li>Organizational design & change </li></ul></ul><ul><ul><li>Services </li></ul></ul><ul><ul><ul><li>Organization structure </li></ul></ul></ul><ul><ul><ul><li>Knowledge strategy </li></ul></ul></ul><ul><ul><ul><li>Communities of practice: strategy, start up, assessment </li></ul></ul></ul><ul><ul><ul><li>Knowledge work design </li></ul></ul></ul><ul><ul><li>Industries </li></ul></ul><ul><ul><ul><li>Petroleum, Telecommunications, Pharmaceutical, Healthcare, Computer, Professional Services, Retail </li></ul></ul></ul><ul><ul><li>For articles contact: </li></ul></ul>
    3. 3. Putting Communities to Work <ul><li>Improve business performance by increasing the productivity, innovation, and customer value of knowledge work </li></ul>
    4. 4. Topics <ul><li>Productivity </li></ul><ul><li>The evolution of community </li></ul><ul><li>Critical success factors for </li></ul><ul><ul><li>starting communities </li></ul></ul><ul><ul><li>sustaining and integrating communities </li></ul></ul><ul><li>Open discussions </li></ul>
    5. 5. Productivity &quot; The most important contribution management needs to make in the 21st century is to increase the productivity of knowledge work and the knowledge worker.&quot;   - Peter Drucker, 1959
    6. 6. Productivity <ul><li>“ [When it comes to improving </li></ul><ul><li>the productivity of knowledge work] </li></ul><ul><li>we are in the year 2000 roughly where we </li></ul><ul><li>were in in the year 1900 in terms of </li></ul><ul><li>the productivity of manual work.” </li></ul><ul><li>– Peter Drucker, 2000 </li></ul>McDermott Consulting 
    7. 7. Knowledge Work Productivity * <ul><li>Productivity Increase </li></ul><ul><ul><li>1973 - 1994 = 1.4% </li></ul></ul><ul><ul><li>1995 - 1999 = 2.4 </li></ul></ul><ul><ul><li>2000 - 2002 = 2.9 </li></ul></ul><ul><li>6 Sectors - 32% US GNP </li></ul><ul><ul><li>Retailing </li></ul></ul><ul><ul><li>Securities brokerage </li></ul></ul><ul><ul><li>Wholesaling </li></ul></ul><ul><ul><li>Semiconductors </li></ul></ul><ul><ul><li>Computer assembly </li></ul></ul><ul><ul><li>Telecommunications </li></ul></ul>* Source: Farrell, HBR 10/2003 76% 24% 6 sectors all other Productivity increase 1995-1999 McDermott Consulting 
    8. 8. What Happened? <ul><li>Increased competition led to innovation </li></ul><ul><li>Automated routine but complex business processes </li></ul><ul><ul><li>Wholesaling: automate inventory control with bar codes and automatic picking </li></ul></ul><ul><ul><li>Retailing: Bar-coding & software optimize warehousing & trucking </li></ul></ul><ul><li>Customer self-service </li></ul><ul><ul><li>Securities: On-line trading reduce customer service reps </li></ul></ul><ul><li>Improved knowledge worker productivity </li></ul><ul><ul><li>Banking: automate loan applications, etc. </li></ul></ul><ul><ul><li>Semiconductors: Automation aids for chip design </li></ul></ul>McDermott Consulting 
    9. 9. <ul><li>The customer revolution that radically improved manufacturing in the last 2 decades is beginning to hit the service sector of the economy. </li></ul>
    10. 10. How to Improve KW Productivity <ul><li>Routine and near-routine work </li></ul><ul><ul><li>Automate information search </li></ul></ul><ul><ul><li>Automate routine information processing </li></ul></ul><ul><ul><li>Modularize routine elements of complex knowledge processes </li></ul></ul><ul><li>Streamline knowledge work processes </li></ul><ul><li>Common knowledge </li></ul><ul><ul><li>Develop discrete best practices </li></ul></ul><ul><ul><li>Distribute help & best practices through communities </li></ul></ul><ul><li>Competitively distinctive knowledge </li></ul><ul><ul><li>Concentrate distinctive expertise </li></ul></ul><ul><ul><li>Increase cross-fertilization to simulate innovation </li></ul></ul>
    11. 11. Evolution of Communities of Practice &quot;Great civilizations, like great cities, share a common feature. Evolving within them , and critical to their growth and refinement, are distinctive informal public gathering places.” - Ray Oldenberg
    12. 12. Origins of Community of Practice <ul><li> Network </li></ul><ul><li>Research </li></ul><ul><ul><li>Knowledge travel through networks </li></ul></ul><ul><ul><li>Networked units adopt new practices </li></ul></ul><ul><ul><li>Networked units perform better </li></ul></ul><ul><ul><li>Outside input = better quality </li></ul></ul><ul><li>Community </li></ul><ul><li>Research </li></ul><ul><li>Informal, spontaneous communities are primary resource for help </li></ul><ul><li>Develop collective wisdom on how to do things </li></ul><ul><ul><li>Communities of Practice </li></ul></ul><ul><ul><ul><li>Focus (Domain) </li></ul></ul></ul><ul><ul><ul><li>Relationship </li></ul></ul></ul><ul><ul><ul><li>Practice </li></ul></ul></ul><ul><li>Knowledge </li></ul><ul><li>Management </li></ul><ul><ul><li>Knowledge shared through interaction even with IT </li></ul></ul>
    13. 13. Evolution of Community of Practice <ul><li>Informal </li></ul><ul><li>Communities </li></ul><ul><li>Peer to peer </li></ul><ul><li>Volunteers </li></ul><ul><li>Informal leadership </li></ul><ul><li>Organic, seeded </li></ul><ul><li>Center of Expertise </li></ul><ul><li>Expert to peer </li></ul><ul><li>Goals, best practice </li></ul><ul><li>Deep expertise </li></ul><ul><li>Assigned full-time staff </li></ul><ul><li>Consult to community or operating group </li></ul><ul><li>Strategic </li></ul><ul><li>Communities </li></ul><ul><li>Peer to peer </li></ul><ul><li>Goals, </li></ul><ul><li>best practices </li></ul><ul><li>Committed time </li></ul><ul><li>Assigned leader </li></ul><ul><li>Sponsored </li></ul><ul><li>Expert Network </li></ul><ul><li>Peer to peer </li></ul><ul><li>No boundaries </li></ul><ul><li>Volunteers </li></ul><ul><li>Cross- organization lines </li></ul>
    14. 14. Critical Success Factors To survive the pull of organizational demands, communities need structure and support.
    15. 15. CSF: Starting a Community <ul><li>Have a clear, important focus </li></ul><ul><ul><li>Topics matter to individuals & organization </li></ul></ul><ul><li>Build energy through leadership </li></ul><ul><ul><li>Community leader networks, energizes & focuses </li></ul></ul><ul><ul><li>Core members engage </li></ul></ul><ul><li>Legitimate communities </li></ul><ul><ul><li>Visible organizational support </li></ul></ul><ul><ul><li>Key players participate </li></ul></ul><ul><li>Build relationship among members </li></ul><ul><ul><li>Exciting events </li></ul></ul><ul><ul><li>Many one-on-one connections </li></ul></ul><ul><li>Demonstrable value to members </li></ul><ul><ul><li>Memorable stories & anecdotes </li></ul></ul>
    16. 16. CSF: Sustaining a Community <ul><li>Management expectations </li></ul><ul><ul><li>Communities produce value / achieve goals </li></ul></ul><ul><li>Leadership </li></ul><ul><ul><li>Active leader(s) & core group keep members engaged </li></ul></ul><ul><li>Integration </li></ul><ul><ul><li>Community leaders and management negotiate goals </li></ul></ul><ul><ul><li>Consulting the community becomes part of everyday work </li></ul></ul><ul><li>Support </li></ul><ul><ul><li>Community builders help communities through transitions </li></ul></ul><ul><li>Events </li></ul><ul><ul><li>Contact nurtures relationships </li></ul></ul><ul><ul><li>Events draw in new members, define new issues </li></ul></ul><ul><li>Alignment of HR </li></ul><ul><ul><li>Community contributions count to managers and other members </li></ul></ul>
    17. 17. Summary <ul><li>Productivity </li></ul><ul><ul><li>Improving business performance is the key challenge of the next 50 years </li></ul></ul><ul><li>Evolution </li></ul><ul><ul><li>Different forms of community for different purposes </li></ul></ul><ul><li>Starting & sustaining </li></ul><ul><ul><li>Communities need structure, continuity and person to person connection </li></ul></ul><ul><li>Next </li></ul><ul><ul><li>Peer to peer relationships are an important factor in designing organization </li></ul></ul>
    18. 18. Improving Knowledge Work <ul><li>Knowledge work is social through and through. </li></ul><ul><li>Improve knowledge work by changing elements of the organization, not the individual work process. </li></ul>McDermott Consulting 