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Knowledge Management @ KPC
July 2005
Lost
Knowledge
Knowledge
is Power!
Variable Performance
Organizational Silos
Islands of Excellence
Strong Hierarchy
Internal Competition
Not Invented Here
2030 Strategy




   "Ambition without Knowledge is Like a Boat on Dry Land."
                                                    Mark Lee
BPT                                K Planning
                                      CoPs



                              K Retention    Storytelling

                LL System

Previous/Current Work – Future Work                         Last Update: 11 Mar 2010
The Strategy-Knowledge Link:

        What a                        Strategy-Knowledge Link                                                    What a
      Competitor                                                                                               Competitor
       Will Know                                                                                                 Will Do



                    What an           Strategy-Knowledge Link                                 What an
                   Organization                                                              Organization
                   Must Know                                                                  Must Do
                                               Strategy-Knowledge Link

                                   What an                                What an
                                  Individual                             Individual
                                  Must Know                               Must Do

Knowledge                                                                                                               Strategic
   Gap                                                                                                                    Gap
                                   What an                                What an
                                  Individual                             Individual
                                    Knows                                  Can Do

                                               Knowledge-Strategy Link


                    What an                                                                    What an
                   Organization                                                              Organization
                     Knows                                                                     Can Do
                                      Knowledge-Strategy Link

        What a                                                                                                     What a
      Competitor                                                                                                 Competitor
        Knows                                                                                                      Can Do
                                      Knowledge-Strategy Link

                                                                                      Source: Dr. Dan Kirsch
K Matchmaking
Best Practice Transfer (BPT)
K Sharing is not Enough!
What is a Best Practice:




   “Repeatable activity that
   routinely results in
   superior performance.”

                           Source: Kent Greenes
Continuous Improvement:


                          Good Idea

   Current           Good Practice
    Scope
    for the
   Program            Best Practice

                          Standard
What to Transfer:

                                          Category



                             Process      Process      Process
                             Group 1      Group 2      Group 3



              Process 1     Process 2     Process 3



Activity or   Activity or   Activity or         Expected Level
Practice 1    Practice 2    Practice 3           for Transfer
Best Practice Model:

Work     Current   Company       Company   Company       Best of Best
Steps    Method       A             B         C           Process


                             1

1

2                   2

     3
3

4                                          4

5



                                                 Source: Dr. Robert Camp
What to Gain by Sharing?

                                    Breakthrough
                             Performance by Leveraging
   Prize 2
                                Collective Know-How
                                                             Best Performance
                                                              Before Sharing
   Prize 1
                                               Known
                                               Knowledge
                                               Gap




Company:     A   B   C   D
                                                     Source: Kent Greenes
Communities of Practice (CoPs)
Volunteers
What is a Community of Practice (CoP)?
•    A core team of peer-recognised strong performers who have an ability
     to influence change, can share knowledge with and learn from others,
     be committed to achieving improvements for the Group as a whole,
     and can build strong relationships.

•    A wider network of people working on the same topic, facing the
     same challenges, who can learn from each other and from the stored
     knowledge of the community.




                core               extended



                                                       Source: Dr. Nick Milton
Community vs. Committee:


Community                          Committee
• Many people                      • Few people
• Mostly workers                   • Mostly managers
• Community leader helps the       • Committee head has decision-
  community to reach agreement       making authority
• Exchange ideas without meeting   • Exchange ideas when they meet
• Meet online all the time         • Meet infrequently
• Support committees by making     • Make decisions based on
  recommendations                    community output




                                              Source: Dr. Nick Milton
Types of CoPs
                          Knowledge-           Best Practice       Innovation              Helping
                          Stewarding           Community           Community             Community
                          Community
  Business Drivers     • Technical           • Lower cost       • Technical market    • Lower cost
                       excellence            through            leadership            through reuse
                       • Professional        standardization    • Track shifting      • Preserve
                       development           • Consistency of   market trends         technical
                       • Thought             product                                  excellence
                       leadership            • Reduce risks                           • Social
                                             • Improve                                responsibility
                                             outcomes                                 • Employee
                                                                                      relations
  Key Activities and   • Enlist leading      • Collecting,      • Share insights      • Connecting
  Processes            experts               vetting,           and warning signs     members
                       • Manage Content      publishing         • Decipher trends     • Knowing who’s
                       • Identify            • Enforcing                              who
                       emerging trends

  Knowledge            • Tacit to explicit   • Low on tacit     • Explicit to tacit   • Tacit – high
                       and tacit to tacit    • Explicit to      (sense-making)        socialization
                                             explicit

                                                                                          Source: APQC
Community Activities for Adding Value
•   Solving problems for each other
•   Mentoring and coaching each other
•   Learning before (Peer Assist)
•   Learning during (After Action Review)
•   Learning after (Retrospect)
•   Benchmarking performance with each other
•   Exchanging resources
•   Collaborating on purchasing (buying things that any one member could not justify)
•   Collaborating on contracts (using the purchasing power of the community)
•   Cooperating on trials and pilots
•   Publishing joint-papers (and presenting at conferences)
•   Importing Knowledge
•   Sharing and transferring best practices
•   Sharing results of studies
•   Exchanging equipment (re-use old equipment, share spares)
•   Warning of risks
•   Building and maintaining documented best practices
•   Developing checklists and templates
•   Identifying knowledge retention issues
•   Identifying training gaps and collaborating on training provision
•   Creating Knowledge (Innovation) – new products, services or opportunities
                                                                                  Last Update: 6 Jan 2011
Value Added:

  Money saved                 Work simplified         “Learning before”
  (Estimated value     KD)
  Saved time                  Work avoided            Faster implementation
  (Estimated value    days)
  Rework avoided              Resources shared        Improved productivity

  Better decisions            Resources reused        Improved satisfaction

  Travel avoided              Worksteps removed       Behaviour change

  Improved safety             Reduced business risk   Morale improved

  Reduced emissions           Reduced health risks    Energy saved

  Better quality              Customer satisfaction   Enhanced reputation
Benefits of having a CoP (WIIFM):




                    Source: Dr. Etienne Wenger
Existing Communities
            •    Automation
            •    Energy Efficiency
            •    Environment
            •    Health
            •    Inspection & Corrosion
            •    Performance Management
            •    Project Management
            •    Safety
            •    Talent Management
            •    Turnaround
New Communities launched in 2010                  Last Update: 19 April 2010
Best Practice Program                                      Phase 3

BP Champion CEO                       Community Structure


                             BP Steering                 Community
BP Sponsor    MD                                   DMD
                             Committee                    Sponsor

                                           Delivery   Direction
       Delivery                                       & Support
                      Support
   BP PMO                                                Community Leader
                    relationship

                                                 Core Team


                                   Facilitator           Deputy Leader


                                        Extended Community
Storytelling
Outcomes
Better Practice Transfers during Phase 1:
        Best Practice
                                     Adopters        Sources                          Benefits
        Transferred
Elimination of Freight Forwarding                                Impacted decision to eliminate a KD 3MM foreign
                                        KNPC           KOC
 Contracts by Foreign Suppliers                                  supplier contract.
Peer Assist Knowledge Transfer                       BP, SAIC,   Accelerated transfer of Best Practices and lessons
                                        KOC
            Process                                  Shell, SA   learned before a project begins.
  Incoming Material Inspection                                   Increased quality of materials received from
                                        KNPC           KOC
            Policy                                               suppliers.
                                       KGOC +
Use of e-Procurement Reverse
                                        Under                    - Reduction in days to close RFQ from 30 to 4
  Auction Tools (TEJARI) for
                                      review by        PIC       - Reduction from 12 signatures to 2
 Purchase Quotations Under
                                     KPC, KNPC,                  - Reduction of 18 employee touches to 3
           5,000KD
                                         KPI
                                    KGOC & PIC +                 All pending actions and tasks assigned and
 Work Handover Guidelines for        Adaptation in               understood, completed as scheduled, which led to
                                                      KNPC
      Scheduled Leave                progress by                 consistency in operations – a “Simple format with
                                      KPC & KPI                  superb results.”
Case Study (Qualification):




                  Contractor    Qualified Staff
                               Unqualified Staff
Case Study (Qualification):




                  Contractor    Qualified Staff
                               Unqualified Staff
Case Study (Qualification):




                  Community




                  Contractor    Qualified Staff
                               Unqualified Staff
Better Practice Transfers during Phase 2:
Community     Topic                 Source   Adopter   Case    Video   Benefit
                                                       study
Project Mgt   Risk Log              KNPC     KOTC      Yes     Yes     Efficiency
Perf Mgt      Management            KOC      KPC, KPI, Yes     Yes     Money
              Action Tracking                KGOC,                     +Efficiency
              System                         KOC                       +Time
Environment   Sharing Light Bulb    KOC      KPC       Yes     Yes     Hazard
              Recycling Resources                                      +Money
Safety        Job Safety Analysis   KOC      KOTC      Yes     Yes     Hazard
                                                                       reduction
                                                                       +Time
Recruitment   Contracts             KPC      KOC       Yes     Yes     Time
                                                                       +Compliance
I&C           Qualification         KOC      KNPC      Yes     Yes     Quality
Better Practice Transfers during Phase 3:
Community            Practice
Automation           •Automating SPATS

Energy Efficiency    •Sensor-controlled office lighting
                     •GEM steam traps

Environment          •Faucets
                     •Worm Farms

Health               •Smoking campaign material
                     •Ergonomics study
                                                             24
I&C                  •Transformer Rectifiers
                     •Ammonium Bisulphite
                     •Contractor pre-qualification
                     •Corrosion coupon retrieval procedure

Perf. Management     •Automated Balanced Scorecard
                     •Six Sigma

Project Management   •Value Creation Template
                     •KNPC project management templates

Safety               •Driver speed monitor
                     •Visitor induction video
                     •UD Induction
                     •HSE training centre
                     •PPE
                     •Electronic work permits
                     •HSE live

Talent Management    •Top 5 Talents


Turnaround           •KNPC Turnaround manual
Knowledge
is Power!
There is more!
Think Together
A New Venue to
Breakthroughs
Need Help?
For more info:

          Adel M. Saleh Al-Terkait
          Head of Best Practice PMO
          Kuwait Petroleum Corporation (KPC)
          P.O. Box 26565
          13126 - Safat
          KUWAIT

          Direct:   (+965) 2499 3588
          Assist:   (+965) 2499 3583
          Fax:      (+965) 2499 3581
          Mobile:   (+965) 6600 0428
          Email:    aterkait@kpc.com.kw

          Profile: http://www.linkedin.com/in/aterkait

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Adel Al Terkait - Knowledge Management at KPC

  • 3.
  • 12. 2030 Strategy "Ambition without Knowledge is Like a Boat on Dry Land." Mark Lee
  • 13.
  • 14.
  • 15. BPT K Planning CoPs K Retention Storytelling LL System Previous/Current Work – Future Work Last Update: 11 Mar 2010
  • 16. The Strategy-Knowledge Link: What a Strategy-Knowledge Link What a Competitor Competitor Will Know Will Do What an Strategy-Knowledge Link What an Organization Organization Must Know Must Do Strategy-Knowledge Link What an What an Individual Individual Must Know Must Do Knowledge Strategic Gap Gap What an What an Individual Individual Knows Can Do Knowledge-Strategy Link What an What an Organization Organization Knows Can Do Knowledge-Strategy Link What a What a Competitor Competitor Knows Can Do Knowledge-Strategy Link Source: Dr. Dan Kirsch
  • 19. K Sharing is not Enough!
  • 20. What is a Best Practice: “Repeatable activity that routinely results in superior performance.” Source: Kent Greenes
  • 21. Continuous Improvement: Good Idea Current Good Practice Scope for the Program Best Practice Standard
  • 22. What to Transfer: Category Process Process Process Group 1 Group 2 Group 3 Process 1 Process 2 Process 3 Activity or Activity or Activity or Expected Level Practice 1 Practice 2 Practice 3 for Transfer
  • 23. Best Practice Model: Work Current Company Company Company Best of Best Steps Method A B C Process 1 1 2 2 3 3 4 4 5 Source: Dr. Robert Camp
  • 24. What to Gain by Sharing? Breakthrough Performance by Leveraging Prize 2 Collective Know-How Best Performance Before Sharing Prize 1 Known Knowledge Gap Company: A B C D Source: Kent Greenes
  • 27. What is a Community of Practice (CoP)? • A core team of peer-recognised strong performers who have an ability to influence change, can share knowledge with and learn from others, be committed to achieving improvements for the Group as a whole, and can build strong relationships. • A wider network of people working on the same topic, facing the same challenges, who can learn from each other and from the stored knowledge of the community. core extended Source: Dr. Nick Milton
  • 28. Community vs. Committee: Community Committee • Many people • Few people • Mostly workers • Mostly managers • Community leader helps the • Committee head has decision- community to reach agreement making authority • Exchange ideas without meeting • Exchange ideas when they meet • Meet online all the time • Meet infrequently • Support committees by making • Make decisions based on recommendations community output Source: Dr. Nick Milton
  • 29. Types of CoPs Knowledge- Best Practice Innovation Helping Stewarding Community Community Community Community Business Drivers • Technical • Lower cost • Technical market • Lower cost excellence through leadership through reuse • Professional standardization • Track shifting • Preserve development • Consistency of market trends technical • Thought product excellence leadership • Reduce risks • Social • Improve responsibility outcomes • Employee relations Key Activities and • Enlist leading • Collecting, • Share insights • Connecting Processes experts vetting, and warning signs members • Manage Content publishing • Decipher trends • Knowing who’s • Identify • Enforcing who emerging trends Knowledge • Tacit to explicit • Low on tacit • Explicit to tacit • Tacit – high and tacit to tacit • Explicit to (sense-making) socialization explicit Source: APQC
  • 30. Community Activities for Adding Value • Solving problems for each other • Mentoring and coaching each other • Learning before (Peer Assist) • Learning during (After Action Review) • Learning after (Retrospect) • Benchmarking performance with each other • Exchanging resources • Collaborating on purchasing (buying things that any one member could not justify) • Collaborating on contracts (using the purchasing power of the community) • Cooperating on trials and pilots • Publishing joint-papers (and presenting at conferences) • Importing Knowledge • Sharing and transferring best practices • Sharing results of studies • Exchanging equipment (re-use old equipment, share spares) • Warning of risks • Building and maintaining documented best practices • Developing checklists and templates • Identifying knowledge retention issues • Identifying training gaps and collaborating on training provision • Creating Knowledge (Innovation) – new products, services or opportunities Last Update: 6 Jan 2011
  • 31. Value Added: Money saved Work simplified “Learning before” (Estimated value KD) Saved time Work avoided Faster implementation (Estimated value days) Rework avoided Resources shared Improved productivity Better decisions Resources reused Improved satisfaction Travel avoided Worksteps removed Behaviour change Improved safety Reduced business risk Morale improved Reduced emissions Reduced health risks Energy saved Better quality Customer satisfaction Enhanced reputation
  • 32. Benefits of having a CoP (WIIFM): Source: Dr. Etienne Wenger
  • 33. Existing Communities • Automation • Energy Efficiency • Environment • Health • Inspection & Corrosion • Performance Management • Project Management • Safety • Talent Management • Turnaround New Communities launched in 2010 Last Update: 19 April 2010
  • 34. Best Practice Program Phase 3 BP Champion CEO Community Structure BP Steering Community BP Sponsor MD DMD Committee Sponsor Delivery Direction Delivery & Support Support BP PMO Community Leader relationship Core Team Facilitator Deputy Leader Extended Community
  • 36.
  • 38. Better Practice Transfers during Phase 1: Best Practice Adopters Sources Benefits Transferred Elimination of Freight Forwarding Impacted decision to eliminate a KD 3MM foreign KNPC KOC Contracts by Foreign Suppliers supplier contract. Peer Assist Knowledge Transfer BP, SAIC, Accelerated transfer of Best Practices and lessons KOC Process Shell, SA learned before a project begins. Incoming Material Inspection Increased quality of materials received from KNPC KOC Policy suppliers. KGOC + Use of e-Procurement Reverse Under - Reduction in days to close RFQ from 30 to 4 Auction Tools (TEJARI) for review by PIC - Reduction from 12 signatures to 2 Purchase Quotations Under KPC, KNPC, - Reduction of 18 employee touches to 3 5,000KD KPI KGOC & PIC + All pending actions and tasks assigned and Work Handover Guidelines for Adaptation in understood, completed as scheduled, which led to KNPC Scheduled Leave progress by consistency in operations – a “Simple format with KPC & KPI superb results.”
  • 39. Case Study (Qualification): Contractor Qualified Staff Unqualified Staff
  • 40. Case Study (Qualification): Contractor Qualified Staff Unqualified Staff
  • 41. Case Study (Qualification): Community Contractor Qualified Staff Unqualified Staff
  • 42. Better Practice Transfers during Phase 2: Community Topic Source Adopter Case Video Benefit study Project Mgt Risk Log KNPC KOTC Yes Yes Efficiency Perf Mgt Management KOC KPC, KPI, Yes Yes Money Action Tracking KGOC, +Efficiency System KOC +Time Environment Sharing Light Bulb KOC KPC Yes Yes Hazard Recycling Resources +Money Safety Job Safety Analysis KOC KOTC Yes Yes Hazard reduction +Time Recruitment Contracts KPC KOC Yes Yes Time +Compliance I&C Qualification KOC KNPC Yes Yes Quality
  • 43. Better Practice Transfers during Phase 3: Community Practice Automation •Automating SPATS Energy Efficiency •Sensor-controlled office lighting •GEM steam traps Environment •Faucets •Worm Farms Health •Smoking campaign material •Ergonomics study 24 I&C •Transformer Rectifiers •Ammonium Bisulphite •Contractor pre-qualification •Corrosion coupon retrieval procedure Perf. Management •Automated Balanced Scorecard •Six Sigma Project Management •Value Creation Template •KNPC project management templates Safety •Driver speed monitor •Visitor induction video •UD Induction •HSE training centre •PPE •Electronic work permits •HSE live Talent Management •Top 5 Talents Turnaround •KNPC Turnaround manual
  • 50. For more info: Adel M. Saleh Al-Terkait Head of Best Practice PMO Kuwait Petroleum Corporation (KPC) P.O. Box 26565 13126 - Safat KUWAIT Direct: (+965) 2499 3588 Assist: (+965) 2499 3583 Fax: (+965) 2499 3581 Mobile: (+965) 6600 0428 Email: aterkait@kpc.com.kw Profile: http://www.linkedin.com/in/aterkait