Aligning Corporate Mission,

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KMWorld 30th October 2001
Underpinning the Knowledge Management Approach
Aligning Corporate Mission, Vision and
Entreprise
Françoise Rossion Senior Manager
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Todays agenda is
Underpinning the Knowledge Management Approach

• Using KM as the innovative driving force
• Transforming your business into a
  knowledge-based business
• Aligning KM with the corporate Mission, Vision
  and Strategy
• Starting at the root for identifying core
  competencies and capabilities
• Exploring the Bottom Line
• Translating the KM Strategy into operational
  projects
• Creating the cultural acceptance
• Aligning the corporate culture with the KM
  Strategies

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Strategy the missing link?!
Underpinning the Knowledge Management Approach
Such knowledge-based strategy employs
both internal competencies and external
information that flows from supplier and customer
relationships, exchanges with competitors and a
willingness to look beyond the industrys current
food chain in order to build company foresight
and vision. (R. Gorzynski, Strategy from the
Heart, 1998)
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The Knowledge-based business
Underpinning the Knowledge Management Approach
Lets move on to the Knowledge Revolution!

• Rule Maker
• Setting the standards
• Rule Taker
• Following to the benchmark
• Rule Breaker
• Setting their own benchmarks

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Capital in the traditional sense of plants and
financing is not such a big thing
Underpinning the Knowledge Management Approach
(From S. Davis, C.Meyer, BLUR, 1998 )
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But Capital in the new forms it is taking has
become more fundamental than ever
Underpinning the Knowledge Management Approach

• Intellectual capital
• is the brain power of the organisation, codified
  and put into explicit, transferable form
• Human Capital
• is the value of workers relationships and tacit
  knowledge
• Structural capital
• is the experience and expertise of the
  organisation embedded in processes, policies and
  systems

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Todays agenda is
Underpinning the Knowledge Management Approach

• Using KM as the innovative driving force
• Transforming your business into a
  knowledge-based business
• Aligning KM with the corporate Mission, Vision
  and Strategy
• Starting at the root for identifying core
  competencies and capabilities
• Exploring the Bottom Line
• Translating the KM Strategy into operational
  projects
• Creating the cultural acceptance
• Aligning the corporate culture with the KM
  Strategies

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Relevance is critical!
Underpinning the Knowledge Management Approach
Hence, there is more to knowledge
management than just accumulated knowledge.
Relevance is critical and the companies that
survive from one dominant design generation to
the next are those that develop capability as it
is required, and before. (W.L. Miller and L.
Morris, Fourth Generation RD, 1998)
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Achieving your strategic objectives
Underpinning the Knowledge Management Approach
Strategic Themes are the fundaments of the
articulated strategy. Each strategic theme
contains its own strategic hypothesis with its
own set of cause-and-effect relationships.

• Strategic themes could be
• Operational Excellence
• Sourcing Distribution
• Innovation
• Growth
• Be a Good Corporate Citizen

The multiple indirect linkages required to
connect improvements in an organization's
intangible assets the ultimate drivers of
knowledge based strategies to the tangible
customer and financial outcomes of the
strategy,will be described in each Strategic
Theme through the cause and effect relationships.
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and demonstrate the cause and effect relationships
Underpinning the Knowledge Management Approach
Diagram of the cause and effect relationships
between strategic objectives
Strategic Theme Growth
Financial
MoreCustomers
Objective
MoreStores
Cause EffectRelations
Customer
Lowest Price
SatisfiedCustomers
BusinessProcess
GlobalSourcing
RealEstate
Learning
TrainPeople
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Cause and Effect Start at the root!
Underpinning the Knowledge Management Approach
Fast growth in the pharmaceutical sector and
in a limited number of carefully selected
activities
Bring adequate responses tothe wishes of our
customers
Innovation and competitiveness. Fast adaptation
to the fast evolution of the world
Share knowledge throughthe whole group and
with clients, create anew culture
(From Solvay)
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Defining the Global KM Vision The Executive
Workshop
Underpinning the Knowledge Management Approach
Executive Workshops
Planning Workshops
Workgroups
Step 1 Demonstrate KM Best Practices
Step 2 Build the Strategic Linkages with KM
Step 3 Determine KM Focus
Step 4 Translate KM Focus into Initiatives
Step 5 Prioritize KM Pilots for implementation
Step 6 Build Initial Project Charters
Week 1
Week 8 to 12
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Identifying
Underpinning the Knowledge Management Approach

• Expertise, skills that provide access to markets
  or are used to create core products
• Delivers fundamental customer benefit
• Difficult for competitors to imitate

• Applied core competencies
• business processes
• infrastructure
• resources
• work organisation
• Hard-to-duplicate business processes

Capabilities provide the means to
deploycompetencies to achieve competitive
advantage
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and strategic Knowledge!
Underpinning the Knowledge Management Approach
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Todays agenda is
Underpinning the Knowledge Management Approach

• Using KM as the innovative driving force
• Transforming your business into a
  knowledge-based business
• Aligning KM with the corporate Mission, Vision
  and Strategy
• Starting at the root for identifying core
  competencies and capabilities
• Exploring the Bottom Line
• Translating the KM Strategy into operational
  projects
• Creating the cultural acceptance
• Aligning the corporate culture with the KM
  Strategies

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Translating the KM Strategy
Underpinning the Knowledge Management Approach
If the other guys getting better, then youd
better be getting better faster than that other
guys getting better or youre getting
worse. (Tom Peters, The circle of Innovation,
1997)
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into operational projects!
Underpinning the Knowledge Management Approach
Executive Workshops
Planning Workshops
Workgroups
Step 1 Demonstrate KM Best Practices
Step 2 Build the Strategic Linkages with KM
Step 3 Determine KM Focus
Step 4 Translate KM Focus into Initiatives
Step 5 Prioritize KM Pilots for implementation
Step 6 Build Initial Project Charters
Week 1
Week 8 to 12
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Second phase of the KM Audit Planning workshops
Underpinning the Knowledge Management Approach
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Third phase of the KM Audit Workgroups
Underpinning the Knowledge Management Approach
Content
Collaboration
Legend
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Roll-out of KM Pilots
Underpinning the Knowledge Management Approach
Knowledge Management Programme (on-going)
Capture Apply Lessons Learned
Project Management
Global DG KM Vision Strategy
KM Pilot N 1
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Todays agenda is
Underpinning the Knowledge Management Approach

• Using KM as the innovative driving force
• Transforming your business into a
  knowledge-based business
• Aligning KM with the corporate Mission, Vision
  and Strategy
• Starting at the root for identifying core
  competencies and capabilities
• Exploring the Bottom Line
• Translating the KM Strategy into operational
  projects
• Creating the cultural acceptance
• Aligning the corporate culture with the KM
  Strategy

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Creating the sense of urgency
Underpinning the Knowledge Management Approach
I wasnt convinced that this learning
stuff would work, but I knew we would never
achieve our goals if we kept working the way we
were working - Fred Simon, Ford manager (cited
by Peter Senge, The Dance of Change, 1999)
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Changing Organizational Culture
Underpinning the Knowledge Management Approach
Although the tools and techniques may be present
and the change strategy implemented with vigor,
many efforts to improve organizational
performance fail because the fundamental culture
of the organization remain the same i.e., the
values, the way of thinking, the managerial
styles, the paradigms and approaches to problem
solving () Culture change is a key to the
successful implementation of major improvements
strategies  (From K. CAMERON, Diagnosing and
Changing Organizational Culture, Addison-Wesley,
1999)
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Motivation for Change
Underpinning the Knowledge Management Approach
Change Platforms
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Reaching the level of commitment required for
successful implementation of the strategy
Underpinning the Knowledge Management Approach
I am 100 committed. This is good for XXX and
good for me.
Ill do what is asked of me, but not much more.
Ill do it, but Ill find a way around it.
Internalization
Institutionalization
Adoption
Commitment Phase
Grudging Compliance
Formal Compliance
Genuine Compliance
Installation
Installation
Installation
Positive Perception
Acceptance Phase
Understand the change
Understand the change
Awareness
Preparation Phase
Awareness
Contact
Awareness
Time
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Conducting Initial assement of organizational Perf
ormance Levers (OPLs)
Underpinning the Knowledge Management Approach
Do current people processes and the current
culture align with the future state?
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Organizational Levers drive Performance
Underpinning the Knowledge Management Approach
Performance Pay Alignment
STRATEGY
Leadership Effectiveness
Enterprise
Education Development
Staffing Deployment
Organizational
Communication
Job/Role
Structure
Competencies
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How OPLs Impact Change Success
Underpinning the Knowledge Management Approach
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Any KM programme requires a Change Management
Approach!
Underpinning the Knowledge Management Approach
Attempts to introduce changes that are radically
different than the existing culture usually are
not successful
Attempts to introduce changes that are generally
consistent with the current culture usually are
successful
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Buckman Labs KNetix
Underpinning the Knowledge Management Approach
Those of you who have something intelligent to
say now have a forum in which to say it. Those of
you who will not or cannot contribute also become
obvious. If you are not willing to contribute or
participate, then you should understand that the
many opportunities offered to you in the past
will no longer be available - Bob Buckman
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Another CM approach
Underpinning the Knowledge Management Approach
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Conclusion?!
Underpinning the Knowledge Management Approach
It is not the strongest of the species that
survives, nor the most intelligent it is the one
that is most adaptable to change. Charles Darwin