Knowledge Management @ www.KWorld.clarity

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Developing a Knowledge -Creating Organization
A Case Study in Process KM World Santa Clara,
CA September 14, 2000
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• Melinda J. Bickerstaff
• Director
• eWorkforce Solutions Group mbickerstaff_at_kpmg.com

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• Renee A. Massoud
• Director
• KPMG Research Strategies
• rmassoud_at_kpmg.com

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Objectives

• After completing this session, you will be able
  to
• Actually be able to explain Knowledge Management
  to someone else
• Link Knowledge Management to your business
  strategy
• Explain the different value-based approaches to
  Knowledge Management
• Identify and prepare a value proposition for your
  organization

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Objectives

• After completing this session, you will be able
  to
• Identify the key enablers to Knowledge Management
  and understand how they contribute to your
  success
• Know the story behind KPMGs journey into
  Knowledge Management
• Learn how you can get started with your own
  Knowledge Management initiatives

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Agenda

• What is Knowledge Management?
• What are the Value-Based Approaches to Knowledge
  Management?
• What are the Key Enablers for Knowledge
  Management?
• What is the Story Behind KPMGs involvement in
  Knowledge Management?
• How do I get started with Knowledge Management in
  My Own Organization?

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Agenda

• What is Knowledge Management?
• What are the Value-Based Approaches to Knowledge
  Management?
• What are the Key Enablers for Knowledge
  Management?
• What is the Story Behind KPMGs involvement in
  Knowledge Management?
• How do I get started with Knowledge Management in
  My Own Organization?

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What is Knowledge Management?
It is... A business model embracing knowledge as
an organizational asset to drive sustainable
business advantage. It is a management discipline
that promotes an integrated approach to create,
identify, evaluate, capture, enhance, share and
apply an enterprises intellectual capital.
Bottom Line Getting the right information, to
the right people at the right time
Key Concepts and Business Drivers
-13-
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Why the Interest in Knowledge Management?

• Relentless technology advancement
• e-commerce linking with c-commerce
• The value of intangible assets are greater than
  tangible assets
• Business thrust is now grow to success not
  expense to survival

Knowledge management is now a senior executive
concern
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Why the Interest in Knowledge Management?

• New organizational dynamics
• The virtual networked company
• The redefined employment contract
• The competition for talent
• Increased dispersion of expertise
• Global customers, suppliers and partners
• The worldwide web

Knowledge management is now a senior executive
concern
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Whats Happening Out There Knowledge Management
Priorities
Planned Current Launching New
Knowledge-Based Products or Services 16
14 Establishing New Knowledge Roles
9 15 Mapping Sources of Internal
Expertise 20 18 Creating Networks
to Support Collaboration 15
24 Implementing Groupware to Support
Collaboration 11 33 Implementing
Decision Support Tools
20 33 Data Warehousing / Creating
Knowledge Repositories 24
33 Creating an Intranet 25 47
The focus is on technology solutions...
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Whats Happening Out There Biggest Difficulties
to Implementing KM
Attracting Retaining Talented People
9 Identifying the Right Team/Leader for
Knowledge 15 Defining
Standard Processes for Knowledge Work
24 Setting the Appropriate Scope for Knowledge
Initiatives 24 Mapping the
Organizations Existing Knowledge
28 Justifying the Use of Scare Resource for
Knowledge Initiatives 34 Determining What
Knowledge Should be Managed
40 Measuring the Value and Performance of
Knowledge Assets 43 Changing Peoples
Behavior 56
but the challenges are related to people and
strategy.
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Agenda

• What is Knowledge Management?
• What are the Value-Based Approaches to Knowledge
  Management?
• What are the Key Enablers for Knowledge
  Management?
• What is the Story Behind KPMGs involvement in
  Knowledge Management?
• How do I get started with Knowledge Management in
  My Own Organization?

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What is a Value Proposition?

A Value Proposition Articulates the
fundamental business reasons and expected
benefits that drive the organization to pursue
Knowledge Management
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How Does Knowledge Management Create Value?
Customer Intimacy
Cultivating relationships to gain customer
knowledge Delivering what specific stakeholders
want
Product/Service Leadership
Operational Excellence
Delivering solid products and services at the
best price and with the least inconvenience
Delivering the best products and services
---offerings that push performance boundaries
VALUE

• Employee Capability

Leveraging human intellectual capital in service
design and delivery
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The Four Value Propositions are Built Around
Entirely Different Operating Models

• Product Leadership
• Concept invention, product development, market
  exploitation
• Ad hoc, organic, loosely knit, and ever-changing
• High skills abound in loose-knit structures
• Rewarding individuals' innovative capacity and
  new product success
• Managing risk
• Concept push
• Experimentation and "out-of-the-box" mindset
• Emphasize breakthroughs

• Customer Intimacy
• Solution development, results management,
  relationship management
• Empowerment close to customer contact
• High skills at boundary of the organization
• Customer equity measures like life time value and
  share-of client
• Managing outcomes
• Relationship push
• Flexibility and "have it your way" mindset
• Emphasize complete solutions

• Operational Excellence
• Product supply, basic service, demand management
• Central authority, finite level of empowerment
• High skills at the core of the organization
• Command and control, standard operating
  procedures
• Managing total quality
• Process push
• Conformance, "one size fits all" mindset
• Emphasize efficiency and dependability

• Employee Capability
• People development, expertise enhancement,
  performance management
• Empowerment on work teams
• High skills at all levels
• Rewarding demonstrated applications of individual
  and team expertise
• Managing learning and development
• Learning push
• Resilience and growth mindset
• Emphasize development

Core business processes
Organization and structure
Management systems
Culture mindsets and behavior
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Linking Knowledge Management to Your Business
Strategy

Which business driver could your Knowledge
Management activity be based on or linked to?
Operational excellence Product leadership
Customer intimacy Employee capability
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Agenda

• What is Knowledge Management?
• What are the Value-Based Approaches to Knowledge
  Management?
• What are the Key Enablers for Knowledge
  Management?
• What is the Story Behind KPMGs involvement in
  Knowledge Management?
• How do I get started with Knowledge Management in
  My Own Organization?

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Knowledge Management Model

Knowledge Management Enablers
Knowledge Management Process
Knowledge management is a process supported or
hindered by organizational factors.
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The Process and Enablers

Leadership and Strategy
Knowledge Management Enablers
Knowledge Management Process
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The Process and Enablers
Culture
Knowledge Management Enablers
Knowledge Management Process
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The Process and Enablers
Knowledge Management Process
Knowledge Management Enablers
Technology and Infrastructure
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The Process and Enablers
Measurement
Knowledge Management Enablers
Knowledge Management Process
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Agenda

• What is Knowledge Management?
• What are the Value-Based Approaches to Knowledge
  Management?
• What are the Key Enablers for Knowledge
  Management?
• What is the Story Behind KPMGs involvement in
  Knowledge Management?
• How do I get started with Knowledge Management in
  My Own Organization?

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KPMGs Knowledge Management Journey
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What is Knowledge Management?

• KM is
• Strategic
• A long-term proposition
• An environment that leverages assets
• An embedded process

• KM is not
• A tactical program
• An end in itself
• A single technique or technology
• A mature science
• An event

It is hard to define, hard to do well
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KM Leverages Skills
People
People contribute to knowledge bases
Process
Embedded in core processes
Content
Consistent with strategy
Technology
Just-in-time delivery
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KPMG is...
The global advisory firm whose aim is to turn
knowledge into value for the benefit of its
clients, its people and its communities
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KPMG is Facing Many Knowledge-Related Issues
Ineffective Decision Making
Loss of In-House Knowledge
Information Overload
Limited Sharing of Best Practices
Lack of Creativity
Lack of Customer Responsiveness
. . . effective knowledge management is the key
to success
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The Old Approach
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Enabling Knowledge Transfer and Sharing
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What is KWorld?

• Messaging, collaboration and knowledge- sharing
  system that...
• Becomes our universal business management tool
  integrating all other knowledge and information
  systems
• Integrates client and team collaboration tools
  with global repositories of the firms
  intellectual capital
• Becomes KPMGs digital nervous system
• Enables people and processes to get to content
  via technology

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KPMGs Global Knowledge Management Program

• Benefits
• Supporting KPMG strategy
• More enabled quicker decision making
• Increasing revenues margins
• Higher client value added through greater
  innovation synergy
• Quality of life - staff more effective
• Leveraging of corporate expertise

• Scope
• 100,000 staff
• Global knowledge sharing
• 100 countries
• 23 industry groups
• 19 products

• Sponsorship leadership
• Multidisciplinary, global team
• Stretch targets
• Rapid realization in phases
• Technical platform built rolled out in 18
  weeks

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KWorld Brings Together
Content
Context
Connectivity
Community
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KWorld Architecture Process
External Content
Knowledge Manager
Global Knowledge Exchange
news feeds
KWorld
Quality assessment Value assessment Security Taxo
nomy assignment Channel assignment
Aggregate, focus, direct, prioritize
Content screen Research Rules,heuristics,
guideline, process flow
Industry, research, technical
Filter, aggre-gate, sort
Collaboration
Internal and external commentary
KPMGContent
Data center
Work products
External broadcast KPMG.COM
Insights, interpretation and analysis
Practice specific
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Content in ContextOur Unique and Proprietary
Differentiation
15 Segments
19 Products
Regions
Products Segments
Clients/Targets
People
Conferences
KPMG Library
Consulting
Tax
Assurance
FAS
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KWorld is becoming the digital nervous system
of KPMG.
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The KWorld Program
KWorld Collaboration
kpmg.com
KWorld Knowledge Sharing
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The KWorld Change Model is Set to Drive Adoption
First
Formally incorporated into routine operations
C O L L A B O R A T I O N
Institutionalization
Knowledge sharing driven by personal motivation
and beliefs
Internalization
L O Y A L T Y
Commitment
Users recognize the advantages
Recommend to Others
Degree of Support
Utilized long enough to prove its benefit
Positive Perception
Fully implemented and operational
Repeated Use
A D O P T I O N
Users log on and use Kworld regularly as part of
their work
Installation
Interest
People understand the inherent changes brought by
KWorld
Awareness
Time
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Building the Knowledge-Sharing Organization

• Day-to-Day Impacts on KPMG Employees
• Single Portal for Workflow
• Human Knowledge Connectivity
• Definition and Reinforcement of Processes
• Goal Setting and Performance Review Support

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Agenda

• What is Knowledge Management?
• What are the Value-Based Approaches to Knowledge
  Management?
• What are the Key Enablers for Knowledge
  Management?
• What is the Story Behind KPMGs involvement in
  Knowledge Management?
• How do I get started with Knowledge Management in
  My Own Organization?

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KM Consulting Framework
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The Knowledge Management Enterprise Involvement
Questionnaire (EIQ)
http// www. kpmgeiq. com
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(No Transcript)
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Agenda

• What is Knowledge Management?
• What are the Value-Based Approaches to Knowledge
  Management?
• What are the Key Enablers for Knowledge
  Management?
• What is the Story Behind KPMGs involvement in
  Knowledge Management?
• How do I get started with Knowledge Management in
  My Own Organization?

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Closing Comments or Questions
Thank You and Good Luck in Your Knowledge
Journey