Knowledge Management: The 12 Step Methodology: A practical guide on "How to" implement

1. A Lean and Healthy Diet of “Knowledge Management” CMMU Bangkok, Thailand. 16 th February 2009 Nigel W. Dawes Chairman IPM Holdings Ltd. Vice President Areopa, S. E. Asia Confidential, not to be disclosed without written approval of the author

2. Knowledge Management Organisational Structures Process Mapping Change Management 06/08/09

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4. Hierarchical type company = Internal Conflicts 06/08/09 Sales = Max. Quota Accounts = Check & Balance Production = Max output Logistics = Just in time Conflicts Conflicts Board Management Personnel

5. The Process Map 06/08/09 On average 14 inputs On average 8 outputs On average 150 processes on Level 3 Process Owners Internal Customers

7. Business Processes: Process Map Structure 06/08/09 Research, Forecast, Plan Control, Audit, Correct, Improve Special Topics Schedule, Prepare, Design Develop, Produce, Execute, Build Manage, Account, Administrate, Consolidate, Report Launch, Deliver, Handover

8. Examples of business processes 06/08/09

9. Examples of business processes 06/08/09

10. 06/08/09 Corporate Structure Corporate Governance Processes Resource Management Processes Core Business Processes Special Topics

11. Change Management Why do we need to change? Knowledge Management How do we implement? Organisational Structures Process Mapping

17. KM – Features and Benefits 06/08/09 KM related effects Greater & easier access to Knowledge Time saved Improved understanding of relevant expertise More efficient organisation Increased Knowledge sharing & creation More pro-active creative organisation & job satisfaction increased More effective renewal/ removal of Knowledge Up-to-date database Internal Benefits -Operations Focus Knowledge Carriers even more motivated to use Knowledge Increased respect for expertise in organisation Improved re-use of technology & lessons learned Shorten R & D lead-time for projects to reach commercial stage Access to more data and information will reduce errors Huge potential savings and lower operating costs Quicker decision making due to access to more information Improved efficiency Improved deliverables- Service Focus Greater customer service understanding Increase customer focus and service levels Products or Services with better ‘ fit ’ to customer ’ s needs Will lead to increased orders & revenue Higher quality services Will lead to increased orders & revenue Faster response/ quicker delivery of services Increase customer focus and service levels External Benefits -Customer Focus Increased range of products or services more Added Va l ue for customers Increased customer satisfaction Improved reputation, image & brands Increased level of service to customers Increased demand & orders & revenue Improved relations for customer & organisation Improved corporate image Bottom Line Benefits Market Image improves Brand value increases Organisation profitability increases Company & Share values increased Organisation viability increases Increased revenues & profitability Employee, community & Society relations improve Better branding & increased corporate reputation and values

18. Knowledge & Intellectual Capital 06/08/09

22. 06/08/09 Introducing the 12 Step Methodology Step 1: The KM Strategy: 1.1 Formulate measurable business objectives ; Think big and start small. Become a champion of small but critical project first without losing sight of the overall goals. 1.2 Obtain executive sponsorship ; KM cannot succeed without active support from senior management. The challenge is to acquire executive sponsorship early in the process. 1.3 Staff the KM Team with the right personnel ; regardless of how small the initial KM implementation is going to be, it needs an adequate number and the right mix of individuals to succeed. A carefully planned and adequately staffed KM team will ensure that the implementation doesn’t get treated as extra or additional work, but rather as a key organizational initiative. 1.4 Identify and tackle cultural resistance . This is also the best time to identify and create plans to tackle any organizational resistance to knowledge sharing. Resistance usually stems from a fear of the unknown and how it will affect roles, responsibilities, and job security. As far as possible, make tangible changes to performance measurement criteria and key performance indicators such that users see the direct benefits of sharing and reusing knowledge.

23. 06/08/09 Step 1.1 Formulate measureable objectives KM: It’s as simple as ABC Asset added value of knowledge Cost effectiveness

24. 06/08/09 Step 2: The KM Planning: 2.1 Carefully identify and select target consumers. Unless a target audience have been clearly identified, a KM implementation is more liable to move in the direction of a general information dump. Those who need knowledge will still not be able to find it. The challenge is to implement KM not for the sake of KM, but for the creation of business value for a focused user community. 2.2 Identify key subject matter experts . Identify key subject matter experts to ensure that the KM system is populated with relevant knowledge content. Select subject matter experts who seem least resistant to knowledge sharing. 2.3 Create an awareness raising campaign . “Promote! Promote and Promote!” Raising awareness will bring people’s attention and focus on the real issues. In addition, changing attitudes, behaviours and patterns will emerge, together with mobilising support in favour of new KM policies. Make this awareness campaign focus internally and externally. 2.4 Conduct a Knowledge Audit. To identify the skills that the organisation needs to carry out its main objectives. To establish what skills and tools are needed to achieve the main KM objectives. Whilst also considering what skills are lacking within the organisation. 2.5 Identify small first project . A small but critical first phase project be selected from the outset. The challenge is to not get overwhelmed by the scope or attempt to tackle too much too soon. 2.6 Build bridges between KM and existing organisation practices. Typically, organizations that are implementing KM already have an established data centre, so they are not only building a knowledge base – they must also integrate it into their existing environment – their call tracking system, email, remote diagnostics and other support systems. The 12 Step Methodology

25. 06/08/09 Knowledge Management Specialist Library http://www.library.nhs.uk/knowledgemanagement/ Step 2.3 Part of the awareness campaign: Example of Knowledge Management in practise: NHS – National Health Service - UK

26. 06/08/09 The 12 Step Methodology Step 3: The KM Execution: 3.1 Invest in meticulous project management. KM implementations need the same scrutiny and project management methodologies required for any other major implementation. Determine project milestones based on objectives. 3.2 Manage a flexible project scope. The project scope should be flexible; the more rigid the scope, the less likely to meet user approval. The challenge is to be open to requests and still not let scope creep play havoc with project schedules. 3.3 Keep the user community involved. The challenge is to keep users involved during the project, solicit and incorporate feedback. An ongoing involvement of the user community will result in a shared feeling of ownership and decision making. This will lead to higher user adoption, will see increased ROI and greater visibility across the organization. 3.4 Obsess about knowledge quality. If there is anything worse than not being able to find a critical piece of knowledge, it is finding erroneous, duplicate, or outdated material. Having determined the right content, the challenge is to ensure that it is as flawless as possible from a quality perspective. Rigorous due diligence will ensure that the most critical and commonly used content is accounted for. Knowledge consumers will adopt the system faster, as they will be able to rely on the quality and accuracy of the information they access, need and share. 3.5 Market the KM implementation (and report) regularly to all stakeholders. Even if the initial KM implementation is targeted at a very small user community, there is a risk that it will get lost amongst many other projects. The challenge is to stay focused on the business objectives of the KM implementation and at the same time garner increased exposure and mindshare. Creating awareness of KM and its benefits across the larger organization will help identify new avenues for KM, help increase user adoption, further motivate the KM Team, and most importantly ensure ongoing executive commitment and funding.

28. 06/08/09 The 12 Step Methodology Step 4: Process Mapping: Knowledge maps can be either strategic or tactical depending upon the need and intent. The best way to start the mapping exercise is by targeting processes that need improvement, from either the enterprise or process level. The highest level mapping - at the enterprise level - is what is known as an expertise review. This is a crucial area of mapping as it identifies the various silos of knowledge available in the organization as well as the key assets of knowledge. The expertise tacit knowledge map focuses specifically on business units and other such entities. The purpose being to identify the processes where specific knowledge resides. Step 5: The Knowledge Atlas: Typically, there are approximately 150 different processes in an organisation, consisting of 14 inputs resulting in 150 processes and producing 8 outputs. Step 6: The Knowledge Processes: Once the Process map has been created, it is then necessary to highlight the KM processes from the total. The purpose of this step is to identify the processes which create the most Added Value to an organisation. There are approximately 8 – 15 processes that fall into this category from the total of 150. Next we have to separate the Knowledge Processes from the Work Processes. We can identify Knowledge and Work Processes by using workflows for each process and then correlate which of the actions are defined as Knowledge Centre (KC) and which, Work Centre (WC).

29. 06/08/09 Gov. Policy & Constitution Data Collection / Questionnaire Propose Project Set up Working Group Project Approval Yes No Study & SWOT Analysis Brainstorming Draft 1 st Draft Plan Approving 2 nd Draft Plan Approving Final Plan No Yes Yes No WC WC WC KC KC KC KC Step 6. Process Work Flow Identifying Knowledge Centers (KC) and Work Centers (WC)

30. 06/08/09 The 12 Step Methodology Step 7: The Knowledge Carriers: We then have to identify the Process Owners (the people who carry out the tasks in a process) who “do” the KC work. This can be one or more persons within the Knowledge Centre. This will result in a list of names of Knowledge Carriers and these are the people who are defined as the most important sources of knowledge within an organisation. It also identifies the risk for the organisation as it identifies the people who, should they leave the organisation (voluntarily or otherwise) the knowledge would also leave the organisation with them. We should prioritise the list of names using age, health and social standing as parameters. Step 8: Capture: Capturing the knowledge from the Knowledge Carriers can be achieved through various methods such as Focus Interviews; Visualisation; 7 why techniques and Social Network Analysis. It is important to distinguish between Explicit and Tacit Knowledge and to identify the learning elements such as case studies; Lessons learned; stories; tips and tricks acquired and little methodologies. Step 9: Storing the knowledge: Distinguishing the differences between data, information and knowledge is important for IT purposes. Indexation, codification and classification are all used to make accessibility so much easier for future users. Web Collaboration tools and software packages designed for sharing and leveraging of knowledge and must be able to generate knowledge that can be readily understood by others.

31. 06/08/09 Evidence: Knowledge audit Patient surveys Process mapping Resources: People Infrastructure Intellectual Capital Explicit Knowledge (ca. 15%) People: Quality/skilled/experienced Specialist/Experts Communities of Practise Social networking Learning: Research & Development Training programmes Virtual e-learning Knowledge sharing Technology: Research & Development Using technology Knowledge storing – Business Intelligence Database management Sharing: Access to knowledge 3 clicks away New knowledge reporting “ Do once and share” principal Clinical Knowledge Management

32. 06/08/09 The 12 Step Methodology Step 10: Make Knowledge Re-usable: This topic was intended for IT specialists. However it is important that each KM Professional understands the basics of KM indexing and codifying. Utilising the power of J-learning (Just enough; Just appropriate; Just in time) techniques will assist in understanding the requirements of the KM system users. Step 11: Become a KM mogul and create your own Best Practices: Become your own best Practice ASAP. You must continually promote and Champion the KM cause. Identify individual allies that believe in the project, enthusiastically advocate it and have the influence to “make things happen.” Likewise, obtaining some early successes in the form of “Good Practices” and better still some Best Practices will endear more people will want to ‘buy-in and come on board. External Best Practices can help but identifying your own internal Best Practice will have a defining moment in your KM storybook. Step 12: Value the Knowledge Assets: Areopa offers companies the solution to calculate the knowledge as part of the overall Intellectual Capital Calculation (ICC) that constitutes the organization. ICC is based on the newly developed 4-leaf Model of Intellectual Capital integrating Human Capital, Structural Capital, Strategic Alliances (business partners), and Customer Capital.

33. 06/08/09 Step 12. Value the knowledge assets The 4 Leaf Model The four ‘pure’ elements: Human Capital (HC), Structural Capital (SC), Strategic Alliances/Partner Capital (SA) (business partners), and Customer Capital (CC).

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