A Lean and Healthy Diet of “Knowledge Management”

Nigel W. Dawes

Chairman

IPM Holdings Ltd.Vice President

Areopa, S. E. Asia

Confidential, not to be disclosed without Confidential, not to be disclosed without written approval of the authorwritten approval of the author

CMMU

Bangkok, Thailand.

16th February 2009

Organisational StructuresOrganisational Structures

Process MappingProcess Mapping

Knowledge

Management

Change

Management

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• I T M is s io n , I T V is i o n , I T s t r a t e g y .

• Q u a l i f y a n d c a t e g o r iz e I T S M p r o c e s s e s

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C o m p a n y S t r a t e g y B l o c kC o m p a n y S t r a t e g y B l o c kI n f o r m a t i o n S t r a t e g y• A l i g n i n g in v e s tm e n t in I S• I n n o v a t iv e I S f o r c o m p e t i t i v e a d v a n t a g e• D i r e c t e f f e c t i v e a n d e f f i c i e n t m a n a g e m e n t o f I S r e s o u r c e s

D e v e l o p m e n t A s s e s s

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Hierarchical type company = Internal Conflicts

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BoardBoard

ManagementManagement

PersonnelPersonnel

Sales = Max.Quota

Accounts =Check & Balance

Production =Max output

Logistics =Just in time

Conflicts Conflicts

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The Process Map

On average 14 On average 14 inputs inputs

On average On average

8 outputs 8 outputs On average 150 On average 150

processes on Level 3processes on Level 3

Process OwnersProcess OwnersInternal CustomersInternal Customers

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Level of detail of the business processes

» Level 1 Conceptual level

» Level 2 Departmental level

»Level 3 Hand off level

» Level 4 Task level

» Level 5 Programming level

ProcessProcessOwnersOwners

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This is where inefficiencies, re-work, This is where inefficiencies, re-work, down-time, & wastage occursdown-time, & wastage occurs

Business Processes:Process Map Structure

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Examples of business processes

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Examples of business processes

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Corporate Structure

CorporateGovernanceProcesses

ResourceManagementProcesses

CoreBusiness

Processes

SpecialTopics

Change ManagementWhy do we need to change?

Knowledge ManagementHow do we implement?

Organisational StructuresOrganisational Structures

Process MappingProcess Mapping

What is Knowledge Management?Knowledge Management (KM) has many varied facets and depends on what your objectives are as to the ‘type’ of KM that you can implement. For sure, we can determine that KM is to do with people, processes and technology (in that specific order of priority and importance).We can also determine that when we refer to knowledge we can also include information and data. So to define KM in general terms means that we should be focusing on getting the RIGHT information, data and knowledge to the RIGHT people at the RIGHT time.

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from from chaos chaos

totostructurestructure

fromfromabstract abstract

to practicalto practicalknowledgeknowledge

Content Content capturicapturingng

StorageStorage Re-usabilityRe-usability

I2 I2 Intelligent IntegrationIntelligent Integration

from from information information

to to knowledgeknowledge

What are the different ‘objectives’ of KM?

Based on strategic objectives, KM can be ‘fine tuned’ to suit your specific goals, as follows:-•To reduce operating costs by improving efficiency through knowledge sharing and business process improvements.•To generate new knowledge through innovation and creativity by focusing attention on the knowledge reporting processes in the R & D areas of operation.•To create a knowledge sharing community/culture to improve the working environment.•To increase customer satisfaction by establishing/improving call centres, FAQ’s and Help Desks.•To increase revenue by offering products and services that better ‘fit’ your customer profiles.

As you can garner from the above, KM can be utilised in many different forms and, with the right stakeholders ‘buying in,’KM has the power to transform an organisation.

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What are the different ‘types’ of KM?Conceptual elements in 3 dimensions:

Type: Explicit -> Tacit = Organisation shares knowledge with individual

Tacit -> Explicit = Individual shares knowledge with Organisation

Focus: Information* -> Learning = Training programmes

Learning -> Information* = New knowledge reporting

Organisation: Digital -> Social = ease of personal access

(3 clicks away)

Social -> Digital = New knowledge reporting

Clinical KM should be based on a broad strategy:

Evidence Based Learning (EBL) Knowledge Audits

Communities of Practise (COPs) Mentorship

Talent Management Succession Planning

Workforce Planning & Development* Information = knowledge, data, experience, lessons learned, case studies, GPIP, Little methodologies, tips & tricks of the trade

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ReorganisationReorganisationRestructuringRestructuringRedeploymentRedeploymentRedundanciesRedundanciesRetirementRetirementRotationRotationill-health/Disabledill-health/DisabledPremature deathPremature deathLeave for competitorLeave for competitorLeave for another jobLeave for another job

Why is KM necessary?Why is KM necessary?

==

Loss of Loss of valuable valuable local and local and nationalnationalKnowledge,Knowledge,Experience,Experience,Skills, Skills, know-howknow-how& expertise& expertise

DEFINITION OF KM

The way in which multi-disciplinary teams, work in harmony to harvest the personal expertise that is essential to operate efficiently,

learn from it, adapt it to local situations and individual customers, and distribute it via reliable networks to the people caring for the customers, so that they can use it to improve the quality of service delivered.

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KM – Features and Benefits

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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 Value 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

Knowledge & Intellectual Capital

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Explicit Vs. Tacit Knowledge

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Explicit knowledge

• Easier to identify

• Re-usable in consistent and repeatable manner - for

decision-making and/or

exercising judgement

• Can be stored as a written procedure or as a process in a computer system

• Stored as artefacts - artificial physical or virtual entity that

can be measured, identified, distributed and audited

Tacit knowledge• Lessons learned, tips & “tricks

of the trade”• Little methodologies, cases,

stories• Personal, context-specific, hard

to formalise and communicate • Intuitions, rules of thumb, mind-

sets, unwritten rules of turf and territory, unconscious values

• Trivial fundamental philosophy

AssetAsset LiabilityLiability

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• Explicit : is everything that is captured and put down on paper by means of instructional databases and resides in computer systems manuals, memo’s etc . In general we call it :

“BUSINESS INTELLIGENCE”

15% of all the knowledge used in an organization is explicit knowledge

• Tacit : is all the knowledge that resides in the heads of all employees, suppliers and customers and which was not written down or stored in

any way .

85% of all the knowledge used in an organization is tacit knowledge

Explicit Vs. Tacit KnowledgeExplicit Vs. Tacit Knowledge

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• Level 1: general knowledge, conceptual statements, political etc. Gives a general idea of what is meant, gives a general idea, is open ended, means everybody can put his own interpretation and detailed content in the concepts

• Level 2: theoretical knowledge: is the explanation how the general statement can be practical implemented. It is still the intention which demonstrates his/her knowledge used in general. Sometimes we call this theoretical knowledge

• Level 3: Practical Knowledge: this knowledge explains exactly what the underlying elements are that we need in order to “do”, executes tasks within business processes

• Level 4: potential knowledge: this is the knowledge we used in level 3 but enlarged with extra concepts and new elements of potential knowledge that could be enriched by which the process performance could have more added value.

• Level 5: analytical knowledge: from all the knowledge used in the process steps, a complete and very detailed analysis is made. All the fundamental elements are brought to the table. All the in and outs are defined. No stone stays unturned.

Level of detail of the knowledge we need to captureLevel of detail of the knowledge we need to capture

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Introducing the 12 Step MethodologyStep 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.

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Step 1.1 Formulate measureable objectivesStep 1.1 Formulate measureable objectivesKM: It’s as simple as ABCKM: It’s as simple as ABC

Asset added value of knowledgeAsset added value of knowledge

Cost effectivenessCost effectiveness

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Step 2: The KM Planning:Step 2: The KM Planning:2.1 Carefully identify and select target consumers.2.1 Carefully identify and select target consumers. Unless a target audience have been Unless a target audience have been clearly identified, a KM implementation is more liable to move in the direction of a general 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 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 to implement KM not for the sake of KM, but for the creation of business value for a focused user community.user community.2.2 Identify key subject matter experts2.2 Identify key subject matter experts. Identify key subject matter experts to ensure that . Identify key subject matter experts to ensure that the KM system is populated with relevant knowledge content. Select subject matter experts the KM system is populated with relevant knowledge content. Select subject matter experts who seem least resistant to knowledge sharing. who seem least resistant to knowledge sharing. 2.3 Create an awareness raising campaign2.3 Create an awareness raising campaign. “Promote! Promote and Promote!” Raising . “Promote! Promote and Promote!” Raising awareness will bring people’s attention and focus on the real issues. In addition, changing 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 attitudes, behaviours and patterns will emerge, together with mobilising support in favour of new KM policies. Make this awareness campaign focus internally and externally.new KM policies. Make this awareness campaign focus internally and externally.2.4 Conduct a Knowledge Audit.2.4 Conduct a Knowledge Audit. To identify the skills that the organisation needs to carry 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 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. KM objectives. Whilst also considering what skills are lacking within the organisation. 2.5 Identify small first project2.5 Identify small first project. A small but critical first phase project be selected from the . 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 outset. The challenge is to not get overwhelmed by the scope or attempt to tackle too much too soon.too soon.2.6 Build bridges between KM and existing organisation practices.2.6 Build bridges between KM and existing organisation practices. Typically, Typically, organizations that are implementing KM already have an established data centre, so they 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 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 environment – their call tracking system, email, remote diagnostics and other support systems.systems.

The 12 Step Methodology

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Knowledge Management Specialist Libraryhttp://www.library.nhs.uk/knowledgemanagement/

Step 2.3 Part of the awareness campaign:Example of Knowledge Management in practise:NHS – National Health Service - UK

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The 12 Step Methodology

Step 3: The KM Execution: Step 3: The KM Execution: 3.1 Invest in meticulous project management.3.1 Invest in meticulous project management. KM implementations need the same KM implementations need the same scrutiny and project management methodologies required for any other major scrutiny and project management methodologies required for any other major implementation. Determine project milestones based on objectives. implementation. Determine project milestones based on objectives. 3.2 Manage a flexible project scope.3.2 Manage a flexible project scope. The project scope should be flexible; the more rigid 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 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. still not let scope creep play havoc with project schedules. 3.3 Keep the user community involved.3.3 Keep the user community involved. The challenge is to keep users involved during the The challenge is to keep users involved during the project, solicit and incorporate feedback. An ongoing involvement of the user community will 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 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.adoption, will see increased ROI and greater visibility across the organization.3.4 Obsess about knowledge quality.3.4 Obsess about knowledge quality. If there is anything worse than not being able to find 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 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 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 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 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 will be able to rely on the quality and accuracy of the information they access, need and share.share.3.5 Market the KM implementation3.5 Market the KM implementation (and report) regularly to all stakeholders. Even if the (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 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 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 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 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, identify new avenues for KM, help increase user adoption, further motivate the KM Team, and most importantly ensure ongoing executive commitment and funding.and most importantly ensure ongoing executive commitment and funding.

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The application of what we already know will have a bigger impact on our business than any technology likely to be introduced in the next decade.

The application of what we know can prevent and minimise the 7 ubiquitous problems

• Errors, mistakes and rework• Poor quality of service• Waste (time and materials)• Unknown variations in policy and practice• Poor customer experience• Overenthusiastic adoption of interventions of low value• Failure to get new evidence into practice

Step 3.4 Obsess about knowledge quality

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The 12 Step Methodology

Step 4: Process Mapping:Step 4: Process Mapping:Knowledge maps can be either strategic or tactical depending upon the need and intent. 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 The best way to start the mapping exercise is by targeting processes that need improvement, from either the enterprise or process level.improvement, from either the enterprise or process level.  The highest level mapping - at the enterprise level - is what is known as an expertise 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 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 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 knowledge map focuses specifically on business units and other such entities. The purpose being to identify the processes where specific knowledge resides.purpose being to identify the processes where specific knowledge resides.  

Step 5: The Knowledge Atlas:Step 5: The Knowledge Atlas:Typically, there are approximately 150 different processes in an organisation, consisting Typically, there are approximately 150 different processes in an organisation, consisting of 14 inputs resulting in 150 processes and producing 8 outputs.of 14 inputs resulting in 150 processes and producing 8 outputs.  

Step 6: The Knowledge Processes:Step 6: The Knowledge Processes:Once the Process map has been created, it is then necessary to highlight the KM 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 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 create the most Added Value to an organisation. There are approximately 8 – 15 processes that fall into this category from the total of 150.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 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 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 correlate which of the actions are defined as Knowledge Centre (KC) and which, Work Centre (WC).Centre (WC).

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Gov. Policy & Constitution

Data Collection /

Questionnaire

Propose Project

Set up Working Group

Project Approval

YesNo

Study & SWOT Analysis

BrainstormingDraft

1st Draft Plan

Approving

2nd Draft Plan

Approving

Final Plan

No

Yes

YesNo

WC

WC

WC

KC

KC

KC

KC

Step 6. Process Work FlowIdentifying Knowledge Centers (KC) and Work Centers (WC)

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The 12 Step MethodologyStep 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.

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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

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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.

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Step 12. Value the knowledge assetsThe 4 Leaf Model

The four ‘pure’ elements: The four ‘pure’ elements: Human Capital (HC), Structural Capital (SC), Strategic Alliances/Partner Capital (SA) (business partners), and Customer Capital (CC).

Conclusion:

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Knowledge management is an on-going process, technology is Knowledge management is an on-going process, technology is

merely an enabler. Therefore, commitment from senior merely an enabler. Therefore, commitment from senior

management is absolutely essential, which is not evident in many management is absolutely essential, which is not evident in many

Thai corporations. Thai corporations.

Thailand ought to enjoy a cultural advantage compared to many Thailand ought to enjoy a cultural advantage compared to many

nations, since the country is very much a melting pot of Thai, nations, since the country is very much a melting pot of Thai,

Chinese and people from different backgrounds. Thailand therefore Chinese and people from different backgrounds. Thailand therefore

has a long history of sharing different kinds of views and ways of has a long history of sharing different kinds of views and ways of

thinking. thinking.

People should not see knowledge-sharing as a threat or a burden, People should not see knowledge-sharing as a threat or a burden,

but enjoy the benefit of sharing knowledge and ideas with but enjoy the benefit of sharing knowledge and ideas with

colleagues without being afraid of losing face or credibility. What is colleagues without being afraid of losing face or credibility. What is

important is to make knowledge management exciting for people. important is to make knowledge management exciting for people.

And that is as true for anywhere in the world as it is for Thailand. And that is as true for anywhere in the world as it is for Thailand.

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