effective knowledge management

DNV | KNOWLEDGE MANAGEMENT

Knowledge Management Programmes

ENABLINGEXCELLENCE

2 32 3

reduce cost of ignoranceCOST OF IGNORANCE /// Costly mistakes are repeated, as earlier ones were not recorded or analysedKnowledge Management /// reducing the costs of ignorance

reduce cost of ignorance reduce reduce cost of ignoranceDrivers for knowledge management Smart

organisations are always looking for ways to improve

their performance, reliability and to increase overall

business excellence. Common sense says that rigorous:

■ learning from successes and failures,

■ sharing knowledge amongst employees and

■ reuse of lessons learned across operations can strongly

contribute to this strive for continuous improvement

and adaptation to external and internal conditions.

However for many reasons these processes might not

function properly in organisations anymore resulting

in symptoms such as:

■ Costly mistakes are repeated, as earlier ones

were not recorded or analysed;

■ Good ideas and best practices are not shared,

raising costs and missing opportunities;

■ Loss of critical knowledge due to retirement

and mobility of workforce;

■ 1 or 2 key employees hold crucial knowledge,

putting continuity at risk;

■ Knowledge is not readily available at the point

of action;

■ Employees spend too much time to search

for information and knowledgeable people;

■ Employees use outdated and non-validated

information in action.

Everyday reality demonstrates that these symptoms

lead to avoidable costs and risks. We call these

symptoms the ‘costs of ignorance’.

Smart organisations do not accept this reality and

invest in strategies, processes and systems that will

avoid these costs of ignorance, now and in the future.

4 5

What is Knowledge Management? COST OF IGNORANCE /// 1 or 2 key employees hold crucial knowledge, putting continuity at risk

Professional Knowledge Management enables organisations to:

■ Identify, safeguard and retain critical knowledge and skills;

■ Build and update critical knowledge and skills ‘just-in-time’ and at the point of action;

■ Exchange and transfer knowledge, lessons learned and proven practices across operations,

regions and businesses;

■ Support employees by web-based tools that allow them to access all required information

and expertise and to collaborate with all relevant parties in their environment.

Knowledge Management creates barriers for loss and degradation of capabilities, experiences and skills.

At the same time it creates enablers for development and maximum use of new and innovative capabilities

in operations.

6 7

Focus on critical knowledge COST OF IGNORANCE /// Good ideas and best practices are not shared, raising costs and missing opportunities

Leading organisations focus on the vital few to ensure that investments are targeted and aligned with

corporate strategy. Knowledge management should therefore be focused on an organisation’s critical

knowledge:

“Knowledge which is of essential importance to the

performance of employees and the organisation to achieve

or sustain competitive advantages in its markets”

■ The quality and availability of this knowledge have a major impact on the business performance

■ When this knowledge is not managed in a professional way an organisation could face risks with

potential negative effects on the cost of quality, IPR and the capacity to innovate.

Knowledge Management should provide a robust approach to identify, assess and manage its critical

knowledge.

Opportunities Major risksBusinesspriorities

Focus on critical knowledge

KM in Action!

98

COST OF IGNORANCE /// Employees use outdated and non-validated information in actionKM in action

Diffusion

Share knowledge

Proficiency

Build capabilities

Codification

Make explicit

The results of two international research studies demonstrate that leading KM organisations focus on three

main operational tactics within their critical knowledge areas:

■ Raise and maintain PROFICIENCY by developing capabilities through training, recruitment, partnerships,

research and development. These activities strongly relate to the HRM function in the organisation and

should ensure that the workforce holds the right competencies according to the strategic agenda;

■ CODIFICATION of experiences and skills captured in ways that are accessible and reusable for all employees

that need-to-know. This codified body of knowledge ensures continuity and uniformity in operations and

provides the foundation for improving business excellence based upon a well-organised corporate memory;

■ DIFFUSION of knowledge through networks of professionals across boundaries in organisations

and outside the organisation. These networks enable members to collaborate, share and validate best

practices, to learn together and join forces to develop new knowledge. They facilitate rapid diffusion of

new ideas and useful experiences across the organisation.

Opportunities Major risksBusinesspriorities

Focus on critical knowledge

KM in Action!

10 11

COST OF IGNORANCE /// Employees spend too much time to search for information and knowledgeable peopleCritical success factors

CAN /// Develop skills in the work force to participate in knowledge management activities MUST /// Build a clear focus and business case

Knowledge Management addresses

all relevant people, process,

technology and organisational issues

that are required to maximise the

potential of its knowledge and

prevent loss of critical capabilities.

DNV has identified 4 major drivers for

sustainable Knowledge Management:

MUST CAN

12 13

COST OF IGNORANCE /// Knowledge is not readily available at the point of actionCritical success factors

WANT /// Stimulate and recognise employees contribution HAVE /// Provide a world-class infrastructure for employees to collaborate, share and connect

WANTHAVE

14 15

COST OF IGNORANCE /// Loss of critical knowledge due to retirement and mobility of workforceKnowledge Management Programmes

DNV has considerable experience in implementing robust and effective frameworks for knowledge

management and organisational learning.

We support organisations to:

■ Assess, develop and improve Knowledge Management programmes;

■ Perform risk assessments on critical knowledge and develop knowledge strategies accordingly;

■ Design and implement knowledge infrastructures for sharing, building and capturing critical knowledge;

■ Integrate Knowledge Management into existing management systems.

Our delivery modes are consultancy, programme management, coaching and training.

DNV has delivered Masterclasses and short courses on knowledge management to hundreds

of participants in the Netherlands, the UK, Italy, Germany and Taiwan.

WHAT ARE YOUR COSTS OF IGNORANCE?

iris

des

ign

.eu

For more information please contact Rob van der Spek, Director of Knowledge Management Advisory Services

/// t +31 (0)6 54781900 /// e rob.van.der.spek@dnv.com, kmservices@dnv.com /// w www.dnv.com/knowledgemanagement