Developing a Knowledge Creating Organization A Case Study in Process

Developing a Knowledge Creating Organization A Case Study in Process KM World Santa Clara, CA September 14, 2000 KPMG Consultin

Melinda Melinda J. J. Bickerstaff Bickerstaff Director Director eWorkforce eWorkforce Solutions Solutions Group Group KPMG Consultin [email protected] [email protected] 2

Renee Renee A. A. Massoud Massoud Director Director KPMG KPMG Research Research Strategies Strategies [email protected] [email protected] KPMG Consultin 3

Objectives KPMG Consultin 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 4

Objectives KPMG Consultin 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 KPMG’s journey into Knowledge Management Learn how you can get started with your own Knowledge Management initiatives 5

Agenda Agenda What What is is Knowledge Knowledge Management? Management? What What are are the the Value-Based Value-Based Approaches Approaches to to Knowledge Knowledge Management? Management? What What are are the the Key Key Enablers Enablers for for Knowledge Knowledge Management? Management? What What is is the the Story Story Behind Behind KPMG’s KPMG’s involvement involvement in in Knowledge Knowledge Management? Management? How How do do II get get started started with with Knowledge Knowledge Management Management in in My My Own Own Organization? Organization? KPMG Consultin 6

Agenda Agenda What What is is Knowledge Knowledge Management? Management? What What are are the the Value-Based Value-Based Approaches Approaches to to Knowledge Knowledge Management? Management? What What are are the the Key Key Enablers Enablers for for Knowledge Knowledge Management? Management? What What is is the the Story Story Behind Behind KPMG’s KPMG’s involvement involvement in in Knowledge Knowledge Management? Management? How How do do II get get started started with with Knowledge Knowledge Management Management in in My My Own Own Organization? Organization? KPMG Consultin 7

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 enterprise’s intellectual capital. KPMG Consultin Bottom Line: Getting the right information, to the right people at the right time Key Concepts and Business Drivers-13-

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” Knowledgemanagement managementisisnow nowaasenior seniorexecutive executiveconcern concern Knowledge KPMG Consultin

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 Knowledgemanagement managementisisnow nowaasenior seniorexecutive executiveconcern concern Knowledge KPMG Consultin

What’s 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% Implementing Decision Support Tools KPMG Consultin 20% 33% 33% Data Warehousing / Creating Knowledge Repositories 24% 33% Creating an Intranet 25% 47% Thefocus focusisison ontechnology technologysolutions. solutions. The 11

What’s 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 People’s Behavior 56% butthe thechallenges challengesare arerelated relatedto topeople peopleand andstrategy. strategy. but KPMG Consultin 12

Agenda Agenda What What is is Knowledge Knowledge Management? Management? What What are are the the Value-Based Value-Based Approaches Approaches to to Knowledge Knowledge Management? Management? What What are are the the Key Key Enablers Enablers for for Knowledge Knowledge Management? Management? What What is is the the Story Story Behind Behind KPMG’s KPMG’s involvement involvement in in Knowledge Knowledge Management? Management? How How do do II get get started started with with Knowledge Knowledge Management Management in in My My Own Own Organization? Organization? KPMG Consultin 13

What is a Value Proposition? A Value Proposition: Articulates the fundamental business reasons and expected benefits that drive the organization to pursue Knowledge Management A Value Proposition: States the payoff to the organization KPMG Consultin Is the driving force ( the “business driver”) that provides energy to manage knowledge systematically and fund KM initiatives Focuses KM on the value chain Is the basis for measuring results Leads to senior leadership support 14

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 Employee Capability Leveraging human intellectual capital in service design and delivery KPMG Consultin 15

The Four Value Propositions are Built Around Entirely Different Operating Models Operational Excellence Core Core business business Product supply, basic processes service, demand processes management Product Leadership Concept invention, product development, market exploitation Customer Intimacy Employee Capability Solution development, People development, expertise enhancement, results management, relationship management performance management Organization Organization Central authority, finite Ad hoc, organic, loosely Empowerment close to and and structure structure level of empowerment knit, and ever-changing customer contact High skills at the core of High skills abound in the organization loose-knit structures Empowerment on work teams High skills at boundary of High skills at all levels the organization Management Management “Command and control”, Rewarding individuals' Customer equity measures systems standard operating innovative capacity and like life time value and Rewarding demonstrated systems procedures new product success share-of client applications of individual and team expertise Managing total quality Managing risk Managing outcomes Managing learning and development Process push Concept push Relationship push Culture: Culture: Learning push mindsets mindsets and and Conformance, "one size Experimentation and "out Flexibility and "have it your behavior behavior Resilience and growth fits all" mindset of-the-box" mindset way" mindset mindset Emphasize efficiency Emphasize breakthroughs Emphasize complete KPMG Emphasize development and dependability solutions Consultin

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 KPMG Consultin 17

Agenda Agenda What What is is Knowledge Knowledge Management? Management? What What are are the the Value-Based Value-Based Approaches Approaches to to Knowledge Knowledge Management? Management? What What are are the the Key Key Enablers Enablers for for Knowledge Knowledge Management? Management? What What is is the the Story Story Behind Behind KPMG’s KPMG’s involvement involvement in in Knowledge Knowledge Management? Management? How How do do II get get started started with with Knowledge Knowledge Management Management in in My My Own Own Organization? Organization? KPMG Consultin 18

Knowledge Knowledge Management Management Model Model Leadership and Strategy Create Apply Organizational Knowledge Measurement Adapt Organize Identify Share Culture Collect Technology and Infrastructure Knowledge Management Process Knowledge Management Enablers Knowledge management is a process supported or hindered by organizational factors. KPMG Consultin 19

The The Process Process and and Enablers Enablers Leadership and Strategy Leadership and Strategy Create Apply Measurement Adapt Organizational Knowledge Organize Identify Share Culture Collect Technology and Infrastructure Knowledge Management Process KPMG Consultin Knowledge Management Enablers 20

The The Process Process and and Enablers Enablers Culture Leadership and Strategy Create Apply Measurement Adapt Organizational Knowledge Organize Identify Share Culture Collect Technology and Infrastructure Knowledge Management Process KPMG Consultin Knowledge Management Enablers 21

The The Process Process and and Enablers Enablers Leadership and Strategy Create Apply Organizational Knowledge Measurement Adapt Organize Identify Share Culture Collect Technology and Infrastructure Knowledge Management Process Knowledge Management Enablers Technology and Infrastructure KPMG Consultin 22

The The Process Process and and Enablers Enablers Measurement Leadership and Strategy Create Apply Organizational Knowledge Measurement Adapt Organize Identify Share Culture Collect Technology and Infrastructure Knowledge Management Process KPMG Consultin Knowledge Management Enablers 23

Agenda Agenda What What is is Knowledge Knowledge Management? Management? What What are are the the Value-Based Value-Based Approaches Approaches to to Knowledge Knowledge Management? Management? What What are are the the Key Key Enablers Enablers for for Knowledge Knowledge Management? Management? What What is is the the Story Story Behind Behind KPMG’s KPMG’s involvement involvement in in Knowledge Knowledge Management? Management? How How do do II get get started started with with Knowledge Knowledge Management Management in in My My Own Own Organization? Organization? KPMG Consultin 24

KPMG’s Knowledge Management Journey KPMG Consultin

What is Knowledge Management? KM is not: KM is: A tactical program Strategic A long-term proposition An end in itself A single technique or technology An environment that leverages assets An embedded process A mature science An event It is hard to define, hard to do well KPMG Consultin 26

KM Leverages Skills People Process Embedded in core processes Content Consistent with strategy Technology KPMG Consultin People contribute to knowledge bases ‘Just-in-time’ delivery

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” KPMG Consultin

KPMG is Facing Many Knowledge-Related Issues Information Overload Lack of Creativity Loss of InHouse Knowledge Limited Sharing of Best Practices Ineffective Decision Making Lack of Customer Responsiveness . . . effective knowledge management is the key to success KPMG Consultin

The Old Approach Hundreds of Products KPMG Consultin 93,000 staff 157 Countries 825 Cities

Enabling Knowledge Transfer and Sharing KPMG Consultin

What is KWorld? Messaging, collaboration and knowledgesharing system that. KPMG Consultin Becomes our universal business management tool integrating all other knowledge and information systems Integrates client and team collaboration tools with global repositories of the firm’s intellectual capital Becomes KPMG’s digital nervous system Enables people and processes to get to content via technology

KPMG’s Global Knowledge Management Program Scope 100,000 staff Global knowledge sharing 100 countries 23 industry groups 19 products KPMG Consultin Sponsorship & leadership Benefits Supporting KPMG strategy More enabled & quicker decision making Stretch targets Rapid realization in phases Increasing revenues & margins Higher client value added through greater innovation & synergy Quality of life - staff more effective Leveraging of corporate expertise Multidisciplinary, global team Technical platform built & rolled out in 18 weeks

KWorld Brings Together Content KPMG Consultin Context Connectivity Community

KWorld Architecture & Process External Content Knowledge Manager Global Knowledge Exchange news feeds Industry, research, technical KPMG Content Work products Practice specific KPMG Consultin Quality assessment Value assessment Filter, aggregate, sort Research Data center Rules, heuristics, guideline, process flow Security Taxonomy assignment Channel assignment Content screen Aggregate, focus, direct, prioritize KWorld Internal and external commentary Collaboration Insights, interpretation and analysis External broadcast KPMG.COM

‘Content in Context’ Our Unique and Proprietary Differentiation 15 Segments 19 Products Regions Products & Segments Clients/Targets People Conferences KPMG Library Assurance KPMG Consultin Tax Consulting FAS

KWorld is becoming the digital nervous system of KPMG.

The KWorld Program KWorld KWorld Knowledge Sharing Collaboration kpmg.com Content in Context Technology Process People KPMG Consultin 38

The KWorld Change Model is Set to Drive Adoption First COLLABORATION Institutionalization Degree of Support Internalization Commitment LOYALTY Recommend to Others Positive Perception ADOPTION Awareness Repeated Use Installation Interest Formally incorporated into routine operations Knowledge sharing driven by personal motivation and beliefs Users recognize the advantages Utilized long enough to prove its benefit Fully implemented and operational Users log on and use Kworld regularly as part of their work People understand the inherent changes brought by KWorld Time KPMG Consultin 39

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

Agenda Agenda What What is is Knowledge Knowledge Management? Management? What What are are the the Value-Based Value-Based Approaches Approaches to to Knowledge Knowledge Management? Management? What What are are the the Key Key Enablers Enablers for for Knowledge Knowledge Management? Management? What What is is the the Story Story Behind Behind KPMG’s KPMG’s involvement involvement in in Knowledge Knowledge Management? Management? How How do do II get get started started with with Knowledge Knowledge Management Management in in My My Own Own Organization? Organization? KPMG Consultin 41

KM Consulting Framework KPMG Knowledge Management Services Framework Business Case Evolut ion Site V is its Mea sureme nt KPMG Awareness Consultin Pri o ritiz ed KM So lutio ns Assessment Phase n Phase 3 Pilo t Mea surement Te chnol og y KM Archi te cture Phase 2 Pro ce ss - Phase 1 (Ce nte r fo r Data Insig ht) Org a ni za ti o na l KM Impa ct Anal ysi s R ol l-Ou t Knowledge Discovery Ente rpris e IQ Peo ple Pro ble ms a nd Oppor tuni ti es Pilo t Aw arenes s Seminar Value-Bas ed Bus in e ss Cas e Strate gy In tegrate d KM Implemen tation P lan K M Asse ssment Implementation 10 42

The Knowledge Management Enterprise Involvement Questionnaire (EIQ) http:// www. kpmgeiq. com KPMG Consultin 43

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Agenda Agenda What What is is Knowledge Knowledge Management? Management? What What are are the the Value-Based Value-Based Approaches Approaches to to Knowledge Knowledge Management? Management? What What are are the the Key Key Enablers Enablers for for Knowledge Knowledge Management? Management? What What is is the the Story Story Behind Behind KPMG’s KPMG’s involvement involvement in in Knowledge Knowledge Management? Management? How How do do II get get started started with with Knowledge Knowledge Management Management in in My My Own Own Organization? Organization? KPMG Consultin 45

Closing Comments or Questions Thank You and Good Luck in Your Knowledge Journey KPMG Consultin 46