KPMG Consulting Developing a Knowledge - Creating Organization A Case Study in Process KM World...

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Developing a Knowledge -Creating Organization

A Case Study in ProcessKM World

Santa Clara, CA

September 14, 2000

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Melinda J. BickerstaffDirectoreWorkforce Solutions Group [email protected]

Melinda J. BickerstaffDirectoreWorkforce Solutions Group [email protected]

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Renee A. MassoudDirectorKPMG Research [email protected]

Renee A. MassoudDirectorKPMG Research [email protected]

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ObjectivesObjectives

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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ObjectivesObjectives

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

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AgendaAgendaAgendaAgenda

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 KPMG’s involvement in Knowledge Management?

How do I get started with Knowledge Management in My Own Organization?






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What is Knowledge Management?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 integratedapproach to create, identify, evaluate, capture, enhance, share and apply an enterprise’s intellectual capital.

Bottom Line: Bottom Line: Getting the right information, to the right peopleat the right time

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

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

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What’s Happening Out There: Knowledge What’s Happening Out There: Knowledge Management PrioritiesManagement 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...The focus is on technology solutions...

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What’s Happening Out There: Biggest What’s Happening Out There: Biggest Difficulties to Implementing KMDifficulties 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%

…but the challenges are related to people and strategy.…but the challenges are related to people and strategy.

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A Value Proposition:

Articulates the fundamental business reasons and expected benefits that drive the organization to pursue Knowledge Management

A Value Proposition:

Articulates the fundamental business reasons and expected benefits that drive the organization to pursue Knowledge Management

What is a Value Proposition?What is a Value Proposition?What is a Value Proposition?What is a Value Proposition?

States the payoff to the organization

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

States the payoff to the organization

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

A Value Proposition:A Value Proposition:

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Delivering the best products and services ---offerings that push performance boundaries

Delivering solid products and services at the best price and with the least inconvenience

Cultivating relationships to gain customer knowledge

Delivering what specific stakeholders want

Employee Capability

Operational Excellence Product/Service Leadership

Customer Intimacy

Leveraging human intellectual capital in service design and delivery

How Does Knowledge Management Create Value?How Does Knowledge Management Create Value?How Does Knowledge Management Create Value?How Does Knowledge Management Create Value?

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The Four Value Propositions are Built Around Entirely The Four Value Propositions are Built Around Entirely Different Operating ModelsDifferent 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

Organizationand structureOrganizationand structure

ManagementsystemsManagementsystems

Culture: mindsets and behavior

Culture: mindsets and behavior

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

Core businessprocessesCore businessprocesses

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

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Which business driver could your Knowledge Which business driver could your Knowledge Management activity be based on or linked to?Management activity be based on or linked to?

Operational excellenceOperational excellence

Product leadershipProduct leadership

Customer intimacyCustomer intimacy

Employee capabilityEmployee capability

Which business driver could your Knowledge Which business driver could your Knowledge Management activity be based on or linked to?Management activity be based on or linked to?

Operational excellenceOperational excellence

Product leadershipProduct leadership

Customer intimacyCustomer intimacy

Employee capabilityEmployee capability

Linking Knowledge Management to Your Linking Knowledge Management to Your Business StrategyBusiness Strategy

Linking Knowledge Management to Your Linking Knowledge Management to Your Business StrategyBusiness Strategy

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Knowledge Management ProcessKnowledge Management Process Knowledge Management EnablersKnowledge Management Enablers

Knowledge management is a process supported or hindered by organizational factors.

Knowledge management is a process supported or hindered by organizational factors.

Knowledge Management ModelKnowledge Management ModelKnowledge Management ModelKnowledge Management Model

Leadership and StrategyLeadership and Strategy

MeasurementMeasurement CultureCulture

Technology and InfrastructureTechnology and Infrastructure

OrganizationalKnowledge

CreateApply

Adapt

Organize Collect

Share

Identify

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The Process and EnablersThe Process and EnablersThe Process and EnablersThe Process and Enablers






CreateApply

Adapt

Organize Collect

Share

Identify

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CultureCulture






CreateApply

Adapt

Organize Collect

Share

Identify


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Technology and Infrastructure

Technology and Infrastructure

Knowledge Management ProcessKnowledge Management Process





CreateApply

Adapt

Organize Collect

Share

Identify

Knowledge Management EnablersKnowledge Management Enablers


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MeasurementMeasurement

Knowledge Management ProcessKnowledge Management Process





CreateApply

Adapt

Organize Collect

Share

Identify

Knowledge Management EnablersKnowledge Management Enablers

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KPMG’s Knowledge Management KPMG’s Knowledge Management JourneyJourney

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What is Knowledge Management?What is Knowledge Management?

KM is not:

• A tactical program

• An end in itself

• A single technique or technology

• A mature science

• An event

KM is:

• Strategic

• A long-term proposition

• An environment that leverages assets

• An embedded process

It is hard to define, hard to do wellIt is hard to define, hard to do well

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PeoplePeople People contribute to People contribute to knowledge basesknowledge bases

ProcessProcess Embedded in core Embedded in core processesprocesses

ContentContent Consistent with strategyConsistent with strategy

TechnologyTechnology ‘‘Just-in-time’ deliveryJust-in-time’ delivery

KM Leverages SkillsKM Leverages Skills

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““TheThe global advisory firm global advisory firm whose aim is to whose aim is to

turn knowledge into valueturn knowledge into value for the benefit of for the benefit of

its clients, its clients, its people and its people and

its communities”its communities”

KPMG is...KPMG is...

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. . . effective knowledge management is the key to success. . . effective knowledge management is the key to success

Information Information OverloadOverload

Lack of Lack of CreativityCreativity

Loss of In-Loss of In-House House

KnowledgeKnowledge

Ineffective Ineffective Decision Decision MakingMaking

Lack of Lack of Customer Customer

ResponsivenessResponsiveness

Limited Limited Sharing of Sharing of

Best PracticesBest Practices

KPMG is Facing Many Knowledge-Related KPMG is Facing Many Knowledge-Related IssuesIssues

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HundredsHundredsofof

ProductsProducts

HundredsHundredsofof

ProductsProducts

157 Countries 157 Countries

825 Cities825 Cities157 Countries 157 Countries

825 Cities825 Cities 93,000 +93,000 +

staffstaff

TThe Old Approachhe Old Approach

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Enabling Knowledge Transfer and SharingEnabling Knowledge Transfer and Sharing

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What is KWorld?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 firm’s intellectual capital

Becomes KPMG’s digital nervous system

Enables people and processes to get to content via technology

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Scope 100,000+ staff

Global knowledge sharing

100+ countries

23 industry groups

19 products

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

Sponsorship & leadership

Multidisciplinary, global team

Stretch targets

Rapid realization in phases

Technical platform built & rolled out in 18 weeks

KPMG’s Global Knowledge KPMG’s Global Knowledge Management ProgramManagement Program

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KWorld Brings TogetherKWorld Brings Together

Content Context

Community

Connectivity

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KWorld

Collaboration

External broadcast

KPMG.COM

Quality assessment

Value assessment

Security

Taxonomy assignment

Channel assignment

Content screen

Research

Rules,heuristics, guideline, process

flow

Aggregate, focus, direct,

prioritize

Internal and external

commentary

Insights, interpretation and analysis

Filter, aggre-gate, sort

Data center

Industry, research, technical

Work products

Practice specific

KWorld Architecture & ProcessKWorld Architecture & Process

Global Knowledge Exchange

news feeds

External Content

KPMGContent

Knowledge Manager

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15 Segments15 Segments

KPMG LibraryKPMG Library

ConferencesConferences

PeoplePeople

Clients/TargetsClients/Targets

Products & SegmentsProducts & Segments

19 Products19 Products

ConsultingConsultingTaxTaxAssuranceAssurance FASFAS

RegionsRegions

‘‘Content in Context’Content in Context’Our Unique and Proprietary DifferentiationOur Unique and Proprietary Differentiation

KWorldis becoming the

digital nervous system of KPMG.

KWorldis becoming the

digital nervous system of KPMG.

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KWorld KWorld CollaborationCollaboration

kpmg.comkpmg.comKWorld KWorld Knowledge SharingKnowledge Sharing

Content in ContextContent in Context

ProcessProcess

PeoplePeople

TechnologyTechnology

The KWorld ProgramThe KWorld Program

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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

People understand the inherent changes brought by KWorld

Users log on and use Kworld regularly as part of their work

Institutionalization

Internalization

Positive Perception

Recommend to Others

CommitmentL O Y A L T Y

AwarenessInterest

Installation

Repeated UseA D O P T I O N

Deg

ree

of S

uppo

rt

C O L L A B O R A T I O N

Time

The KWorld Change Model is Set to Drive The KWorld Change Model is Set to Drive Adoption FirstAdoption First

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Building the Knowledge-Sharing Building the Knowledge-Sharing OrganizationOrganization

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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KM Consulting FrameworkKM Consulting Framework

10

--

AwarenessSeminar

KnowledgeDiscovery(Ce nte r for

Data Insight)

Site Vis its

Strate gy

People

Proce ss

Te ch-nology

Awareness Assessment Implementation

KPMG Knowledge Management Services Framework

Va

lue

-Ba

sed

Bu

sin

ess

Ca

se

Proble ms and

Oppor tuni ti es

Organizational KM

Impact Analysi s

KM Archi te cture

Prioritiz edKM Solutions In

teg

ra

ted

KM

Im

ple

men

tati

on

Pla

n

En

ter

pris

e I

Q

K M Asse ssment

Business Case EvolutionBusiness Case Evolution

Pil

ot

Pil

ot

Rol

l-O

ut

Rol

l-O

ut

Pil

ot

Pil

ot

Ph

ase

1

Ph

ase

2

Ph

ase

3

Ph

ase

n…

Measurement

Measurement

Measure-me nt

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http:// www. kpmgeiq. comhttp:// www. kpmgeiq. com

The Knowledge Management The Knowledge Management Enterprise Involvement Enterprise Involvement Questionnaire (EIQ)Questionnaire (EIQ)

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Closing Comments or Closing Comments or QuestionsQuestions

Thank You and Good Luck in Your Knowledge Journey

KPMG Consulting Developing a Knowledge - Creating Organization A Case Study in Process KM World...

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