Creating an organisational culture to support knowledge management

Nick Milton www.knoco.com

www.nickmilton.com

Contents copyright Knoco Ltd

Why do knowledge management?

Why add yet another thing to my dayjob?

I already have more than enough to handle

Answer -

   Because Knowledge is Important Because it is important to seek, share and re-use knowledge for the good of the organisation Because it should be part of the dayjob

Knowledge Management – management with attention to the importance of organisational knowledge

KM will not happen without culture change

  The best KM tools in the world will not work, if people really don’t want to use them If people really want to share and re-use knowledge, they will use any means necessary, and will not let the lack of tools stop them.

I could have told you it wouldn’t work Why didn’t you ask me, then?

Why didn’t you tell me, then?

What about this? Do you think it will work?

Well, let me tell you what happened last time I tried that …………

A change in emphasis

           “I know” “Knowledge is mine” “Knowledge is personal” “Knowledge is owned” “Knowledge is personal property” “Knowledge is personal advantage” “I defend what I know” “Not invented here (i.e. by me)” “New knowledge competes with my personal knowledge” “Other people's knowledge is a threat to mine" “Admitting I don’t know is weakness”            “We know” “Knowledge is ours” “Knowledge is inter-personal” “Knowledge is shared” “Knowledge is collective/ community property” “Knowledge is company advantage” “I am open to better knowledge” “Invented in my community” “New knowledge improves my personal knowledge” “Shared knowledge helps me" “Admitting I don’t know is the first step to learning”

How big is the culture gap?

20 cm

British Telecom “Stadium” Advertisement

Asking/Sharing Asking

   Can anyone help me with this?

Has anyone done this before?

Can anyone give me some advice?

Sharing

   I have learned this Would anybody be interested in hearing about my learning?

Can I help anyone?

A culture of asking

So how do we change the culture?

20 cm at a time!

Photo from Flickr under a creative commons licence, originally uploaded by AndYaDontStop

The personal balance

KM takes Time.

KM takes Effort.

KM takes Thought.

KM is Exposing.

KM requires Change.

I don’t know how.

Nobody else is doing it.

My manager doesn’t care about KM KM helps me do my job KM helps the company KM gives me a higher profile My peers are doing it My manager expects it KM is rewarded If I don’t do it, my career will suffer

Change factors

 Logic 

Emotion



Expectation



Peer pressure

A Change Program

Your role

    To get the whole organisation “dancing” (doing KM) To get people asking for help, sharing knowledge As a routine, as part of the job In a sustained way

Your audience

The 20% who will never dance The 60% who will dance if they have to, and if everyone else is doing it The 20% who really want to dance

% change

Your strategy

laggards Introduce performance mgt The majority Time First followers Introduce framework Introduce pilots

First followers

   Apply KM Pilots To key business problems Where you find the first followers     Introduce the elements of KM Deliver value Recognise the followers Publicise the results

Mars New Markets

“In 2004, the Mars, Inc Presidents identified a challenge in our newer markets in the developing world. These are markets where the bulk of consumer spending occurs in small local shops. We wanted to achieve a step-change in the number of small retail outlets which sell our products, and so drive a rapid increase in sales in these markets. The challenge covered 12 markets, in which there are approximately 12 million shops, and 3.5 billion potential consumers of Mars products”

The solution

A Knowledge Sharing Network – the New Markets Global practice group meets every 6 months, face-to-face, hosted by one of the markets. The meetings are focused on sharing, learning lessons, and discussing

Meeting structure

Learn before (Peer Assist) • How can we help the local market?

Learn during (K exchange) • Knowledge show and tell Learn after (retrospect) • What have we learned from the last 6 months?

The results

In the 5 years this network has existed, sales in the small retail channel in the 12 markets have trebled and the percentage profit has more than doubled, adding around $250 million to the bottom line. “Whilst it would be unfair to claim this was entirely due to knowledge sharing, the GPG members themselves clearly point to the ideas and lessons they have gained from others as fundamental to their success”.

Formalised Capture of Best Practice

• • • • • •

Recommendations ‘How To’ Case Histories Expert Source Expert Validation Expert Contacts

Collect the stories

Introduce framework    You have piloted KM You have delivered Big Value You have proved that it works    Go to management and ask for their commitment, to Make KM “part of the job” Embed a KM framework

The majority

    The majority will do KM if it is part of the job So make it part of the job Develop and roll out a framework for managing knowledge Embed it into normal processes such a project management, performance management, customer management

A framework People Process Tech nology

A project example

       Learning Before  Each project builds a KM plan, holds Peer Assists Learning During  After Action Reviews are used to learn rapidly Learning After  Performance is reviewed, and lessons identified, at each project stage. Lessons stored in a shared learning system Knowledge sharing  Communities of practice are in place for each key knowledge area, supported by community technology Knowledge Ownership  Each project has a KM champion, each critical knowledge area has a subject matter expert , each community has a leader and sponsor Knowledge Base  Each SME maintains up to date knowledge guidance in an accessible, searchable technology Governance  The expected level of KM activity is defined  It is built into the “Project Operating Framework”  People are trained in how to use it

Documented expectation

Standards, expectations, accountabilities

     Each project will do the following minimum  ……  ……  …… Lessons will be identified as follows …… Each key knowledge area is owned by ????

The KM team will do Y Corporate Knowledge will be retained as follows ……

Embed in project framework

Needs Assessment Appoint Project leader Project plan Selection gate Design gate Construction gate Operation/ decommission Risk mgt plan Knowledge Mgt plan Peer assist Doc mgt system Community of practice Peer assist Retro spect Peer assist Retro spect After Action Reviews Retro spect © Knoco Ltd – all rights reserved

Lessons workflow

Senior manager Central KM team Subject Matter Expert Project Manager Actions approved KM champion Project team members Lesson identified QC. Assign action Identify as federal lesson Take local action (update procedures etc) Lesson and suggested actions approved Validated.

Actions taken to update processes Lesson closed Lesson closed Problems resolved Application of system tracked, problems identified and reported Application of system tracked, problems identified Review of processes and lessons prior to activity Problems resolved

Accountability chains

High level “owner” or “sponsor” of KM Central KM team Head of Line organisation Department Department Project Project Project Head of functional organisation Subject area CoP Subject area CoP © Knoco Ltd – all rights reserved

Introduce performance management       You have set the expectations You have set the accountabilities Are people actually doing what is expected?

Are they getting away with NOT doing it?

If KM becomes optional – Then the culture can change back

The laggards

   Measure the use of KM Publicise the results Get tough with the people wh

  Compliance with expectations Activity measures

Measuring use

Compliance with expectations Stage

Appraisal Concept selection Concept definition Construction Operation

Expectation

KM plan Retrospect KM plan Retrospect KM plan Retrospect Start-up review

Project A Project B Project C Project D Project E

Activity measures - Lessons submitted LL Capture Rate per ADW Team Q4 2005 - Q2 2009

60 50 40 30 20 10 0 CTD Rotary RWO Wells Q4 2005 0 9 2 0 Q1 2006 0 9 3 0 Q2 2006 3 8 9 0 Q3 2006 5 14 10 0 Q4 2006 16 18 14 0 Q1 2007 2 19 5 8 Q2 2007 Q3 2007 Q4 2007 9 36 5 16 7 1 13 22

Time (Quarterly)

3 9 7 6 Q1 2008 8 11 6 3 Q2 2008 31 18 3 6 Q3 2008 32 12 1 12 Q4 2008 50 12 2 9 Q1 2009 49 23 1 13 Q2 2009 37 15 2 10

20 10 0 60 50 40 30

Activity measures - Question asked questions per month questions

Activity measures – lessons close-out rate AD&W Quarterly Lessons Learned Activity Q4 2005 - Q2 2009

900 800 180 160 700 600 500 400 300 200 100 0 New Pending Total LL % Closure Rate Sep-05 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 159 0 159 0.0

11 72 170 54.0

12 10 182 93.4

18 20 200 88.5

29 1 229 95.6

48 10 277 90.3

34 3 311 63 11 374 45 17 419 25 21 444 94.2

94.7

93.1

Time (Quarterly)

93.0

28 13 462 95.1

58 30 520 90.9

57 19 577 93.2

73 26 650 91.8

86 41 736 92.0

64 25 812 93.0

0 40 20 140 120 100 80 60

Performance appraisal

  World Bank  “Knowledge sharing and learning:  open to new ideas and continuous learning  shares own knowledge learns from others applies knowledge in daily work  builds partnerships for learning and knowledge sharing” Schlumberger Bonuses based on performance against 5 key objectives One of which has to be related to Knowledge Management

Link to career progression

“If you are not willing to contribute or participate, then you should understand that the many opportunities open to you in the past will no longer be available” Bob Buckman, Buckman labs, memo to associates, quoted in Journal of KM “Our approach is far more Stick than Carrot. We say “Sharing knowledge is your job. Do it! As a reward, you may keep your job” Melissie Rumizen, Buckman Labs Knowledge strategist

The final culture Fluor corporation

"When Fluor began building the infrastructure for knowledge sharing little did we know that it would lead to a cultural revolution within our company as to how knowledge is shared.” Rick Koumouris, President, Mining & Metals "It's amazing to see how thoroughly knowledge management has become part of the Fluor culture and "the way we do things at Fluor". This is reinforced dramatically when talking with ex employees who have said that they really miss Knowledge OnLine and the way Fluor deals with the strategic value of knowledge.” Otto Kjos, Sr. VP Project Management, Energy & Chemicals 46

Connecting People … … Delivering Value

Minimizing Apprehension of New Hire on Field Assignment

I was assigned to the field on a construction turnaround job Five months shy of my 1 year anniversary One day, the client’s construction engineer and subcontracting engineer approached stating, “We have a problem.” I gladly told both gentlemen that I will notify them with a solution before the day ends Rode my bike back to the Fluor trailer, logged on to Knowledge OnLine and within an hour received a solution from a subject matter expert Each day that I step into the refinery clad in a green Nomex suit bearing the Fluor logo, I know that I do not walk alone; I walk with the whole team.

47

Connecting People … … Delivering Value

Imagine a day without Knowledge

In 2006, I was hired by Fluor Did not realize the power of knowledge management until I left to work for a competitor In 2007, I took a job with a competitor Quickly realized that they did not have a convenient way to get information and exchange ideas Inter-office network not well-developed Inconsistency between offices Conflicts continuously arose While on a field assignment Making connections with people from other offices was quite difficult I struggled without easy access to specific information and subject matter experts I felt very limited in my training and continuing education opportunities After one year, I chose to come back to Fluor I sincerely appreciate our knowledge management program, because I can leverage knowledge any place, any time. Knowledge OnLine truly demonstrates Fluor's core value of teamwork-- that anyone can openly share their experiences and innovative thinking.

48

Any questions?