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KPMG Consultin
g
Developing a Knowledge -Creating Organization
A Case Study in ProcessKM World
Santa Clara, CA
September 14, 2000
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KPMG Consultin
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Melinda J. BickerstaffDirectoreWorkforce Solutions Group mbickerstaff@kpmg.com
Melinda J. BickerstaffDirectoreWorkforce Solutions Group mbickerstaff@kpmg.com
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Renee A. MassoudDirectorKPMG Research Strategiesrmassoud@kpmg.com
Renee A. MassoudDirectorKPMG Research Strategiesrmassoud@kpmg.com
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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?
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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KPMG Consultin
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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?
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?
KPMG Consultin
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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
Key Concepts and Business Drivers-13-
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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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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?
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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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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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?
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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KPMG Consultin
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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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Leadership and StrategyLeadership and Strategy
The Process and EnablersThe Process and EnablersThe Process and EnablersThe Process and Enablers
Knowledge Management ProcessKnowledge Management Process Knowledge Management EnablersKnowledge Management Enablers
Leadership and StrategyLeadership and Strategy
MeasurementMeasurement CultureCulture
Technology and InfrastructureTechnology and Infrastructure
OrganizationalKnowledge
CreateApply
Adapt
Organize Collect
Share
Identify
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CultureCulture
Knowledge Management ProcessKnowledge Management Process Knowledge Management EnablersKnowledge Management Enablers
Leadership and StrategyLeadership and Strategy
MeasurementMeasurement CultureCulture
Technology and InfrastructureTechnology and Infrastructure
OrganizationalKnowledge
CreateApply
Adapt
Organize Collect
Share
Identify
The Process and EnablersThe Process and EnablersThe Process and EnablersThe Process and Enablers
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Technology and Infrastructure
Technology and Infrastructure
Knowledge Management ProcessKnowledge Management Process
Leadership and StrategyLeadership and Strategy
MeasurementMeasurement CultureCulture
Technology and InfrastructureTechnology and Infrastructure
OrganizationalKnowledge
CreateApply
Adapt
Organize Collect
Share
Identify
Knowledge Management EnablersKnowledge Management Enablers
The Process and EnablersThe Process and EnablersThe Process and EnablersThe Process and Enablers
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The Process and EnablersThe Process and EnablersThe Process and EnablersThe Process and Enablers
MeasurementMeasurement
Knowledge Management ProcessKnowledge Management Process
Leadership and StrategyLeadership and Strategy
MeasurementMeasurement CultureCulture
Technology and InfrastructureTechnology and Infrastructure
OrganizationalKnowledge
CreateApply
Adapt
Organize Collect
Share
Identify
Knowledge Management EnablersKnowledge Management Enablers
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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?
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?
KPMG Consultin
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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...
KPMG Consultin
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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
KPMG Consultin
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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
KPMG Consultin
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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
KPMG Consultin
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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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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?
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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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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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?
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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Closing Comments or Closing Comments or QuestionsQuestions
Thank You and Good Luck in Your Knowledge Journey
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