chapter 15 real option analysis for knowledge evaluation

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Chapter 15 Real Option Analysis for Knowledge Evaluation

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Chapter 15 Knowledge Management3 Common trap in choosing metrics EX. Telephone company 1) number of ring before the phone was answer 2) average waiting time 3) number of calls answered per hour per representative 4) number of time the customer was put on hold 5) percentage of each hour that an average representative spent talking to a customer CUSTOMER DISSATISFIED Right answer to wrong questions

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Page 1: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15

Real Option Analysis for Knowledge Evaluation

Page 2: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 2

Common trap in choosing metricsCommon trap in choosing metrics The choice of wrong metric can have more ill effect than positive one. trap 1 : using too many metrics trap 2 : the consequences of delayed rewards

select metric that can be measure today but have impact on future outcome

trap 3 : metrics that are hard to control look good but only on paper ?

trap 4 : metrics that tear people away from business goals

Page 3: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 3

Common trap in choosing metricsCommon trap in choosing metrics

EX. Telephone company1) number of ring before the phone was answer

2) average waiting time

3) number of calls answered per hour per representative

4) number of time the customer was put on hold

5) percentage of each hour that an average representative spent talking to a customer

CUSTOMER DISSATISFIED

Right answer to wrong questions

Page 4: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 4

Common trap in choosing metricsCommon trap in choosing metrics metric that trigger agency conflict prove more damaging than helpful. Not all metrics can be measured easily and cleanly EXAMPLE OF BAD METRIC

count the time spending reading the knowledge from the intranet (drink beer while log on) count the number of contributions by employees to a knowledge repository (employee try to maximize the number but no value)

Page 5: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 5

Common trap in choosing metricsCommon trap in choosing metricsEXAMPLE OF WEB FORUM BAD METRIC

count the number of contributions by employees to a knowledge repository (employee try to maximize the number but no value)

EXAMPLE OF WEB FORUM GOOD METRIC count the number of follow-up comments that their contribution raisethe number of time that they responded to other people’s post

Page 6: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 6

Agency – Agent conflicts

Page 7: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 7

Agency – Agent conflicts

Identify What Not to Measure?

what is maximizedwhat is desired

not measure

Where is knowledge sharing and creation ?Ignore and little reward ?

Page 8: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 8

The Option Space Analysis

Page 9: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 9

Regions of Attractiveness

Page 10: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 10

A Portfolio of KM Investments

Page 11: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 11

The KM Balanced Scorecard

evaluate the impact of KM

translate the KM vision

communicate and link

business planning

learning and feedback

Page 12: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 12

A Modified KM Scorecard

การเงิน

บุคลากร

องค์การ

ลกูค้า

Page 13: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 13

A Modified KM Scorecardการเงิน

บุคลากร

องค์การ

ลกูค้า

Page 14: Chapter 15 Real Option Analysis for Knowledge Evaluation

Chapter 15 Knowledge Management 14

ConclusionConclusion Metric define KM success Use real option analysis Do not ignore the soft staff

Page 15: Chapter 15 Real Option Analysis for Knowledge Evaluation

Vaguely right

....is better than....

precisely wrong