Developing An Integrated

Enterprise-Wide

KM Architecture

In A Global Organization

Jeff Stemke

Chevron

jste@chevron.com

925.842.1075

Braintrust International 2001

February, 2001

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Smarter

Jeff Stemke

Chevron Corp.

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SmarterAgenda

• Definitions

• Business Case

• Components of a Knowledge Architecture– People

– Processes

– Technology

– Behavior

– Content

• Weaving an Enterprise Knowledge Portal

• Next Steps… What if you were asked to help

design a new corporation?

• What would you add?

Jeff Stemke

Chevron Corp.

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• $40 billion in revenues,

$30 billion in assets,

$55 billion in market cap

• 32,000 Employees

world-wide

• Operations in over 100

countries

• Decentralized business

units

We Find, Develop, Refine, Transport,

& Market Energy & Chemical

Products and Services

Chevron Corporation

International Energy & Chemical Company

Jeff Stemke

Chevron Corp.

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SmarterDefinitions

KnowledgeExplicit: Practices, Procedures, Manuals, Documents…

Tacit: Skills, Ideas, Experience…

Manage…Create, Identify, Capture, Transfer, Improve, Reuse…

Knowledge ManagementProcesses, Technology and Behaviors that deliver the

right Content to the right People at the right time and in

the right context so that they can

– Make the Best Decisions Quickly

– Solve Problems

– Exploit Business Opportunities

– Accelerate Competency and Innovation

Jeff Stemke

Chevron Corp.

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SmarterKM/Collaboration Business Value

• For Chevron

– Make Better, Faster Decisions

– Create Effective Global/Virtual Teams/Networks

– Reduce Cycle Time

– Minimize Reinvention/Duplication

– Retain/Build Competencies

– Improve Customer Satisfaction

– Develop and Rapidly Deploy Innovative Ideas

• For Employees

– Professional development

– Challenging assignments

– Peer recognition

– Promotion

– Time

Jeff Stemke

Chevron Corp.

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Chevron

Retailer

Alliance

New Well

Generation

Process

Active Knowledge Sharing

Project

Management

Global

Information LinkRefining

Best Practices

Energy

Management

Jeff Stemke

Chevron Corp.

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SmarterExample Economic BenefitsAchieved over last 8 years

• Reduced Operating Expenses by >$2.5B/yr

> $1B Total Energy Savings

> 10-15% in Capital Efficiency (>$500MM/yr)

$$ Refining and Marketing Operations

• 50% Improvement in Refining Safety

• 10-40% Reduction in Drilling Time ($250M/day)

• Common Computing Desktop ($50MM/yr)

Jeff Stemke

Chevron Corp.

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SmarterStrategic Intents (4+1)

• Operational Excellence

• Capital Stewardship

• Cost Reduction

• Profitable Growth

+ Organizational Capability

Jeff Stemke

Chevron Corp.

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BehaviorsTechnology

Content

Processes

Organization Capability

Dynamic

Leaders

SkilledEmployees

Recognition &

Accountability

World-class

Processes &

Organization

Learning &Innovation

Technology &

Partnerships

The ability of an organization to execute its strategies.

• Our talents, knowledge, systems and processes applied effectively

• Working as a team, sharing experiences and learning from others

• Building our skills, getting better and better at delivering our plans

Jeff Stemke

Chevron Corp.

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SmarterKnowledge Architecture

TechnologyBehaviors

Processes

Content

Jeff Stemke

Chevron Corp.

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SmarterKnowledge Transfer Processes

• Serial Transfer

• Near Transfer

• Far Transfer

• Strategic Transfer

• Expert Transfer

Nancy Dixon, “Common Knowledge: How

Companies Thrive by Sharing What They Know”

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Chevron Corp.

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SmarterSerial Transfer

• DescriptionThe knowledge a team has learned from doing its

task that can be used the next time that team

repeats the task.

• CharacteristicsRegularly scheduled, facilitated, brief meetings

involving entire team. No recriminations. May

not be documented formally.

• Examples– GetSmart

– eQuest

– After Action Reviews

– Project Team Workspace

Nancy Dixon, “Common Knowledge: How Companies Thrive by Sharing What They Know”

Jeff Stemke

Chevron Corp.

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1. Define specific goals linked with the bottom line.It Does Not Matter How Good You Are if You Achieve the Wrong Objective

2. Access a reservoir of experience to profit from past success/failure.Experience Is a Great Teacher...but the “Tuition” is Expensive

3. Ensure that actions are directed at meeting goals. Good Intentions Do Not Guarantee Good Results

4. Accurately monitor performance.What Gets Measured Gets Managed

5. “Remember” how and why decisions were made.To Do It Better Next Time, You Must Understand “Why”

6. Improve an accessible reservoir of experience.Having Data Does Not Mean That It Is Accessible

GetSmart: High Performance Teams

Jeff Stemke

Chevron Corp.

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Analysis Tools

A B C D E F G H

Cost Allocation Form

Timeline/Durations

Jan. Feb. Mar.

1.

2.

3.

20 Zoning Questions

Important Background Material

Checklists

Open SiteOpen Site

Respon

dAcct. Consult. Inform

Handoffs

T44

Input

Input

Input

Input / Output Documents

Process Flow Map

GetSmart: Reservoir of Knowledge

MS Project

Jeff Stemke

Chevron Corp.

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Days

Fast Learning

0

25

50

75

100

0 1 2 3 4 5 6 7

No Learning

Sequence Drilled

0

50

100

150

200

250

0 5 10 15 20 25 30

0

25

50

75

50

Slow to Learn

0 5 10 15 20 25 30 35 40 45

Days

Fro

m S

pu

d=

Forgetting Curve

0

25

50

75

100

0 1 2 3 4 5 6 7 8 9 10 11 12

10

20

30

40

30

Loss of Key Personnel

0

0 10 20

Sequence Drilled

GetSmart: Learning Curves

Application of New Technology

0

100

200

400

500

0 5 10 15 20 25 30 35

300

Days

Jeff Stemke

Chevron Corp.

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SmarterNear Transfer

• DescriptionExplicit knowledge a team gains from doing a

frequent and repeated task that can be replicated

to other teams doing similar work.

• CharacteristicsPrimarily “pushed” as short electronic documents.

Occasional face-to-face meetings build trust.

Accountability: compliance with choice.

• Examples– Best Practice/Lessons Learned databases

– GetSmart templates

– Project Documentation repositories

Nancy Dixon, “Common Knowledge: How Companies Thrive by Sharing What They Know”

Jeff Stemke

Chevron Corp.

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SmarterLessons Learned Database

Jeff Stemke

Chevron Corp.

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SmarterLesson Learned

Jeff Stemke

Chevron Corp.

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SmarterBest Practices Database

Jeff Stemke

Chevron Corp.

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SmarterProject ConnectionWho Has Done What…

• A systematic project documentation and reporting process and tool for that support the business objectives of:

– enhancing customer communications

– leveraging knowledge and experience

– effective project management

• Allows customers, team members, and DRBs easy access to current (and archived) project information

• Avoids redundant data requests

• Interfaces with financial and portfolio systems

• Captures best practices and lessons learned

• Reduces “reinventing the wheel”

Jeff Stemke

Chevron Corp.

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SmarterPR&D Website

Jeff Stemke

Chevron Corp.

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SmarterProject Document

Relevant data pulled from portfolio

Existing files can be attached

Canned and customizable reports

Project Archives

Linked Lessons Learned/Best Practices

Jeff Stemke

Chevron Corp.

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SmarterFar Transfer

• DescriptionTacit knowledge a team gains from doing a non-

routine task that is made available to other teams

doing similar work in other parts of the

organization.

• CharacteristicsKnowledge is carried by people and transferred

in a reciprocal exchange. It needs to be

translated to apply to new team’s context.

• Examples– Consulting Groups (PRC, CRTC, CITC, CPTC)

– Peer Assist/Review

– ePortfolio

Nancy Dixon, “Common Knowledge: How Companies Thrive by Sharing What They Know”

Jeff Stemke

Chevron Corp.

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SmarterStrategic Transfer

• DescriptionDetailed, validated, collective knowledge of an

organization needed to accomplish a critical but

infrequent task (e.g. process unit startup)

• CharacteristicsManagement identifies task. Specialists collect,

interpret and synthesize knowledge in real time.

Focus is on the next user.

• Examples– Project Mgmt Value-improving Practices

– Technical Manuals

Nancy Dixon, “Common Knowledge: How Companies Thrive by Sharing What They Know”

Jeff Stemke

Chevron Corp.

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SmarterTechnical Manuals/Practices

Jeff Stemke

Chevron Corp.

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SmarterExpert Transfer

• DescriptionTechnical knowledge needed by a person or team

that can be provided by other experts in the

organization.

• CharacteristicsModerated and supported electronic forums

segmented by topic. Knowledge exchanged

between requestors and experts.

• Examples– Communities of Practice

– Best Practice Networks

– Expertise Directories

Nancy Dixon, “Common Knowledge: How Companies Thrive by Sharing What They Know”

Jeff Stemke

Chevron Corp.

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SmarterRefining Best Practice Networks

PEOPLE/ROLES

• Senior Management – Sponsorship, Resources, Culture Change Agents

– Active Involvement (Goals, Implementation, Recognition)

• Dedicated Process “Master”

• Operations and Technology Experts

PROCESS

• Business Drivers: Cost and Safety

• Benchmarking (internal and external)

• Implementation Metrics and Accountability

• Face-to-Face and Collaborative Workspaces

Jeff Stemke

Chevron Corp.

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SmarterTechnology Rapid Execution

A “Platform” is a collection of assets from business units,

working together to resolve a common business problem.

• Assets in the platform help each other through technology

• Metrics directly link business value to technology investments & deployment

• An asset focuses on their highest priority issue/platform and remains connected to all other needed platforms

AssetAsset Asset

Asset

AssetAsset

Major Business Driver/

Technology ChallengeMajor Business Driver/

Technology Challenge

TREx Platform Business Results Driven &

Technology/Knowledge Enabled

TREx Platform Business Results Driven &

Technology/Knowledge Enabled

SBUSBU

Jeff Stemke

Chevron Corp.

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SmarterPlatforms and Technology Networks

Mid-Continent

Nigeria

Angola Block 0

LABU LL-652

Indonesia

AssetsMaximize Returns UADP Phases1-3 PlatformIn

terp

reta

tio

n M

od

elin

g

We

ll &

C

om

ple

tio

ns

Dri

llin

g S

olu

tio

ns

Technology

Networks

Re

se

rvo

ir S

imu

lati

on

Imp

rove

d R

ec

ove

ry

Se

ism

ic Im

ag

ing

Breakthrough Margins in Water Flood Assets Platform

Re

se

rvo

ir C

ha

rac

teri

za

tio

n

Technology Networks consist of “experts” from business units, R&D and external organizations

Members share best practices,

identify new technologies, and

facilitate development of

innovative solutions for

the Platform challenges

Jeff Stemke

Chevron Corp.

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SmarterCollaborative Workspace

• Threaded discussion completely visible at any point

• Full-text searching of documents/attachments

• Email integration (messages with URL links)

– Nightly newsletter of new content (Individually configured)

– Action items/requests for help

– Email new documents directly into the website

• Self-registration process (no admin required)

– Individual access as reader, author or editor

– Access can be restricted to registered members

• Flexible Categorization– Up to four independent categories

– More flexible sorting/viewing options than folders

– Distributed topic category “ownership”

• Useful to Communities and Project Teams

Jeff Stemke

Chevron Corp.

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SmarterCoP/Project Team Workspace

Jeff Stemke

Chevron Corp.

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SmarterPeople Connection/EWFSWho Knows What…

• Find People with relevant skills and experience to:– Quickly answer your question

– Recommend a procedure or product

– Become your mentor

– Become a member of your project team

• Link with People who are:– Doing similar things

– Facing similar problems

• Employees update skills, competencies, work

experience, work and career interests

• Manage competencies; Identify new requirements

• Post open positions; Team leaders search

Jeff Stemke

Chevron Corp.

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Jeff Stemke

Chevron Corp.

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SmarterIntegration: Knowledge Portal

People Connection

Who Knows What?

Who Has Done What?

Career Planning

Workforce Staffing

Network ConnectionTREx/BP Networks

Communities of Practice

CoPs

Lessons

Learned

find.Chevron

Fulcrum

Virtual

Teams

TREx

NetworksPast/Current Projects

Documentation

Project Connection

GetSmartTemplates

Successful Practice Connection

Processes, Products,

and Services

ePortfolioWhat Can We Do?

FIND:

• PeopleNet

• Communities & Teams

• Best Practices/Lessons

• Search CTC Intranets

• e-Learning Courses

• Start New Project Team

Knowledge Portal

• EarthSci Community

• Geo Modeling Tools

• GeoTool JIT Training

• Seminars

Role: Geoscientist

Jeff Stemke

Chevron Corp.

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SmarterIntegration: Project Focus

People Connection

Who Knows What?

Who Has Done What?

Network ConnectionTREx/BP Networks

Communities of Practice

Lessons

Learned

Virtual

TeamsPast/Current Projects

Documentation

Project Connection

Successful Practice Connection

Processes, Products,

and Services

ePortfolioWhat We Can Do

Jeff Stemke

Chevron Corp.

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SmarterAccountability - Executives

• Critical Element– Create the expectation of knowledge sharing as a way of

business enterprise-wide.

• Expectations– Market your organization’s knowledge to other Opcos.

– Recognize and reward specific business and employee

knowledge sharing.

• Measurement– Cite “specific” examples, relative to Business Plan, of

adapting ideas and sharing for business leverage (or by

exception where lacking) on individual PMP.

Jeff Stemke

Chevron Corp.

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SmarterAccountability – Managers

• Cite “specific” examples, relative to

Business Plan, of adapting ideas

and sharing for business leverage

• Document cycle time and cost

savings achieved through

knowledge sharing and best

practice replication, giving credit to

the knowledge source.

• Document “case studies” that show

desired “ways of doing things.”

• Identify intangible factors

associated with knowledge sharing

that contribute to project success.

Expectations Measures

• Recognize and reward specific

employee knowledge sharing.

• Market your organization’s knowledge

to other organizations.

• Set expectation to search for work to

leverage before starting a project and

to document results and lessons

before completion.

• Solicit peer participation at decision

milestones.

• Sponsor CoPs by providing time for

participation. Serve as a CoP

champion; fund the coordinator’s role.

• Be a member of at least one CoP.

• Identify potential “strategic transfer”

type collective knowledge.

• Share “stories” that illustrate

behaviors associated with knowledge

sharing.

Jeff Stemke

Chevron Corp.

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SmarterAccountability – Employees

• Cite “specific” examples,

relative to Business Plan, of

adapting ideas and sharing for

business leverage on individual

PMP.

• Document cycle time and cost

savings achieved through

knowledge sharing and best

practice replication, giving

credit to the knowledge source.

Expectations Measures

• Contribute to a CoP.

• Publicize a successful product,

process, or service; actively

looking for others who can use it.

• Adopt/adapt a successful

practice; credit the source.

• Search for work to leverage

before starting a project and

document results and lessons

before completion.

• Be a mentor, and/or participate in

peer consult, assist, and review

processes.

Jeff Stemke

Chevron Corp.

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SmarterTechnology Infrastructure

• Desktop– NT, MS Office, Exchange

• Collaborative Websites– Notes/Domino, QuickPlace, eRoom

• Realtime Conferencing– NetMeeting, Sametime

• Portal– Plumtree

• Web Business Applications– Visual Basic/Interdev, COM, Oracle, SQL Server…

Jeff Stemke

Chevron Corp.

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SmarterNext Adventure...

Simply

Smarter

Jeff Stemke

Chevron Corp.

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SmarterKnowledge Mergerment

Even Smarter

Jeff Stemke

Chevron Corp.

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