the role of knowledge management within your support center a/k/a measuring the success of knowledge...
TRANSCRIPT
The Role of Knowledge Management within Your Support Center
a/k/a Measuring the Success of Knowledge Management Programs
Kathleen T. Masterson
Knowledge Manager
SOLUTION 6
2.11 Knowledge Management Process The SCP certification book, 5th edition suggests a support
center should have– a formal documented knowledge management process to
maintain the knowledgebase ... and to resolve issues and obtain product information
Solution 6 began its KM initiative with the Tallahassee Support Center’s Knowledge Base– a searchable document management system stocked with
articles to allow clients, support reps and other registered users to find answers in a self-service manner
Role of KM ...
SOLUTION 6
Then ... 200 articles No formal content
management No processes for article
creation, publication, maintenance
No mechanisms to trigger article creation
“Just Do It”
Role of KM ...
And now ... 2500 articles (internal and
external) Dedicated Knowledge
Manager, KB Coordinator, Web Developer and KB Black Belts
Processes firmly in place* Capture “Best Practices”
and “Lessons Learned”
SOLUTION 6
A “modicum” of Knowledge Base success ... SCP recognition
– High scores– Positive narrative in audit report– Support Secret Candidate– Invitation to Roundtable
ASP contest– Well above average scores related to Knowledge Base, two
consecutive years
Client and other user feedback
Role of KM ...
SOLUTION 6
A “modicum” of Knowledge Management success ... Within our organization
– Promotion of KB Coordinator to Knowledge Manager– Expansion of Knowledge Center Department*– Increased visibility in organization– Increased direct participation with client base
Beyond our organization– External publications (SCP publications, LawNet, KMPro)– Speaking engagements (SCP, Users’ Groups, Taskforce)– “Fellow” position on the National Knowledge & Intellectual
Property Management Taskforce
Role of KM ...
SOLUTION 6
Isn’t that enough?
Measuring Success ...
NO!
Internal Requirements (executive management’s expectations)
External Prerequisites (certification, award contests)
Measurement Madness
You can’t manage what you don’t measure
SOLUTION 6 Measuring Success ...
Source: APQC Project
Most KM measurement occurs inStages 2 through 4 of KM life cycle
SOLUTION 6
Admonitions/Considerations Knowledge Management is “soft” (intangible); most
measures are for “hard” aspects (tangibles) Are you relying on people, technology or both for your KM
efforts? Easier to measure “explicit” rather than “tacit” knowledge Don’t force KM into an inappropriate measurement box Check & recheck your assumptions Be sure to support your organization’s overall strategic
direction
Measuring Success ...
SOLUTION 6
CHARACTERISTICS1,2 OF INFORMATION QUALITY
• Accuracy • Understandability• Precision • Usefulness• Currency • Sufficiency• Output Timeliness • Lack of bias• Reliability • Comparability• Completeness • Quantitativeness• Conciseness• Format• Relevance
1Bailey, James E and Sammy W. Pearson, “Development of a Tool for Measuring and Analyzing Computer User Satisfaction,” Management Science, Vol 29, No 5, May 1983, pp530-545
2 Srinivasan, Anath, “Alternative Measures of System Effectiveness: Associations and Impliciations,” MIS Quarterly, Vol 9, No 3, September 1985, pp243-253
Measuring Success ...
SOLUTION 6
A FORMULA FOR INFORMATION QUALITY3
Info. Quality = Recall * Precision * Coverage * Currency
Recall is the ability to locate all relevant documents
Precision is the ability to find only relevant documents
Coverage is the breadth of completeness of stored information sources
Currency is the “shelf life” (before the information should be archived)
3 Martin, Kingsley, Law Office Management Workbook
Measuring Success ...
SOLUTION 6
What to measure?
KB tools ... hardware, software
– Consider basic capital expenditures
KB itself
– Usage
– Effectiveness
Measuring Success ...
SOLUTION 6
ROI: Return on Investment
To Accountants/Financial Analysts:Net Income/Average Total Assets
To Business Managers:PV of Incremental Gain/Total Cost of Project
(where PV is Present Value)____________________________________________________________
Advantage: Readily accepted Disadvantage: Easily manipulated
Measuring Success ...Hardware/Software
SOLUTION 6
EVA® Economic Value Added
NOTE: Research suggests there is no direct correlation between profitability and technology investments. (Paul Straussman and Martin Butler)
EVA = Net Operating Profit After Taxes – (Capital * Cost of
Capital)
Modify for IT investments . . .
EVA was developed by Stern Stewart & Co.
Measuring Success ...Hardware/Software
SOLUTION 6
EVA® Example
The firm is considering replacing its network storage system (that carries an annual maintenance expense of $200,000 per year) with a new system costing $700,000 (and carrying an annual maintenance charge of $75,000 per year).
There’s a capital charge on the $700,000 of 15%.
Measuring Success ... Hardware/Software
SOLUTION 6
EVA® Example
EVA = Net Operating Profit After Taxes – (Capital * Cost of Capital)
= ($200,000 old - $75,000 new) –($700,000 * .15)
= $20,000
The new system’s maintenance charge must be so much lower than the old system’s that it covers the new system’s capital charge.
_______________________________________________________________________________________________________________________________________________________
Advantage: CFOs love this! Disadvantage: What rate for capital charge?
Measuring Success ...Hardware/Software
SOLUTION 6
Payback
Payback = Period Required to Recover Cost of an InvestmentThe firm is considering investing in a machine that costs $11,875
and is expected to generate an annual cash savings of $2,500.Payback = $11,875/$2,500
= 4.75 (4 years, 9 months)___________________________________________
Advantage: Simple to understand; easy to calculateDisadvantage: Ignores time value of money; ignores cash flows after
payback*
Measuring Success ...Hardware/Software
SOLUTION 6
Usage (KB) Develop strategic goals
– Number of hits per article– Average hits per author ... categories (per Support author, overall)
Track articles per Support rep Monitor article types Traffic (web statistics)*
Effectiveness (KB) Review article rating Ability to close issue
Measuring Success ...Usage/Effectiveness
SOLUTION 6
COI Cost of Information
COI = Document Preparation Cost / Rate of Reuse
Document Preparation Cost is the total cost of article preparation
Rate of Reuse is the average number of documents in the system divided by the total number of times a document is reused in a designated period
Measuring Success ...Usage/Effectiveness
SOLUTION 6
COI Cost of Information
COI = Document Preparation Cost / Rate of Reuse
Document Preparation Cost: How much time was spent preparing the document?
Rate of Reuse: Number of hits within a designated period
(1.5 hours at average rate of $20) / 20 hits in 1st month
= $1.50 ... compare to benchmark... monitor individual authors
Measuring Success ...Usage/Effectiveness
SOLUTION 6
Incentives (KB)
Objective incentive– KB Bonus Plan
Subjective recognition– KB Spotlight
Random reward– KB Movie Drawing
Measuring Success ...Usage/Effectiveness
SOLUTION 6
KM and the Balanced Scorecard
Human Capital – all individual capabilities, the personal knowledge, skill and experience of employees and managers
Intellectual Capital – intangibles such as information, knowledge and skills that can be leveraged by the organization
Social Capital – the goodwill resulting from physical and virtual interchanges between people with like interests who are willing to share ideas
Structural Capital – the processes, structures and systems an organization owns (less the people involved)
Measuring Success ...Usage/Effectiveness
SOLUTION 6
KM and the Balanced Scorecard
Measuring Success ...Usage/Effectiveness
Balanced Scorecard Generic Measures Intellectual CapitalFinancial ROI, EVA Intellectual
Customer
Satisfaction, Retention, Market & Account Share Social
Internal
Quality, Response Time, Cost & New Product Intro. Structural
Learning & Growth
Employee satisfaction, IS availability Human
SOLUTION 6
K a t h y
M a s t e r s o n
QUESTIONS?
Conclusion
n o w l e d g e
a n a g e m e n t