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The Role of Knowledge Management within Your Support Center a/k/a Measuring the Success of Knowledge Management Programs Kathleen T. Masterson Knowledge.

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Presentation on theme: "The Role of Knowledge Management within Your Support Center a/k/a Measuring the Success of Knowledge Management Programs Kathleen T. Masterson Knowledge."— Presentation transcript:

1 The Role of Knowledge Management within Your Support Center a/k/a Measuring the Success of Knowledge Management Programs Kathleen T. Masterson Knowledge Manager

2 SOLUTION 6 2.11 Knowledge Management Process The SCP certification book, 5 th 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 Centers 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...

3 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

4 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...

5 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...

6 SOLUTION 6 Isnt that enough? Measuring Success... NO! Internal Requirements (executive managements expectations) External Prerequisites (certification, award contests) Measurement Madness You cant manage what you dont measure

7 SOLUTION 6 Measuring Success... Source: APQC Project Most KM measurement occurs in Stages 2 through 4 of KM life cycle

8 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 Dont force KM into an inappropriate measurement box Check & recheck your assumptions Be sure to support your organizations overall strategic direction Measuring Success...

9 SOLUTION 6 CHARACTERISTICS 1,2 OF INFORMATION QUALITY Accuracy Understandability Precision Usefulness Currency Sufficiency Output Timeliness Lack of bias Reliability Comparability Completeness Quantitativeness Conciseness Format Relevance 1 Bailey, 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...

10 SOLUTION 6 A FORMULA FOR INFORMATION QUALITY 3 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...

11 SOLUTION 6 What to measure? KB tools... hardware, software – Consider basic capital expenditures KB itself – Usage – Effectiveness Measuring Success...

12 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 acceptedDisadvantage: Easily manipulated Measuring Success... Hardware/Software

13 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

14 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). Theres a capital charge on the $700,000 of 15%. Measuring Success... Hardware/Software

15 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 systems maintenance charge must be so much lower than the old systems that it covers the new systems capital charge. _______________________________________________________________________________________________________________________________________________________ Advantage: CFOs love this!Disadvantage: What rate for capital charge? Measuring Success... Hardware/Software

16 SOLUTION 6 Payback Payback = Period Required to Recover Cost of an Investment The 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 calculate Disadvantage: Ignores time value of money; ignores cash flows after payback* Measuring Success... Hardware/Software

17 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

18 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

19 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 1 st month = $1.50... compare to benchmark... monitor individual authors Measuring Success... Usage/Effectiveness

20 SOLUTION 6 Incentives (KB) Objective incentive – KB Bonus Plan Subjective recognition – KB Spotlight Random reward – KB Movie Drawing Measuring Success... Usage/Effectiveness

21 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

22 SOLUTION 6 KM and the Balanced Scorecard Measuring Success... Usage/Effectiveness

23 SOLUTION 6 K a t h y M a s t e r s o n QUESTIONS? kathy.masterson@us.solution6.com Conclusion n o w l e d g e a n a g e m e n t


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