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KPMG Consulting Developing a Knowledge - Creating Organization A Case Study in Process KM World Santa Clara, CA September 14, 2000.

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Presentation on theme: "KPMG Consulting Developing a Knowledge - Creating Organization A Case Study in Process KM World Santa Clara, CA September 14, 2000."— Presentation transcript:

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2 KPMG Consulting Developing a Knowledge - Creating Organization A Case Study in Process KM World Santa Clara, CA September 14, 2000

3 KPMG Consulting Melinda J. Bickerstaff Director eWorkforce Solutions Group Melinda J. Bickerstaff Director eWorkforce Solutions Group

4 KPMG Consulting Renee A. Massoud Director KPMG Research Strategies Renee A. Massoud Director KPMG Research Strategies

5 KPMG Consulting Objectives u 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

6 KPMG Consulting Objectives u 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

7 KPMG Consulting AgendaAgenda 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?

8 KPMG Consulting AgendaAgenda 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?

9 KPMG Consulting 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 integrated approach 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 people at the right time Key Concepts and Business Drivers -13-

10 KPMG Consulting 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 concern

11 KPMG Consulting 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 concern

12 KPMG Consulting What’s Happening Out There: Knowledge Management 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...

13 KPMG Consulting What’s Happening Out There: Biggest Difficulties 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.

14 KPMG Consulting AgendaAgenda 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?

15 KPMG Consulting 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? n States the payoff to the organization n Is the driving force ( the “business driver”) that provides energy to manage knowledge systematically and fund KM initiatives n Focuses KM on the value chain n Is the basis for measuring results n Leads to senior leadership support n States the payoff to the organization n Is the driving force ( the “business driver”) that provides energy to manage knowledge systematically and fund KM initiatives n Focuses KM on the value chain n Is the basis for measuring results n Leads to senior leadership support A Value Proposition:

16 KPMG Consulting 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?

17 KPMG Consulting The Four Value Propositions are Built Around Entirely Different 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 Organization and structure Organization and structure Management systems Management systems 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 business processes Core business processes 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

18 KPMG Consulting Which business driver could your Knowledge Management activity be based on or linked to? Operational excellence Operational excellence Product leadership Product leadership Customer intimacy Customer intimacy Employee capability Employee capability Which business driver could your Knowledge Management activity be based on or linked to? Operational excellence Operational excellence Product leadership Product leadership Customer intimacy Customer intimacy Employee capability Employee capability Linking Knowledge Management to Your Business Strategy

19 KPMG Consulting AgendaAgenda 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?

20 KPMG Consulting Knowledge Management Process Knowledge Management Enablers Knowledge management is a process supported or hindered by organizational factors. Knowledge Management Model Leadership and Strategy Measurement Culture Technology and Infrastructure Organizational Knowledge Create Apply Adapt Organize Collect Share Identify

21 KPMG Consulting Leadership and Strategy The Process and Enablers Knowledge Management Process Knowledge Management Enablers Leadership and Strategy Measurement Culture Technology and Infrastructure Organizational Knowledge Create Apply Adapt Organize Collect Share Identify

22 KPMG Consulting Culture Knowledge Management Process Knowledge Management Enablers Leadership and Strategy Measurement Culture Technology and Infrastructure Organizational Knowledge Create Apply Adapt Organize Collect Share Identify The Process and Enablers

23 KPMG Consulting Technology and Infrastructure Knowledge Management Process Leadership and Strategy Measurement Culture Technology and Infrastructure Organizational Knowledge Create Apply Adapt Organize Collect Share Identify Knowledge Management Enablers The Process and Enablers

24 KPMG Consulting The Process and Enablers Measurement Knowledge Management Process Leadership and Strategy Measurement Culture Technology and Infrastructure Organizational Knowledge Create Apply Adapt Organize Collect Share Identify Knowledge Management Enablers

25 KPMG Consulting AgendaAgenda 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?

26 KPMG Consulting KPMG’s Knowledge Management Journey

27 KPMG Consulting 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 well

28 KPMG Consulting People People contribute to knowledge bases Process Embedded in core processes Content Consistent with strategy Technology ‘Just-in-time’ delivery KM Leverages Skills

29 KPMG Consulting “ The “ The global advisory firm whose aim is to turn knowledge into value for the benefit of its clients, its people and its communities” KPMG is...

30 KPMG Consulting... effective knowledge management is the key to success Information Overload Lack of Creativity Loss of In- House Knowledge Ineffective Decision Making Lack of Customer Responsiveness Limited Sharing of Best Practices KPMG is Facing Many Knowledge-Related Issues

31 KPMG Consulting HundredsofProductsHundredsofProducts 157 Countries 825 Cities 157 Countries 825 Cities 93, ,000 +staff The Old Approach

32 KPMG Consulting Enabling Knowledge Transfer and Sharing

33 KPMG Consulting What is KWorld? Messaging, collaboration and knowledge- sharing system that... n Becomes our universal business management tool integrating all other knowledge and information systems n Integrates client and team collaboration tools with global repositories of the firm’s intellectual capital n Becomes KPMG’s digital nervous system n Enables people and processes to get to content via technology

34 KPMG Consulting 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 Management Program

35 KPMG Consulting KWorld Brings Together Content Context Community Connectivity

36 KPMG Consulting 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 & Process Global Knowledge Exchange news feeds External Content KPMG Content Knowledge Manager

37 KPMG Consulting 15 Segments KPMG Library Conferences People Clients/Targets Products & Segments 19 Products ConsultingTaxAssurance FAS Regions ‘ Content in Context’ Our Unique and Proprietary Differentiation

38 KWorld is becoming the digital nervous system of KPMG. KWorld is becoming the digital nervous system of KPMG.

39 KPMG Consulting KWorld Collaboration kpmg.com KWorld Knowledge Sharing Content in Context Process People Technology The KWorld Program

40 KPMG Consulting 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 Commitment L O Y A L T Y Awareness Interest Installation Repeated Use A D O P T I O N Degree of Support C O L L A B O R A T I O N Time The KWorld Change Model is Set to Drive Adoption First

41 KPMG Consulting Building the Knowledge-Sharing Organization Day-to-Day Impacts on KPMG Employees… n Single Portal for Workflow n Human Knowledge Connectivity n Definition and Reinforcement of Processes n Goal Setting and Performance Review Support

42 KPMG Consulting AgendaAgenda 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?

43 KPMG Consulting KM Consulting Framework

44 KPMG Consulting www. kpmgeiq. com The Knowledge Management Enterprise Involvement Questionnaire (EIQ)

45 KPMG Consulting

46 KPMG Consulting AgendaAgenda 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?

47 KPMG Consulting Closing Comments or Questions Thank You and Good Luck in Your Knowledge Journey


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