©Andersen Consulting 2000 Knowledge Management: Implementation and Considerations Seamus Mulconry

Implementing Knowledge Management ©Andersen Consulting 2000 Agenda What is Knowledge Management? Why Knowledge Management? Andersen Consulting and KM Critical Success Factors

Implementing Knowledge Management ©Andersen Consulting 2000 What is Knowledge Management? Knowledge n. 1. The state or fact of knowing. 2. Familiarity, awareness, or understanding gained through experience or study. 3. That which is known; the sum or range of what has been perceived, discovered, or inferred. Management n. 1. The act, manner or practice of managing, handling, or controlling something. 2. The person or persons who manage a business establishment, organization or institution

Implementing Knowledge Management ©Andersen Consulting 2000 What is Knowledge Management? Andersen Consulting Definition: A systematic process for creating, acquiring, synthesizing, sharing and using information, insights and experiences to achieve your organizational goals.

Implementing Knowledge Management ©Andersen Consulting 2000 Agenda What is Knowledge Management? Why Knowledge Management? Andersen Consulting and KM Critical Success Factors

Implementing Knowledge Management ©Andersen Consulting 2000 Why KM? “Fortune 500 Companies Will Lose $12 Billion in 1999 due to Knowledge Management Inefficiencies” International Data Corporation (IDC) October 6, 1999 Intellectual Rework Substandard Performance Obsolete Knowledge Employee Turnover

Implementing Knowledge Management ©Andersen Consulting 2000 Why KM: Drivers Increasing Competition Excess Capacity Maturing Markets Maturing Technologies Customer Pressures Complexity of Environmental and Safety Regulations Deregulation, Political Instability Customer Focused Value Propositions Globalization Diversification through Acquisitions, Alliances KM to Improve Performance Employee Productivity Improvement Integrated Operations Rationalization of Multiple Organizations like R&D, Finance, HR, etc.

Implementing Knowledge Management ©Andersen Consulting 2000 Why KM: a Business Enabler Information is power, hence, it is hoarded Work is optimized in silos, delivering value within work units Information, experts, and lessons learned are hard to locate Underutilized investment in technology Local focus on information, reacting to situations Knowledge is seen as a valued corporate asset; people sharing knowledge is the only way to improve Work is optimized by virtual, integrated teams, delivering value as an enterprise Corporate memory is captured, measured, improved, and easily accessed Technology fully supports business needs and delivers value Global focus on corporate knowledge proactively seizes upon opportunities Typical Company ScenarioKnowledge Management Approach

Implementing Knowledge Management ©Andersen Consulting 2000 KM Must Consider the Business Model Systematic, repeatable work Highly reliant on formal processes, methodologies or standards Dependant on tight integration across functional boundaries Collaborative Groups Individual Actors Routine Interpretation/ Judgement eg Supply Chain Management Improvisational work Highly reliant on deep expertise across multiple functions Dependant on fluid deployment of flexible teams eg R& D Routine work Highly reliant on formal rules, procedures and training Dependant on low-discretion workforce or automation eg Retail Operation Judgement-oriented work Highly reliant on individual expertise and experience Dependant on star performers eg Marketing & Advertising Integration Model Collaboration Model Transaction ModelExpert Model Interdependence Complexity of Work

Implementing Knowledge Management ©Andersen Consulting 2000 KM Strategies Can Create Value KM Challenge “Orchestrating across functions” KM Strategy Integrated processes Integrated teams Best practice benchmarking Collaborative Groups Individual Actors Routine Interpretation/ Judgement Integration Model Collaboration Model Transaction ModelExpert Model Interdependence Complexity of Work KM Challenge “Achieving breakthrough innovation” KM Strategy Strategic framing Knowledge linking Active learning KM Challenge “Consistent low-cost performance” KM Strategy Routinization Automation KM Challenge “Getting results from stars” KM Strategy Experienced hiring Apprenticeships/development Capability protection

Implementing Knowledge Management ©Andersen Consulting 2000 Agenda What is Knowledge Management? Why Knowledge Management? Andersen Consulting and KM Critical Success Factors

Implementing Knowledge Management ©Andersen Consulting 2000 Andersen Consulting background Global Organization 66,000+ professionals $10+ billion 1999 estimated fees 146 offices worldwide 46 countries

Implementing Knowledge Management ©Andersen Consulting 2000 Investing in Knowledge Management 50,000 Lotus Notes users worldwide $500 million per year Knowledge organized by Communities of Practice 350+ full time knowledge managers Employee evaluations consider contribution and reuse of knowledge KM Efforts began 1992 Lotus Notes Worldwide 24x7 operations 450 Domino servers databases Integrates administrative functions such as evaluations, annual reviews, skills inventories

Implementing Knowledge Management ©Andersen Consulting 2000 Our Journey with KM Smart Smart Workplace Workplace “Build it, and they will come”  Lotus Notes/KX  Discussion Databases  “Connections” “Knowledge is actively managed”  Meta-knowledge; managed vocabulary  Thought Leadership  Web-like technology  “Aggregation & Combination” “Knowledge is a by-product”  Document Libraries  Communities  “Contributions” Knowledge Knowledge Outfitting Outfitting Knowledge Knowledge Sharing SharingEnablingInfrastructure “Our best knowledge guides our activities”  Integrated performance support  Job tools are knowledge tools  “Continuous Learning” ?

Implementing Knowledge Management ©Andersen Consulting 2000 KM Services at Andersen Consulting Common Services AC KM Enablement Services Knowledge Value Services 6. Community of Practice Start-up 7. CoP Knowledge Capital Planning 8. CoP Operations 9. Content Acquisition and Development 10. Content Management 11. Content Publishing and Distribution Client Team Knowledge Services 1. Client Team KM Enablement 2. Client Team Knowledge Planning 3. Client Team KM Operations 4. Knowledge Equipping 5. Knowledge Contrib. 12. KM Helpdesk, Assisted Search 13. Information Retrieval, Analysis Research 14. KM Training Delivery 15. Enable the Community of Communities 16. Plan and Manage the KM Architecture 17. Manage AC’s Global KM Function Enabling Supplying/Outfitting/Applying

Implementing Knowledge Management ©Andersen Consulting 2000 KM Roles at Andersen Consulting

Implementing Knowledge Management ©Andersen Consulting 2000 Doug Q. Public Everyone is evaluated for Knowledge Sharing

Implementing Knowledge Management ©Andersen Consulting 2000 KM at Andersen Consulting: The Knowledge Xchange A knowledge management architecture Standards, infrastructure, tools that enable the global exchange of knowledge capital A portfolio of applications that help distribute, retrieve and foster discussion around internal and external content A system that transcends the barriers of geography, enabling Andersen Consulting personnel access any time, any where.

Implementing Knowledge Management ©Andersen Consulting 2000 KM at Andersen Consulting: KX Technology Full access to internal, external information, from anywhere, at any time Instantaneous information capture and availability Electronic search and search agents Profiles, automated Push Integrates administrative system Paper a display tool, not filed

Implementing Knowledge Management ©Andersen Consulting 2000 Directory Databases (e.g., KX Yellow Pages, KX Front Page) Reference Databases (e.g., Industry/Competency Libraries) Discussion Databases (e.g., Change Management Forum, Financial Services Discussion) External Databases (e.g., Newsfeeds, Gartner Group) Application Databases (e.g., Call Tracking) How Is the Knowledge Xchange Organized?

Implementing Knowledge Management ©Andersen Consulting 2000 KX Front Page - A “portal” to the Knowledge Xchange to help you find information, access databases, receive announcements and perform your work more efficiently.

Implementing Knowledge Management ©Andersen Consulting 2000 KX Yellow Pages - The easiest way to find a database on the Knowledge Xchange is via the Yellow Pages

Implementing Knowledge Management ©Andersen Consulting 2000 People and Places Name and Address Book - listing of all mailing lists and Lotus Notes Ids in the firm Chicago Metro Office Directory - Directory of employees and guests in Chicago Metro area (including St. Charles, and Northbrook) AC Client Service Directory - directory of AC offices and executive personnel in the firm

Implementing Knowledge Management ©Andersen Consulting 2000 AC Client Experience - To help you answer basic questions at any stage of work you may be doing for a target or current client. AC Client Experience

Implementing Knowledge Management ©Andersen Consulting 2000 Library Databases To support communities by encouraging your contribution of community- related information on proposals and engagements. They contain engagement support information; Market Unit and Competency knowledge capital; engagement deliverables, technical and functional designs, workplans, presentations, white papers, proposals, etc.

Implementing Knowledge Management ©Andersen Consulting 2000 Discussion Databases - Support communities by providing a general forum for community specific discussions. Contains announcements, marketing memos, newsletters; requests for project advice and/or expertise from other readers; responses to queries; Opinions, ideas, experiences, etc. Discussion Databases

Implementing Knowledge Management ©Andersen Consulting 2000 News First! Newsfeed is a database which provides current news stories on selected topics and companies within various industry groups. First! in Brief, enables each subscriber to receive, via Notes mail, a tailored subset of news from the a First! Newsfeed.

Implementing Knowledge Management ©Andersen Consulting 2000 Industry Analysts Industry Analyst databases are databases which provides reports, research, etc. on selected topics and industries. Some databases are subscription-based and some are open for public access. We also have access to internet sites only (such as Computer Economics, Dow Jones, etc.). Please see the KX Yellow Pages for a complete listing of external resources.

Implementing Knowledge Management ©Andersen Consulting 2000 KM at Andersen Consulting: How is it used A Day in the life… request Search a Library Post a request to Discussion Start a search, internal & external Review Methodology, Best Practices Retrieve related proposals, work-product Evaluation contributions

Implementing Knowledge Management ©Andersen Consulting 2000 KM at Andersen Consulting: Benefits Supports global complexity Rapid institutional learning Global communication and coordination Keeps professionals close to the business Changes all aspects of business: Opportunity management Service delivery Practice management

Implementing Knowledge Management ©Andersen Consulting 2000 Agenda What is Knowledge Management? Why Knowledge Management? Andersen Consulting and KM Critical Success Factors

Implementing Knowledge Management ©Andersen Consulting 2000 Keys to Successful KM © Strategy TechnologyPeople Process How do you create a culture for sharing? Which people need to be empowered to contribute the right knowledge? Are priorities aligned with measurements? Are the right processes in place to - capture, refine and create knowledge - disseminate, share and apply knowledge to deliver business value? What tools are currently in place? What tools are needed to enable the environment? How do you fill the gap? Which factors are critical for my business that can be addressed by Knowledge Management? Which knowledge adds the most value? What are the highest priority initiatives?

Implementing Knowledge Management ©Andersen Consulting 2000 Success Factors: Strategy Start with a holistic business integration approach: Align strategy, people, process and technology Top management must be committed, be leaders and role models Focus company on development and exploitation of knowledge capital Make knowledge accessible to everyone who can contribute to it or use it Account for knowledge as a strategic asset Be patient--this is a way of life, not a quick fix

Implementing Knowledge Management ©Andersen Consulting 2000 Success Factors: People Create a culture of sharing and use/reuse Implement incentives, rewards, recognition, evaluation. Measure knowledge sharing activities Create a Knowledge Management organization Assign roles Identify sponsors Integrate knowledge in training

Implementing Knowledge Management ©Andersen Consulting 2000 Success Factors: Process Make knowledge use and contribution a natural part of the business process Define standard processes for managing knowledge capital Eliminate redundant systems and channels

Implementing Knowledge Management ©Andersen Consulting 2000 Success Factors: Technology Create a seamless infrastructure Design and deploy a KM Architecture Standardize tools and technologies Operate as mission critical