Chapter 15 Real Option Analysis for Knowledge Evaluation

Knowledge Management2 Common trap in choosing metrics The choice of wrong metric can have more ill effect than positive one. trap 1 : using too many metrics trap 2 : the consequences of delayed rewards select metric that can be measure today but have impact on future outcome trap 3 : metrics that are hard to control look good but only on paper ? trap 4 : metrics that tear people away from business goals

Chapter 15 Knowledge Management3 Common trap in choosing metrics EX. Telephone company 1) number of ring before the phone was answer 2) average waiting time 3) number of calls answered per hour per representative 4) number of time the customer was put on hold 5) percentage of each hour that an average representative spent talking to a customer CUSTOMER DISSATISFIED Right answer to wrong questions

Chapter 15 Knowledge Management4 Common trap in choosing metrics metric that trigger agency conflict prove more damaging than helpful. Not all metrics can be measured easily and cleanly EXAMPLE OF BAD METRIC count the time spending reading the knowledge from the intranet (drink beer while log on) count the number of contributions by employees to a knowledge repository (employee try to maximize the number but no value)

Chapter 15 Knowledge Management5 Common trap in choosing metrics EXAMPLE OF WEB FORUM BAD METRIC count the number of contributions by employees to a knowledge repository (employee try to maximize the number but no value) EXAMPLE OF WEB FORUM GOOD METRIC count the number of follow-up comments that their contribution raise the number of time that they responded to other people ’ s post

Chapter 15 Knowledge Management6 Agency – Agent conflicts

Chapter 15 Knowledge Management7 Agency – Agent conflicts Identify What Not to Measure? what is maximized what is desired not measure Where is knowledge sharing and creation ? Ignore and little reward ?

Chapter 15 Knowledge Management8 The Option Space Analysis

Chapter 15 Knowledge Management9 Regions of Attractiveness

Chapter 15 Knowledge Management10 A Portfolio of KM Investments

Chapter 15 Knowledge Management11 The KM Balanced Scorecard evaluate the impact of KM translate the KM vision communicate and link business planning learning and feedback

Chapter 15 Knowledge Management12 A Modified KM Scorecard การเงิน บุคลากร องค์การ ลูกค้า

Chapter 15 Knowledge Management13 A Modified KM Scorecard การเงิน บุคลากร องค์การ ลูกค้า

Chapter 15 Knowledge Management14 Conclusion Metric define KM success Use real option analysis Do not ignore the soft staff

Vaguely right....is better than.... precisely wrong