1. Knowledge Management at Bain

2. Most executives are not happy with KM
“How Satisfied Are You with Each Management Tool?”
“How Good is Each Management Tool at Getting Financial Results?
Source: Bain Management Tools & Techniques Survey (2001)
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3. Why KM Often Fails Not properly defining KM for the organization
Viewing KM as a separate function, versus just a part of business strategy
Not enough thought before technology
Misguided focus on people and process
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4. Bain has created a leading KM capability
A good strategy for content creation and capture
Focused, high value investments in intellectual capital
Deep mining of ongoing learnings from projects
The GXC - a great KM system
Classification/taxonomies
Integration of internal and external content
Integration of learning and knowledge
Powerful search
A lean, value-added KM team that
makes the process work
fits into existing company structures
A culture of sharing, not hoarding
Tacit
Codified
KM POV Aug 02
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5. Why KM matters to consulting firms
Two core assets: people and reputation
Our “product” is intangible
Global business, but with local differences
Partnerships, not hierarchies
Nature:
Generic frameworks and data are commoditizing
Industry life cycles shrinking
More MBAs, low entry barriers  competition!
Global service is required
Trends:
“Knowledge” is a critical capability for consulting firms
KM POV Aug 02
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6. Knowledge example in consulting
You’re working in the PC Industry
Data
Knowledge
Market size
Market share
Competitor prices
A commodity
The best way to segment the consumer market
How to streamline the supply chain
Impact of supplier consolidation on OEMs
A differentiator
World class KM programs manage & share both
KM POV Aug 02
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7. Overview of Bain and Company
Stockholm
Brussels
London
Moscow
Toronto
Paris
Zurich
Chicago
Boston
Milan
Munich
Beijing
Seoul
San Francisco
Madrid
Dallas
New York
Rome
Los Angeles
Atlanta
Tokyo
Mexico City
Hong Kong
Singapore
Sao Paulo
Sydney
Johannesburg
26 offices, working in 9 languages
Over 2,500 consulting staff, “generalist” model
Strict conflict and sharing standards
KM POV Aug 02
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8. Many KM failures over our first 26 years
( )
“Word of Mouth”
( )
“Experience Center”
( )
“BRAVA”
Many attempts at KM over our first 25 years
But none worked. Examples of our everyday pain…
Proposals still kept by each partner – requiring and fax
Research tools weren’t sufficient to do the job
Our “best” work was still in file cabinets
We still depended on word of mouth to find experts
We redid the same work multiple times each year
KM POV Aug 02
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9. Bain’s approach for getting it right
Key elements of KM:
Create
Capture
Organize
Transfer
Use
Business strategy
KM Objectives
Define KM for the company
Define your content strategy, and what needs to be created to support your strategy
Determine how to capture (e.g., format, timing)
Organize and classify knowledge based on the business’ “view of the world”
Determine best modes for Transferring and sharing knowledge
Ensure formats and access (e.g., IT) make use as easy as possible
KM POV Aug 02
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10. The objectives of KM for Bain
What It’s Not
Advance the science
Become famous authors
Fancy portals
Document management
What It Is
Provide our staff with the tools and skills to develop
Enable our consulting staff to work better and faster selling to new clients starting up work “cracking the case”
Apply Bain’s best global insights and approaches No “re-inventing the wheel”
Drive client results
KM POV Aug 02
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11. Bain’s knowledge is centered around our case teams
Client Development
Case Start-up
In-Depth Work & Recommendations
Implementation
(Partner)
(Partner, Manager and team)
(1-3 weeks)
(1-2 weeks)
(1-6 months)
(6 months +)
Knowledge “Needs”
Bain’s point of view on the industry and case topic
Great examples and approaches
Access to internal experts
External Research
Knowledge “Outputs”
New industry insights
New approaches (and solutions) to problems
Update to Bain’s point of view
Insights on managing the case and client
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12. Bain’s case & people experience Codified Bain insights
Our content strategy
Major research databases
Top external data sources
External content
Bain’s case & people experience
Sanitized summaries of every client project
Staff profiles & expertise
For “tacit” sharing
Codified Bain insights
Bain’s critical IP
Industry verticals
Capability areas
“Reusable” formats
Short shelf life
Tools and skills
Bain’s core global toolkit
Embedded in our staff training programs
Long shelf life
KM POV Aug 02
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13. Bain’s case & people experience Codified Bain insights
The BVU and GXC
External content
Bain’s case & people experience
Codified Bain insights
Tools and skills
GXC 1.0
launched 2000
GXC 2.0
BVU 2.0
Launched
October 2002
BVU 1.0
Launched 1999
KM POV Aug 02
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14. GXC 2.0 home page
MyBain is our new worldwide intranet. It is your customized window into Bain and the Internet.
KM POV Aug 02
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15. Additional screen shots removed due to sensitivity
KM POV Aug 02
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16. 10 industry pages on the GXC
MyBain is our new worldwide intranet. It is your customized window into Bain and the Internet.
KM POV Aug 02
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17. Presentations are in an easy-to-use, web-based format
KM POV Aug 02
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18. Bain Virtual University
MyBain is our new worldwide intranet. It is your customized window into Bain and the Internet.
KM POV Aug 02
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19. BVU video modules
KM POV Aug 02
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20. New External Sources Page speeds up your research
MyBain is our new worldwide intranet. It is your customized window into Bain and the Internet.
KM POV Aug 02
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21. The GXC has changed the way Bain works
“Thanks to the GXC, I was able to pull together a preez on the impact of a proposed merger in the internet space here in Australia in just 24 hours. The deadline would normally have been impossible to meet with any quality, but we got it done. I love this tool!”
Manager, Sydney
“We pulled a case example on Asset Management in the Financial Services Page to create a presentation for the client in only 1 day. It was fantastic!”
VP, Munich
“GXC is fantastic, I am saving hours already!”
AC, Dallas
“Your KM system is one of the most intuitive and sophisticated that I have ever seen. You could do alot to help us out in this area.”
Bain Client
KM POV Aug 02
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22. Bain knowledge creation and captureIP
Development
Selling process
Case Start-up
Case-end
Output:
Focused investments
Create new Bain points of view
Proposals
Case summaries
In-depth codified modules
Top external sources
Minimum Goal:
Driven by Industry & Capability Practices
Capture on 50% of cases
100% compliance
Accurate case tagging
One good module on 50% of cases
New data sources from every case
KM POV Aug 02
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23. Many roles make this process work
The case team is the center of knowledge creation. Their knowledge and captured, codified and shared through the Knowledge Brokers, Knowledge Officers, IS and Practice Area Heads
Dedicated facilitators for knowledge capture and sharing
Knowledge Broker
Case Team
Partners who oversee Bain’s global Capability and Industry practices
Practice Areas
Knowledge Officer
Office-based GXC evangelist
Runs office incentive programs
Contribute best work to share across Bain
Info Services
Best external data sources
Research databases
KM POV Aug 02
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24. Knowledge Brokers at Bain
Regional Knowledge Broker
Knowledge Specialist
“Office generalists”
“Global topic specialists”
Assigned by office
Generalist KM support to teams in their offices
Assist finding content/people
Ensures accurate case tagging
Helps write case summaries
Probes case teams to find potential team insights to codify
Case end manager interview
Interfaces with relevant Knowledge Specialists
Runs office incentive programs with Knowledge Officer
Assigned by Industry or Capability Practice Area
Manages the GXC content and web site in their areas
Coordinates IP development and capture with Practice Area VPs
Supports Practice Area on communications, projects and incentives
KM POV Aug 02

25. Metrics and incentives
Office
Practice Area
Individual
Office KM Scorecard
Measures all office KM contributions
Normalizes for size
Sent quarterly to office heads and MD
KM factored in Office Head performance
Annual Office Knowledge Award
1 large, 1 small office
For all KM efforts
Practice Scorecard
Measures KM progress in PA
Sent quarterly to PA heads and MD
KM is a core factor of performance and comp for PA heads
Annual VP ratings
Assess KM contributions by each VP
Factored into annual comp
Office-based “sticks and carrots”
KM POV Aug 02
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26. So what’s the impact? We can’t and won’t measure ROI
You may want to delete the sub bullets, which I put in for context
We can’t and won’t measure ROI
Most of the costs are “soft” and can’t be measured
Our product is intangible
KM is only one of many inputs
Today we capture many key success indicators
Usage
Satisfaction (annual surveys)
Online quality ratings
Informal “feel”
But, this is not sufficient
KM POV Aug 02
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27. Our framework for KM impact
You may want to delete the sub bullets, which I put in for context
Drive
client
results
Improve
Staff
Productivity
Build
Relationships/
Increase
revenues
Decrease
costs
KM POV Aug 02
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28. What we know so far Build Drive Improve client Relationships/ Decrease
You may want to delete the sub bullets, which I put in for context
Drive
client
results
Improve
Staff
Productivity
Build
Relationships/
Increase
revenues
Decrease
costs
Teams deliver better quality and results, in less time
More time to “crack the case”
Access to the “best” insights
Better client collaboration
Our client work is globally consistent
Partners build proposals in 30% less time
The case team process runs 30%+ faster
Contact within the Bain network has increased
Client leads have increased
Win rates at “bakeoffs” have grown
Classroom training costs cut by $1M
Shorter programs
No paper
Caseteam expenses have decreased
Research
Telecom costs
KM POV Aug 02
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29. Our next steps Build Drive Improve client Relationships/ Decrease
You may want to delete the sub bullets, which I put in for context
Drive
client
results
Improve
Staff
Productivity
Build
Relationships/
Increase
revenues
Decrease
costs
Institutionalize regular customer research on the impact of KM on our jobs
Partners
Other consulting staff levels
Structured interviews and surveys, built around this impact framework
Use results to direct
Changes to content strategy and priorities
Addition investments in the GXC
Further process improvements
KM POV Aug 02
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30. Our key learnings Content and thought first, before the technology
Build around how people really work and what they need
Quality over quantity
Internal and external knowledge together
Massive focus on people and process
Knowledge Brokers
Practice Area VPs
Commitment from top management
KM POV Aug 02
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