km as the engine of business process improvement

Knowledge Management as the Engineof Business Process Improvement

Thomas W. HoglundChief Knowledge [email protected](312) 399-6234

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TopicsTopics

The business environment for KM at EDS

Our process-oriented approach to KM

Results & lessons learned

BusinessContext Content

Processes

Technology& Tools

Organization

Culture &Behavior

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The Business Environment for KM at EDSThe Business Environment for KM at EDS

• World’s most experienced outsourcing company

• #87 on Fortune 500 list

• 130,000 employees

• Annual revenue of $21.5 billion

• Manage 1 million software applications on 65,000 servers in 189 data centers around the globe

• Support 3 million desktops

• Respond to 20 million support calls per year

• Process 2 billion credit card transactions per year

• Process 1 billion health insurance claims per year

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Our KM VisionOur KM Vision

Vision

• Leverage the collective experience and expertise of all our employees to create, sell and deliver world class solutions that make our clients successful

Strategy to get there

• Apply KM to targeted, high-impact business processes

• Implement discrete projects to drive measurable results

• Use these projects to:

– Begin driving broader cultural changes

– Continue to enhance/standardize KM methodology, tools and skills

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BusinessContext Processes

Content

Culture &Behavior

Organization

Technology& Tools

KM Building BlocksKM Building Blocks

BusinessContext Processes

Content

Technology& Tools

Organization

Culture &Behavior

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Processes

Technology& Tools

Organization

Culture &Behavior

Critical Types of KnowledgeCritical Types of Knowledge

To be successful, we need: From a KM standpoint, we need to:

Consistent processes to define, sell and deliver our offerings

Create, disseminate, use

and provide feedback

Process Knowledge

Standard packaging of the information needed to sell and deliver a particular offering

Create, disseminate, use

and provide feedback

Portfolio Knowledge

Information re how we’ve actually sold, configured and delivered offerings to our clients

Capture, disseminate, re-

use and mineExperience Knowledge

Access to appropriateexternal informationneeded to make decisions

Synthesize and disseminate

External Knowledge

Provide templates to share

Team Knowledge

Efficient ways for teams tocreate and monitor their workfor a particular pursuit/client

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Processes

Technology& Tools

Organization

Culture &Behavior

Our Core Business ProcessesOur Core Business Processes

DefinePortfolio Sell Deliver

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Processes

Technology& Tools

Organization

Culture &Behavior

Major Knowledge FlowsMajor Knowledge Flows

DeliverDefinePortfolio

Portfolio K Sell

External K

Portfolio K

SalesOperations

Sales Process

K

OtherSales

Teams

SalesExperienceKnowledge

TeamKnowledge

Team K

PortfolioOperations

OfferingProcess

K Exte

rnal

K

Team Knowledge

OtherDeliveryTeams

DeliveryExperienceKnowledge

DeliveryOperations

Delivery Process

K

TeamKnowledge

External K

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Processes

Technology& Tools

Organization

Culture &Behavior

Top PrioritiesTop Priorities

SellPortfolio K

SalesOperations

Sales Process

K

OtherSales

Teams


DefinePortfolio Deliver

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Processes

Technology& Tools

Organization

Culture &Behavior

Knowledge RepositoriesKnowledge Repositories

Portfolio Playbook

knowledgeCentreSales NetworkPortfolio KnowledgeSales Process Knowledge Sa

les E

xper

ience

Kno

wledge

Linka

ges/S

earc

h

Linkages/Search

Linkages/Search

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Technology& Tools

Process Knowledge Portal ExampleProcess Knowledge Portal Example

Specific deliverable

Major steps in sales process Specific tasks

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Technology& Tools

Portfolio Knowledge Example

StandardInfo

Available

Portfolio Knowledge ExampleOffering

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Technology& Tools

Experience Knowledge ExampleExperience Knowledge Example

Can navigate by company, offering, document type, etc.

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ContentPrioritizing - the Knowledge PyramidPrioritizing - the Knowledge Pyramid

Quantity of K

Knowledge Artifacts of Business Processes

Best Of Knowledge

Standards Maturity of Business ProcessValu

e of C

onten

t

Round Up Institutionalize

Evaluate

Harvest/Innovate

Know-w

hat

Know-h

ow

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ContentSample Knowledge Pyramid - SalesSample Knowledge Pyramid - Sales

Knowledge Artifacts of Business ProcessesExamples: Closed Sales, Lost Sales, Proposals,

RFP Responses, Cost Models, Work Plans

Best Of KnowledgeExamples:

Best of Breed Proposals; Best of Breed Work Plans

StandardsE.g. Standard

Proposal Templates, sales process, portfolio offerings

Maturity of Business ProcessValu

e of C

onten

t

Evaluate

Harvest/Innovate

Know-w

hat

Know-h

owFocus here for

experience knowledge

Focus here for portfolio &

process knowledge

Round Up InstitutionalizeQuantity of K

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Build KM Processes Into Core BusinessBuild KM Processes Into Core BusinessProcesses

ManageApplyDistributeOrganizeCaptureCreate

Knowledge Management Process

DeliverServices

OpenJob

NumbersWin

AccountPresent

ProposalWrite

Proposal

Business Process

What steps in the

business process can we

leverage?

Where in the business process

should people use K?

Are people using K?Value?

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ProcessesFeedback LoopsFeedback Loops

SellPortfolio K

SalesOperations

Sales Process

K

OtherSales

Teams


Feedback

Feedback

DefinePortfolio Deliver

Feedback

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ProcessesKM Enables Process ImprovementKM Enables Process Improvement

The Process Improvement

Cycle

Embody the Process

ContributeShared

Artifacts

MonitorProcess

MeasuresSynthesize

InternalBest

Practices

DiscoverExternal

BestPractices

DesignImprovedProcess

IntegrateSupporting

Applications

HarvestShared

Learnings

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ProcessesKnowledge Activities and BenefitsKnowledge Activities and Benefits


Cycle

Embody the Process

ContributeShared

Artifacts

MonitorProcess

MeasuresSynthesize

InternalBest

Practices

DiscoverExternal

BestPractices


IntegrateSupporting

Applications

HarvestShared

Learnings

• Make process repeatable

• Shorten learning curve

• Eliminate re-entering data

• Reduce errors• Reduce cycle

time• Reduce time

searching for applications

• Reduce time searching for information

• Reduce duplication of effort

• Avoid repeating mistakes

• Identify innovative approaches

• Understand how well the process is working

• Raise overall level of quality and efficiency

• Learn from world class organizations

• Increase efficiency

• Increase quality• Reduce cycle

time

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ProcessesKM Enabling Process ImprovementKM Enabling Process Improvement


Cycle

Embody the Process

ContributeShared

Artifacts

MonitorProcess

MeasuresSynthesizeInternal

BestPractices

DiscoverExternal

BestPractices


IntegrateSupporting

Applications

HarvestShared

Learnings

• Make process repeatable

• Shorten learning curve

• Eliminate re-entering data

• Reduce errors• Reduce cycle

time• Reduce time

searching for applications

• Reduce time searching for information

• Reduce duplication of effort

• Avoid repeating mistakes

• Identify innovative approaches

• Understand how well the process is working

• Raise overall level of quality and efficiency

• Learn from world class organizations

• Increase efficiency

• Increase quality• Reduce cycle

time

Workflow

EAI/WebServices C

ontentM

gtKnowledgePortal

Dash

Bo

ards

Collaboration

Con

tent

Feed

s

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• Productivity &Efficiency

• Sales Growth

• Service Excellence &Innovation

Business Goals• Survey hours saved &

extrapolate• Compare profitability of

engagements adopting KM versus not & extrapolate

• Collect anecdotes from top users

• Survey sales leads re KM contribution to success

• Compare win rate of pursuits adopting KM versus not & extrapolate

• Collect anecdotes from top users

• Survey delivery leads re KM contribution to client satisfaction

• Compare service excellence scores of engagements adopting KM versus not & extrapolate

Business Impact

+ =

How Do You Measure Business Impact?How Do You Measure Business Impact?

KM SystemContribution Behavior• Contributor penetration and

growth• Quantity of K contributed• Types of items contributed• Percentage of sales, pursuits

and engagements captured• Quality of K contributed• Recognition of top contributors Knowledge Re-Use Behavior• Knowledge re-use penetration

& growth• Number of K objects re-used• Recognition of top re-usersOther• Leadership support• Membership penetration &

growth• Member satisfaction

Monthly Monthly Annually

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KM Can Have Big Impact - ExampleKM Can Have Big Impact - Example

Contribution of Knowledge

0

2,000

4,000

6,000

8,000

10,000

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Target 8

Target 9

Target 10

Target 11

Target 12

Period Ended

Cum

ulat

ive

Con

trib

utio

ns

Store of Knowledge has increased 34X

Re-Use of Knowledge

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Target 8

Target 9

Target 10

Target 11

Target 12

Period Ended

Cum

ulat

ive

Dow

nloa

dsUsage of

Knowledge has increased 12X

Nine month pilot results

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Pilot ImpactPilot Impact

“The knowledge repository is becoming the first place to look for competitive information and leading edge solutions. Our ability to provide thought leadership was the pursuit driver in influencing our client. Information for the development of the presentation took 30 minutes rather than two days. If we had not been able to access the knowledge repository and peers were required to respond, it would have taken an additional week to get the information". Easwaran Nadhan, Principal, BAS

“I have used the knowledge repository several times over the past few months, primarily to reuse collateral. For example, I’ve used it to compile a presentation on EDS’ .NET capabilities and also to develop a presentation on EDS’ capabilities and experience with Web Hosting. Finding collateral on the repository has increased the credibility of my presentations by providing additional examples, case studies and details. I have saved about 40 hours so far this year by using material in the repository.”

Phillip McMullen, Lead Technologist, Application Services

“Knowledge repository utilization was a contributor to the win at XXXX for a $1.2 M portal and middleware development pursuit. We did the information gathering in 50% of the time (spent four hours vs. eight hours). Without the repository, it would have required a mass mailing and multiple follow-ups".

B.J. Joshi, Managing Consultant, BAS

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Top Five Lessons LearnedTop Five Lessons Learned

1. Technology is easy, changing behaviors is hard

2. KM opportunities exceed available bandwidth

3. Business strategy must drive KM strategy

4. Don’t let KM get ahead of process redesign

5. Users need to see how this improves their day

Knowledge Management as the Engineof Business Process Improvement

Thomas W. HoglundChief Knowledge [email protected](312) 399-6234