KMWorld – 30th October 2001
Underpinning the Knowledge
Management Approach
Aligning Corporate Mission,
Vision and Entreprise
Françoise Rossion Senior Manager
Today’s agenda is…
Underpinning the Knowledge Management Approach
 Using KM as the innovative driving force
Transforming your business into a knowledge-based business
 Aligning KM with the corporate Mission, Vision and Strategy
Starting at the root for identifying core competencies and capabilities
 Exploring the Bottom Line
Translating the KM Strategy into operational projects
 Creating the cultural acceptance
Aligning the corporate culture with the KM Strategies
Strategy: the missing link?!
Underpinning the Knowledge Management Approach
‘Such knowledge-based strategy employs both
internal competencies and external information
that flows from supplier and customer relationships,
exchanges with competitors and a willingness to
look beyond the industry’s current food chain in
order to build company foresight and vision.’
(R. Gorzynski, Strategy from the Heart, 1998)
The Knowledge-based business
Underpinning the Knowledge Management Approach
Let’s move on to the Knowledge Revolution!
 Rule
Maker
Setting the standards
 Rule
Taker
Following to the benchmark
 Rule
Breaker
Setting their own benchmarks
Capital in the traditional sense of plants
and financing is not such a big thing…
Underpinning the Knowledge Management Approach
Type of
Capital
Valuation
Focus
Economic
Concept
Who focuses
on it
Physical
Analog
Physical
Assets
Stock
Auditors
Position
Financial
Income
Flow
Analysts
Speed
Intellectual
Growth
Acceleration
Venture
Capitalists
Acceleration
(From: S. Davis, C.Meyer, BLUR, 1998 )
Physical
Financial
Intellectual
But Capital in the new forms it is taking has
become more fundamental than ever…
Underpinning the Knowledge Management Approach

Intellectual capital
is the brain power of the organisation, codified and put into explicit,
transferable form

Human Capital
is the value of workers’ relationships and tacit knowledge

Structural capital
is the experience and expertise of the organisation embedded in
processes, policies and systems
Today’s agenda is…
Underpinning the Knowledge Management Approach
 Using KM as the innovative driving force
Transforming your business into a knowledge-based business
 Aligning KM with the corporate Mission, Vision and Strategy
Starting at the root for identifying core competencies and capabilities
 Exploring the Bottom Line
Translating the KM Strategy into operational projects
 Creating the cultural acceptance
Aligning the corporate culture with the KM Strategies
Relevance is critical!
Underpinning the Knowledge Management Approach
‘Hence, there is more to knowledge management
than just accumulated knowledge. Relevance is
critical and the companies that survive from one
dominant design generation to the next are those
that develop capability as it is required,
and before.’
(W.L. Miller and L. Morris, Fourth Generation R&D, 1998)
Achieving your strategic objectives…
Underpinning the Knowledge Management Approach
Strategic Themes are the fundaments of the articulated strategy. Each
strategic theme contains its own strategic hypothesis with its own set of
cause-and-effect relationships.
Strategic themes could be:





Operational Excellence
Sourcing & Distribution
Innovation
Growth
Be a Good Corporate Citizen
The multiple indirect linkages required to connect improvements
in an organization's intangible assets
– the ultimate drivers of knowledge based strategies –
to the tangible customer and financial outcomes of the strategy,
will be described in each Strategic Theme
through the cause and effect relationships.
and demonstrate the cause and effect
relationships
Diagram of the cause and effect relationships
between strategic objectives
Strategic Theme:
Growth
Financial
Objective
Cause
& Effect
Relations
More
Customers
More
Stores
Underpinning the Knowledge Management Approach
Statement
of what
strategy
must
achieve
and what’s
critical to
its success
How
success in
achieving
the
objectives
will be
measured
and
tracked
The level of
performance
or rate of
improvement
needed
Objectives
Measurement
Target
• Avg. Purchase Price
by product category
• Number of Bulk
Purchases/Month
• 10 $ (Food)
35 $ (N. Food)
• 13
Key
action
programs
required
to achieve
objectives
Customer
Satisfied
Customers
Business
Process Real
Estate
Learning
Lowest
Price
Global
Sourcing
Train
People
• Global
Sourcing
Initiative
• Global Sourcing
program
Cause and Effect: Start at the root!
Underpinning the Knowledge Management Approach
Budget &
Cost Mngmt
Financial
Results
‘Fast growth in the
pharmaceutical sector and
in a limited number of
carefully selected
activities’
CRM
Customer
Benefits
‘Bring adequate responses to
the wishes of our customers’
BP
Improvement
Knowledge
Management
Internal
Capabilities
Knowledge &
Competencies
‘Innovation and
competitiveness.
Fast adaptation to the
fast evolution of the world’
‘Share knowledge through
the whole group and
with clients, create a
new culture’
(From: Solvay)
Defining the Global KM Vision:
The Executive Workshop
Underpinning the Knowledge Management Approach
Executive
Workshops
Planning
Workshops
Workgroups
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Demonstrate
KM Best
Practices
Build the
Strategic
Linkages
with KM
Determine
KM
Focus
Translate
KM Focus
into
Initiatives
Prioritize
KM Pilots for
implementation
Build
Initial
Project
Charters
Week 1
Week 8 to 12
Identifying…
Underpinning the Knowledge Management Approach
Core Competencies
Know What ?

Expertise, skills that provide
access to markets or are used
to create core products
 Delivers fundamental customer
benefit

Difficult for competitors to
imitate
Core Capabilities
Know How To ?

Applied core competencies
– business processes
– infrastructure
– resources
– work organisation
 Hard-to-duplicate business
processes
Capabilities provide the means to deploy
competencies to achieve competitive advantage
and strategic Knowledge!
Underpinning the Knowledge Management Approach
‘Unlike
physical
assets ...
•
•
•
•
•
•
Which knowledge is strategic ?
Where is it located ?
What knowledge is missing?
Which knowledge should be shared ?
What knowlegde should be reapplied ?
To whom should it apply ?
... knowledge
can be in two
places at once’
Today’s agenda is…
Underpinning the Knowledge Management Approach
 Using KM as the innovative driving force
Transforming your business into a knowledge-based business
 Aligning KM with the corporate Mission, Vision and Strategy
Starting at the root for identifying core competencies and capabilities
 Exploring the Bottom Line
Translating the KM Strategy into operational projects
 Creating the cultural acceptance
Aligning the corporate culture with the KM Strategies
Translating the KM Strategy…
Underpinning the Knowledge Management Approach
‘If the other guy’s getting better, then
you’d better be getting better faster
than that other guy’s getting better…
or you’re getting worse.’
(Tom Peters, The circle of Innovation, 1997)
into operational projects!
Underpinning the Knowledge Management Approach
Executive
Workshops
Planning
Workshops
Workgroups
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Demonstrate
KM Best
Practices
Build the
Strategic
Linkages
with KM
Determine
KM
Focus
Translate
KM Focus
into
Initiatives
Prioritize
KM Pilots for
implementation
Build
Initial
Project
Charters
Week 1
Week 8 to 12
Second phase of the KM Audit:
Planning workshops
Underpinning the Knowledge Management Approach
From prioritized list….
identify the different
types of issues around
Knowledge
Prioritized
List
Knowledge
Knowledge
Knowledge
decide how it should
be solved..
Knowledge
availability
around the
Globe
and how it will be
enabled
Culture
Technology
Third phase of the KM Audit:
Workgroups
Underpinning the Knowledge Management Approach
Criteria
KM PILOTS
1 Documenting … Culture
2 Competitive Intelligence
3 Evaluation linked to K. sharing
4 Competency Development
5 Content Strategy
6 Knowledge Hierarchy Model
Legend :
Collaboration
Content
Roll-out of KM Pilots
Underpinning the Knowledge Management Approach
Knowledge Management Programme
(on-going)
Capture & Apply Lessons Learned
Project Management
KM Processes (replicable)
Change Management (on-going)
Global IT Architecture (scalable & open)
KM Pilot N + 1
Global DG KM
Vision & Strategy
KM Pilot N
Today’s agenda is…
Underpinning the Knowledge Management Approach
 Using KM as the innovative driving force
Transforming your business into a knowledge-based business
 Aligning KM with the corporate Mission, Vision and Strategy
Starting at the root for identifying core competencies and capabilities
 Exploring the Bottom Line
Translating the KM Strategy into operational projects
 Creating the cultural acceptance
Aligning the corporate culture with the KM Strategy
Creating the sense of urgency
Underpinning the Knowledge Management Approach
‘I wasn’t convinced that this learning stuff
would work, but I knew we would never achieve
our goals if we kept working the way
we were working’
- Fred Simon, Ford manager
(cited by: Peter Senge, The Dance of Change, 1999)
Changing Organizational Culture
Underpinning the Knowledge Management Approach
‘Although the tools and techniques may be present and the change
strategy implemented with vigor, many efforts to improve
organizational performance fail because the fundamental culture of
the organization remain the same; i.e., the values, the way of
thinking, the managerial styles, the paradigms and approaches to
problem solving (…) Culture change is a key to the successful
implementation of major improvements strategies… ’
(From: K. CAMERON, Diagnosing and Changing Organizational Culture, Addison-Wesley, 1999)
Motivation for Change
Underpinning the Knowledge Management Approach
‘Change Platforms’
‘Motivation occurs when people
perceive that the price for maintaining
the status quo
is higher than the price of change
(solving a problem or
capturing an opportunity).’
Ernst & Young based on ODR, 1994
Reaching the level of commitment required
for successful implementation of the strategy
Underpinning the Knowledge Management Approach
“I’ll do it, but
I’ll find a way
around it.”
Commitment
Phase
Grudging
Compliance
Installation
“I’ll do what is
asked of me,
but not much
more.”
Formal
Compliance
Installation
Acceptance
Phase
Preparation
Phase
Contact
Awareness
Awareness
Time
Institutionalization
Adoption
Genuine
Compliance
Installation
Understand
the change
Awareness
Internalization
Positive
Perception
Understand
the change
“I am 100%
committed.
This is good
for XXX and
good for me.”
Conducting Initial assement of organizational
Performance Levers (OPLs)
Underpinning the Knowledge Management Approach
Pay & Performance
Alignment
Leadership
Communication
Organization Design
Staffing and
and Structure
Deployment
Education &
Training
Do current people processes and the current culture
align with the future state?
Organizational ‘Levers’ drive Performance
Underpinning the Knowledge Management Approach
Performance & Pay Alignment
Leadership Effectiveness
Enterprise
Education & Development
Staffing & Deployment
Organizational
Communication
Job/Role
How OPLs Impact Change Success
Underpinning the Knowledge Management Approach
Result
= Accelerated Change
–
= Confusion
–
= Anxiety
–
–
= False Start
–
= Ambiguity
–
= Frustration
–
= Gradual Change
= Gradual or no
Change
Any KM programme requires a Change
Management Approach!
Underpinning the Knowledge Management Approach
Attempts
to introduce
changes firm:
For example,
in a Japanese
that are radically different than
the
existingofculture
usually
are
• Elevation
the Japanese
Culture
not
successful
• Being
a pioneer – not following others;
doing the impossible
• Encouraging individual ability and creativity
CURRENT
STATE
Values
Norms
Attempts to introduce changes
that are generally consistent
with the current culture
usually are successful
Practices
Buckman Labs’ K’Netix
Underpinning the Knowledge Management Approach
‘Those of you who have something intelligent to say
now have a forum in which to say it. Those of you
who will not or cannot contribute also become
obvious. If you are not willing to contribute or
participate, then you should understand that the
many opportunities offered to you in the past will no
longer be available’
- Bob Buckman
Another CM approach
Underpinning the Knowledge Management Approach
Change Management
Business Case
Vision
Change Leadership
Change Capability
Communication
Integration
Stakeholder Commitment
Aligned Culture
Successful
Business Change
• Executive and Management Committment
‘Walk the talk’
• Identify KM Values and embed into
DG values
• Develop Corporate KM Culture
• Embed Knowledge Sharing in
individual and collective objectives
• Build trust accross borders and
companies
• Empower people in relation with KM
• Embed Learning & Development in
the management style
• Assess KM Culture progress
• KM Measures
• Assessment of KM Pilots through
Vitality Indicators
• Develop Communication Plan (awareness,
acceptance & training)
• Coaching & mentorship
Conclusion?!
Underpinning the Knowledge Management Approach
‘It is not the strongest of the species that survives, nor the
most intelligent; it is the one that is most adaptable to change.’
Charles Darwin
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