Where is the “Knowledge” for the Knowledge Worker? Carl Ascenzo CEO & Consultant

Introduction Companies go through great effort and expense to recruit, train and retain employees for operational jobs such as customer service and back office operations. Unfortunately important interpersonal skills such as  professionalism, attitude, empathy and communication are often sacrificed for technical skills. Why? Because the challenge with technical competence often lies with the ability to memorize vasts amounts of information, complexity,  multiple information sources and systems, and is further hindered by change, incomplete documentation, and flawed policies and procedures.   Technology has helped with the “work” component. Technologies such as automated call routing, interactive voice response, business process management and customer relationship management are a few examples. Companies should now focus on the “knowledge” part of the equation by proactively driving context-sensitive information to employees when, where and how they need it. Unfortunately most content and knowledge management systems don’t have this capability. Methodology and systems are now being introduced to compliment the work technologies, by providing real time knowledge deployment. 2

… and why is this important? 1 DEMAND …for improved business operations performance is unrelenting and constant.

OBSTACLES why is this important? 2 …limited qualified labor, more products/policies/procedures, new systems, increasing regulations, heightened risk management, accelerating change and complexity.

Which means… Can’t Absorb… Overwhelmed Can’t Find… Frustrated Can’t Execute… Confused

Resulting in underperformance…. Wasted Time More Errors Stress & Turnover ….and a direct impact on profits

Components of S&P 500 Market Capitalization 1973 – 2007 (OCEAN TOMO) Market Premium: No Book Value Intangible Asset Book Value Tangible Asset Book Value …. intangible capital with no book value dominates value creation 7

“Structural Capital”, particularly knowledge and business practices, is a largely untapped corporate asset. Intangible Capital with No Book Value Relationship Capital (Customers, Vendors, Partners) Human Capital (Competencies, Experience, Skills) Structural Capital (Processes, Information, Knowledge, Practices) I-Capital Advisors

Challenges to optimizing structural capital Many enterprises do not think about structural capital and its impact on customers or costs Eliminating all complexity is not practical, yet not dealing with it isn’t an option Organizations assume knowledge management includes knowledge delivery Traditional training emphases memorization, versus ongoing support and can’t keep pace with change Adults learn best by doing; at that moment they have a high interest in the task, situation and related concepts

average 10+ windows running simultaneously These are all to blame for making it difficult from them to effectively serve the customer. In fact, a full 25% of the workday is spent simply searching for information and determining if it is up-to-date and viable. And when pointing and clicking their way to get this information, agents are running over 10 windows on their computers.

Page: 13 of 145 Words: 34,768 ↑ complexity = indigestible

Technology Dilemma BPM and CRM are architected for moving a transaction (data) on a path of tasks through a process Document Mgmt and Content Mgmt are architected to store information in a catalogued way Knowledge Mgmt and Collaboration are architected to facilitate team creation of work artifacts Search is unpredictable in accuracy, granularity, speed As transaction processing differs from data warehousing, knowledge delivery has to differ from Knowledge Mgmt 12

evolution of systems p a s s i v e v e r s u s a c t i v e Business Process Management Business Practice Guidance Collaboration Intranet Electronic Document Management CRM Speed to Information Knowledge Management Search Enterprise Portals Workflow Management eLearning Studies show that in the last three years, 90% of frontline customer service representatives perceive their workload as becoming more, not less, complex HELP Content Management Paper Files Imaging < 1980 1985 1990 1995 2000 2005 2010 > p a s s i v e v e r s u s a c t i v e

Solution: Business Practice Guidance (BPG) To navigate through complexity faster and accurately without disrupting underlying business and technology systems. Business Practice Guidance is the capability to proactively drive real-time, accurate, context-relevant knowledge and information to employees when, where, and how they need it. 14

BPG improvement – operations Improves quality Reduces errors Improves consistency Increases productivity Reduces risk Improves overall customer, employee experience Simplifies complex processes Turbo charges existing IT Incorrect handling 60 – 90% reduction Average handle time 10 – 30% reduction First call resolution 20 – 40% improvement Escalation to expert 40 – 70% reduction Studies show that in the last three years, 90% of frontline customer service representatives perceive their workload as becoming more, not less, complex

BPG improvement – compliance Enables “active” adherence to policies, regulations, procedures Enforces appropriate controls at all business levels Enhances risk management Provides audit capability Immediate availability of additions & revisions Studies show that in the last three years, 90% of frontline customer service representatives perceive their workload as becoming more, not less, complex

BPG improvement – knowledge deployment Delivers knowledge and information that is not operational Captures knowledge in a structured way Makes knowledge useful Effectively maintains knowledge Timely distributes knowledge Studies show that in the last three years, 90% of frontline customer service representatives perceive their workload as becoming more, not less, complex

BPG improvement – learning & development Formal classroom training > 50% reduction Initial & ongoing time to competency 50 – 80% reduction Effective on job training and support Improved staffing flexibility Improved attrition Reduced complexity & burnout Faster adoption of business and systems change Improved employee satisfaction & engagement Transforming without pain Studies show that in the last three years, 90% of frontline customer service representatives perceive their workload as becoming more, not less, complex

case study: banking Financial Services Significant increase in productivity (table on next slide) 91% reduction in non-lending losses 40% to 60% increase in employee engagement 99% on-time service score 99.9% transaction accuracy score Faster implementation and ROI in rollout of 4 major systems Studies show that in the last three years, 90% of frontline customer service representatives perceive their workload as becoming more, not less, complex

case study: banking (continued) BEFORE AFTER Studies show that in the last three years, 90% of frontline customer service representatives perceive their workload as becoming more, not less, complex

case study: health insurance Search times reduced 94% (from 120 to 7 seconds) 10% reduction in customer hold time 20 second reduction in average handle time Significant decrease in Help Line calls 80% CSR engagement in continuous improvement New hire attrition rate reduced 26% Studies show that in the last three years, 90% of frontline customer service representatives perceive their workload as becoming more, not less, complex

Early Adopters British Telecom – order management National Australia Bank – call center & back office Blue Cross NE Pennsylvania – member service Caterpillar – dealership operations Hewlett Packard – sales & service Stellar – call center & BPO outsourcing Celgene – risk management 22

Summary “Structural Capital”, particularly knowledge and business practices, is a largely untapped corporate asset. For many enterprises…they do not think about complexity, its impact on customers or costs.” – Mark McDonald, Gartner. Adults learn best by doing things, so providing learning at the moment of need is a highly leveraged technique. – Gloria Gery Eliminating all complexity is not practical; dealing with it is not an option and needs to be a core competency for every organization. – Delphi Group Business Practice Guidance, proactively drives accurate, context relevant knowledge and information to employees when, where and how they need it. BPG is not Help, Search, BPM, CRM, CM or KM - BPG leverages these capabilities to increase operational performance. 23

Carl Ascenzo CEO & Consultant O: 978.283.0408 M: 860.716.5893 Carl@AscentionConsult.com 24