1. Developing a Knowledge -Creating Organization
A Case Study in Process
KM World
Santa Clara, CA
September 14, 2000

2. eWorkforce Solutions Group mbickerstaff@kpmg.com
Melinda J. Bickerstaff
Director
eWorkforce Solutions Group 3 3

3. KPMG Research Strategies rmassoud@kpmg.com
Renee A. Massoud
Director
KPMG Research Strategies 3 3

4. Objectives After completing this session, you will be able to:
Actually be able to explain Knowledge Management to someone else
Link Knowledge Management to your business strategy
Explain the different value-based approaches to Knowledge Management
Identify and prepare a value proposition for your organization

5. Objectives After completing this session, you will be able to:
Identify the key enablers to Knowledge Management and understand how they contribute to your success
Know the story behind KPMG’s journey into Knowledge Management
Learn how you can get started with your own Knowledge Management initiatives

6. Agenda What is Knowledge Management?
What are the Value-Based Approaches to Knowledge Management?
What are the Key Enablers for Knowledge Management?
What is the Story Behind KPMG’s involvement in Knowledge Management?
How do I get started with Knowledge Management in My Own Organization?

7. Agenda What is Knowledge Management?
What are the Value-Based Approaches to Knowledge Management?
What are the Key Enablers for Knowledge Management?
What is the Story Behind KPMG’s involvement in Knowledge Management?
How do I get started with Knowledge Management in My Own Organization?

8. What is Knowledge Management?
It is...
A business model embracing knowledge as an organizational asset to drive sustainable business advantage. It is a management discipline that promotes an integrated
approach to create, identify, evaluate, capture,
enhance, share and apply an enterprise’s
intellectual capital.
Bottom Line: Getting the right information, to the right people
at the right time
Key Concepts and Business Drivers
-13-

9. Why the Interest in Knowledge Management?
Relentless technology advancement
e-commerce linking with c-commerce
The value of ‘intangible assets’ are greater than ‘tangible assets’
Business thrust is now “grow to success” not “expense to survival”
Knowledge management is now a senior executive concern

10. Why the Interest in Knowledge Management?
New organizational dynamics
The virtual & networked company
The redefined employment contract
The competition for talent
Increased dispersion of expertise
Global customers, suppliers and partners
The worldwide web
Knowledge management is now a senior executive concern

11. What’s Happening Out There: Knowledge Management Priorities
Planned Current
Launching New Knowledge-Based Products or Services % %
Establishing New Knowledge Roles % %
Mapping Sources of Internal Expertise % %
Creating Networks to Support Collaboration % 24%
Implementing Groupware to Support Collaboration % %
Implementing Decision Support Tools % %
Data Warehousing / Creating Knowledge Repositories % %
Creating an Intranet % %
The focus is on technology solutions...

12. What’s Happening Out There: Biggest Difficulties to Implementing KM
Attracting & Retaining Talented People %
Identifying the Right Team/Leader for Knowledge %
Defining Standard Processes for Knowledge Work %
Setting the Appropriate Scope for Knowledge Initiatives %
Mapping the Organizations Existing Knowledge %
Justifying the Use of Scare Resource for Knowledge Initiatives 34%
Determining What Knowledge Should be Managed %
Measuring the Value and Performance of Knowledge Assets %
Changing People’s Behavior %
…but the challenges are related to people and strategy.

13. Agenda What is Knowledge Management?
What are the Value-Based Approaches to Knowledge Management?
What are the Key Enablers for Knowledge Management?
What is the Story Behind KPMG’s involvement in Knowledge Management?
How do I get started with Knowledge Management in My Own Organization?

14. What is a Value Proposition?
Articulates the fundamental business reasons and expected benefits that drive the organization to pursue Knowledge Management
States the payoff to the organization
Is the driving force ( the “business driver”) that provides energy to manage knowledge systematically and fund KM initiatives
Focuses KM on the value chain
Is the basis for measuring results
Leads to senior leadership support
A Value Proposition:

15. VALUE How Does Knowledge Management Create Value? Customer Intimacy
Cultivating relationships to gain customer knowledge
Delivering what specific stakeholders want
Operational Excellence
Product/Service Leadership
Delivering solid products and services at the best price and with the least inconvenience
VALUE
Delivering the best products and services ---offerings that push performance boundaries
Employee Capability
Leveraging human intellectual capital in service design and delivery

16. Operational Excellence
The Four Value Propositions are Built Around Entirely Different Operating Models
Operational Excellence
Product supply, basic service, demand management
Central authority, finite level of empowerment
High skills at the core of the organization
“Command and control”, standard operating procedures
Managing total quality
Process push
Conformance, "one size fits all" mindset
Emphasize efficiency and dependability
Product Leadership
Concept invention, product development, market exploitation
Ad hoc, organic, loosely knit, and ever-changing
High skills abound in loose-knit structures
Rewarding individuals' innovative capacity and new product success
Managing risk
Concept push
Experimentation and "out-of-the-box" mindset
Emphasize breakthroughs
Customer Intimacy
Solution development, results management, relationship management
Empowerment close to customer contact
High skills at boundary of the organization
Customer equity measures like life time value and share-of client
Managing outcomes
Relationship push
Flexibility and "have it your way" mindset
Emphasize complete solutions
Employee Capability
People development, expertise enhancement, performance management
Empowerment on work teams
High skills at all levels
Rewarding demonstrated applications of individual and team expertise
Managing learning and development
Learning push
Resilience and growth mindset
Emphasize development
Core business
processes
Organization
and structure
Management
systems
Culture:
mindsets and
behavior

17. Linking Knowledge Management to Your Business Strategy
Which business driver could your Knowledge Management activity be based on or linked to?
Operational excellence
Product leadership
Customer intimacy
Employee capability

18. Agenda What is Knowledge Management?
What are the Value-Based Approaches to Knowledge Management?
What are the Key Enablers for Knowledge Management?
What is the Story Behind KPMG’s involvement in Knowledge Management?
How do I get started with Knowledge Management in My Own Organization?

19. Knowledge Management Model
Leadership and Strategy
Measurement
Culture
Technology and Infrastructure
Organizational
Knowledge
Create
Apply
Adapt
Organize
Collect
Share
Identify
Knowledge Management Process
Knowledge Management Enablers
Knowledge management is a process supported or hindered by organizational factors.

20. The Process and Enablers
Leadership and Strategy
Leadership and Strategy
Measurement
Culture
Technology and Infrastructure
Organizational
Knowledge
Create
Apply
Adapt
Organize
Collect
Share
Identify
Knowledge Management Enablers
Knowledge Management Process

21. The Process and Enablers
Culture
Leadership and Strategy
Measurement
Culture
Technology and Infrastructure
Organizational
Knowledge
Create
Apply
Adapt
Organize
Collect
Share
Identify
Knowledge Management Enablers
Knowledge Management Process

22. The Process and Enablers
Leadership and Strategy
Measurement
Culture
Technology and Infrastructure
Organizational
Knowledge
Create
Apply
Adapt
Organize
Collect
Share
Identify
Knowledge Management Process
Knowledge Management Enablers
Technology and Infrastructure

23. The Process and Enablers
Measurement
Leadership and Strategy
Measurement
Culture
Technology and Infrastructure
Organizational
Knowledge
Create
Apply
Adapt
Organize
Collect
Share
Identify
Knowledge Management Enablers
Knowledge Management Process

24. Agenda What is Knowledge Management?
What are the Value-Based Approaches to Knowledge Management?
What are the Key Enablers for Knowledge Management?
What is the Story Behind KPMG’s involvement in Knowledge Management?
How do I get started with Knowledge Management in My Own Organization?

25. KPMG’s Knowledge Management Journey

26. What is Knowledge Management?
KM is not:
A tactical program
An end in itself
A single technique or technology
A mature science
An event
KM is:
Strategic
A long-term proposition
An environment that leverages assets
An embedded process
It is hard to define, hard to do well

27. KM Leverages Skills People Process Content Technology
People contribute to knowledge bases
Process
Embedded in core processes
Content
Consistent with strategy
Technology
‘Just-in-time’ delivery 20 7 13 9 6

28. KPMG is...
“The global advisory firm whose aim is to turn knowledge into value for the benefit of its clients, its people and its communities”

29. KPMG is Facing Many Knowledge-Related Issues
Ineffective Decision Making
Loss of In-House Knowledge
Information Overload
Limited Sharing of Best Practices
Lack of Creativity
Lack of Customer Responsiveness
. . . effective knowledge management is the key to success

30. The Old Approach Hundreds 93,000 + of 157 Countries 825 Cities
staff
Hundreds of
Products
157 Countries
825 Cities

31. Enabling Knowledge Transfer and Sharing
As per bullets

32. What is KWorld?
Messaging, collaboration and knowledge- sharing system that...
Becomes our universal business management tool integrating all other knowledge and information systems
Integrates client and team collaboration tools with global repositories of the firm’s intellectual capital
Becomes KPMG’s digital nervous system
Enables people and processes to get to content via technology
As per bullets

33. KPMG’s Global Knowledge Management Program
Scope
100,000+ staff
Global knowledge sharing
100+ countries
23 industry groups
19 products
Benefits
Supporting KPMG strategy
More enabled & quicker decision making
Increasing revenues & margins
Higher client value added through greater innovation & synergy
Quality of life - staff more effective
Leveraging of corporate expertise
Sponsorship & leadership
Multidisciplinary, global team
Stretch targets
Rapid realization in phases
Technical platform built & rolled out in 18 weeks
1. (Key facts about the KWorld implementation project :)
2. (ditto the approach taken)
3. (ditto the benefits - emphasise the employee benefits re HPE) 2

34. KWorld Brings Together
Content
Context
Connectivity
As per bullets
Community

35. KWorld Architecture & Process
External
Content
Knowledge
Manager
Global Knowledge Exchange
news
feeds
Quality assessment
Value assessment
Security
Taxonomy assignment
Channel assignment
KWorld
Content screen
Research
Rules, heuristics, guideline, process flow
Aggregate, focus, direct, prioritize
Industry, research, technical
Filter, aggre- gate, sort
Collaboration
Internal and external commentary
How Kworld works - - how it delivers the K the is needed at the desktop to help create the HPE
1. KWorld sources external and internal content; filters and organises it according to our information needs; and presents it to users by giving them the tools they need
2. (The important role of K Managers in QA of the content)
KPMG Content
Data center
Work products
Insights, interpretation and analysis
External broadcast KPMG.COM
Practice specific

36. ‘Content in Context’ Our Unique and Proprietary Differentiation
15 Segments
19 Products
Regions
Products & Segments
Clients/Targets
People
Conferences
KPMG Library
Explain content in context - how we structure and manage KPMG content to make it usable and accessible to our people
Assurance
Tax
Consulting
FAS

37. digital nervous system
KWorld
is becoming the
digital nervous system
of KPMG.

38. KWorld Knowledge Sharing
The KWorld Program
KWorld Knowledge Sharing
KWorld Collaboration
kpmg.com
Content in Context
Process
People
Technology

39. The KWorld Change Model is Set to Drive Adoption First
Formally incorporated into routine operations
C O L L A B O R A T I O N
Institutionalization
Knowledge sharing driven by personal motivation and beliefs
Internalization
L O Y A L T Y
Commitment
Users recognize the advantages
Recommend to Others
Degree of Support
Utilized long enough to prove its benefit
Positive Perception
Fully implemented and operational
A D O P T I O N
Repeated Use
Users log on and use Kworld regularly as part of their work
Installation
Interest
Awareness
People understand the inherent changes brought by KWorld
Time

40. Building the Knowledge-Sharing Organization
Day-to-Day Impacts on KPMG Employees…
Single Portal for Workflow
Human Knowledge Connectivity
Definition and Reinforcement of Processes
Goal Setting and Performance Review Support
As per bullets

41. Agenda What is Knowledge Management?
What are the Value-Based Approaches to Knowledge Management?
What are the Key Enablers for Knowledge Management?
What is the Story Behind KPMG’s involvement in Knowledge Management?
How do I get started with Knowledge Management in My Own Organization?

42. KM Consulting Framework

43. http:// www. kpmgeiq. com
The Knowledge Management Enterprise Involvement Questionnaire (EIQ)
www. kpmgeiq. com

45. Agenda What is Knowledge Management?
What are the Value-Based Approaches to Knowledge Management?
What are the Key Enablers for Knowledge Management?
What is the Story Behind KPMG’s involvement in Knowledge Management?
How do I get started with Knowledge Management in My Own Organization?

46. Closing Comments or Questions
Thank You and Good Luck in Your Knowledge Journey