1. © Knoco Ltd – all rights reserved 16 years, 7 lessons Basic principles for KM Nick Milton, Knoco Ltd IAPG - Primeras Jornadas de Gestión del Conocimiento en Exploración y Producción 13 June 2008

2. © Knoco Ltd – all rights reserved Who am I? Nick Milton Geologist by training KM consultant by vocation Director of Knoco Ltd 7 years working KM in BP 9 years as consultant to a variety of companies and industries Based in England nick.milton@knoco.co.uk www.knoco.co.uk

3. © Knoco Ltd – all rights reserved Key messages 1. Knowledge management is a component discipline of good management practice; the component that drives continuous improvement 2. Focus on the business outcome for your company. Be clear on the drivers for KM. Support the business outcome, and nothing else. 3. Focus on the critical knowledge, and manage the knowledge of highest value. 4. Technology is part (but not all) of the answer 5. The KM "system" needs to be complete, and performance managed. You can’t “half do” knowledge management 6. Accountabilities are key. Knowledge needs to be looked after by people with defined roles and accountabilities. 7. Embed KM in the business process, with clear minimum conditions of satisfaction.

4. © Knoco Ltd – all rights reserved Knowledge Performance Learn Apply

5. © Knoco Ltd – all rights reserved Data, Information, Knowledge Data A pressure reading, in one place, at one time Information Data structured in such a way as to “tell you something” Knowledge? What does this mean? What action should I take?

6. © Knoco Ltd – all rights reserved Knowledge Management Knowledge Management (KM) is the management ‘system’ that supports the creation, sharing, validation, application and refreshing of knowledge. (Definition from BP) People Tech- nology Process

7. © Knoco Ltd – all rights reserved 1. KM is a component discipline Project Contract Mgt Cost Mgt Document Mgt Quality Mgt Schedule Mgt Risk Mgt Safety Mgt Knowledge Mgt

8. © Knoco Ltd – all rights reserved From Wikipedia A project is a carefully defined set of activities that use resources (money, people, materials, energy, space, provisions, communication, motivation, etc.) to achieve the project goals and objectives.projectresourcesmoney peoplematerialsenergyspace provisionscommunicationmotivation Knowledge

9. © Knoco Ltd – all rights reserved Implications KM is a key component of good management practice. Therefore It needs discipline and rigour It needs to be a business requirement It can be governed the same way as other disciplines And it needs integrating with the other disciplines

10. © Knoco Ltd – all rights reserved 2. Focus on the business outcome $ Time a) Operational efficiency

11. © Knoco Ltd – all rights reserved Focus on the business outcome b) Operational consistency

12. © Knoco Ltd – all rights reserved Focus on the business outcome c) Demographics Challenge 1 – decreasing the time to competence Challenge 2 – retention of the critical knowledge

13. © Knoco Ltd – all rights reserved Implications Operational efficiency Focus on learning from projects, and cross-project transfer – Example, BP Operational consistency Focus on learning from operations, and the development and deployment of operational standards and best practices – Example, Schlumberger, Halliburton Decreasing time to competence Focus on development of excellent training and reference systems – Example, developing-world companies, Schlumberger Retention of Critical Knowledge Focus on the development of Knowledge Assets from the departing experts – Example, Shell

14. © Knoco Ltd – all rights reserved Example - Schlumberger “The InTouchSupport.com system in Schlumberger is our flagship solution. It cost $160 million It saves us $200 million each year It cuts 95% from the time it takes to answer a technical question It provides 24x7 technical and operational support for Schlumberger technology” Mike Atkinson Head of KM Schlumberger/Sema UK InTouch service is built on a number of elements: the Schlumberger secure global network infrastructure, a single portal into the technical resource base technical helpdesks located at technology centers in London and Houston validated knowledge repository in a centralised database.

15. © Knoco Ltd – all rights reserved 3. Focus on the critical knowledge What knowledge do you need to manage? What knowledge will deliver the greatest value? What is the strategic knowledge for your organisation? You don’t need to manage it all with equal rigour!

16. © Knoco Ltd – all rights reserved What is your critical knowledge? High cost repetitive activity Offshore drilling Development projects Business critical activity Service delivery Production operations Growth activity Replicating proven business in a growing market Breakthrough innovation New products, new markets

17. © Knoco Ltd – all rights reserved Implications Make sure your critical knowledge is owned and maintained Ask yourself – “who looks after this knowledge?” Company experts? Communities of Practice? Functional departments?

18. © Knoco Ltd – all rights reserved Example – FMCG manufacturer Company objective – Growth Growth Market – the developing world Key knowledge – how to market, distribute and sell product in the developing world Solution – small focused community, charged with developing and deploying this knowledge Result - turnover doubled from $950m to $1.8bn, share of profits risen from 6.6% to 10%

19. © Knoco Ltd – all rights reserved 4. Technology “Technology is the answer” “Technology is not the answer”“Technology is part of the answer”

20. © Knoco Ltd – all rights reserved 4 areas of technology Technology to store and find validated knowledge, and new lessons Technology to find and connect people Technology to discuss new knowledge and ideas Technology to distribute new knowledge

21. © Knoco Ltd – all rights reserved Example - BBC A corporation of communicators! BBC Gateway Intranet – a reference and e- learning library “Connect” – a tool to find individuals with knowledge, anywhere in the organisation Talk.Gateway – discussion forums and questions/answer forums on technical topics Blogs and Wikis as a way of publishing new knowledge

22. © Knoco Ltd – all rights reserved 5.1 A complete system Push Pull Model copyright BP

23. © Knoco Ltd – all rights reserved 5.2 Double knit learning Business units and projects Communities and functions The knowledge management system needs to address knowledge in 2 dimensions 1. Within the projects and business 2. Between and across the projects and business

24. © Knoco Ltd – all rights reserved 5.3 A complete system Activity New LearningBest Practice Review and capture Access and Apply Validate and update

25. © Knoco Ltd – all rights reserved Implications Knowledge Management needs to operate both within the business teams, and across the business teams The loop needs to be closed, between creation of the learning, and re-use of the learning.

26. © Knoco Ltd – all rights reserved Example – MW Kellogg MW Kellogg hold post-project retrospects These are followed by “Validation and Distillation” meetings with high-level functional chiefs Immediate lessons for other teams are identified, and shared Any necessary changes to company practice are agreed and made (text courtesy of MW Kellogg)

27. © Knoco Ltd – all rights reserved 6. Clarify accountability. Executive Business unit 1Business unit 2 Division 1Division 2 Project 1Project 2 SME 1Community 2 Head of Function 1 Head of Function 2 KM team Accountability for compliance with KM expectations in the line Accountability for maintaining the corporate knowledge Accountability for providing KM capability, and for monitoring the two accountabilities above

28. © Knoco Ltd – all rights reserved Implications Knowledge management will work when The necessary roles are in place, People are clear about their role, People are assessed against their role

29. © Knoco Ltd – all rights reserved Example – Shell roles 13 online communities of practice (SIGN – Shell International Global Networks) Each network has One global coordinator, to run the network A number of designated subject matter experts, to gather and package the knowledge One designated focal point per operating unit, to be the link between the network and the operating unit

30. © Knoco Ltd – all rights reserved 7. Clear expectations for KM Create KM plan Update KM plan Knowledge capture Team learning

31. © Knoco Ltd – all rights reserved Implications If people know the expectations for KM activity, then they are more likely to comply KM activity, like other project management activity, has a timetable, a rhythm, a proactivity and predictability

32. © Knoco Ltd – all rights reserved Example – BP Drilling and Completions As part of “Beyond the best Common Process” minimum conditions of satisfaction – every significant well will Create a knowledge management plan to access lessons Capture and share lessons at the end of the well and may Hold Peer Assists on critical areas of knowledge Capture knowledge after hole sections/casing runs using After Action reviews Make use of the drilling community forum

33. © Knoco Ltd – all rights reserved Key messages 1. Knowledge management is a component discipline of good management practice; the component that drives continuous improvement 2. Focus on the business outcome for your company. Be clear on the drivers for KM. Support the business outcome, and nothing else. 3. Focus on the critical knowledge, and manage the knowledge of highest value. 4. Technology is part (but not all) of the answer 5. The KM "system" needs to be complete, and performance managed. You can’t “half do” knowledge management 6. Accountabilities are key. Knowledge needs to be looked after by people with defined roles and accountabilities. 7. Embed KM in the business process, with clear minimum conditions of satisfaction.

34. © Knoco Ltd – all rights reserved Questions nick.milton@knoco.co.uk www.knoco.co.uk