2. © Kate Andrews 2003 Minimising Knowledge Risk from the Retirement Boom actKM Forum 2003 Dr Kate Andrews BDO Kendalls kandrews@bdokendalls.com.au

3. © Kate Andrews 2003 In this session Knowledge Risk: What is the shape of the beast? What is being done? –Two case examples Going forward

4. © Kate Andrews 2003 Knowledge Risk Knowledge Risk is the risk associated with the under-utilisation or loss of knowledge critical to organisational performance. It matters to organisations because it impairs performance and results.

5. © Kate Andrews 2003 Contributors to Knowledge Risk Downsizing Outsourcing Restructuring Reduced corporate budgets Generation X preferences Does this sound familiar? And then we put the age demographics over the top…

6. © Kate Andrews 2003 Demographics - Just the Facts… 30% of APS employees 45 – 54 years old (compared with 19% a decade ago) 45 – 54 year olds are clustered at the higher classification levels –69% of SES –46% of Executive Level Likely departure of a significant proportion of the workforce (~23%) by 2008 Organisational Renewal: APS 2003

7. © Kate Andrews 2003 Is Effective Knowledge Transfer Occurring? Both current and former employees are uncertain that their corporate knowledge is or was being transferred. This is true for executive and SES level and long- term staff Organisational Renewal: APS 2003

8. © Kate Andrews 2003 Conclusion: Demographics in the APS Finding ways to efficiently capture knowledge has become an imperative, given the increasing emphasis on ‘knowledge work’ in the public sector, and the risk posed to corporate memory through loss of employees Organisational Renewal: APS 2003

9. © Kate Andrews 2003 Protecting Corporate Memory: The Obvious Questions… Do we have a problem? What is its magnitude? (What and when?) What can we do about it?

10. © Kate Andrews 2003 Protecting Corporate Memory: Do we have a problem? Where does critical expertise lie? –Organisational structure chart –Who do others (in the organisation or outside of it) go to for help? –Who contributes what to your core processes?

11. © Kate Andrews 2003 Protecting Corporate Memory: What is the magnitude of the problem? What will be the impact on delivery of core services? What does our demographic data tell us about when the effects will be apparent?

12. © Kate Andrews 2003 Case Example 1 Knowledge-based Exit Process – State Government Highly specialised and differentiated skills Decentralised Points of knowledge sensitivity Typically long lag time for incoming staff member

13. © Kate Andrews 2003 Case Example 1 Knowledge-based Exit Process – State Government A comprehensive separation pathway for planned exits Valuable position-specific information available for incoming staff member Knowledge sharing occurs Opportunities to comment post-exit Tangible assets appropriately managed

14. © Kate Andrews 2003 Case Example 1 Knowledge-based Exit Process – State Government A comprehensive separation pathway for planned exits Valuable position-specific information available for incoming staff member Knowledge sharing occurs before exit Opportunities to comment post-exit Tangible assets appropriately managed

15. © Kate Andrews 2003 Case Example 1 Knowledge-based Exit Process – State Government Codification Update Position description to reflect your duties and responsibilities Information Transfer Templates: 4 or 5 key issues that the incoming staff member will need to address

16. © Kate Andrews 2003 Case Example 1 Knowledge-based Exit Process – State Government For each key issue Where related information is located / stored Key contacts on this issue Frequently asked questions that call on your special expertise (and the answers): contacts related to these questions and answers

17. © Kate Andrews 2003 Case Example 1 Knowledge-based Exit Process – State Government Knowledge Sharing Handover Discussion (recommended audio recorded and notation by handover partner) Adding context to the information templates

18. © Kate Andrews 2003 Case Example 2 Retaining Corporate Memory – Commonwealth Government Most senior staff now eligible for retirement Very limited documentation, skills development Pinpoint risk – develop strategies to transfer and retain

19. © Kate Andrews 2003 Case Example 2 Retaining Corporate Memory – Commonwealth Government Too many knowledge kings and queens, not enough princes and princesses We rely too much on just a few people because there’s nowhere else to get the information Everyone is too busy to explain ‘why’

20. © Kate Andrews 2003 Case Example 2 Retaining Corporate Memory – Commonwealth Government Quality, consistency and timeliness of service delivery is supported by authoritative complete information resources AND Work with expert staff to support knowledge transfer and capability development (SME, coaching, communities)

21. © Kate Andrews 2003 Tools and Techniques Risk Identification K mapping K process mapping Social network analysis This is a sense- making process

22. © Kate Andrews 2003 Protecting Corporate Memory: Rule of Thumb The longer you leave it to address the problem, the less options you will have and the more it will cost you! (Time, resources, knowledge sharing opportunities foregone, $) Now Planned Exit $ $ $

23. © Kate Andrews 2003 Tools and Techniques Tacit Transfer Mentoring Communities Alumni Coaching Narratives

24. © Kate Andrews 2003 Tools and Techniques Codification Exit process Annotated examples / guidelines Methodologies FAQs SME for training, procedures

25. © Kate Andrews 2003 Going Forward Know your risk Think tacit and explicit Start soon Au revoir Embed and sustain

26. © Kate Andrews 2003 Comments and Observations? Thank you Kate Andrews kandrews@bdokendalls.com.au