KM Chicago (September, 2004)

1. Knowledge Management as the Engine
of Business Process Improvement
Thomas W. Hoglund
Chief Knowledge Officer
EDS
tom.hoglund@eds.com
(312) 399-6234

2. Topics
The business environment for KM at EDS
Culture &
Behavior
Business
Processes Organization
Technology
Our process-oriented approach to KM
Context Content & Tools
Results & lessons learned
2

3. The Business Environment for KM at EDS
• World’s most experienced outsourcing company
• #87 on Fortune 500 list
• 130,000 employees
• Annual revenue of $21.5 billion
• Manage 1 million software applications on 65,000 servers in
189 data centers around the globe
• Support 3 million desktops
• Respond to 20 million support calls per year
• Process 2 billion credit card transactions per year
• Process 1 billion health insurance claims per year
3

4. Our KM Vision
Vision
• Leverage the collective experience and expertise of all our
employees to create, sell and deliver world class solutions
that make our clients successful
Strategy to get there
• Apply KM to targeted, high-impact business processes
• Implement discrete projects to drive measurable results
• Use these projects to:
– Begin driving broader cultural changes
– Continue to enhance/standardize KM methodology, tools and skills
4

5. Technology
& Tools
KM Building Blocks Business
Content Organization
Processes Culture &
Context Behavior
Technology
& Tools
Content Organization
Business Processes Culture &
Context Behavior
5

6. Culture &
Behavior
Critical Types of Knowledge Business
Processes Organization
Content Technology
Context & Tools
To be successful, we need: From a KM standpoint, we need to:
Create,
Consistent processes to define, disseminate, use Process
sell and deliver our offerings and provide Knowledge
feedback
Standard packaging of the Create,
information needed to sell and disseminate, use Portfolio
and provide Knowledge
deliver a particular offering feedback
Information re how we’ve actually Capture, Experience
sold, configured and delivered disseminate, re-
Knowledge
offerings to our clients use and mine
Access to appropriate Synthesize and External
external information disseminate Knowledge
needed to make decisions
Efficient ways for teams to Provide templates Team
create and monitor their work to share Knowledge
for a particular pursuit/client
6

7. Culture &
Behavior
Our Core Business Processes Business
Processes Organization
Content Technology
Context & Tools
Define Sell Deliver
Portfolio
7

8. Culture &
Behavior
Major Knowledge Flows Business
Processes Organization
Content Technology
Context & Tools
Portfolio Sales Delivery
Operations Operations
K
Operations
Ex
Ex
nal
ter
ter
Offering ter Sales Delivery
na
na
Process Process Process
Ex
lK
lK
K K K
Team K
Define Portfolio K
Sell Deliver
Portfolio
Team Knowledge Portfolio K Team
Knowledge
Team
Knowledge
Sales Delivery
Experience Experience
Knowledge Knowledge
Other Other
Sales Delivery
Teams Teams
8

9. Culture &
Behavior
Top Priorities Business
Processes Organization
Content Technology
Context & Tools
Sales
Operations
Sales
Process
K
Define Portfolio K
Sell Deliver
Portfolio
Sales
Experience
Knowledge
Other
Sales
Teams
9

10. Culture &
Behavior
Knowledge Repositories Business
Processes Organization
Content Technology
Context & Tools
Portfolio Playbook
Lin
hc
ka
ar
Se
ge
s/
s/S
ge
ea
a
nk
rc
Li
Portfolio Knowledge
h
Sa
e
Sales Network knowledgeCentre
dg
le
e
s
wl
Pr
o
Kn
oc
e
es
nc
s
ie
Kn
er
p
ow
Ex
le
es
dg
l
Sa
e
Linkages/Search
10

11. Technology
& Tools
Process Knowledge Portal Example
Major steps in
sales process Specific tasks
Specific
deliverable
11

12. Technology
& Tools
Portfolio Knowledge Example
Offering
Standard
Info
Available
12

13. Technology
& Tools
Experience Knowledge Example
Can navigate by
company, offering,
document type, etc.
13

14. Prioritizing - the Knowledge Pyramid Content
Standards
M
at
ur
ow nt
ow
it y
e
nt
-h
of
Harvest/
Co
Bu
Innovate
Kn
of
si
ne
e
lu
ss
Best Of Knowledge
Va
Pr
oc
at
es
h
-w
s
ow
Evaluate
Kn
Knowledge Artifacts of Business Processes
Round Up Institutionalize
Quantity of K
14

15. Sample Knowledge Pyramid - Sales Content
Focus here
for portfolio &
process
knowledge Standards
E.g. Standard
M
Proposal Templates, sales Focus here for
at
experience
ur
process, portfolio offerings
ow nt
ow
it y
knowledge
e
nt
-h
of
Harvest/
Co
Bu
Innovate
Kn
of
si
ne
e
Best Of Knowledge
lu
ss
Va
Examples:
Pr
Best of Breed Proposals; Best of Breed Work Plans
oc
at
es
h
-w
s
ow
Evaluate
Kn
Knowledge Artifacts of Business Processes
Examples: Closed Sales, Lost Sales, Proposals,
RFP Responses, Cost Models, Work Plans
Round Up Institutionalize
Quantity of K
15

16. Build KM Processes Into Core Business Processes
Knowledge Management Process
Create Capture Organize Distribute Apply Manage
What steps
in the Where in the
business business
process Are people
process using K?
can we should people
use K? Value?
leverage?
Write Present Win Open Deliver
Proposal Account Job Services
Proposal Numbers
Business Process
16

17. Feedback Loops Processes
Sales
Operations
Feedback Sales
Process
K Feedback
Define Portfolio K
Sell Deliver
Portfolio
Sales
Experience
Knowledge
Feedback
Other
Sales
Teams
17

18. KM Enables Process Improvement Processes
Embody the
Process Integrate
Supporting
Design Applications
Improved
Process
The Process Contribute
Shared
Discover
External
Improvement Artifacts
Best Cycle
Practices
Monitor
Synthesize Process
Internal Measures
Best
Practices Harvest
Shared
Learnings
18

19. Knowledge Activities and Benefits Processes
• Make process
repeatable • Eliminate re-
entering data
• Shorten
learning curve • Reduce errors
Embody the • Reduce cycle
time
Process Integrate • Reduce time
• Increase Supporting searching for
applications
efficiency Applications
• Increase quality
Design
• Reduce cycle
Improved
time Process • Reduce time
searching for
information
The Process Contribute
Shared
• Reduce
duplication of
effort
Discover
External
Improvement Artifacts
• Learn from Best Cycle
world class Practices
organizations
Monitor • Understand
how well the
Synthesize Process process is
Internal Measures working
Best
• Raise overall Practices Harvest
level of • Avoid repeating
quality and Shared mistakes
efficiency Learnings • Identify innovative
approaches
19

20. KM Enabling Process Improvement Processes
• Make process
repeatable • Eliminate re-
entering data
• Shorten
learning curve • Reduce errors
Embody the • Reduce cycle
time
Process Integrate • Reduce time
• Increase Supporting searching for
applications
efficiency Applications
Design
• Increase quality
Improved EA
• Reduce cycle
Process w Se I/We
time
k flo r vi b
ces • Reduce time
or
searching for
information
W
Conten
The Process Contribute • Reduce
Mgt
duplication of
Knowledge Shared
Content
effort
Feeds
Discover
External
Improvement
Portal
Artifacts
t
• Learn from Best Cycle
ar h
ds
Practices
BoDas
world class
organizations
Collab
oration Monitor • Understand
how well the
Synthesize Process process is
Internal Measures working
Best
• Raise overall
level of Practices Harvest • Avoid repeating
quality and Shared mistakes
efficiency Learnings • Identify innovative
approaches
20

21. How Do You Measure Business Impact?
KM System Business Impact Business Goals
Contribution Behavior • Survey hours saved & • Productivity &
extrapolate
• Contributor penetration and Efficiency
growth • Compare profitability of
engagements adopting KM
• Quantity of K contributed versus not & extrapolate
• Types of items contributed • Collect anecdotes from top
• Percentage of sales, pursuits users
and engagements captured
• Quality of K contributed
• Survey sales leads re KM
• Recognition of top contributors contribution to success
Knowledge Re-Use Behavior
• Knowledge re-use penetration
+ • Compare win rate of pursuits
adopting KM versus not &
= • Sales Growth
& growth extrapolate
• Number of K objects re-used • Collect anecdotes from top
users
• Recognition of top re-users
Other
• Survey delivery leads re KM
• Leadership support contribution to client
• Membership penetration & satisfaction
growth • Compare service excellence • Service
• Member satisfaction scores of engagements Excellence &
adopting KM versus not &
extrapolate Innovation
Monthly Monthly Annually
21

22. KM Can Have Big Impact - Example
Contribution of Knowledge
10,000
Store of
Nine month
pilot results
Cumulative Contributions
8,000
Knowledge has
increased 34X
6,000
Re-Use of Knowledge
4,000
80,000
2,000
Cumulative Downloads
70,000 Usage of
Knowledge has
60,000
increased 12X
0 50,000
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Target 8
Target 9
Target 10
Target 11
Target 12
40,000
Period Ended 30,000
20,000
10,000
0
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Target 8
Target 9
Target 10
Target 11
Target 12
Period Ended
22

23. Pilot Impact
“The knowledge repository is becoming the first place to look for competitive information and leading edge
solutions. Our ability to provide thought leadership was the pursuit driver in influencing our client. Information for
the development of the presentation took 30 minutes rather than two days. If we had not been able to access
the knowledge repository and peers were required to respond, it would have taken an additional week to
get the information". Easwaran Nadhan, Principal, BAS
“I have used the knowledge repository several times over the past few months, primarily to reuse collateral.
For example, I’ve used it to compile a presentation on EDS’ .NET capabilities and also to develop a
presentation on EDS’ capabilities and experience with Web Hosting. Finding collateral on the repository has
increased the credibility of my presentations by providing additional examples, case studies and details.
I have saved about 40 hours so far this year by using material in the repository.”
Phillip McMullen, Lead Technologist, Application Services
“Knowledge repository utilization was a contributor to the win at XXXX for a $1.2 M portal and middleware
development pursuit. We did the information gathering in 50% of the time (spent four hours vs. eight
hours). Without the repository, it would have required a mass mailing and multiple follow-ups".
B.J. Joshi, Managing Consultant, BAS
23

24. Top Five Lessons Learned
1. Technology is easy, changing behaviors is hard
2. KM opportunities exceed available bandwidth
3. Business strategy must drive KM strategy
4. Don’t let KM get ahead of process redesign
5. Users need to see how this improves their day
24

25. Knowledge Management as the Engine
of Business Process Improvement
Thomas W. Hoglund
Chief Knowledge Officer
EDS
tom.hoglund@eds.com
(312) 399-6234