KMS Performance assessment

1. KMS Performance assessment

2. Contents • Why measure the performance of KMS • Level of analysis used in KMS measurement • Process level • KMS Level • Overall organization • Existing models for knowledge assets valuation • ROI • BSC • KM lifecycle • Employee surveys • Case study

3. Frame work for KMS implementation Problem/ opportunity identification Knowledge diagnosis and audit Why KMS Strategy selection Codification / personalization KMS implementation roadmap KMS life cycle development How to develop KMS What KMS KMS maturity management How to sustain effectiveness from KMS KMS evaluation and assessment

4. Why measure the performance of KMS As an intangible asset Knowledge results are difficult to measure and quantify The question is “how can organizations measure KMS benefit?”

5. Why measure the performance of KMS • Tip the scale for (or against) the undertaking of a specific project • Provide a concrete way of defining what a KMS will achieve and whether it has met its goals • The need to improve the transparency of value creation to stakeholders – for governance and financing person.

6. Benefit of KMS measure • Representation a way of learning what works and what does not • Securing funding for KM implementation • Providing targets and feedback on implementation • Assessing the success of implementation • Deriving lessons for future implementation

7. Non existing of standardized method for evaluating KM results in general and specially in monetary terms • Managers often use easily estimable quantitative factors – ROI as to justify the dollar invested and gain support from management in times of tight IT budgets • While thesebenefits have not been tagged. • better informed employee • Streamline d communication with customers • Repeatable and consistent process

8. If change can be measured, it has to be cross-checked whether these are the result of KM activities The question, then How can organizations measure KMS benefits?

9. Level of analysis used in KMS measurement • Process level • KMS Level • Overall organization

10. Level of analysis used in KMS measurement : Process level Process – “ordering of work”; activities across time and place; with a beginning, an end; clearly define input, output assessing How KMS influence the performance of these activities

11. Level of analysis used in KMS measurement : Process level How KMS influence the performance of process activities Evaluate • Time saved in performing an activity • Quality of output by an activity Need To analyze the evaluation overtime Broader perspective Workers or customers perspective such as customer loyalty, employee satisfaction, quality and knowledge creation

12. Level of analysis used in KMS measurement : KMS level KMS stores access statistics on individual records in the database • How many times a particular document has been accessed • Documents have been accessed by whom

13. Level of analysis used in KMS measurement : KMS level • How many times a particular document has been accessed • Documents have been accessed by whom • number of downloads • number of posting • May not be good indicators of knowledge sharing behavior of employee Challenge How to associate these usage statistics with other outcomes

14. Level of analysis used in KMS measurement : KMS level How to associate these usage statistics with other outcomes • IBM measures • reuse and associated with profit (ROI), to estimate ROI gained from the reuse assets • Potential area of improvement • 5000 people is carried out that aims to answer questions. • A review f profit measures is done each quarter • Reuse is measures and associated with profit

15. What Does Return On Investment - ROI Mean? A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula: ROI = (Gain from investment – Cost of investment) / Cost of investment In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest.  Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken. http://www.investopedia.com/terms/r/returnoninvestment.asp

16. How to define KM metrics The best way to get Concrete metrics in the context of KMS Consists in Determining the objectives of the initiative and its expected outcomes at the start Link to Business objectives

17. How to define KM metrics KMS should meet specific objectives The objectives should be very specific So as to be further evaluated and should focus on a particular business process and activities Managers need to ensure that employees’ interests are aligned with the company’s KM and their execution

18. How to define KM metrics Clearly KMS objectives Selecting the mix metric to measure The metric should assessed before the project is initiated in order to compare the results after implementation.

19. How to define KM metrics Importance • Consider “before and after implementation” • The consistency of the results over the short and long run To be able to make adjustments as required

20. How to define KM metrics Process analysis and selection Process analysis and selection Process level System level Use level Process level System level Use level Improve sale by 20% Sale objective achieved Process level System level Use level Process level System level Use level Measuring sales before KMS implementation Measuring sales after KMS implementation

21. How to define KM metrics The measurement should be: • Valid : measure what intend to measure not something else • Reliable: give consistent results • Actionable: give information that can be acted upon if necessary

22. How to define KM metrics The measurement should be: • Target value • Time frame • Who or what will be measured • Measurement frequency • Any assumption • Dependencies on other project or systems

23. How to define KM metrics • In general organization initiate with participation matrices such as access to knowledge base, number of posting, number of download for a particular document • Cost and time saving Once a KM initiative is mature and the organization whishes to institutionalize its KM Program Performance review and Balanced scored are methods are used

24. KM Measurement Process What is the business objective? Modify measures What should we measure? What KM methodology and tools will we us? Modify KM Process How should we collect and analyze the measures? Aid decision making Who are the stake holders and what they need to know? What do the measures tell us and how should we change? What is the business objective?

25. Existing models for knowledge assets valuation • ROI • Balanced Scored Card • KM lifecycle • Employee surveys

26. Existing models for knowledge assets valuation : ROI Return on Investment What benefits did we get to justify the costs involved? Cost associated with an investment in IT is straight forward to identify Cost and benefit of KM are difficult to pin down For benefit, how can we measure things such as increased knowledge sharing, faster learning or better decision making

27. Existing models for knowledge assets valuation : BSC BSC is being widely adopted in KM The advantage of this approach, in terms of KM, is that it links learning to process performance Which in turn is linked with overall organizational performance.

28. Existing models for knowledge assets valuation : BSC BSC has been developed by Kaplan and Norton in 1996 Focused on linking an organization’s strategy and objectives to measure from four key perspective • Financial • Customer • Internal process • Learning and growth

29. Existing models for knowledge assets valuation : BSC In contrast to traditional accounting measure, BSC shifts the focus from purely financial measures to include intangible success factors These roughly equate to the three components of IC , human capital & learning, structure capital & process, Customer capital & customer

30. Existing models for knowledge assets valuation : BSC • Financial : How do we view our “share holder” • Customer : How do our customer see us? Are we meeting their need and expectations? • Internal process : What do we need to do well in order to succeed? What are the critical processes that have the greatest impact on our clients and our financial objectives? • Learning and growth : How can we develop our ability to learn and grow in order to meet our objectives in the above three areas.

31. Existing models for knowledge assets valuation : KM lifecycle Measure progress of KM activates in turn of their maturity APQC: ROAD Map to Knowledge Manage results: Stages of implementation To provide the organizations with a map to guide them from getting started right through to institutionalizing knowledge management

32. Existing models for knowledge assets valuation : KM lifecycle The map has five stages: Getting start Develop a strategy Design and launch a knowledge management initiative Expand and support Institutionalize knowledge management Measure associate with each stage

33. Existing models for knowledge assets valuation : Employee surveys Given the importance of people in KM Can be used to assess Organizational culture People opinion, attitude, behavior Change or Not

34. Existing models for knowledge assets valuation : Employee surveys Employee surveys can be subjective So May or may not reflect reality But Can be very benefit , as people perceptions will determine their behaviors with respect to KM

35. Case study

36. Case study: Wilson SonsiniGoodrich & Rosati • Law firm with 600 lawyers • Provide legal services to technology and growth business enterprises at all stages of development. • Its headquarters are in California, with offices in six other US cities. Knowledge intensive firm

37. Why WSGR needs KM, KMS • 12 lawyers – 100 lawyers – 600 lawyers • One office – 7 offices in 6 different locations • Knowledge dispersion • Clients’ expectation increased Need a strategy to response to client faster, and better quality

38. How WSGR developed KM • KM Program started in 1998 • Report to IT group until 2001 • In 2001, Director of KM was nominated and formal team of KM was put in place • One team – 2 staff – one focused on the litigation aspect (the court), the other focused on transaction and advising clients (negotiation)

39. Case study: Wilson SonsiniGoodrich & Rosati The firm runs and manage KM program by a small full time team. To sell and deliver the services as effectively and efficiently s possible. Business objective

40. Case study: Wilson SonsiniGoodrich & Rosati The KM program in WSGR focus on getting new lawyers and other professionals up to speed quickly, and continuously developing their legal knowledge and professional skills Support superlative client service by putting the essential expertise and experience of the whole firm by a fingertips - readily or instantly available ,of each lawyer. To Deal with different knowledge challenges that the organization is facing

41. How WSGR developed KM • Three types of knowledge are focused: • Work product • Project • people

42. How WSGR developed KM Three types of knowledge are focused: Work product collections Model and precedent documents to guide lawyers as starting point for drafting new deal or case documents. This includes sample document , patterns, high quality templates, forms, and transactional documents for using as guideline for lawyers.

43. How WSGR developed KM Three types of knowledge are focused: Project databases Principle deal types are profiled such as private and public financing, mergers and acquisition Attach profiles as possible Lawyers can search profiles for deal similar to those they are working on. Good stating point To show a client that they have valuable experience with a certain deal type, industry, geography

44. How WSGR developed KM Three types of knowledge are focused: People, Expertise locator Dedicated e-mail addressees are provide for tough. Practiced – related question or referrals and questions and answers are made searchable to all staff via online debases.

45. The expert location process Expert 1 Online submission of problem Resolve Automatically directed to the best available experts Expert 2 Expert 3

46. Why WSGR evaluate KM program KM team in WSGR runs program to sell and deliver legal services as effectively and efficiently as possible. KM team costs the firm money for salaries, technology, and fee-earners’ time No direct revenue

47. Why WSGR evaluate KM program KM team needs to find the way to show how the program benefit To justify the firm’s investment Output, Usage, Results are employed to measure KM benefit

48. How WSGR evaluate KM program

49. How WSGR evaluate KM program • Output: measure • quantity of easily accessible • High quality knowledge provides an answer to the essential question Answers the essential questions “Have you built it?” The firm KM resource must have critical mass of material before lawyers use it

50. How WSGR evaluate KM program • Usage: measure • Who use the KM resource • In what way they use • How often they use Answers the essential questions “Did they come?” Heavy usage of a resource generally indicates that lawyers value it highly and