B.C.S. - 13 th October 2008

1. B.C.S. - 13th October 2008 Knowledge Management Implementation Problems and How to Overcome Them Ray Dawson Department of Computer Science

2. Who am I? • Graduated in Maths with Engineering • MPhil in finite element program development • Software Engineer with Plessey Telecomms • Software Lecturer at Plessey Office Systems • Lecturer in Computer Science at Loughborough University • Leader of the Knowledge Management Research Group

3. The Knowledge Management Research Group Who are we? • About 40 academics, Research Associates, PhDs • Departments: Computer Science, Information Science, Systems Engineering, Human Sciences, Civil and Building Engineering, Business School Aim: • To work with business, industry and other organisations to develop and improve tools, techniques, methods and strategies for knowledge management • Emphasis on action research

4. A Selection of Projects Knowledge to Innovation Decision Tools AstraZeneca Rolls-Royce AstraZeneca Rolls-Royce 3M Danwood Standards Modelling Process Improvement Email Knowledge AstraZeneca LSC Group Notts County Council A.W.E. Celesio Leicestershire Police BAE Systems Business Case Implementation Strategies Notts County Council Rolls-Royce Danwood I.B.M.

5. Why Worry About Knowledge Management? • Many companies are currently implementing Knowledge Management initiatives • Often they are not as successful as expected • Many initiatives fall into disuse • .... or fail altogether It’s just another fad! Just like Total Quality Management

6. Similarities • Both have generated a lot of excitement • Both involve new ways of working • Both can involve a complete change of culture • Both have “obvious” benefits for an organisation • Both are “necessary” for company survival • Both are a band wagon?

7. So What is Knowledge Management? • Data consists of facts and figures • Information tells you something useful • Knowledge is understanding the implications in a particular context • Knowledge Management is about recognising, sharing and using data, information and knowledge to give some benefit So where is the problem?

8. An Alternative Definition • If it is written down in either hard copy or on an electronic record it is information • If it is only held in someone’s head, it is knowledge information knowledge Tacit knowledge Explicit knowledge

9. Information Knowledge Is There Such Thing as Explicit Knowledge? • If it has a contextual aspect, it can probably be considered to be knowledge • Eg. A “handover” document Regulation XYZ states that staff must be given three days notice of meetings. Geoff gets booked up so let him know at least a week in advance. Eric always needs a reminder on the day if you need him there.

10. Information Without Context • Eg. An instruction manual It is not that easy! Blah blah blah blah blah blah blah blah. To remove the widget from the gizmo, undo the bolts at each corner lah blah blah blah blah.

11. Information + Context = Knowledge • Eg. An instruction manual with owner’s comments Save time later Blah blah blah blah blah blah blah blah. To remove the widget from the gizmo, undo the bolts at each corner lah blah blah blah blah. Rear left tends to stick - Hit it with a hammer. Usually works

12. Problem situation 1 You are sure you have seen some analysis/review documentation on one of your major areas of interest. You need it again .... ...but you can’t seem to find it anywhere! This is a problem of knowledge searching and finding

13. Finding Knowledge • Isn’t this just an Information Systems problem? • Can’t we just use standard Information Systems methods and solutions? • Its the context element that makes it difficult to find knowledge

14. An example How many BCS members does it take to change a light bulb? For the context of a particular light bulb the answer may be much harder to find.

15. Problem situation 2 Your company has very full and complete records of all its activities. There is a huge volume of documentation. Unfortunately, this means wading through an abundance of information to find what you really need. This is a problem of finding the most relevant information quickly and easily

16. Problem situation 3 You have a decision to make. You look up the documentation for the last time the decision was made. It tells you what was decided last time.... .... but it doesn’t explain why other options were rejected .... so it is impossible to see if the original decision is still relevant. Knowledge requires context information to be stored

17. Problem situation 4 You have a decision to make. It is possible that similar decisions will have been made before.... .... but you just don’t have time to search for a records of previous decisions “Just-in-time” knowledge is needed.

18. EXIT Problem situation 5 One of your long term employees leaves the organisation ...... .... but it is only when he is gone that you realise how much knowledge left with him! Knowledge in an organisation can often be tacit .... .... how can tacit knowledge be made explicit?

19. Problem situation 6 You spend a long time investigating some new technology/methodology/process. Maybe you call in consultants. Then after much expense, one of your employees mentions ..... Oh, I could have told you about that! A problem of knowledge identification and location.

20. Problem situation 7 You have a well established way of doing some activity. Somebody suggests a change. You know there was a very good reason why things are done the way they are.... ....but no-one can remember what the reason is! How can we get hold of “Organisational Knowledge”?

21. Problem situation 8 A case is being made for a new process tool or method But you are not sure about it There is a mountain of facts and figures available For every argument there is a counter argument How can you see through all the arguments to get a clear picture of what will be best? This is a problem of knowledge presentation

22. Problem situation 9 The most innovative ideas generated at your organisation have occurred through chance conversations between employees How can you create an environment to promote further innovation? This is a problem of knowledge communication

23. £1 2/6d Problem situation 10 • Your organisation keeps extensive documentation • It is possible to find all sorts of stored information • But .... • It is not always up to date • It is often no longer relevant This is a problem of knowledge maintenance .... When does knowledge go out of date?

24. So what can we do about it? • There is no simple solution that will cure everything. • Knowledge management involves a range of: • strategies • tools • processes • Even if you know what knowledge management initiative to employ.... .... Implementing it is not so simple!

25. The All-Too-Common Scenario Senior Management recognise that • The organisation’s knowledge is an important asset • Others are employing knowledge management Knowledge management is identified as a “good thing” So they appoint a knowledge manager to do it!

26. What happens? • The knowledge manager has no real direction • He/she introduces a knowledge management tool, eg. an electronic document management system • The success of the tool is patchy – its value is uncertain • At the next budget round the knowledge management initiative is terminated

27. Why? Most knowledge management is not necessary! It may be: • A very good idea • A means of saving money • A means of staying competitive.... But....unlike many information systems.... .... it is not essential

28. The Bottom Line • Knowledge management requires more justification than simply being “good for the soul”! • It requires a business case, just like any other initiative. • The bottom line: No visible benefit => No “buy-in” => Rejection!

29. Knowledge Management Case Study Danwood • An office equipment supplier based in the UK • Medium size. ~1000 employees. 20 regional sales offices • Research task: • To examine the role that KM can provide in the company • To recommend means of improvement Need to start with a Knowledge Audit

30. The Knowledge Audit If you want to know how to get somewhere ..... ....you need to know where you are starting from. What knowledge do we have? Who uses it? What form is it in? Where is it kept? Where does it “flow”? Finds problems in existing systems Discovers inefficiencies and ineffectiveness

31. A promising early discovery Customer Query Logging System Customer Relationship Management System Potential cost savings! An obvious overlap

32. Proposal Merge the systems to produce a more efficient system! Cost-benefit justification based on: Measured costs of current operation Estimated costs of merged system development and operation GLUE

33. Result The company board accepted the proposals A successful knowledge management initiative!

34. Or was it? • After 6 months nothing had been done .... • After 1 year nothing had been done .... • After 2 years nothing had been done .... The company eventually admitted it was never going to happen What has gone wrong?

35. The Reason for Failure – Problem Ownership There were many problems the company was dealing with .... ....but this problem was not one of them It was not a problem they even new about before The company managed to function OK without this change So the proposal was accepted, but .... ....it had the lowest priority No-one really cares!

36. The Starting Point: The Knowledge Audit? If you want to know how to get somewhere ..... ....you need to know where you are starting from. What knowledge exists? Who uses it? What form is it in? Where is it kept? Where does it “flow”? Finds problems in existing systems Discovers inefficiencies and ineffectiveness

37. The Starting Point: The Knowledge Audit? If you want to know how to get somewhere ..... ....you need to know where you are starting from. What knowledge exists? Wrong! Who uses it? What form is it in? Where is it kept? Where does it “flow”? Finds problems in existing systems Discovers inefficiencies and ineffectiveness

38. The Problem with a Knowledge Audit Why find new problems? .... .... the users “own” plenty of problems already! Better to start with a “Problem Audit” Find what is bugging people the most!

39. Forget Knowledge Audits? NO! A knowledge audit can help in: Revealing the extent of a problem Finding a solution to a problem This gives a useful focus to a knowledge audit Just don’t start with a knowledge audit!

40. A 12 Step Solution Methodology for KM Successful Knowledge Management Implementation The first step: Step 1: Do a problem audit to find a recognised problem

41. A 12 Step Solution Methodology Step 2: Find how bad the problem is ie. How much does it cost? £ £ Case Study: Knowledge finding at a large engineering company Rolls-Royce

42. A 12 Step Solution Methodology Step 3: Find a Knowledge Management solution in the context of the problem Case Study: A Swedish – Indian collaboration Step 4: Calculate the cost of the solution R.O.I.

43. A 12 Step Solution Methodology Step 5: Check the value for each individual: • Knowledge providers • Knowledge receivers £ Case study: Knowledge sharing incentive scheme AstraZeneca

44. £ A 12 Step Solution Methodology Step 6: Get buy in from management and individuals based on the business case for the identified problem alone Case Study: Knowledge finding at a large engineering company Rolls-Royce

45. A 12 Step Solution Methodology Step 7: Involve the users in the implementation Step 8: Plan for the system support as well as the implementation Step 9: Implement it! Royal Navy R.A.F. Army Case study: A military administration system

46. £ A 12 Step Solution Methodology Step 10: Evaluate the actual savings made Step 11: Use the evidence of savings to: • Achieve a wider roll out the KM solution • Get buy-in for new KM initiatives Case study: Decision making tools at an engineering company Rolls- Royce

47. But don’t start from here! A 12 Step Solution Methodology Step 12: Use small steps to build bigger solutions AstraZeneca

48. Conclusion Knowledge Management has much to offer, but it is more complicated than it first looks! Don’t get carried away with the hype .... .... it takes more than “religious” belief! Knowledge Management is NOT a religion Without substance Knowledge Management will become no more than a passing fad!

49. Remember Successful Knowledge Management implementation is possible, but it must be based on: • Sound business principles • Sound engineering quality principles Planning Cost-benefits Forecasting Return-on- investment Methodology Pilots Components Increments Testing

50. Knowledge Management Exercise A company providing computer solutions • A case study of a real problem • What questions would you ask? • What solutions would you suggest?