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Best Buy Corporation’s Strategy for Expanding Knowledge Management Presented by Thomas Bauer and Ted Jirele APQC’s Seven

Best Buy Corporation’s Strategy for Expanding Knowledge Management Presented by Thomas Bauer and Ted Jirele APQC’s Seventh KM Conference May 2-3, 2002. Today’s Topics. Expansion Strategy Importance of CoP Gatekeepers Measurement. Who is Best Buy?.

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Best Buy Corporation’s Strategy for Expanding Knowledge Management Presented by Thomas Bauer and Ted Jirele APQC’s Seven

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  1. Best Buy Corporation’s Strategy for Expanding Knowledge ManagementPresented by Thomas Bauer and Ted JireleAPQC’s Seventh KM ConferenceMay 2-3, 2002

  2. Today’s Topics • Expansion Strategy • Importance of CoP Gatekeepers • Measurement

  3. Who is Best Buy? • Worlds largest retailer of consumer electronics, computers, appliances, and media, music, and movies. • Over 60,000 Employees • Currently operate more than 450 Best Buy stores • Recently acquired approximately 1600 additional stores through Musicland, Future Shop & Magnolia • Brands include Musicland, Sam Goody, Suncoast, On Cue, Media Play, Future Shop, Magnolia Hi-Fi, and Best Buy.com • We’re the retailer at the intersection of technology and life

  4. Best Buy and the Retail Environment • Technology is rapidly changing • Customer expectations are changing • We’re committed to becoming a true learning organization with the help of e-Learning • We know that the collective knowledge of our people is our strongest competitive advantage for rapid and profitable growth

  5. Best Buy’s Vision and Values

  6. Knowledge Management Evolution • To get the Right Information, to the Right People, at the Right Time • To Share Best Practices and Lessons Learned • To Improve Access to Communications, Best Practices, Learning Content, and Performance Management Information for all associates • To provide a “One-Stop-Shop”

  7. KM Value Proposition Loyalty Turnover • Product Content • Training Material • Testing/Development • Department Specific • Store News • TagZone Information Training Cost View Point • Sales Idea • Best Practices • Lessons Learned • FAQ’s • Ask The Expert Sales • Multiple Store Devices • Concurrent users • Information on demand

  8. Chronology of KM at Best Buy • Best Buy KM Program Launched – November 1999 • Defined program goals • Defined program structure, teams, and roles • “Phase 1” CoP selection and pilots – January 2000 • Defined CoP pilot selection criteria • Completed CoP selection process • Launched 3 pilot communities • “Phase 2” CoP expansion – August 2000 • Enhanced content, tools, and functionality for three pilot communities • Standardized project processes and community technology • Launched 8 new communities • “Phase 3” CoP integration and expansion - March 2001 • Resolved “access issues” for users within store environment • Deployed 6 sales-based communities nationally • Initiated several new corporate communities

  9. KM Expansion Begins by Engaging Leaders • KM Executive Steering Committee • What are the biggest opportunities? • What would successful KM look like? • KM Advisory Board • Who should be on the Design Teams? • Where should we start • What enablers will be needed? • COP Design Teams • How do we make it happen? • KM PMO • How do we manage this whole initiative? • What do we need to build?

  10. KM Expansion Strategy • Created new capacity to find and share knowledge • Selected pilots to learn how to leverage knowledge sharing for business results • Looked for quick wins and sustainable advantage • Successfully launched a variety of KM pilots • Expanded successful approaches to new issues and areas

  11. Expansion Planning • Evaluated several pilot project opportunities within each business area. • The Advisory Board and Steering Committee selected “quick hit” pilots based on the project selection criteria and potential business results opportunities. • Involved stakeholder groups and field associates. • Chartered business unit design teams comprised of key business group stakeholders. • Provided KM Steering Committee and Advisory Board monthly updates on project decisions, directions, and progress.

  12. Strategy Implementation • Defined and developed CoP knowledge sharing applications for use in a store and corporate environment. • Defined and developed detailed CoP gatekeeping application to gather, validate, and publish important content to the field. • Conducted a “tips sharing” survey with field associates to collect valuable “prime the pump” ideas and knowledge. • Partnered with user groups to test and refine CoP application prior to initial release. • Used a variety of communication media and methods to raise awareness and enthusiasm in the field prior to the initial release of the CoP application.

  13. MSN & Complete Solutions CoP Selling MSN Contracts Educating Sales Associates Mobile Installation CoP Installation Tips and FAQs Mobile News Installation Manuals PC Tech CoP PC Tech Repair Tips and FAQs PC Tech News 2000 KM Pilots

  14. RetailZone and ETK Sales Tips and Ideas Product Information Training & Reference Materials MarketingZone Marketing SOP Documentation Applications Links and Tools Tips and FAQs 2001 KM Expansion Initiatives

  15. Sustaining Expansion • Constantly improving the content • Tied in to business results • Eliminate / Reduce old communication and training methods • Incorporate feedback from users • Communicate successes • Continue to enhance systems based on technology advancements

  16. Role of CoP Gatekeepers • The Gatekeeping team is responsible for developing cross-functional partnerships and processes to align company initiatives with retail resources. • Managing the flow of critical knowledge to stores • Retail Communications • Support training initiatives • Support and development of store SOP • Representation of all retail disciplines

  17. Corporate Retail Marketing Service LP VP Merch. Advertising RM Inv. Control DM Communications Accounting Retail Ops District MIS Distribution Training Offices HR Payroll Real Estate Stores Critical knowledge was over whelming for stores to handle.

  18. A communication development process was designed to manage knowledge flow. Communication Plan Employee Toolkit/ Retail Zone Gatekeeping Sponsor(s) Idea Retail Weekly Sponsor(s) Sponsor(s) Retail Implements The Plan Sunday Ad NET Gatekeeping Sponsor(s) Development/ GK SOP .BUS Answer Book Sponsor(s) Team Meeting Contest Sponsor(s) Tagzone Weekend Training Sponsor(s) Merch Packets Tag TV The Tag Project Packets Feedback

  19. KM Gatekeepers were added to the Sales Development team to manage information flow to stores. • Act as communication liaison between Retail Process Managers and sales associates • Validate tips and ideas • Publish FAQs and news • Answer questions and provide feedback • Publish links and training materials • Provide consistent message to field associates • Identify additional knowledge needs of sales associates

  20. KM Gatekeepers serve as “managing editors” of their sales category sites • Write new content – prime the pump • Ensure consistency to SOP and Best Practices • Coach the field on how to write good tips – clear, accurate, and relevant • Encourage stores to add to the knowledge base – drive usage

  21. Gatekeepers manage flow of information to and from associates. Associates Associates Gatekeeper

  22. Measuring the contribution of KM systems • Lead measures • Access • Participation • Perceived usefulness & timeliness • Compelling Stories • Lag measures • Behavior change • Business results • Combined into a Balanced Scorecard

  23. Balanced Scorecard Relationship of Measures Rollout KM Systems Behavior And Process Process Results Customer Results Financial Results

  24. Balanced Scorecard Relationship of Measures Rollout KM Systems Behavior And Process Process Results Customer Results Measures Store Assessment Scores Product Knowledge Test Scores Viewpoint Scores Turnover Training Costs Measures # of Visits # of Tips authored Financial Results

  25. Balanced Scorecard Relationship of Measures Measures Returns and exchanges Loyalty 1 scores Customer relations calls Rollout KM Systems Behavior And Process Process Results Customer Results Financial Results Measures Gross Margin Gross Margin Return on Labor

  26. Balanced Scorecard Approach to Measurement (sample report)

  27. Collection and Reporting Process

  28. What is Next for KM at Best Buy? • Extended Enterprise: KM across the Brand (Musicland, Magnolia, and Canada) • Sharing knowledge across the acquired companies • “Cover the Store” -- Expand RetailZone to non-sales retail departments, e.g. merchandising, media, others. • “Enable the Enterprise” -- Expand technology infrastructure to other corporate departments, e.g. marketing, community relations, others.

  29. Questions and Answers

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