Integrating Knowledge Management and Organizational Learning

1. Integrating Knowledge Management and Organizational Learning Darcy Lemons, Project Manager, APQC dlemons@apqc.org

2. Agenda APQC Introduction Best Practice Study Overview Stages of Integration Model Key Findings and Examples Questions and Answers

3. APQC�s mission To work with organizations worldwide to improve productivity and quality by: Discovering effective methods of improvement Broadly disseminating findings Connecting individuals to each other and the knowledge they need to improve Operate as a non-profit 501(C)3 in Houston, TXOperate as a non-profit 501(C)3 in Houston, TX

4. Our unique 27-year vantage point Solid leadership and vision to introduce: Malcolm Baldrige National Quality Award Process Classification FrameworkTM (PCF) Knowledge Sharing NetworkTM (KSN) Performance Measurement database Open Standards Benchmarking CollaborativeSM research Heritage in sharing knowledge: Membership roster of more than 500 organizations Trained more than 16,000 people in 36 countries Conducted more than 4,500 benchmarking and improvement projects Led 132 consortium benchmarking studies to identify best practices Knowledge management advisory services to over 80+ organizations 2003 & 2004 recipient of North American Most Admired Knowledge Enterprise (MAKE) award During our 27 year history, APQC has spearheaded the development many methodologies, approaches and networks. Some key highlights include: We also have a strong heritage in sharing knowledge and training organizations. During our 27 year history, APQC has spearheaded the development many methodologies, approaches and networks. Some key highlights include: We also have a strong heritage in sharing knowledge and training organizations.

5. APQC�s KM consortium studies Using Communities of Practice to Drive Organizational Change and Innovation (Report available September 2005) Integrating Knowledge Management and Organizational Learning (2004) Transfer of Best Practices (2004) Virtual Collaboration (2003-2004) Expertise Locator Systems (2003) Measuring the Impact of Knowledge Management (2003) Using Knowledge Management to Drive Innovation (2002) Retaining Valuable Knowledge (2001) Managing Content and Knowledge (2001) Building and Sustaining Communities of Practice (2000) Successfully Implementing KM (1999-2000) Creating a Knowledge Sharing Culture (1998-99) Expanding Knowledge Externally (1998) Europe - The Learning Organisation & KM (1997) Using Information Technology for KM (1997) Emerging Best Practices in KM (1996) This is what we have done in category 7 � managing information and knowledge Consortiums are the tip of the iceberg Take what we learn from research and help our members and clients apply learnings List of publications are outside We can help you assess where you are and develop a strategyThis is what we have done in category 7 � managing information and knowledge Consortiums are the tip of the iceberg Take what we learn from research and help our members and clients apply learnings List of publications are outside We can help you assess where you are and develop a strategy

6. Project scope overview Scope Area 1: Building the Business Case for Integration Scope Area 2: Creating a Streamlined Knowledge Marketplace Scope Area 3: Roles and Partnerships in an Integrated Organization Scope Area 4: Integrating Technology Enablers Scope Area 5: Gauging the Results Scope Area 1: Building the Business Case for Integration Senior leadership Finding synergies Developing the case and measures Scope Area 2: Creating a Streamlined Knowledge Marketplace Linking communities of practice, self-service tools, and best practices transfer with learning Reinforcing work processes with learning approaches such as e-learning, action learning, mentoring, and corporate university courses Change management strategies, including incentives and recognition, communication, and training Developing unique organizational designs to link learning, sharing, and processes Scope Area 3: Roles and Partnerships in an Integrated Organization Linking knowledge management professionals with instructional designers, trainers, and organizational development specialists Partnering with IT and information management functions Drawing on HR resources to ensure a link to business talent needs Scope Area 4: Integrating Technology Enablers Learning and content management systems KM repositories and tools (portals, expertise location systems, etc.) E-learning programs Virtual collaboration tools Scope Area 5: Gauging the Results How best-practice organizations have bridged the knowing-doing gaps Measures to evaluate integrated KM and organizational learning effects on performance development tools that lead to the best resultsScope Area 1: Building the Business Case for Integration Senior leadership Finding synergies Developing the case and measures Scope Area 2: Creating a Streamlined Knowledge Marketplace Linking communities of practice, self-service tools, and best practices transfer with learning Reinforcing work processes with learning approaches such as e-learning, action learning, mentoring, and corporate university courses Change management strategies, including incentives and recognition, communication, and training Developing unique organizational designs to link learning, sharing, and processes Scope Area 3: Roles and Partnerships in an Integrated Organization Linking knowledge management professionals with instructional designers, trainers, and organizational development specialists Partnering with IT and information management functions Drawing on HR resources to ensure a link to business talent needs Scope Area 4: Integrating Technology Enablers Learning and content management systems KM repositories and tools (portals, expertise location systems, etc.) E-learning programs Virtual collaboration tools Scope Area 5: Gauging the Results How best-practice organizations have bridged the knowing-doing gaps Measures to evaluate integrated KM and organizational learning effects on performance development tools that lead to the best results

7. Study best-practice partners Site Visit Partners: Accenture Aerotek, Inc. Defense Acquisition University IBM Corp. Turner Construction Data-only Partners: Avanade Corning Rockwell Collins

9. Work backwards from there� The integration of KM and organizational learning is not about becoming a world class learning or knowledge organization; Rather, it�s about becoming a world class organization by strategically enabling your workforce with the knowledge, tools, and learning they need Our story begins�

11. Moving through the stages of integration Organizations begin a journey to integration that starts with: Strategic focus Senior leadership push Galvanizing �moments� Attrition Need for innovation Partnerships across the enterprise So how do you intentionally cross the �chasm� into an enabled knowledge marketplace�?

12. Building the case for integration The vision to integrate KM and organizational learning was clear among partners 75% and 88%, respectively, of best practice organizations say that KM and organizational learning are included in their organization�s enterprise level strategy However, only one partner and 28% of sponsors created formal business cases before integrating 63% of partners indicated that senior leaders drove the integration of KM and organizational learning As a group, partners not only have a well-defined strategy for integration execution, but also in many cases have road maps to: understand their businesses and where their businesses are going, think strategically regarding both what is needed and how it is to be delivered, consider their KM and organizational learning activities as part of their businesses,

13. Partner examples: Building the case At Turner Construction, the chairman tasked an SVP with developing a solution to support company growth (15-20% per year) and TKN was the solution This would require 500 to 1,000 new engineers to be added to Turner�s payroll each year to accommodate growth, retirements, and attrition. At Accenture, groups or businesses with P&L responsibility are charged with the responsibility for their investments in people development � �KM as Stockbroker� This ensures that they receive both the benefits and assume the risks of their choices. DAU�s integration efforts focus on employee development in order to meet DoD requirements One of the seven goals of the U.S. Department of Defense�s learning initiatives is to develop �a motivated and agile work force.�

14. Knowledge embedded in workflow increases capability building Making knowledge explicit within work processes increases the rate of learning diffusion All partners have integrated LMS and KM systems ranging from �portions integrated� to �fully integrated� Goal of making accessing knowledge and learning-while-doing indistinguishable acts Accenture�s Portal provides Knowledge, Learning, & Methods through a single accessible location The OnDemand WorkplaceTM at IBM utilizes an employee�s HR information to provide customized knowledge and communication to each employee Accenture case study: �Clients to receive a talented individual with the collective wisdom of 100,000 people doing work behind them. Aerotek case study: �Everybody teaches. Everybody learns.� indicates lifecycle of learning that is indistinguishable from the work as it is conducted. DAU case study: �proactive perspective by bringing learning to the work force and embedding it people�s workflow.� IBM case study: �Learning is a process. Knowledge is the input and output of the process.� Turner case study: implementing role-based (TKN intranet) dashboards, embedded learning within an individual�s job, personal search pages, development plans, and communities of practice. Turner case study: �Turner Way� to maintain competency in 15-20% growth environmentAccenture case study: �Clients to receive a talented individual with the collective wisdom of 100,000 people doing work behind them. Aerotek case study: �Everybody teaches. Everybody learns.� indicates lifecycle of learning that is indistinguishable from the work as it is conducted. DAU case study: �proactive perspective by bringing learning to the work force and embedding it people�s workflow.� IBM case study: �Learning is a process. Knowledge is the input and output of the process.� Turner case study: implementing role-based (TKN intranet) dashboards, embedded learning within an individual�s job, personal search pages, development plans, and communities of practice. Turner case study: �Turner Way� to maintain competency in 15-20% growth environment

15. Team and collaborative learning is critical to organizational learning success Individual learning is the foundation for capability development, but team learning via collaboration or experience sharing is higher-order Use of practitioner SMEs as mentors and coaches Use of communities of practice to develop operating models, standards, and strategies Communities of practice may have formal responsibility for locating expertise on behalf of members IBM�s 4-tier learning framework of: Learning from information, learning from interaction, learning from collaboration, and learning from experience Communities and collaboration are �the future of learning� at Turner Aerotek case study: subject matter experts who perform the job every day. DAU case study: Logistics CoP developed a Performance Based Logistics Implementation Model�and implementing a performance based logistics strategy. IBM case study: CoPs have SME discussions whose documents become part of the knowledge base Aerotek case study: subject matter experts who perform the job every day. DAU case study: Logistics CoP developed a Performance Based Logistics Implementation Model�and implementing a performance based logistics strategy. IBM case study: CoPs have SME discussions whose documents become part of the knowledge base

16. Learning is more than formal training It�s not effective for people to have to stop and disengage from work each time they need support Expertise location functions and subject matter expert opinions are highly leveraged Connecting people-to-people systems deployed, whether automated or manually The use of �Ask the expert� type applications and forums All partners have well-defined, active community of practice programs Roles & responsibilities within these CoPs explicitly defined CoPs required to share knowledge and learning across the entire organization Accenture case study: Taken directly from the 95/5 formal training split. �It is not effective for people to have to stop and disengage from work each time they need support.� CoPs: All partners Accenture case study: Taken directly from the 95/5 formal training split. �It is not effective for people to have to stop and disengage from work each time they need support.� CoPs: All partners

17. Partner Examples: Learning happens anytime Recruiter Lead and Recruiter Lead KMs at Aerotek are highly valued, formal roles responsible for connecting people-to-people, people-to-solutions, and solutions-to-people JIT learning at Avanade includes both live, virtual classes and on-demand collaborative self-study methods DAU�s AKSS and ACC blend synchronous and asynchronous learning with continuous CoP and expert access to allow anytime and anyplace learning Aerotek case study: 3 tier nested CoP structure. Avanade clo.com article: synchronous virtual training and recorded training turned into collaborative self-study coureware. Corning partner profile: Reports to the Desktop as a facilitator of learning opportunities since employees can retrieve reports easily, especially those not located near the physical library. Rockwell partner profile: Note regarding informal learning after discussion of formal training, and ~p. 2 quote at bottom of page.Aerotek case study: 3 tier nested CoP structure. Avanade clo.com article: synchronous virtual training and recorded training turned into collaborative self-study coureware. Corning partner profile: Reports to the Desktop as a facilitator of learning opportunities since employees can retrieve reports easily, especially those not located near the physical library. Rockwell partner profile: Note regarding informal learning after discussion of formal training, and ~p. 2 quote at bottom of page.

18. Individuals should be made accountable for their own professional development Individual responsibility allows employees to perform and learn at own pace and within their needs and style Infrastructure must be in place to seamlessly facilitate the process Ability to plan, execute, and monitor the development plan progress by the individual must be available. Upward and lateral professional opportunities and competency requirements must be clear and available for the individual�s review. Performance-driven learning at Turner means that employees are able to plan their career progression with supporting learning opportunities through a single portal Accenture�s myLearning system allows personalized access to planning, fulfillment, and management of individual development needs for 100,000 employees Turner�s integrated structure is the most robust among partners since it�s LMS and KMS are integrated. However, they also have a process where they have assessed the competencies of every one of their employees, using a rating scale. They also allow every employee to review the competencies needed for the next level (or couple of levels) if they are interested in promotion opportunities. For example, if a project manager wants to see what competencies a senior project manager role requires, he can check those, as well as see how well he currently rates against those minimum standards.Turner�s integrated structure is the most robust among partners since it�s LMS and KMS are integrated. However, they also have a process where they have assessed the competencies of every one of their employees, using a rating scale. They also allow every employee to review the competencies needed for the next level (or couple of levels) if they are interested in promotion opportunities. For example, if a project manager wants to see what competencies a senior project manager role requires, he can check those, as well as see how well he currently rates against those minimum standards.

19. Connecting people to people is critical Dynamic nature of business means that waiting for documented/explicit knowledge before acting is insufficient Spontaneous, �teachable moments� are created when searchers are connected with providers of knowledge Accenture�s strategy includes expertise location applications, knowledge transfer through collaboration, and learning coaches Aerotek�s RLKMs provide �push� and �pull� connections between knowledge seekers and providers DAU�s �Ask the professor� capability within the AKSS Turner�s Meeting Zone provides spontaneous, synchronous collaboration capability Finding subject matter expertise, whether through a locator system, facilitators (such as knowledge managers), discussion forums, or simply contact lists, is critical to providing knowledge as quickly as possible. Since documented knowledge must often be reviewed, sanitized, chunked, and quality assured prior to vetting, the publishing cycle of documented knowledge may not be fast enough to take action for competitive advantage.Finding subject matter expertise, whether through a locator system, facilitators (such as knowledge managers), discussion forums, or simply contact lists, is critical to providing knowledge as quickly as possible. Since documented knowledge must often be reviewed, sanitized, chunked, and quality assured prior to vetting, the publishing cycle of documented knowledge may not be fast enough to take action for competitive advantage.

20. KM and organizational learning should own the process, but not the content Keeping responsibility for content within the business or user community ensures quality, timeliness, and relevance Business units can focus strictly on the quality and quantity of content IBM�s customer groups create �snapshots� of meaningful content in context for reuse Aerotek�s blended distance learning model is based upon high performing practitioners providing learning in the learners� environment Allows the KM and Org Lrng infrastructure to manage and maintain consistency of delivery methodology KM and organizational learning can �see� across the entire enterprise to develop and deploy consistent knowledge and learning structures As with KM in stand alone initiatives, the infrastructure should not be a worry of the business units. Instead, their energies should be focused on creating or acquiring knowledge, storage, dissemination, reuse, and maintenance.As with KM in stand alone initiatives, the infrastructure should not be a worry of the business units. Instead, their energies should be focused on creating or acquiring knowledge, storage, dissemination, reuse, and maintenance.

21. KM and Org Learning partnerships with other functions or units is a critical success factor Both Partner and Sponsor organizations leverage relationships between their KM and organizational learning programs and other areas 75 - 100% of partners work with IT, HR, and leadership development in support of integrated KM and learning products and services Partnerships with organizational capability or talent management groups are emerging as ways to address growth or attrition issues High performing organizations have high performing employees, so technical skill building and leadership development are critical Performing with fewer resources or in times of merger/acquisition or downsizing is critical Accenture KM/OL partners with HR to assess organization-wide needs The Global Capability Development team works with IT, leadership development, Accenture Research, Accenture Learning and more Aerotek�s partnership with its Allegis IS department ensures technology enablement supports KM/OL efforts Rockwell Collins� KM and OL efforts partner with HR Turner�s TKN team works closely with IT and HR to develop tools and processes in support of the work force. IBM�s Learning and Knowledge group partners with finance and strategy teams, HR, and solutions development groupsAccenture KM/OL partners with HR to assess organization-wide needs The Global Capability Development team works with IT, leadership development, Accenture Research, Accenture Learning and more Aerotek�s partnership with its Allegis IS department ensures technology enablement supports KM/OL efforts Rockwell Collins� KM and OL efforts partner with HR Turner�s TKN team works closely with IT and HR to develop tools and processes in support of the work force. IBM�s Learning and Knowledge group partners with finance and strategy teams, HR, and solutions development groups

22. Coherent knowledge economy philosophy The business model and knowledge work drive KM and organizational learning, not technology, content, or function Executives are believers The value logic begins and ends with the �business of the business� and the way people really think, learn, and use knowledge in their practice Aerotek�s tag line, �People. Fit. Perfectly� acknowledges they are a people business, specifically finding a fit between people and jobs and organizations. Their own practice reflects what they sell to clients. IBM�s dedication to innovation is clear in their use of the Thinkpad as the consultant�s workplace.

23. Shared understanding In the most integrated companies, shared language, symbols, cultural values and understanding of the business model and strategy are apparent Common taxonomies, tag lines, etc. are grounded in a real philosophy of the business coming from the highest levels In many ways, this underlying factor is no different from other changes, initiatives, business and cultural aspirations that require consistency, understanding and belief. This may be a proxy for �culture� Accenture�s move to a common taxonomy and consolidated databases Turner�s explicit competency model IBM�s role-based learning

24. The way knowledge is organized mirrors the way the business is organized Knowledge and learning designs, and the vehicles that carry and represent them (e.g., intranets, course offerings) reflect the way leadership and workers think about their business organization For instance, if the business is organized around industry, the knowledge is organized that way from users� point of view Consistency with the business makes sense because it naturally and easily maps to real time needs that arise IBM�s organization and push of knowledge to workers according to industry, project, profession Turner�s TKN is organized around competencies, job type, and skill level

25. Success and value are tied to business results The value of knowledge and learning are tied directly (quantifiably) and or logically to metrics and results that are already important to the business. A move from traditional concepts of ROI to a value chain or business value mentality Causation is still tricky to prove for any business intervention, but co-variation is an important indicator Several partners use Kirkpatrick�s Levels (typically 1-3) together with activity measures (hits, users, downloads, number of learners, etc.) to show impact and effectiveness Some partners successfully conduct quasi experiments to test differences between groups Many still capture cost savings from Web-based delivery over traditional learning modes

26. Partner examples: Tie to business results Accenture�s work to link learning with individual and financial performance IBM�s use of raw data to show difference between control and experimental groups and their performance in the business Accenture case study: 150 dedicated resources organized by operating groups and service lines. Identify strategic learning opportunities and knowledge gaps. Aerotek case study: Allegis IS people must visit an office at least once per year to shadow and understand user needs. Rockwell Collins case study: Although KM and OL operate from different bases�KM in engineering, and OL in HR�it has an established history of working together around learning and development, especially in the engineering group. Accenture case study: 150 dedicated resources organized by operating groups and service lines. Identify strategic learning opportunities and knowledge gaps. Aerotek case study: Allegis IS people must visit an office at least once per year to shadow and understand user needs. Rockwell Collins case study: Although KM and OL operate from different bases�KM in engineering, and OL in HR�it has an established history of working together around learning and development, especially in the engineering group.

27. In integrated companies, knowledge organization mirrors business organization In early stages of integration, knowledge organized by vehicle (e.g., proposal, methodology) By Stage 3, usually organized by competencies, tasks, etc. By Stage 5, organized to reflect how an employee thinks about his job in a combination of customer information, performance management, and work flow e.g, IBM�s OnDemand Workplace�

28. Integrating knowledge and learning resources can show real benefits 88% of the partners in this study indicated that they have an LMS in use at their organization Portions (sometimes all) of the content in the learning and knowledge systems are shared at the partner organizations Results include improved productivity and efficiencies in the work force and lower cost of content development and/or delivery

29. Creating a knowledge-rich environment Organizations categorize or organize their learning and knowledge content such that the employee no longer sees a difference between the two 71% of partners indicated that information an employee needs to perform his or her job is available in the same place as traditional learning resources IBM�s OnDemand Workplace�, Turner�s TKN portal, Accenture�s Knowledge Exchange

31. Three overall factors for integration success Coherent philosophy of the knowledge business and accompanying business model and strategy that includes knowledge and learning Well articulated and shared meaning of �the business of our business� Infrastructure to support philosophy and strategy Governance, location and roles that understand and support �the business of the business� and see the implications of being a knowledge business Enabling technologies that are both �hard� and �soft� Taxonomies, shared platforms, smart �push� systems that bake knowledge and learning into work and fit the �business of the business� and the real work of each knowledge worker Mention OSBC KM AssessmentMention OSBC KM Assessment

32. Questions?