Developing a Knowledge -Creating Organization A Case Study in Process

1. Developing a Knowledge -Creating Organization A Case Study in Process Melinda J. Bickerstaff Director, eWorkforce Solutions Group mbickerstaff@kpmg.com Renee A. Massoud Director, Research Strategies rmassoud@kpmg.com KM World Santa Clara, CA September 14, 2000

2. How Does Knowledge Management Create Value? Customer Intimacy Cultivating relationships to gain customer knowledge Delivering what specific stakeholders want Product/Service Leadership Operational Excellence Delivering solid products and services at the best price and with the least inconvenience Delivering the best products and services ---offerings that push performance boundaries VALUE • Employee Capability Leveraging human intellectual capital in service design and delivery

3. The Four Value Propositions are Built Around Entirely Different Operating Models • Employee Capability • People development, expertise enhancement, performance management • Empowerment on work teams • High skills at all levels • Rewarding demonstrated applications of individual and team expertise • Managing learning and development • Learning push • Resilience and growth mindset • Emphasize development • Operational Excellence • Product supply, basic service, demand management • Central authority, finite level of empowerment • High skills at the core of the organization • “Command and control”, standard operating procedures • Managing total quality • Process push • Conformance, "one size fits all" mindset • Emphasize efficiency and dependability • Product Leadership • Concept invention, product development, market exploitation • Ad hoc, organic, loosely knit, and ever-changing • High skills abound in loose-knit structures • Rewarding individuals' innovative capacity and new product success • Managing risk • Concept push • Experimentation and "out-of-the-box" mindset • Emphasize breakthroughs • Customer Intimacy • Solution development, results management, relationship management • Empowerment close to customer contact • High skills at boundary of the organization • Customer equity measures like life time value and share-of client • Managing outcomes • Relationship push • Flexibility and "have it your way" mindset • Emphasize complete solutions Core business processes Organization and structure Management systems Culture: mindsets and behavior

4. KPMG’s Global Knowledge Management Program Benefits • Supporting KPMG strategy • More enabled & quicker decision making • Increasing revenues & margins • Higher client value added through greater innovation & synergy • Quality of life - staff more effective • Leveraging of corporate expertise Scope • 100,000+ staff • Global knowledge sharing • 100+ countries • 23 industry groups • 20 products • Sponsorship & leadership • Multidisciplinary, global team • Stretch targets • Rapid realization in phases • Technical platform built & rolled out in 18 weeks • - 4 -

5. KWorld Architecture & Process External Content Knowledge Manager Global Knowledge Exchange news feeds Quality assessment Value assessment Security Taxonomy assignment Channel assignment KWorld Aggregate, focus, direct, prioritize Content screen Research Rules,heuristics, guideline, process flow Industry, research, technical Filter, aggre-gate, sort Collaboration Internal and external commentary KPMGContent Data center Work products External broadcast KPMG.COM Insights, interpretation and analysis Practice specific • - 5 -