INFS 6720Presented By:Aziz AladadAbdul AlsubhiSteven HartleinAlan Rosenhauer

Agenda

The Need for Knowledge Management- AlanHallmark Cards

History - AbdulChallenge - AbdulSolution - Steven

Buckman LaboratoriesHistory - AzizChallenges - AzizSolution - Steven

Conclusions - Alan

The NeedThere are known knowns;

there are things we know we know.We also know there are known unknowns;

that is to say, we know there are some things we do not know.But there are also unknown unknowns

– the ones we don’t know we don’t know.—United States Secretary of Defense, Donald Rumsfeld

So, how do we find out what we don't know we don't know?

The Hierarchy of Learning

• Latin Trivium• Grammar• Logic• Rhetoric• Today• Data• Information• Knowledge

The Nature of Knowledge

• Knowledge can be considered from both an objective and a process perspective.• It can be the goal (objective)• It can be the means (process)• Knowledge has a time element• What do we know (backwards)• Synthesis or creation (forward)

Knowledge Transfer (1800s)

Expert Customer

Apprentice

Knowledge Transfer (1900s)

Factory Owner

Foreman

WorkerEngineer

Salesman Store Owner Customer

Knowledge Transfer (today)

Board of Directors

Supervisors

Line WorkersEngineering Department

Sales Department

Online Merchant

CustomerWholesaler

Importer

Off shore Customer Support Parts Suppliers

Marketing

Hallmark Cards

• History• Challenge• Solution

History

• Founded in 1910 by Joyce C. Hall• Hallmark Cards, Inc. is the world's largest greeting

card company• Creating 30,000 different designs and related

products each year in more than 30 languages

Challenges

Rethinking boundaries◦There are many boundaries that separate the organization

from the various stakeholders in the value chain because hierarchy by its nature tends to create boundaries

◦Organization structures which prevent flow of knowledge and sharing ideas.

◦Consumer research is essential to the process of knowing what the consumers want.

◦Permeable membrane strategy when we applied it we reached out to consumers to create Hallmark Idea Exchange.

Challenges• How to stimulate innovation?• Knowledge communities are not only a new way of working, but

they are an important support for innovation.• The same connectivity that facilitates the formation and functioning

of a community allows knowledge to flow back and forth among the members of the community.

• The study shows that innovation occurs that boundaries of overlapping disciplines.

• The innovation formula• Connectivity + Content + Culture = Innovation/Learning

Solution

• The Hallmark Idea Exchange• Effort to “Operationailze” Knowledge on Marketing and Information• How ?• Build a Community• Recruit small group – Around 150 People• Telephone Screening Process• Various Demographics and Metrics used to determine eligibility• Loyalty• Sponsored by Hallmark• Intellectual Property Rights• The Chosen Few

Solution Continued• Web-based collaborative environment• Simple and Easy to use• 3rd Party to administer software• The community accessed the web portal from their homes• One hour of participation per week• Bulletin Boards / Chats / Emails / Surveys• Topics can be created by host or member• Library / Resource Center• Communication and Feedback

Solution Continued• Experience to Date• Active voice• Incentives• Additional Communities in 2001• Invitation to “Give up their Seat”• Facilitator Contact – Active / Non-active / Exit Interviews• Community Size increase to 200• Core Group (15% - 20%)• Responders (40% - 50%)• New Members• Buddy System

Solution Continued• Quick Turn Around• Strategic issues to marketing issues• Generating content faster than it can be analyzed• “The communities create an environment for innovation by

providing the connectivity, creating the content, and establishing a culture of trust and sharing necessary for innovation to flourish.”

• Lessons Learned• Facilitators are essential• Trust• Incentives• Purpose

Solution Continued• What’s Next?• Developing Internal Communities• Training• Content• Success Stories• Subject Matter Experts• Solve Problems in Real Time

• Focus on Supply Chain Process• Constituents• Efficiency• Effectiveness

Buckman Laboratories

• History• Challenge• Solution

• Founded in 1945.• In 3 years sets industry standards for Microorganisms control.• In 1950, added leather, paint and sugar processing.• In 1960, new companies in Mexico and Belgium.• In 1970, sales manufacturer in South Africa, Brazil, sales in Africa; new

products released; a new International headquarters with corporate activities and R&D in Memphis.

• It becomes the leading manufacturer in chemicals for liquid industrial systems for 50 years.

• 20 associated Buckman companies distributed in 80 countries.• 200 shareholders.

Company Background

New Leadership • In 1978, Bob Buckman becomes CEO of Buckman Laboratories.• He decides to change the way the company operates:• From a Multi-national organization to Global organization.

• Also, the management style:• From Product driven to more Costumer driven.

• Expand the sales force, shift focus from manufacturing to sales.• He drove the creation of a code of ethics.

Best Practices • Initially the company used Phds, moving around the globe to

share practices. Questions and Answers were paper-based resulting in a long time to get answers and an overly complicated system.

• Need for change: Bob Buckman gets inspired by Jan Carlzon of SAS.

• From 1986 a more systematic approach to best practices was implemented with the use of IBM systems: a database with the manager's emails was created.

• Problem: those who really needed info, were those dealing with the customers.

• Within one year the first knowledge sharing system was created.• The users were given $100 if their answer was considered helpful.

Challenges• In the 1980s, Buckman Lab's sales multiplied by 3.5%.• New companies were created in other countries.• By the end of the 1980s more changes were needed. • The goal was to have 25% of sales coming from products which are

less than 5 years old.• At this time, processes of communications in the company were

slow. • Bob Buckman wanted a different approach to access the

“unconscious knowledge” of the organization.• People need to connect! But how?• “What was needed was a knowledge management transport

system, leading to the birth of K'netix.”

K'Netix • In March 1992 the Knowledge Transfer Department (KTD):• Moves the company's network on CompuServe.• Grants the access to the network from everywhere.• Builds K'netix: designed for non computer experts, with a user friendly

interface.• K'netix mainly consists in Forums and Message boards Goal of K'Netix: to

help customers improve their productivity In K'Netix:• Techforum - open to everyone.• Private forums for specific cases.• System operators constantly monitor the discussions, they track requests,

make sure questions get answers.• System operators are helped by content experts.

• After an answer is given, it becomes part of the knowledge base and becomes searchable.

The Launch • After the training sessions there were many skeptical managers.• Buckman Labs tried to promote those who share knowledge. • The shift from knowledge hoarding to knowledge sharing began. • In the beginning there were no rules for what can and cannot be posted

on K'Netix. • It was important to the company to make K'Netix accessible from any

location. • They introduced K'Netix in 15 languages with the help of 3 translators.

The 4th Wave • In order to reward the best 150 contributors to K'netix, people from

all over the world were called to a meeting in early 1994 in Scottsdale, Arizona.

• Key points of the meeting were: • How to improve K'Netix, especially for those not living in the US.• How to solve the cultural differences between users from different

countries.

• As a result, a new “Latino” forum is created where Spanish can be spoken.

The Early Results • By 1994, K'netix had already achieved some remarkable results.• However, they found it difficult to document how such intangible

theories equated to success. • The statistics below are their best way of tangibly displaying the

benefits of their business model.• 65% of Buckman’s associates were out selling, compared to 16% in

1979.• 33% of sales were from products less than five years old, compared to

22% prior to K'Netix. • 72% of associates were college graduates, compared to 39% in 1979.

Revising the Strategy• Customers limiting Vendors• Company moved towards a policy of “Customer Intimacy”• Key Global Market Targets (75% of Sales)• Paper • Leather• Water

• New Mission Statement• Expand Employees Knowledge• Focus on Training• Learning Center

• Shift in Philosophy• Expense Vs. Investment – Which adds more value?

New Challenges• Reflection• K’Netix was a 90% Culture Change• Journey vs. Project• Never called “Knowledge Management”• Need New Term

• CompuServe being bought out• 3 target industries “In the tank”• Build environment in a virtual world

Lessons Learned

• Knowledge transfer requires a cultural shift• Incentives may be required at the onset• Trust is essential, build communities• Strive to remove boundaries• Understand why you are doing this

Discussion Questions

• How would you weigh these three items?• Content• Connectivity• Culture

• How would you allocate resources to these items?• Have you used a collaboration tool at work? How

successful was it?

Aziz AladadAbdul AlsubhiSteven HartleinAlan Rosenhauer