km scorecard

7/28/2019 KM Scorecard

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knowledge management

A M ER I C AN P RO D U C T I V I T Y

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KM Scorecard


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APQCs Work in

Knowledge Management Research on KM since 1993

Research Consortia started 1995

Over 150 firms in APQCs KM Consortia

45 Best Practice firms studied in detail Shared knowledge with thousands of KM

practitioners

Publications

Training

Conferences

Helping firms implement KM using best

practices


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APQC KM Consortium Studies

Emerging Best Practices in KM (1996)

Using Information Technology for KM (1997)

Europe - The Learning Organisation & KM (1997)

Expanding Knowledge Externally (1998)

Creating a Knowledge Sharing Culture (1998-99)

Successfully Implementing KM (1999-2000)

Building and Sustaining Communities of Practice

(2000)

Content Management (May, 2001)


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KM Measurement Bell Curve

Stage 1:Enter andadvocate

Stage 2:Develop astrategy

Stage 3:Design

& Launch

KM initiative

Stage 4:Expand and

Support

Stage 5:Institutionalize


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Input

Measures

Process Output Outcome

Resources Applied Activities Organized

Converting Inputs into

Outputs

Productivity

Goods/Services

Produced

Revenues/Profits

Customer Sat/Loyalty

Individual

Processes


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Typical Stage 1 Situation

Example:

Joe spends time writing a detailed proposal with the

steps for designing and launching a CoP. Jennifer

sees it after hes finished and comments, But Joe, Idid that very thing last week for another client!

Result:

Redundant efforts

Wasted money


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Appropriate Stage 1 Measures

By interviewing people in the organization, we

uncover these kinds of stories.

The stories can then be used to convince

management that something needs to be done. We NEED a way to capture and reuse knowledge

because

Were wasting money, time, and energy;

Our competitors are doing things better and faster; and Were frustrated.


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Morals of Stage 1

Theres not a whole lot to measure yet.

Use stories to get managements attention and tell

them what kind of changes they should see with KM

Less frustration

Decreased costs

Increased revenue

Better products


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Measure Progress

How many supporters have I recruited? How much funding

have I secured?

Measure the Gap Identify KM practices already in place.

Measure Against a Benchmark

Explore what other firms are doing, particularly competitors.

Measure Cultural Readiness

Do people tend to hoard knowledge? Do we have good

example stories of collaboration?


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Morals of Stage 2

Fend off the requests for financial measurements

at this stage.

Explore opportunities for implementing KM.

Develop a business case for doing it.

Continue to talk with stakeholders about potential

benefits.


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Example

Management agrees to fund some pilots, but wants

to have a progress report after 90 days.

Task You need to come up with meaningful measures that

prove the value of your pilot -- particularly in meeting

the business goals.


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Measure community effectiveness

Activity such as visits, and submissions

Measure impact on the business remember your

value proposition Measure the cost of capture and compilation

Time and cost req. to capture information

Measure project management effectiveness

Was a formal methodology used? Timelineestablished? Objectives established and goals met?

Capture anecdotes that prove value


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Morals of Stage 3

The measures for the KM program will be in the

pilot initiatives that is, communities of practice.

Once one or two communities have proven their

usefulness, management will probably entertainthe thought of KMs expansion into other parts of

the organization.


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Management thinks, Great job on the pilots.

People are sharing information like never before

and we suspect our skyrocketing sales and

shrinking costs are due to this KM thing. But, weneed to see some formal ROI justification before

we take this enterprise-wide.


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Use pilot project successes, particularly whenfinancial impact outweighs investment todemonstrate what is possible

Extrapolate time & cost savings to justifyexpansion

Consider Balanced Scorecard Format forexpansion initiatives

Financial Perspective

Customer Perspective Internal Perspective

Innovation and Learning


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KM Balanced Scorecard

Financial Perspective

Increased Sales

Improved Productivity

Customer Perspective

Customer Satisfaction

Fewer Returns

Internal Perspective

Cycle Time Reduction

Community Participation

Innovation & Learning

Faster to Competence

Employee Satisfaction


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Morals of Stage 4

Management needs to have some hard numbers

before it decides to make KM part of the main

organizational objectives.

Business units will likely have to participate infunding.

ROI is often based on educated guesses.


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We wish we knew.

Actually, there are some signs:

KM is embedded in the business model.

Measures used in KM initiatives may become part ofcorporate scorecards, but focus is on business

performance.

Business units budget for KM activities.

Organizational structure must be realigned.

Evidence of KM competency becomes part of the

formal performance evaluation and new employee

training.


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Morals of Stage 5

Since KMs value has already been proved, KM

activity measures are only used to check progress

and monitor cultural evolution.

UTOPIA Your business relies on KM.

km scorecard

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