© Knoco Ltd – all rights reserved 16 years, 7 lessons Basic principles for KM Nick Milton, Knoco Ltd IAPG - Primeras Jornadas de Gestión del Conocimiento.

© Knoco Ltd – all rights reserved

16 years, 7 lessons

Basic principles for KM

Nick Milton, Knoco Ltd

IAPG - Primeras Jornadas de Gestión del Conocimiento en Exploración y Producción

13 June 2008


Who am I?

Nick Milton Geologist by training KM consultant by vocation Director of Knoco Ltd 7 years working KM in BP 9 years as consultant to a

variety of companies and industries

Based in England

[email protected]


Key messages1. Knowledge management is a component discipline of good management

practice; the component that drives continuous improvement

2. Focus on the business outcome for your company. Be clear on the drivers for KM. Support the business outcome, and nothing else.

3. Focus on the critical knowledge, and manage the knowledge of highest value.

4. Technology is part (but not all) of the answer

5. The KM "system" needs to be complete, and performance managed. You can’t “half do” knowledge management

6. Accountabilities are key. Knowledge needs to be looked after by people with defined roles and accountabilities.

7. Embed KM in the business process, with clear minimum conditions of satisfaction.


KnowledgeKnowledge PerformancePerformance

Learn

Apply


Data, Information, Knowledge

DataA pressure reading, in one place, at one time

InformationData structured in such a way as to “tell you something”

Knowledge?What does this mean? What action should I take?


Knowledge Management

Knowledge Management (KM) is the management ‘system’ that supports the creation, sharing, validation, application and refreshing of knowledge.

(Definition from BP)People

Tech-nologyProcess


1. KM is a component discipline

Project

Contract MgtCost Mgt

Document Mgt

Quality Mgt

Schedule MgtRisk MgtSafety Mgt

Knowledge Mgt


From Wikipedia

A project is a carefully defined set of activities that use resources (money, people, materials, energy, space, provisions, communication, motivation, etc.) to achieve the project goals and objectives.

KnowledgeKnowledge

KnowledgeKnowledge


Implications

KM is a key component of good management practice. Therefore

It needs discipline and rigour It needs to be a business requirement It can be governed the same way as

other disciplines And it needs integrating with the other

disciplines


2. Focus on the business outcome

$

Time

a) Operational efficiency


Focus on the business outcome

b) Operational consistency

0 10 20 30 40

Unit a

Unit b

Unit c

Unit d

Time

Quality

Cost


Focus on the business outcome

0

10

20

30

40

50

60

21-24 25-29 30-34 35-39 40-44 45-49 40-54 55-60

c) Demographics

0

5

10

15

20

25

30

35

21-24 25-29 30-34 35-39 40-44 45-49 40-54 55-60

Challenge 1 – decreasing the time to competence

Challenge 2 – retention of the critical knowledge


ImplicationsOperational efficiency

Focus on learning from projects, and cross-project transfer – Example, BP

Operational consistency Focus on learning from operations, and the development

and deployment of operational standards and best practices – Example, Schlumberger, Halliburton

Decreasing time to competence Focus on development of excellent training and

reference systems – Example, developing-world companies, Schlumberger

Retention of Critical Knowledge Focus on the development of Knowledge Assets from the

departing experts – Example, Shell


Example - Schlumberger“The InTouchSupport.com system in Schlumberger is our flagship solution.

It cost $160 million

It saves us $200 million each year

It cuts 95% from the time it takes to answer a technical question

It provides 24x7 technical and operational support for Schlumberger technology”

Mike Atkinson

Head of KM

Schlumberger/Sema UK

InTouch service is built on a number of elements: •the Schlumberger secure global network infrastructure, a single portal into the technical resource base •technical helpdesks located at technology centers in London and Houston •validated knowledge repository in a centralised database.


3. Focus on the critical knowledge

What knowledge do you need to manage?

What knowledge will deliver the greatest value?

What is the strategic knowledge for your organisation?

You don’t need to manage it all with equal rigour!


What is your critical knowledge? High cost repetitive activity

Offshore drilling Development projects

Business critical activity Service delivery Production operations

Growth activity Replicating proven business in a growing market

Breakthrough innovation New products, new markets


Implications

Make sure your critical knowledge is owned and maintained

Ask yourself – “who looks after this knowledge?” Company experts? Communities of Practice? Functional departments?


Example – FMCG manufacturer

Company objective – Growth Growth Market – the developing world Key knowledge – how to market, distribute

and sell product in the developing world Solution – small focused community, charged

with developing and deploying this knowledge Result - turnover doubled from $950m to

$1.8bn, share of profits risen from 6.6% to 10%


4. Technology

“Technology is the answer”

“Technology is not the answer”

“Technology is part of the answer”


4 areas of technology

Technology to store and find validated knowledge, and new lessons

Technology to find and connect people

Technology to discuss new knowledge and ideas

Technology to distribute new knowledge


Example - BBC

A corporation of communicators! BBC Gateway Intranet – a reference and e-

learning library “Connect” – a tool to find individuals with

knowledge, anywhere in the organisation Talk.Gateway – discussion forums and

questions/answer forums on technical topics

Blogs and Wikis as a way of publishing new knowledge


5.1 A complete system

Push Pull

Model copyright BP


5.2 Double knit learningBusiness units and projects

Com

mu

nitie

s an

d fu

nctio

ns

The knowledge management system needs to address knowledge in 2 dimensions

1. Within the projects and business

2. Between and across the projects and business


5.3 A complete system

Activity

New LearningBest Practice

Review and

capture

Access and Apply

Validate and

update


Implications

Knowledge Management needs to operate both within the business teams, and across the business teams

The loop needs to be closed, between creation of the learning, and re-use of the learning.


Example – MW Kellogg

MW Kellogg hold post-project retrospects These are followed by “Validation and

Distillation” meetings with high-level functional chiefs

Immediate lessons for other teams are identified, and shared

Any necessary changes to company practice are agreed and made

(text courtesy of MW Kellogg)


6. Clarify accountability.

Executive

Business unit 1 Business unit 2

Division 1 Division 2

Project 1 Project 2

SME 1 Community 2

Head ofFunction 1

Head of Function 2

KM team

Accountability for compliance with KM expectations in the line

Accountability for maintaining the corporate knowledge

Accountability for providing KM capability, and for monitoring the two accountabilities above


Implications

Knowledge management will work when The necessary roles are in place, People are clear about their role, People are assessed against their role


Example – Shell roles

13 online communities of practice (SIGN – Shell International Global Networks)

Each network has One global coordinator, to run the network A number of designated subject matter experts, to

gather and package the knowledge One designated focal point per operating unit, to be

the link between the network and the operating unit


7. Clear expectations for KM

Create KM plan

Update KM plan

Knowledge capture

Team learning


Implications

If people know the expectations for KM activity, then they are more likely to comply

KM activity, like other project management activity, has a timetable, a rhythm, a proactivity and predictability


Example – BP Drilling and CompletionsAs part of “Beyond the best Common Process” minimum

conditions of satisfaction – every significant well will

Create a knowledge management plan to access lessons Capture and share lessons at the end of the well

and may

Hold Peer Assists on critical areas of knowledge Capture knowledge after hole sections/casing runs using

After Action reviews Make use of the drilling community forum


Key messages1. Knowledge management is a component discipline of good management

practice; the component that drives continuous improvement

2. Focus on the business outcome for your company. Be clear on the drivers for KM. Support the business outcome, and nothing else.

3. Focus on the critical knowledge, and manage the knowledge of highest value.

4. Technology is part (but not all) of the answer

5. The KM "system" needs to be complete, and performance managed. You can’t “half do” knowledge management

6. Accountabilities are key. Knowledge needs to be looked after by people with defined roles and accountabilities.

7. Embed KM in the business process, with clear minimum conditions of satisfaction.


Questions

[email protected]

© Knoco Ltd – all rights reserved 16 years, 7 lessons Basic principles for KM Nick Milton, Knoco Ltd IAPG - Primeras Jornadas de Gestión del Conocimiento.

Documents

knowledge needs

management system

business process

business requirementit

operational support

messagesknowledge management

knowledge of highest

crossproject transfer