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Knowledge Management by the Numbers

In EK CEO Zach Wahl's presentation from KMWorld Connect 2020, he discusses the importance of putting KM in terms of business value and ROI. The presentation details EK's Proprietary KM Maturity Benchmark, a process to understand your organization's current, and target state, and specific metrics regarding KM ROI and Business Value.

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Knowledge Management by the Numbers

  1. 1. KNOWLEDGE MANAGEMENT BY THE NUMBERS 1 5 4 2 1 3 10 9 6 8 7 $ + + 9 8 6 3 5 4 7 $ $= 10 2 1 1 5 3 8 + 3 7 $ 21 10 $ 10 1 3 + 7 $ 98 7 6 5 4 32 1 € € € 5 3 8 + 3 7 $ 21 10 $ 1 3+ $ 8 7 € 5 3 8+ 3 7 $ 2 1 10 $ 1 3 + $ 8 7 € 2 $ + 4 5 + 2 3 $ 3 € 1 4 5 $ 8 7 9 1€8 7 $ 3 € 10 72 + $ $ € +
  2. 2. SESSION OVERVIEW Discuss how to benchmark KM. Define KM business cases and ROI. Q&A. Establish the challenge of KM.
  3. 3. ZACH WAHL FOUNDER AND CEO, ENTERPRISE KNOWLEDGE @ZACHARYWAHL, @EKCONSULTING
  4. 4. ENTERPRISE KNOWLEDGE 10AREAS OF EXPERTISE KM STRATEGY & DESIGN TAXONOMY & ONTOLOGY DESIGN TECHNOLOGY SOLUTIONS AGILE, DESIGN THINKING & FACILITATION CONTENT & BRAND STRATEGY KNOWLEDGE GRAPHS, DATA MODELING, & AI ENTERPRISE SEARCH INTEGRATED CHANGE MANAGEMENT ENTERPRISE LEARNING CONTENT MANAGEMENT 60+ EXPERT CONSULTANTS HEADQUARTERED IN ARLINGTON, VIRGINIA, USA ESTABLISHED 2013 – OUR FOUNDERS AND PRINCIPALS HAVE BEEN PROVIDING KNOWLEDGE MANAGEMENT CONSULTING TO GLOBAL CLIENTS FOR OVER 25 YEARS AWARD-WINNING CONSULTANCY KMWORLD’S 100 COMPANIES THAT MATTER IN KM (2015, 2016, 2017, 2018, 2019, 2020) CIO REVIEW’S 20 MOST PROMISING KM SOLUTION PROVIDERS (2016) INC MAGAZINE 5000 FASTEST GROWING COMPANIES (2018, 2019, 2020) INC MAGAZINE BEST WORKPLACES (2018, 2019) WASHINGTONIAN MAGAZINE’S TOP 50 GREAT PLACES TO WORK (2017) WASHINGTON BUSINESS JOURNAL’S BEST PLACES TO WORK (2017, 2018, 2019, 2020) ARLINGTON ECONOMIC DEVELOPMENT’S FAST FOUR AWARD – FASTEST GROWING COMPANY (2016) VIRGINIA CHAMBER OF COMMERCE’S FANTASTIC 50 AWARD – FASTEST GROWING COMPANY (2019, 2020) KMWORLD’S AI 50 – TRAILBLAZERS IN ARTIFICUAL INTELLIGENCE (2020)
  5. 5. 4 THE CHALLENGE
  6. 6. CHALLENGES IN DEFINING THE VALUE OF KM TOO MANY KM PRACTITIONERS ARE APPROACHING THE TOPIC FROM AN ACADEMIC PERSPECTIVE, RATHER THAN A BUSINESS PERSPECTIVE. THE INTANGIBLES OF KM (EMPLOYEE SATISFACTION, IMPROVED LEARNING, CUSTOMER SATISFACTION) ARE OFTEN DIFFICULT TO MEASURE. A SINGLE, COMPLETE, AND COHESIVE DEFINITION OF KM IS LACKING IN MOST ORGANIZATIONS. KM OFTEN COMES AS PART OF A LARGER “PACKAGE” OF CHANGE. KM IS TYPICALLY DISCUSSED IN TERMS OF “KM OUTCOMES,” NOT “BUSINESS OUTCOMES.” TIME SAVINGS, QUALITY, AND EFFICIENCY ARE NOTORIOUSLY DIFFICULT TO TRANSLATE TO HARD RETURN ON INVESTMENT.
  7. 7. QUOTES FROM THE C SUITE… “We’ve tried KM before. It always starts with some good ideas but never yields anything tangible.” “Search and AI will fix our issues. That’s all we need.” “This is a nice-to-have, but I’m not going to put our resources into it in the midst of a pandemic and global recession.” “We can’t even agree on what KM is, let alone do anything about it.”
  8. 8. 7 BENCHMARKING KM
  9. 9. KNOWLEDGE MANAGEMENT INVOLVES THE PEOPLE, CULTURE, PROCESSES, AND ENABLING TECHNOLOGIES NECESSARY TO CAPTURE, MANAGE, SHARE, AND FIND INFORMATION.
  10. 10. KNOWLEDGE MANAGEMENT LIFECYCLE CREATE The point at which knowledge or information is first exposed, either in written or verbal form. CAPTURE The collection of information in a tool or repository (from tacit to explicit) so that it can be managed. MANAGE Tools, technologies, and processes required to secure, organize, control, and expose the right information to the right people. ENHANCE Processes to evolve and prime the information. FIND Tools and technologies to help people find the content they need, when they need it. CONNECT Creating links between knowledge and information, between the holders of knowledge (experts), and between repositories. Decisions, activities or processes where information could be streamlined to ensure success. The KM Lifecycle is comprised of the core processes that content undergoes during its lifetime.
  11. 11. FORMS OF KNOWLEDGE Tacit Explicit Structured Unstructured Highly internalized knowledge has not yet been recorded or captured. Knowledge that has been made visible by capturing, recording, or embedding it in databases, documents and processes. Organized and categorized in a consistent way that makes it easy for systems and machines to read and process. More difficult for human users to understand without underlying context. Follows no consistent format for its organization and categorization. Generally easy for human users to read and understand, but more difficult for machines to use and process.
  12. 12. DECONSTRUCTING KM PEOPLE PROCESS CONTENT CULTURE TECHNOLOGY • Flow of knowledge through the organization. • Knowledge holders and knowledge consumers. • Understanding of state and disposition of experts. • Existence and consistency of processes. • Awareness of and adherence to processes. • Quality of processes. • State and location of content. • Consistency of structure and architecture. • Dynamism of content. • Understanding of usage (analytics). • Senior support and comprehension. • Willingness to share, collaborate, and support. • Maturity of “KM Suite.” • Integration with and between systems. • Usability and user- centricity.
  13. 13. BENCHMARK FACTORS DETAILED PEOPLE Engagement • Organizational Awareness • Cross-Silo Communication • Knowledge Management Leadership • Individual Roles • Trust • Access to Expertise PROCESS Knowledge Retention • Explicit Knowledge Capture & Sharing • Tacit Knowledge Capture & Sharing • Embedded Processes • Support for Processes • Content Governance • Content Controls • Learning, Training, & Development • Usage of Learning, Training, & Development Tools • Taxonomy Governance CONTENT Content Creation & Contribution • Duplicate Content • Outdated or Obsolete Content • Defined Content Types & Templates • Taxonomy • Content Deconstruction • Data Integration • Data Awareness CULTURE Incentives • Innovation • Sharing & Collaboration • Openness to Change • Measurable Success Criteria TECHNOLOGY Auto-tagging / Text Mining • Content / Document Repository • Technical Metadata Strategy • Search • Ontologies & Knowledge Graphs • Machine Learning (ML) & Artificial Intelligence (AI) • Social & Collaboration Tools • Adoption • KM Innovation • Systems Analytics The KM Maturity Benchmark scores each of the following 40 factors on a five-point Likert scale.
  14. 14. THE BENCHMARK FACTORS – OBSERVATIONAL SCALE The EK KM Benchmark evaluates organizations across 40 KM factors within the five categories of People, Process, Content, Culture, and Technology. Furthermore, the Benchmark is: • Based on real-world observations of several hundred organizations. • Focused on measurable elements, allowing an organization to score where they are and understand the business value of improving (based on a five- point Likert scale). • Recognizes that no two organizations are the same. • Is translatable into business value/returns.
  15. 15. KM BENCHMARK SCORING OVERVIEW Below Industry Average Average Industry Leading Most organizations fall somewhere within this range on a majority of KM factors. EK's KM Maturity Benchmark is based on our experience with hundreds of organizations across industries and around the world on similar efforts. It is used to score organizations and determine where they currently stand in terms of the maturity of critical knowledge management efforts. Top 5-10% 1 2 3 4 5
  16. 16. CURRENT STATE - TARGET STATE Information should be collected and validated through a variety of approaches:Methodology Target State KM Benchmark This Knowledge Management (KM) assessment is broken down into five KM categories: People, Process, Content, Culture, and Technology. The target state creates a shared vision of what a KM transformation looks like, including: 1. Iterative and measurable changes to each of these five factors. 2. Benefits to individuals and the organization that can be “felt” and measured at each stage. 3. Outcomes and benefits that can be realized as a result of these efforts. Higher maturity Lower maturity Demonstrate how an organization’s current benchmark score can progress over the course of the engagement, obtaining greater maturity (and thereby greater results and competitive advantage). Workshops and Interviews System Demonstrations Documents & Diagrams 2.4 4.6Current Target
  17. 17. ITERATIVE ROADMAP Month One Month Two Month Three Month Four Workstream #2 Workstream #3 Workstream #1 Workstream #4 1 Customized, practical, and detailed baseline for context-based recommendations within KM workstreams. 2 DEFINE TARGET STATE Comprehensive consideration of all factors (strengths and weaknesses) during the assessment phase. 3 Agile delivery approach with incremental tasks that can be built upon in future efforts. Discrete tasks include actionable detail and measurable success criteria. OUTCOMES: BASELINE (CURRENT STATE) ROADMAP AGILE APPROACH TO DELIVERY▪ Fully customized to match the People, Process, Content, Culture, and Technology of the organization and build on the best of what you already have. ▪ Iterative, task-based plans that will show value quickly and provide measurable success criteria to help drive change and build momentum. ▪ Specific enough to identify gateways and develop ROI calculations.
  18. 18. BUILDING THE BUSINESS CASE FOR KM
  19. 19. BUSINESS OUTCOMESKM OUTCOMES ▪ Improved content findability and discoverability, and therefore less time waiting, searching, and recreating knowledge. ▪ Increased use and reuse of information. ▪ Decreased knowledge loss. ▪ Improved organizational awareness and alignment. ▪ Enhanced quality, availability, and speed of learning. ▪ Improved productivity. ▪ Decreased costs and cost avoidance due to regulatory fines and lawsuits. ▪ Increased employee satisfaction and retention. ▪ Faster and better up-scaling of employees. ▪ Improved customer satisfaction and retention. ▪ Improved delivery and sales. ▪ Increased collaboration and innovation. ▪ Future readiness.
  20. 20. DECREASED COST/COST AVOIDANCEIMPROVED PRODUCTIVITY ▪ Twenty to forty percent of staff time is spent looking for information, waiting for answer, or recreating/reworking information that existed within the enterprise but of which they were unaware. ▪ Highest for low- to mid-level staff and lowest for high-level staff. ▪ Hard ROI only exists when a KM transformation is accompanied by a reduction in force. ▪ Decreased license/software costs due to redundancy (in large organizations, we typically identify 2.5x redundancy in competing software (i.e. content management, document management, records management, search, etc). ▪ The administrative cost of maintenance can result in additional 20% savings in IT costs (labor, infrastructure). ▪ Regulatory risk can justify a KM initiative without any other factors (for heavily regulated industries).
  21. 21. FASTER AND BETTER UP-SKILLING OF EMPLOYEES INCREASED EMPLOYEE SATISFACTION AND RETENTION ▪ SHRM estimates that direct replacement costs for a lost employee can reach as high as 50%-60% of the employee’s annual salary. ▪ The Work Institute estimates (conservatively) that the average cost of turnover is $15,000 per employee. ▪ Gallup says that Millennials rank the opportunity to learn and grow in a job above all other considerations, and 69% of non- millennials say it is important to them. ▪ O.C. Tanner finds that 60% of employees are more likely to stay at a job for three years or more if they have a good onboarding experience. ▪ An Enterprise KM initiative can reduce staff attrition by 3-5% over the first three years. ▪ Training Magazine says in 2019, the average cost of training an employee was $1,286, with over 40 hours per year spent on training by each employee. Regulatory risk can justify a KM initiative without any other factors (for heavily regulated industries). ▪ Enterprise Learning (learning at the point of need in small increments) can improve learning retention from 20% to 80%, and reduce costs by over 75% (travel, time off the job).
  22. 22. Leverage Work from Overlapping Disciplines Leverage Pilots to Obtain Metrics, and Surveys to Develop Benchmarks Best Practices to Quantify the Value of KM Find Your KM and ______ When Selecting Pilots/Early Adopters, Go Where the Money Is Prioritize Clear Measurables (retention, RIFs) Rather than Intangibles Focus on Business Outcomes, Not KM Outcomes Don’t Be Afraid of Technology as the Way that KM Becomes Real
  23. 23. CONTACT US

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