Business Excellence through Knowledge Management

1. Understanding and achieving
Business Excellence
through
Knowledge Management
Created and presented by
Neil Beyersdorf

2. BUSINESS EXCELLENCE
INITIATIVES RESULTS
Reference – The Wall Street Journal - Where Process-Improvement Projects Go Wrong, Satya S. Chakravorty January 25, 2010
“Lean Six Sigma and other programs
typically show early progress and then
things return to the way they were.
Recent studies suggest that nearly
60% of all corporate
Six Sigma Initiatives
fail to yield the desire
results.”
www.linkedin.com/in/neilbeyersdorf

3. BUSINESS EXCELLENCE
COST OF POOR QUALITY
www.linkedin.com/in/neilbeyersdorfReference – Juran Institute, Inc.
• Budget Overrun
• Customer Returns
• Customer Servicing
• Inspection
Visual Costs – Tangible/Easy to Measure
Hidden Costs – Tangible/Hard to Measure
• Complaint Handling
• Compliance Failure
• Customer Dissatisfaction
• Customer Retention
• Inventory
• Employee Turnover
• Field Service
• Overtime
• Work in Process
• Expediting
• Improvement/Quality Programs
• Inaccurate Analysis
• Inaccurate Reporting
• Inaccurate Sales Pipeline
• Inaccurate Win-Lost Rate
• Late Delivery
• Loss of Future Business
• Loss of Potential Revenue
• Lost Customer & Employee Loyalty
• Overdue Receivables
• Planning Delays
• Pricing/Billing Errors
• Process Control
• Quality Audits
• Recruitment/Onboarding
• Reputational Damage
• Revising Documentation
• Staff Moral
• Unused Capacity
• Vendor Control
• Project Delays
• Recalls
• Rejects
• Rework
• Scrap
• Testing
• Warranty
• Waste
As an organization gains a broader
definition of poor quality…..
the hidden portion
of the iceberg becomes apparent.

4. BUSINESS EXCELLENCE
COST PER DEFECT
www.linkedin.com/in/neilbeyersdorfReference – Juran Institute, Inc.
6
5
4
3
2
1
Sigma Level
3.4
233
6,210
66,811
308,770
697,672
Defects per Million
< 10%
10 – 15%
15 – 20%
20 – 30%
30 – 40%
40 – 50%
Cost of Sales

5. BUSINESS EXCELLENCE
RESPONSIBILITY FOR QUALITY
… is everyone’s responsibility.”
– Dr. W. Edwards Deming
www.linkedin.com/in/neilbeyersdorf

6. BUSINESS EXCELLENCE
SPEED VS QUALITY
“An organization’s journey to Business
Excellence begins once it ceases to sacrifice
quality for speed.” – Neil Beyersdorf
www.linkedin.com/in/neilbeyersdorf

7. BUSINESS EXCELLENCE
PILLARS AND FOUNDATION
eBusiness Excellencef
Knowledge
Management
Organizational
Change
Management
Business
Management
ITInfrastructure
SystemsIntegration
e Continuous Improvement Culture and Program f
BusinessStrategy
www.linkedin.com/in/neilbeyersdorf

8. BUSINESS EXCELLENCE
FOUNDATION AND PILLARS DEFINITIONS
 Continuous Improvement Culture and Program
management of practiced strategy, tactics and methods to improve processes and products that is embraced
and empowered throughout the organization where it is everyone’s responsible for the improvement of quality
and business excellence. The standardized practice is usually lead and governed by a centralized
management office, i.e. Knowledge Management Office (KMO), Project Management Offices (PMO)/ Center of
Excellence (CoE), maintaining a portfolio of current and proposed projects improvement prioritized based on
numerous key characteristics.
 Business Strategy
long term plan of action designed to achieve a particular goal or set of goals or objectives. Strategy is
management's game plan for strengthening the performance of the enterprise. It states how business should
be conduct to achieve the desired goals.
 Organizational Change Management (OCM)
framework for managing the effect of new business processes, changes in organizational structure or cultural
changes within an enterprise. Simply put, OCM addresses the people side of change.
 Business Management
level of process maturity of an organization where a systematic approach to making an organization's workflow
more effective, more efficient and more capable of adapting to an ever-changing environment is practiced.
Baseline process performance is measured and maintained, new hires are trained to a documented standard
for their role and responsibly within business processes and to maintain and improve the performance of within
business processes.
 IT Infrastructure Systems Integration
process of creating a complex information system that may include designing or building a customized
architecture or application, integrating it with new or existing hardware, packaged and custom software to
enhance the organizational efficiency and effectiveness.
 Knowledge Management
process/discipline that promotes an integrated approach to efficiently retrieving, identifying, capturing,
evaluating, and sharing all of an enterprise's information, resources, and assets within an organization.www.linkedin.com/in/neilbeyersdorf

9. BUSINESS EXCELLENCE
MATURITY MODEL
Business
Improvement
Business
Management
Continuous
Improvement
Business
Excellence
www.linkedin.com/in/neilbeyersdorf

10. Business
Excellence
Business
Improvement
Business
Management
Business
Excellence
Continuous
Improvement
“Managing a company by means of
the monthly report is like trying to
drive a car by watching the yellow line
in the rear-view mirror.” - Myron Tribus
ForecastingReporting
www.linkedin.com/in/neilbeyersdorf
BUSINESS EXCELLENCE
MATURITY MODEL

11. BUSINESS EXCELLENCE
MATURITY MODEL STATES AND DEFINITIONS
Business
Improvement
Business
Management
Business
Excellence
Continuous
Improvement
 Business Excellence
level of an organization’s achievement of efforts of transformation of the organization’s culture to
maintain continuous improvement, in other words ingrained in the DNA of the organization's culture.
 Continuous Improvement
systematic approach to making an organization's workflow more effective, more efficient and more
capable of adapting to an ever-changing environment.
 Business Management
collect data and to apply qualitative and quantitative analysis in order to identify any issues, risks, and
areas of improvement related to the process. Multiple analytical tools are available to assign metrics to
the process and evaluate performance. The Analyze phase enables the business to identify the
benefit, significance, and cost of each activity and assess the impact of future changes. This provides
a better understanding of the current state and allows business units to make informed decisions
about which part(s) of the process warrant change.
 Business Improvement
the current state of the process is determined and documented. Mapping the current processes is the
best way to ensure a detailed understanding of how the work is being performed. Information is
captured through the use of Process Interviews and observations, and then a graphic representation of
the workflow is documented on Process Maps. Flow ensures that the organization understands their
current processes prior to identifying solutions. By "flowing" out the process, teams will easily discover
which activities and functions need to be created or modified in order to improve the process.
www.linkedin.com/in/neilbeyersdorf

12. BUSINESS EXCELLENCE
FOUNDATION MATURITY MODELS SUPPORTING
BUSINESS EXCELLENCE
eBusiness Excellencef
Data
Analytics/Science
Process
(Capability)
Product
DataandData
Management
Knowledge
Management
www.linkedin.com/in/neilbeyersdorf
LeanSixSigma
e Maturity Models f

13. BUSINESS EXCELLENCE
KNOWLEDGE MANAGEMENT MODEL & COMPONENTS
Reference – Jed Cawthorne, KM and Information Management and Collaboration Practitioner
People
Human
Domain
Process
Organizational
Learning
Data
Information
Management
Technology
Communication
Information
Ownership
/Responsibility
Efficiency
Benefits
Reference – Jed Cawthorne, KM and Information Management and Collaboration Practitioner
Knowledge
Management
Best
Practices
Behaviors
Content
Management
Enterprise
Search
Relational Database
Management Systems
Content Management
Staff Development
Education & Training
Innovation
Strategy
Policy &
Procedure
Records
Management
Flexible
Frameworks
Lessons
Learned
Process
Development
Decision
Support
Performance Management
Learning
Connecting
Knowledge Sharing
Synchronous &
Asynchronous
Collaboration
Standard
Operating
Procedures
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14. BUSINESS EXCELLENCE
BUSINESS EXCELLENCE MATURITY MODEL AND
KNOWLEDGE MANAGEMENT MATURITY LEVELS
Reference – APQC’s (America Productivity and Quality Center) Levels of Knowledge Maturity Model
Business
Excellence
Business
Improvement
Business
Management
Business
Excellence
Continuous
Improvement
Level 5
Innovate
Level 4
Optimize
Level 3
Standardize
Level 2
Develop
Level 1
Initiate
Continuously
Improving Practices
Measured and
Adaptive
Common Processes
and Approaches
Localized and
Repeatable Practices
Growing
Awareness
Ad Hoc
Knowledge
Applied
Knowledge
Leverage
Knowledge
Dynamic
Knowledge
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15. BUSINESS EXCELLENCE
BUSINESS EXCELLENCE MATURITY MODEL AND
KNOWLEDGE MANAGEMENT MATURITY LEVELS
Business
Management
Continuous
Improvement
Business
Excellence Level Knowledge Management Maturity ResultLevel5
Innovate
Growing awareness and ad hoc knowledge.
Knowledge Management is a part of the enterprise excellence framework and is
aligned with enterprise innovation efforts.
Level4
Optimize
Knowledge Management is aligned to the enterprise business framework e.g.,
vision, mission, strategies and competencies increased to meet demand.
Knowledge assets are developed for competitive advantage.
Level3
Standardize
Vision/mission for Knowledge Management is linked to value creation in the
business/domain. Knowledge Management strategy and Roadmap is documented.
Knowledge is reused within a domain or business unit. Valuable domain or
business unit knowledge is identified, captured, and standardized into common
assets for reuse in other areas of the enterprise.
Level2
Develop
Value creation is acknowledged as a major business objective of Knowledge
Management. Projects are underway in a domain or business unit to pilot or test
Knowledge Management approaches that enable knowledge flow. Valuable domain
knowledge is identified and documented.
Level1
Initiate
Awareness and interest in Knowledge Management is visible in parts of the
organization. A business need for Knowledge Management has been identified.
HighProductivity
andHighQuality
HighRiskand
HighWaste
Business
Excellence
Business
Improvement
Business
Management
Business
Excellence
Continuous
Improvement
Reference – APQC’s (America Productivity and Quality Center) Levels of Knowledge Maturity Model www.linkedin.com/in/neilbeyersdorf

16. BUSINESS EXCELLENCE
BUSINESS EXCELLENCE MATURITY MODEL AND
CAPABILITY MATURITY MODEL INTEGRATION (CMMI) LEVELS
Business
Management
Continuous
Improvement
Business
Excellence Level Process Maturity ResultLevel5
Optimizing
Process performance is continually improved through both incremental and innovative improvements. Feedback
is used to drive process enhancements and business growth. Best practices are shared with peers and industry.
Process focus is on continually improving process performance through both incremental and innovative
technological changes/improvements.
Level4
Managedand
Measured
Managed and measured process metrics have been established. There are formal processes for managing
variances. Quality and process performance is understood in statistical terms and is managed across the life of
the process. Process capability is established, management can effectively control the AS-IS process by using
process metrics. Management can identify ways to adjust and adapt the process to particular projects without
measurable losses of quality or deviations from specifications.
Level3
Defined
Sets of standard processes have been established and improved over time, providing a predictable measure of
consistency. Processes to meet specific needs are tailored from the set of standard processes according to the
organization’s guidelines. Processes are sets of defined and documented standard processes established and
subject to some degree of improvement over time. These standard processes are in place and used to establish
consistency of process performance across the organization.
Level2
Repeatable
Processes are planned and executed in accordance with policy; employ skilled people having adequate
resources to produce controlled outputs; involve relevant stakeholders; are monitored, controlled, and reviewed;
and are evaluated for adherence to its process description. Some processes are repeatable, possibly with
consistent results. Process discipline is unlikely to be rigorous, but where it exists it may help to ensure that
existing processes are maintained during times of stress.
Level1
Initial
(Chaotic)and
Performed
Processes are performed ad hoc, primarily at the project level. There are no processes areas applied across
business areas. Process discipline is primarily reactive; for example, for data quality, the emphasis is on data
repair. Foundational improvements may exist, but improvements are not yet extended within the organization or
maintained. Processes are (typically) undocumented and in a state of dynamic change, tending to be driven in
an ad hoc, uncontrolled and reactive manner by users or events providing a chaotic or unstable environment for
the processes.
Business
Excellence
Business
Improvement
Business
Management
Business
Excellence
Continuous
Improvement
Reference - CMMI (Capability Maturity Model Integration) Institute
HighProductivity
andHighQuality
HighRiskand
HighWaste
www.linkedin.com/in/neilbeyersdorf

17. BUSINESS EXCELLENCE
PRODUCT MATURITY (LIFE CYCLE) MODEL
www.linkedin.com/in/neilbeyersdorf
Introduction Growth Maturity Decline
Innovation/
Reinvention
Sales
Stage 1
Stage 2
Stage 3
Stage 5
Stage 4
Reference - Product Life Cycle Theory by Raymond Vernon

18. BUSINESS EXCELLENCE
BUSINESS EXCELLENCE MATURITY MODEL AND
PRODUCT MATURITY MODEL
Business
Excellence
Level
Product Maturity ResultStage5
Innovation/
Reinvention In a mature market, potentially entering the decline stage of the product life cycle, larger firms
may be in a position to try and rethink the overall positioning of a product in order to try and
broaden its market or to create new usage or opportunities for silence. In other words, instead
of simply accepting that the product will decline in sales and profitability – think about whether
there is an opportunity to “breathe new life” into the product.
Stage4
Decline
The market for a product will start to shrink, and this is what’s known as the decline stage. This
shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy
the product have already purchased it), or because the consumers are switching to a different
type of product. While this decline may be inevitable, it may still be possible for companies to
make some profit by switching to less-expensive production methods and cheaper markets.
Stage3
Maturity
The product is established and the aim for the company is now to maintain the market share
they have built up. This is probably the most competitive time for most products and businesses
need to invest wisely in any marketing they undertake. They also need to consider any product
modifications or improvements to the production process which might give them a competitive
advantage.
Stage2
Growth
Typically characterized by a strong growth in sales and profits, and because the company can
start to benefit from economies of scale in production, the profit margins, as well as the overall
amount of profit, will increase. This makes it possible for businesses to invest more money in
the promotional activity to maximize the potential of this growth stage.
Stage1
Introduction
The most expensive for a company launching a new product. The size of the market for the
product is small, which means sales are low, although they will be increasing. On the other
hand, the cost of things like research and development, consumer testing, and the marketing
needed to launch the product can be very high, especially if it’s a competitive sector.
www.linkedin.com/in/neilbeyersdorfReference - Product Life Cycle Theory by Raymond Vernon
Business
Excellence
Business
Improvement
Business
Management
Business
Excellence
Continuous
Improvement
HighProductivity
andHighQuality
HighRiskand
HighWaste

19. BUSINESS EXCELLENCE
DATA MANAGEMENT MATURITY RELATIONSHIP STRUCTURE AND COMPONENTS
Reference - Kingland Systems www.linkedin.com/in/neilbeyersdorf
Data
Management
Strategy
Data
Quality
Data
Operations
Platform &
Architecture
Data
Governance
Supporting Processes
DataManagement
Strategy
Data Management Strategy
Communications
Data Management Function
Business Case
Program Funding
Data
Governance
Governance Management
Business Glossary
Metadata Management
DataQuality
Data Quality Strategy
Data Profiling
Data Quality Assessment
Data Cleansing
Data
Operations
Data Requirements Definition
Data Lifecycle Management
Provider Management
Platform&
Architecture
Architectural Approach
Architectural Standards
Data Management Platform
Data Integration
Historical Data, Retention and Archiving
Supporting
Processes
Measurement and Analysis
Process Management
Process Quality Assurance
Risk Management
Configuration Management
Components
Implementation Oversight
Collaboration
Infrastructure
Oversight
Quality Requirements
and Strategy
Metadata
Oversight
Requirements
Execution
Business/IT
Alignment
Infrastructure
Oversight
Data
Infrastructure
Priorities
Alignment
Direction

20. BUSINESS EXCELLENCE
BUSINESS EXCELLENCE MATURITY MODEL AND
DATA MATURITY & DATA MANAGEMENT MATURITY
Business
Management
Continuous
Improvement
Business
Excellence
Level
Data Maturity Data Management Maturity Result
Level5
Optimized
Data is seen as critical for survival in a
dynamic and competitive market
Processes are regularly improved and
optimized based on changing organizational
goals – we are seen as leaders in data
management
Level4
Measured
Data is treated as a source of
competitive advantage
Practices are managed and governed through
quantitative measures of process performance
Level3
Defined
Data is treated at the organizational level
as critical for successful mission
performance
Practices are aligned with strategic
organizational goals and standardized across
all areas
Level2
Managed
There is awareness of the importance of
managing data as a critical infrastructure
asset
Activities are deliberate, documented and
performed consistently at the Business unit
Level1
Performed
Data is managed as a requirement for
the implementation of projects
Activities are Informal, ad hoc., and dependent
on heroic efforts and lots of cleansing
Business
Excellence
Business
Improvement
Business
Management
Business
Excellence
Continuous
Improvement
Reference - Kingland Systems
HighProductivity
andHighQuality
HighRiskand
HighWaste
www.linkedin.com/in/neilbeyersdorf

21. BUSINESS EXCELLENCE
DATA ANALYTICS/SCIENCE MATURITY MODEL
Reference – Else Kuipers - Continuous Improvement Supply Chain Process Management (CISCPM) www.linkedin.com/in/neilbeyersdorf
Transactional Strategic
Analytics
Maturity
Business
Value
AspirationalAdvanced
Descriptive
Inquisitive
Predictive
Prescriptive
Pre-emptive
What
happened
when?
Why it
happened
then?
What will
happen when
the process
changes?
What should
be changed?
What can
be done/
changed
more?

22. BUSINESS EXCELLENCE
BUSINESS EXCELLENCE MATURITY MODEL AND
DATA ANALYTICS/SCIENCE MATURITY MODEL
Business
Excellence
Level
Data Analytics/Science Maturity Result
Level5
Pre-emptive
Pre-emptive analytics is using to have ability to take preventive actions. Data simulated dynamically market
conditions and customer behavior to predict future outcomes, semantic (graphic) understanding of customers
social networks, online behavior, interactions, patterns of purchase, and evolution of opinions over time and
interactions.
Level4
Prescriptive
With prescriptive analytics you try to see what the effect of future decisions will be in order to adjust the
decisions before they are actually made. It provides advice based on the outcome of your predictive analytics.
Data is analyzed in conjunction with probabilities and statistical techniques, from predictive modelling, machine
learning, and data mining, to develop forecasting models to predict trends and behavior patterns.
Level3
Predictive
Predictive analytics provides an estimation regarding the likelihood of a future outcome in your supply chain
process, also it can help to identify some risks or opportunities in the future. Predictive analytics can be done by
using a technique like data mining and modelling. Factors, causes, and effects are identified. The root causes
or variables that effect the outcome, this would potentially be the x in the y=f(x) equation. Hypothesis testing,
normality, chi-square, correlation, regression, ANOVA, T-Test and Multi-Variable analysis and other statistical
tools can be applied to the data.
Level2
Inquisitive
Inquisitive analytics is used to validate or to reject the different business hypotheses. Inquisitive analytics has to
give an answer on the question : ‘Why did something happened at a certain moment in the past?
Some examples of inquisitive analytics :
•Statistical analysis
•Factor analysis
Level1
Descriptive
Descriptive analytics helps your company to understand what happened in the past. The past can be from one
minute ago to a few days, a few weeks, a few months or a couple of years back. Descriptive analytics helps to
understand the relationship between customers, carriers, suppliers and products and the goal is to gain an
understanding of which approach to take in the future. This type of analytics is an important source to
determine what to do next. Descriptive analytics looks at data to describe the current situation in such a way
that trends, patterns and exceptions become apparent.
Business
Excellence
Business
Improvement
Business
Management
Business
Excellence
Continuous
Improvement
HighProductivity
andHighQuality
HighRiskand
HighWaste
www.linkedin.com/in/neilbeyersdorfReference – Else Kuipers - Continuous Improvement Supply Chain Process Management (CISCPM)

23. BUSINESS EXCELLENCE
BUSINESS EXCELLENCE MATURITY MODEL AND
LEAN SIX SIGMA MATURITY MODEL
Reference - Six Sigma Maturity Model - Oracle’s Instantis
Business
Management
Continuous
Improvement
Business
Excellence Level Lean Six Sigma Maturity Result
Level5
Culture
Transformation
Six Sigma has become part of the organizational DNA, the financial impact is now sustained, and Six
Sigma culture is pervasive (even beyond the Six Sigma practitioners and company boundaries).
Level4
Institutionalization
Projects are yielding broad-based financial impacts throughout many parts of the company.
Level3
Scaleand
Replication
Early success has led other parts of the organization to buy in to Six Sigma, meaning that a broader
project launch is under way.
Level2
EarlySuccess
The initial projects are yielding results, and early successes are being achieved.
Level1
Launch
This is the starting point—when Six Sigma is launched, training is initiated, and projects are begun.
Business
Excellence
Business
Improvement
Business
Management
Business
Excellence
Continuous
Improvement
HighProductivity
andHighQuality
HighRiskand
HighWaste
www.linkedin.com/in/neilbeyersdorf

24. BUSINESS EXCELLENCE
LEAN SIX SIGMA MATURITY MODEL LEVEL DEFINITIONS
Reference - Six Sigma Maturity Model - Oracle’s Instantis
 Launch
This is the starting point—when Six Sigma is launched, training is initiated,
and projects are begun.
 Early Success
The initial projects are yielding results, and early successes are being
achieved.
 Scale and Replication
Early success has led other parts of the organization to buy in to Six Sigma,
meaning that a broader project launch is under way.
 Institutionalization
Projects are yielding broad-based financial impacts throughout many parts of
the company.
 Culture Transformation
Six Sigma has become part of the organizational DNA, the financial impact is
now sustained, and Six Sigma culture is pervasive (even beyond the Six
Sigma practitioners and company boundaries).
www.linkedin.com/in/neilbeyersdorf

25. BUSINESS EXCELLENCE
LEAN SIX SIGMA MATURITY MODEL LEVEL ELEMENTS
Reference – Lean Six Sigma Maturity Model - Oracle’s Instantis
Culture Change
Beyond DMAIC
Strategy Maturing
Software
Reporting
Financial Impact
Project Selection
People
Training
Leadership Support
DNA of
Organization
IT, Product
Development
Full Closed-Loop
Strategy & Portfolio
Multi-Year History
General Ledger
Formalized
Evaluation
Majority
Internal, Specialty
Ingrained
Culture
Transformation
Level 5
DFSS & Lean Start
Up
Project Roll-up
Portfolio
Management
Cross-org Comps
Validation
Idea Pipeline
Repatriated
Internal eLearning
Expected
Institutionalization
Level 4
Maps & Goals
Project
Management
Aggregate,
Average
Consistency, EP
Copy Success
Career
Development
External, Customer
Across
Organization
Scale Replication
Level 3
Excel, Stats
Aggregate,
Average
Cost Reduction
Low Hanging
More Believers
External
Validated
Early Success
Level 2
Anecdotal
Ad hoc
Burning Platform
Driven Few
Champion,
Executive
1 or 2 Visionaries
Launch
Level 1
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26. BUSINESS EXCELLENCE
MATURITY MODELS
Business
Excellence Level
Knowledge
Management
(APQC)
Process
(CMMI)
Product
(PLC)
Data/ Data
Management
(Kingland Systems)
Data
Analytics
(CISCPM)
Lean Six
Sigma
(Oracle’s Instantis) ResultLevel5
Innovate Optimizing
Innovation/
Reinvention
Optimized Pre-emptive
Culture
Transformation
Level4
Optimize
Managed
and
Measured
Decline Measured Prescriptive Institutionalization
Level3
Standardize Defined Maturity Defined Predictive
Scale and
Replication
Level2
Develop Repeatable Growth Managed Inquisitive Early Success
Level1
Initiate
Initial
(Chaotic)
and
Performed
Introduction Performed Descriptive Launch
Business
Excellence
Business
Improvement
Business
Management
Business
Excellence
Continuous
Improvement
HighProductivity
andHighQuality
HighRiskand
HighWaste
www.linkedin.com/in/neilbeyersdorf