Download - Taking account of organisational knowledge The Knowledge Audit and beyond … 15 August 2007
Taking account of organisational knowledge
The Knowledge Audit and beyond …
15 August 2007
Overview
This presentation will cover:
Organisation value
Corporate Knowledge
Knowledge Audits
Knowledge (Process) Mapping
Intellectual Capital Measurement – the bigger picture
Organisation value
Tangible AssetsRelatively easy to measure
Intangible AssetsHarder to measure
‘Bricks and Mortar’
Intellectual Property
Corporate Knowledge
If all of the key knowledge workers left tomorrow, how would this impact the organisation’s value?
Goodwill *
Brands *
Software *
PropertyPlant
Equipment
Corporate knowledge – people are key.
Where does corporate knowledge reside?
26% 42% 20% 12%
Paper Employee’s Electronic ElectronicRelationship
Documents Brains Documents Knowledge Base
Networks Salamander Organization Workforce Survey*
Can you really manage knowledge?Knowledge management (KM) is defined as: “A multi-disciplined approach to achieving organisational objectives by making the best use of knowledge“Standards AustraliaKM is “the systematic processes by which knowledge needed for an organisation to succeed is created, captured, shared, and leveraged.” Melissie Clemmons Rumizen
X %
Getting a grip on corporate knowledge
Where do you think your organisation is on this scale?
How can you be sure?
Selecting the right measurement optionUse a ‘quick & dirty’ Needs Analysis to find knowledge hotspots. A useful precursor to a Knowledge Audit.
Use a ‘no frills’ Knowledge Audit if your CEO just needs an indicator to help to frame immediate knowledge priorities.
Use a ‘fully optioned’ Knowledge Audit including Knowledge Mapping and Social Network Analysis when your organisation is implementing a Knowledge Management strategy to improve processes and practices. Use an appropriate Intellectual Capital Measurement approach when your organisation must demonstrate its value – internally and externally.
Apart from matching the method with the requirement, your choice will be determined by the capability of resources available to do the work, the budget you have and the timeframe you have.
Needs Analysis – what it is & why do it
A Needs Analysis answers questions about tasks and challenges for knowledge workers and managers. It is effectively designed if it:
Allows wide access for comments (e.g. online survey completion) Has a structured format (provide drop down options; buttons) Demonstrates the author’s understanding of the corporate
environment Enables immediate and meaningful communication – feedback
once the analysis form is lodged – AND quick report generation Has the commitment and support from managers – even 5 mins
requires effort
A Needs Analysis raises issues that deserve further investigation.
Knowledge Audits – what they are and why do them“Systematic investigation, examination, verification, measurement and evaluation of explicit and tacit knowledge resources and assets, in order to determine how efficiently and effectively they are used and leveraged by the organisation” Ann Hylton
“The systematic analysis of an organization's information and knowledge entities and their key attributes, such as ownership, usage and flows, mapped against user and organizational knowledge needs” David Skyrme
Knowledge Audits:• Help identify knowledge needs to support organisational goals:• Provide evidence of how knowledge is effectively
managed/shared etc• Show what knowledge exists, where it is, and whether there are
any gaps• Reveal pockets of knowledge – e.g. untapped potential• Show knowledge sources and any sinks or blocks• Provide information in order to tailor knowledge management
initiatives
How do you do a Knowledge Audit?
1. Identify what knowledge exists• Identify explicit knowledge (e.g. snapshots of corporate
information)• Identify tacit knowledge pools (e.g. knowledge networks)
2. Identify where that knowledge resides• Shared drives, paper records, local gurus • Determine sinks, sources, flows, blockages• Map knowledge processes (way it is captured, shared, used &
saved)
3. Identify what knowledge is missing• Assess corporate objectives, skills, competencies against best
practices• Perform a gap analysis - who needs the knowledge & why
4. Report and recommend suggestions for improvement
Knowledge Audit methods
• Background research
• Workshops
• Questionnaires
• Interviews
• Observation
• Knowledge (process) mapping
• Social Network Analysis
Knowledge Audit questions – over to you
What would you say about asking the following questions in an emailed questionnaire?
1. Do you transfer knowledge regularly?
2. Do you think a knowledge portal helps in knowledge sharing and transfer?
3. If this organisation introduces a knowledge portal in 2008, will you use it to share your experience with other colleagues?
Chong & Lee – Re-thinking Knowledge Audit
What are some alternative questions you might ask?
Developing appropriate questions
Take time to prepare
Include both qualitative and quantitative elements
Test the instruments (usability is essential)
No jargon, no bias, no ambiguity
Understand how the results will be analysed and used
Become familiar with tested questionnaires – journals
Seek help from tertiary accredited and experienced knowledge practitioners either in developing and testing the instruments, or in conducting the Audit.
Knowledge Maps (K-Maps)
You also need to VISUALISE the content in a meaningful (useful and useable) way for both senior management and staff who are tasked with undertaking knowledge work.
This is where Knowledge (Process) Maps are useful.
TASKS
ACTIVITIES
FUNCTIONOUTPUT OUTCOME
Knowledge Maps (K-Maps)
People often need to delve deeper and understand the importance and impact of knowledge flows on business outputs and outcomes, they need to look at the organisation’s processes and visualise the relationship with the final business goals.
K-Maps help people understand and analyse the current state and ask the important questions before moving forward. Questions like:
Does the current structure support active knowledge sharing?
Are there information silos within the business?
Is there evidence of duplication of effort within the business?
Who are the subject matter experts and how can I find them?
What should we be doing that we currently are not doing?
Why would you build a Knowledge Map?
The goals of knowledge maps are to:
Set out how outcomes are achieved (how things get done!)
Provide a simple common user experience of how business is organised - how things operate at the all important task, activity, function levels - how they provide the building blocks for delivering outputs and outcomes
Help people understand their roles and responsibilities - help to make business lines ‘join up”
Make workflows visible to both managers and staff;
Deliver self service functionality to clients over the Intranet; and where appropriate
Deploy a quality system for quality standards accreditation to satisfy - audit requirements as established by Government and / or legislation.
How Do I…?
Sources Of Knowledge
Corp. Systems
BusinessOutcomes
K-Mapping
Access Right Application When I Need To
Understand How & Where This Application Helps Me To Achieve The Outcomes
Access To Associated Resources
Understand How & Where The Correct Resource Helps Me To Achieve The Branch Outputs
Understand What Is Best PracticeFor Achieving The Branch Outputs
Understand How The Branch OutputsFeed Into The Corporate Picture
In its simplest form K-Mapping is the process of analysing tasks, activities, functions, outputs and outcomes of an organisation or of a particular area of an organisation and understanding the dependencies that exist.
TASK
TASK
TASK
TASK
TASK
TASK
TASK
TASK
TASK
What are the benefits?
Enables a common language across agencies
Assists you to decompose outcomes
Draws an explicit link between activities you undertake with the outcome being delivered
Identifies efficiencies, deficiencies and implications
Functions are the largest unit of business activity.
They represent major responsibilities that are managed by an organisation/area.
Activities are the major tasks which support and assist in achieving the work function.
An outcome is the end result derived from the output.
Tasks are the lowest level of effort they breakdown the activities.
A cluster of tasks may often seem unrelated.
Tasks can exist in several clusters at the same time.
TASK
TASK
TASK
ACTIVITY
ACTIVITY
ACTIVITY
ACTIVITY
ACTIVITY
ACTIVITY
FUNCTION
FUNCTION
OUTPUT OUTCOME
An output is the deliverable from the function/s.
The following example highlights how K-Mapping (analysing tasks, activities, functions and outputs) helps us to understand the dependencies that exist at each level which support the achievement of a particular outcome (eg: maximising the re-sale value of a car).
TASKS ACTIVITIES FUNCTIONS OUTPUTS OUTCOMES
Change oil and water
Check air in tyres
Replace worn tyres
Replace headlight bulb
>
> Clean the car
Replace faulty or worn
parts
>
>
>>
Service the car
Maintenance
Presentation
>
>Speedometer Cable
A car that is:
Well maintained;
well presented; and
mechanically sound
Car re-sale value is maximised
Change spark plugs
Clean windows
Wash wheels
Vacuum interior
Polish paintwork
InvestBanking
1: PROFIT - Increase profit growth (increase after tax profit) 2: EPS GROWTH - Increase earnings per share (Increase share price) 3: DIVIDEND GROWTH - Increase ordinary dividends (returns to shareholder)
Funds Mgt
Treasury &Commod
EquityMarkets
Investment
Capital Management
EquityCapital Markets
CorporateRestructures
Takeovers
Mergers &Aquisitions
ProjectFinancing
ExternalManag. Funds
Internal Manag. Funds
Hedge Funds
SecuritiesTrading
Risk Management
Trading
EquityFinance
SecuritiesLending
Foreign Exchange Trading & Struct.
Interest Rate & Credit DerivativesStruct. & Trading
Structuring& Placement
Debt Arrangements
Futures, ExecutionAnd Clearing
Commodity, Energy& Finance. Prod
Physical & DerivativesStruct & Trading
TreasuryOperations
Commodity &Energy Finance
Security OfRetail Financial
Services
Wheelchair Access Taxi Service
Credit Cards
Mortgage Origination& Funding
InvestmentLending
Personal Loans
RelationshipBanking
Real Estate
OnlineStockbroking
Strat. FinancialPlanning
Private PortfolioManagement
Full ServiceStockbroking
Executive Wealth Management
PrivateBanking
FinancialServices
InvestmentPlanning
MACQUARIE BANK BUSINESS OUTCOMES
(1,2 & 3)
Banking &Security
Advisory Services
BankingSolutions
Financing& Leasing
RiskManagement
Specialized Leasing
Specialist FundsManagement
SpecializedInfrastructure
Manufact. & Distribut.Of Wholesale & Retail Financial
Products
AssetFinancing
Stockbroking
EquitiesResearch
Provision Invest & Develop. Finance
Develop. OfJoint Ventures
Debt / TransactionStructuring
Management & Develop Assets
Foreign SponsoredTrust Listings
Management Institution Funds
WholesaleProperty Invest
WholesaleEquity Raising
Advisory &Research
Developments &Asset Management
Project Financing & Securitisation
Listed & Unlisted Funds
New SectorInnovation
Internat. Funds MgtJoint Ventures
Corp, Super & IndivFunds Management
Global FundsManagement
Infrastruct. & PrivateEquity Funds
Cash, Fixed Income, Currency & Prop. Funds
PerformanceIncentive Funds
Brand & Marketing
Internal CommsMarketing
E Commerce
Reputation & BrandProtection
Macquarie BankFoundation
Macquarie BankSports
Community Relations
Media Relations
GovernmentRelations
CorpComms
DeploymentNew Technologies
DeploymentNew Systems
Delivery New Systems
Develop. Existing Business Systems
InfrastructureSupport
TechnologyInfrastructure
Deployment Of New Services
CorpComms
MACQUARIE BANKHIGH LEVEL K-MAP
Invest.Banking
Intellectual Capital – what is it?.
Intangible Assets
Intellectual Capital
Human Capital
Structural Capital
Relationship Capitalthe expertise,
specialist skills, attitudes and values held by knowledge workers
the way that agencies conduct their business including knowledge embedded in routines, policy, procedures and systems
the external relationships others have with the agency and can include things like the agency's reputation in the industry sector, customer loyalty and goodwill
Intellectual Property
Intellectual Capital – why measure it?.
Benchmarking (external focus) –
• Industry benchmarks (Gartner, Forrester)• Stock exchange fluctuations• Audit findings (ANAO reports)• Award winners
Comparison against corporate outcomes (internal focus) –
• Performance measures (Balanced Scorecard) • Organisational reviews (internal audits, knowledge audits) • Retention rates• Value metrics (Intellectual Capital measures)
Organisations who seek to measure their intellectual capital do so in order to identify ways to grow it and thereby improve the overall
performance of the organisation and hence its value.
Intellectual Capital – how is it measured?
Intellectual Capital Models “more models than a car show” Melissie Clemmons Rumizen
IC Statements
Meritum Guidelines
Intellectual Asset Valuation
Market to Book Value
Scandia Navigator
Intangible Asset Monitor
Tobin’s q
Balanced Scorecard
Economic Value Added
Intellectual Capital measures for the Public SectorA ‘back-to-basics’ approach to Intellectual Capital is needed to see how a public sector organisation stacks up in terms of its own outcomes and its relative comparative position. This is now the focus of a PHD at the ANU. The background to the research was –
Anecdotal evidence from APS Managers that the way that their organisations measured IC & IP was not appropriate
Comments at industry forums was that often IC & IP was not measured at all
Organisations without measured IC & IP often experience avoidable costs (duplication, gaps in knowledge)
Led to a decision in 2005 to investigate IC & IP measurement in the Australian Public Service.
Currently seeking public sector organisations who may want to participate in this research.
Knowledge takeaways
1. True value of an organisation lies in its corporate knowledge
2. Knowledge Audits can help direct efforts to areas of most need
3. Better knowledge audits use mapping and social network analysis
4. Measuring Intellectual Capital (and then putting in place ways to grow it) can improve performance and add value to the organisation
5. Becoming involved early in research on IP and IC can provide practical benefits to the organisation (including quick wins) as well as helping to build on IC theory
QUESTIONS?ADEPT KM PTY LTD
Ph: 0412 413 922 – Colette(02) 6238 1183
Fax: (02) 6238 0990Email [email protected] www.adeptkm.com
Colette Raison is completing a PHD at the Australian National University with the outcome of providing practical assistance to Federal Governments in measuring their Intellectual Capital. Colette is seeking expressions of interest from public sector representatives to be involved in Intellectual Capital research.