Where is the “Knowledge” for the Knowledge Worker? Carl Ascenzo CEO & Consultant

Companies go through great effort and expense to recruit, train and retain employees for operational jobs such as customer service and back office

operations. Unfortunately important interpersonal skills such as  professionalism, attitude, empathy and communication are often sacrificed

for technical skills. Why? Because the challenge with technical competence often lies with the ability to memorize vasts amounts of

information, complexity,  multiple information sources and systems, and is further hindered by change, incomplete documentation, and flawed policies and

procedures. 

Technology has helped with the “work” component. Technologies such as automated call routing, interactive voice response, business process

management and customer relationship management are a few examples. Companies should now focus on the “knowledge” part of the equation by

proactively driving context-sensitive information to employees when, where and how they need it. Unfortunately most content and knowledge management

systems don’t have this capability. Methodology and systems are now being introduced to compliment the work technologies, by providing real time

knowledge deployment.

Introduction

… and why is this important?

…for improved business operations performance is unrelenting and constant.

DEMAND1

why is this important?

OBSTACLES…limited qualified labor, more

products/policies/procedures, new systems, increasing regulations,

heightened risk management, accelerating change and complexity.

2

Can’t Absorb…Overwhelmed

Can’t Find…Frustrated

Can’t Execute…Confused

Which means…

Resulting in underperformance….

….and a direct impact on profits

More ErrorsWasted Time Stress & Turnover

Components of S&P 500 Market Capitalization1973 – 2007 (OCEAN TOMO)

Market Premium: No Book Value Intangible Asset Book ValueTangible Asset Book Value

…. intangible capital with no book value dominates value creation

“Structural Capital”, particularly knowledge and business practices,

is a largely untapped corporate asset.

Structural Capital(Processes, Information, Knowledge, Practices)

Human Capital(Competencies, Experience, Skills)

RelationshipCapital

(Customers, Vendors, Partners)

Intangible Capital with No Book Value

I-Capital Advisors

Challenges to optimizing structural capital• Many enterprises do not think about structural capital

and its impact on customers or costs• Eliminating all complexity is not practical, yet not dealing

with it isn’t an option• Organizations assume knowledge management includes

knowledge delivery• Traditional training emphases memorization, versus

ongoing support and can’t keep pace with change• Adults learn best by doing; at that moment they have a

high interest in the task, situation and related concepts

average 10+ windows running simultaneously

Words: 34,768

↑ complexity

= indigestible

Page: 13 of 145

Technology Dilemma• BPM and CRM are architected for moving a transaction

(data) on a path of tasks through a process• Document Mgmt and Content Mgmt are architected to

store information in a catalogued way• Knowledge Mgmt and Collaboration are architected to

facilitate team creation of work artifacts• Search is unpredictable in accuracy, granularity, speed• As transaction processing differs from data warehousing,

knowledge delivery has to differ from Knowledge Mgmt

evolution of systems

< 1980 1985 1990 1995 2000 2005 2010 >

Spee

d to

Info

rmat

ion

Search

Imaging

Workflow Management

Paper Files

Electronic Document

Management

Content Management

Business Process

Management

eLearning

Enterprise Portals

IntranetKnowledge

Management

Business Practice Guidance

p a s s i v e v e r s u s a c t i v e

CRM

HELP

Collaboration

Solution: Business Practice Guidance (BPG)

To navigate through complexity faster and accurately without disrupting

underlying business and technology systems.

Business Practice Guidance is the capability to proactively

drive real-time, accurate, context-relevant knowledge and

information to employees when, where, and how they need it.

BPG improvement – operations

• Incorrect handling• 60 – 90% reduction

• Average handle time• 10 – 30% reduction

• First call resolution• 20 – 40% improvement

• Escalation to expert• 40 – 70% reduction

• Improves quality• Reduces errors• Improves consistency• Increases productivity• Reduces risk• Improves overall customer,

employee experience• Simplifies complex processes• Turbo charges existing IT

BPG improvement – compliance

• Enables “active” adherence to policies, regulations, procedures

• Enforces appropriate controls at all business levels• Enhances risk management• Provides audit capability• Immediate availability of additions & revisions

BPG improvement – knowledge deployment

• Delivers knowledge and information that is not operational

• Captures knowledge in a structured way• Makes knowledge useful• Effectively maintains knowledge• Timely distributes knowledge

BPG improvement – learning & development

• Formal classroom training• > 50% reduction

• Initial & ongoing time to competency• 50 – 80% reduction

• Effective on job training and support

• Improved staffing flexibility

• Improved attrition• Reduced complexity &

burnout• Faster adoption of business

and systems change • Improved employee

satisfaction & engagement• Transforming without pain

case study: banking

Significant increase in productivity (table on next slide)

91% reduction in non-lending losses

40% to 60% increase in employee engagement

99% on-time service score 99.9% transaction accuracy score Faster implementation and ROI in

rollout of 4 major systems

Financial Services

case study: banking

BEFORE AFTER

(continued)

case study: health insurance

Search times reduced 94% (from 120 to 7 seconds)

10% reduction in customer hold time 20 second reduction in average

handle time Significant decrease in Help Line calls 80% CSR engagement in continuous

improvement New hire attrition rate reduced 26%

Health Insurance

• British Telecom – order management

• National Australia Bank – call center & back office

• Blue Cross NE Pennsylvania – member service

• Caterpillar – dealership operations

• Hewlett Packard – sales & service

• Stellar – call center & BPO outsourcing

• Celgene – risk management

Early Adopters

“Structural Capital”, particularly knowledge and business practices, is a largely untapped corporate asset.

For many enterprises…they do not think about complexity, its impact on customers or costs.” – Mark McDonald, Gartner.

Adults learn best by doing things, so providing learning at the moment of need is a highly leveraged technique. – Gloria Gery

Eliminating all complexity is not practical; dealing with it is not an option and needs to be a core competency for every organization. – Delphi Group

Business Practice Guidance, proactively drives accurate, context relevant knowledge and information to employees when, where and how they need it.

BPG is not Help, Search, BPM, CRM, CM or KM - BPG leverages these capabilities to increase operational performance.

Summary

Carl Ascenzo CEO & ConsultantO: 978.283.0408M: 860.716.5893Carl@AscentionConsult.com