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DNV | KNOWLEDGE MANAGEMENT Knowledge Management Programmes

effective knowledge management

ENABLING EXCELLENCE


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reduce cost of ignorance ce cost of ignorance cost of ignorance reduce Knowledge Management

reducing the costs of ignorance

Drivers for knowledge management Smart organisations are always looking for ways to improve their performance, reliability and to increase overall business excellence. Common sense says that rigorous: ■ learning from successes and failures, ■ sharing knowledge amongst employees and ■ reuse of lessons learned across operations can strongly contribute to this strive for continuous improvement and adaptation to external and internal conditions. 2

However for many reasons these processes might not function properly in organisations anymore resulting in symptoms such as: ■ Costly mistakes are repeated, as earlier ones were not recorded or analysed; ■ Good ideas and best practices are not shared, raising costs and missing opportunities; ■ Loss of critical knowledge due to retirement and mobility of workforce;

COST OF IGNORANCE /// Costly mistakes are repeated, as earlier ones were not recorded or analysed

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1 or 2 key employees hold crucial knowledge, putting continuity at risk; Knowledge is not readily available at the point of action; Employees spend too much time to search for information and knowledgeable people; Employees use outdated and non-validated information in action.

Everyday reality demonstrates that these symptoms lead to avoidable costs and risks. We call these symptoms the ‘costs of ignorance’.

Smart organisations do not accept this reality and invest in strategies, processes and systems that will avoid these costs of ignorance, now and in the future.

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What is Knowledge Management?

COST OF IGNORANCE /// 1 or 2 key employees hold crucial knowledge, putting continuity at risk

Professional Knowledge Management enables organisations to: ■ Identify, safeguard and retain critical knowledge and skills; ■ Build and update critical knowledge and skills ‘just-in-time’ and at the point of action; ■ Exchange and transfer knowledge, lessons learned and proven practices across operations, regions and businesses; ■ Support employees by web-based tools that allow them to access all required information and expertise and to collaborate with all relevant parties in their environment. Knowledge Management creates barriers for loss and degradation of capabilities, experiences and skills. At the same time it creates enablers for development and maximum use of new and innovative capabilities in operations.

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Focus on critical knowledge

COST OF IGNORANCE /// Good ideas and best practices are not shared, raising costs and missing opportunities

Leading organisations focus on the vital few to ensure that investments are targeted and aligned with corporate strategy. Knowledge management should therefore be focused on an organisation’s critical knowledge:

“Knowledge which is of essential importance to the performance of employees and the organisation to achieve

Opportunities

Business priorities

Major risks

or sustain competitive advantages in its markets” ■ The quality and availability of this knowledge have a major impact on the business performance ■ When this knowledge is not managed in a professional way an organisation could face risks with potential negative effects on the cost of quality, IPR and the capacity to innovate. Knowledge Management should provide a robust approach to identify, assess and manage its critical knowledge.

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Focus on critical knowledge

KM in Action!

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KM in action

The results of two international research studies demonstrate that leading KM organisations focus on three main operational tactics within their critical knowledge areas:

COST OF IGNORANCE /// Employees use outdated and non-validated information in action

Opportunities

■ Raise and maintain PROFICIENCY by developing capabilities through training, recruitment, partnerships, research and development. These activities strongly relate to the HRM function in the organisation and should ensure that the workforce holds the right competencies according to the strategic agenda; ■ CODIFICATION of experiences and skills captured in ways that are accessible and reusable for all employees that need-to-know. This codified body of knowledge ensures continuity and uniformity in operations and provides the foundation for improving business excellence based upon a well-organised corporate memory; ■ DIFFUSION of knowledge through networks of professionals across boundaries in organisations and outside the organisation. These networks enable members to collaborate, share and validate best practices, to learn together and join forces to develop new knowledge. They facilitate rapid diffusion of new ideas and useful experiences across the organisation.

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Business priorities

Major risks

Focus on critical knowledge Diffusion Share knowledge

Proficiency Build capabilities

KM in Action!

Codification Make explicit 9


COST OF IGNORANCE /// Employees spend too much time to search for information and knowledgeable people

Critical success factors

Knowledge Management addresses all relevant people, process, technology and organisational issues that are required to maximise the potential of its knowledge and prevent loss of critical capabilities. DNV has identified 4 major drivers for sustainable Knowledge Management:

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MUST MUST /// Build a clear focus and business case

CAN CAN /// Develop skills in the work force to participate in knowledge management activities

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COST OF IGNORANCE /// Knowledge is not readily available at the point of action

Critical success factors

WANT WANT /// Stimulate and recognise employees contribution

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HAVE HAVE /// Provide a world-class infrastructure for employees to collaborate, share and connect

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Knowledge Management Programmes

COST OF IGNORANCE /// Loss of critical knowledge due to retirement and mobility of workforce

DNV has considerable experience in implementing robust and effective frameworks for knowledge management and organisational learning. We support organisations to: ■ Assess, develop and improve Knowledge Management programmes; ■ Perform risk assessments on critical knowledge and develop knowledge strategies accordingly; ■ Design and implement knowledge infrastructures for sharing, building and capturing critical knowledge; ■ Integrate Knowledge Management into existing management systems. Our delivery modes are consultancy, programme management, coaching and training. DNV has delivered Masterclasses and short courses on knowledge management to hundreds of participants in the Netherlands, the UK, Italy, Germany and Taiwan.

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WHAT ARE YOUR COSTS OF IGNORANCE? For more information please contact Rob van der Spek, Director of Knowledge Management Advisory Services /// t +31 (0)6 54781900 /// e rob.van.der.spek@dnv.com, kmservices@dnv.com /// w www.dnv.com/knowledgemanagement


Knowledge management programs