Re: Key examples to demonstrate value of KM in an organization #biz-dev #value


Zweli Ndayi
 

Thank you so much Murray. Would you share those with me? zweli.ndayi@...


On Mon, 04 May 2020, 04:24 Murray Jennex via groups.io, <murphjen=aol.com@groups.io> wrote:
to back up what Tom says, my 2016 conference paper presented a set of 4 statistically validated key areas that demonstrate KM success.  The first area is a direct impact on business processes such as improved roi, reduced cycle times, improved efficiencies, etc.  that are all areas directly tied to measurable value to the organization.  My 2008 paper actually showed how this measurable value was calculated for the case of a nuclear generating station.  I created a couple of value models in that paper.  The two papers are:

Jennex, M., Smolnik, S., and Croasdell, D., (2016). “The Search for Knowledge Management Success,” 49th Hawaii International Conference on System Sciences, HICSS49, IEEE Computer Society, January 2016.
Jennex, M.E., (2008).  “Impacts From Using Knowledge: A Longitudinal Study From A Nuclear Power Plant,” International Journal of Knowledge Management, 4(1), pp. 51-64.

I've shared these papers before and am willing to share with anyone who wants them.....murray jennex

-----Original Message-----
From: Tom Short <tshortconsulting@...>
To: SIKM@groups.io
Sent: Sun, May 3, 2020 8:34 am
Subject: Re: [SIKM] Key examples to demonstrate value of KM in an organization #Biz_Dev

In his book, Post-Capitalist Society, management guru Peter Drucker wrote that knowledge contributes value to a firm in two ways: increase revenue, and reduce costs. 

If you think about KM in terms of ultimately affecting one of those two things, it then becomes a matter of identifying what business issue KM is being applied to and understanding in advance what intended benefit KM is expected to bring. You identify your measures and metrics and create a baseline before you roll out your initiative, and then you measure and report and adjust. 

Example: The Commodity Trading Desk for a global agricultural products company
A group of commodity traders was set up in trading offices around the world to permit 24/5 trading of ag commodities. As one market closed the trader there would send an email of their open positions, trades, and notes to the rest of the traders. This one message, plus dozens of others through the trading day to report trading activities, meant that on any given day a trader would be deluged with 200-300 emails, which they would spend a couple hours in total reading throughout the day to make sure they didn’t miss an important signal that might affect their trading decisions. When asked what they’d do with an extra hour of time in their day they said, without hesitation, “We’d turn it into money.” 

After studying their activities and confirming the above statements, we worked with the department head to reorganize the whole trading department. We re-allocated tasks and activities in a way that would permit automatic filtering of email, thereby reducing by 40% the amount of email hitting the trader inboxes - and the amount of time they spent dealing with it. We also inventoried expertise required for the trading activity and identified three distinct knowledge domain areas that were involved in the trading activities. This formed the basis for the above re-allocation, and allowed us to better leverage the expertise of the traders by better focusing them on a narrower set of tasks. 

As a result of our KM work this client realized a significant productivity improvement gain among their global trading group that drove increased trading revenue worth millions of dollars per year. It reduced email volume reduced worries about missing an important message, contributing to increased job satisfaction among the traders. This is an example of a soft benefit, which one would expect to show up in an employee engagement survey. 
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-Tom
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Tom Short Consulting
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