Date   

Re: KM ROI #value #question

 

Apologies—would someone share the KM World meetup..can’t find the login info.

 

Thanks so much

 

Bill

 

From: main@SIKM.groups.io <main@SIKM.groups.io> On Behalf Of Bruce Boyes via groups.io
Sent: Saturday, November 14, 2020 19:44
To: main@SIKM.groups.io
Subject: Re: [SIKM] KM ROI #question #value

 

Hello Sachin, the information and resources in this article may be of interest: https://realkm.com/2020/11/13/potential-alternative-approaches-to-evaluating-km-program-performance/ 

Cheers,
Bruce.

www.bruceboyes.info
www.realkm.com 


Re: Internal Gig Marketplaces #future-of-work

James Robertson
 

On 17/11/20 4:12 am, Catherine Shinners wrote:

Jane McConnell has done research over the past few years on this topic.  Jane is based in France and has advised and done research on organizations for many years.  She began to define what she calls the Gig Mindset based on her research over the past few years.
https://www.netjmc.com/the-gig-mindset-inside/

I spent the best part of a week with Jane at her house in the south of France just a week before Covid lockdowns really started (and I only just made it back to Oz in time!).

Jane has done a heap of thinking on this, and a huge amount of research. Her previous work on digital workplaces was transformational, and I'm sure her new book on the gig mindset will be too (coming out early next year).

So definitely do reach out to her, I'm sure she'd love to chat! :-)

Cheers,
James

--
Step Two James Robertson
Founder and Managing Director | Step Two
Ph: +61 2 9319 7901 | M: +61 416 054 213
www.steptwo.com.au


Homeworking: is the city centre dead? (free zoom conference) #COVID-19 #remote-work

 

Hi all,

 

I'll be speaking on the future of city centres as COVID accelerates changes in working patterns and company adaptation.

 

Thursday 19th November at 11am (GMT) - Homeworking: Is the city centre dead?

 

https://www.meetup.com/Franco-British-CCI-Toulouse/events/273428274/

 

We’ll be discussing four questions applied to retail, office, industrial and leisure commercial adaptation:

 

  1. Will the world return to what it was, or is COVID the great excuse?
  2. How have people’s needs changed?
  3. What should we watch out for in policy response?
  4. What don’t we yet know but consultants will start offering advice on?

 

The discussion is informed by commercial location data analysis I’ve been doing for the UK government since March, reviewing longitudinal data on location-based commercial activity across the UK.

 

Hope of interest …

 

Regards

 

Gavin

 

>--------------------<

Gavin Chait is a data scientist and development economist at Whythawk.

uk.linkedin.com/in/gavinchait | twitter.com/GavinChait | gavinchait.com

 


Re: November 2020 SIKM Call: David Gurteen - Introduction to Conversational Leadership #conversation #leadership #monthly-call

Tom Barfield
 

While I know a small % of the SIKM community is attending KM World this week – it seems odd to be having our session tomorrow during a KM World keynote. 

I know this is the 11th hour – could we reschedule the SIKM call to the same time next Tuesday?

 

Tom

 

From: main@SIKM.groups.io <main@SIKM.groups.io> On Behalf Of Stan Garfield
Sent: Monday, November 16, 2020 12:34 PM
To: main@SIKM.groups.io
Subject: [SIKM] Nov. 17 SIKM Call: David Gurteen - Introduction to Conversational Leadership #monthlycall #conversational-leadership

 

This is a reminder of tomorrow's monthly call from 11 am to 12 noon EST.

·         November 17, 2020 SIKM Call: David Gurteen - Introduction to Conversational Leadership

·         Slides

·         There are two videos that David would like us to watch during his presentation. There are links in his slides, and also here:

·         Ron Heifetz On Leadership

·         Patricia Shaw on Leadership and Conversation

·         For online chat, use the group chat in FreeConferenceCall.com, or visit tchat.io and sign in with your Twitter account, or use the #KMers hashtag directly in Twitter.

SIKM Leaders Community Monthly Call

·         When: Tuesday, November 17, 2020, 11:00 AM-12:00 PM Eastern Standard Time

·         Where: (712) 770-4035 (US and Canada) Passcode 178302

·         International Dial-in Numbers

·         You can join online using your computer’s speakers and microphone at http://join.freeconferencecall.com/stangarfield
- Online Meeting ID: stangarfield

·         If you join online, be sure to click on the grey phone icon and then choose your audio preference. If your audio is live, you should see a red phone icon.

·         If you have problems connecting, call customer service at 844-844-1322.

·         Occurs the third Tuesday of every month from 11:00 AM to 12:00 PM Eastern Time (USA)

·         Community Site 

·         Slides - There is no live screen sharing - you follow along by advancing the slides yourself.

·         Previous Calls

·         Future Calls

·         Calendar


November 2020 SIKM Call: David Gurteen - Introduction to Conversational Leadership #conversation #leadership #monthly-call

Stan Garfield
 

This is a reminder of tomorrow's monthly call from 11 am to 12 noon EST.

SIKM Leaders Community Monthly Call

  • When: Tuesday, November 17, 2020, 11:00 AM-12:00 PM Eastern Standard Time
  • Where: (712) 770-4035 (US and Canada) Passcode 178302
  • International Dial-in Numbers
  • You can join online using your computer’s speakers and microphone at http://join.freeconferencecall.com/stangarfield
    - Online Meeting ID: stangarfield
  • If you join online, be sure to click on the grey phone icon and then choose your audio preference. If your audio is live, you should see a red phone icon.
  • If you have problems connecting, call customer service at 844-844-1322.
  • Occurs the third Tuesday of every month from 11:00 AM to 12:00 PM Eastern Time (USA)
  • Community Site 
  • Slides - There is no live screen sharing - you follow along by advancing the slides yourself.
  • Previous Calls
  • Future Calls
  • Calendar


Re: Internal Gig Marketplaces #future-of-work

 
Edited

Tammy,
I was excited to see your inquiry to the group.  This is an area that has been of great interest to me for the last few years.

I find that companies have used the concept of "stretch goals" to meet resource needs and provide opportunities for professional growth, but still seem to struggle with the concepts of gig marketplace or gig workforce and internal crowdsourcing.

I have two references for you for further exploration.  While I don't have direct experience with this being implemented, I hope these two resources are helpful.

Jane McConnell has done research over the past few years on this topic.  Jane is based in France and has advised and done research on organizations for many years.  She began to define what she calls the Gig Mindset based on her research over the past few years.
https://www.netjmc.com/the-gig-mindset-inside/

I have also heard Alex Kass of Accenture Labs speak on this topic at several conferences here in the Bay Area.
Here is a video of a talk he gave at a Stanford MediaX event 3 years ago - there's some interest remarks and slides in this video on various companies that he referenced as examples.
Competence, Collaboration, Crowdsourcing & the Future of Work

Catherine Shinners
Merced Group
650-704-3889


Re: Sharing experiences in professional services #consulting #biz-dev

Cristina Whelan
 

Hi all

Thank you very much for your contribution. I'll check everything up and contact you individually if I need a follow up.

Much appreciated.

Kind regards
Cristina.


Internal Gig Marketplaces #future-of-work

Tammy Bearden
 

Hello everyone!

Do you or others you know have insights to share about an internal gig marketplace? I'd like to chat with others who have either participated in or ran a gig marketplace inside their organizations. Still working through the cost/benefits, but essentially it is to tap idle resources (often newer, less known employees who are underutilized and eager to do more) and give them capability building work (for both them and the organization.) Rewards and recognition need to be a part of it, though cannot be why one might participate. I also need to use an accommodating platform to try this out with a small group. I have started with a Teams community with a Planner app. Seems there much be something better!

From what I've read and heard, Bose Corp and Schneider Electric both have a gig marketplace, but I don't yet have personal connections to those who could share their journey. If you have contacts (at Bose, Schneider, or other orgs) who have hands-on perspectives to share, I'd be grateful for the introduction and the opportunity to learn how they launched, roadblocks I haven't thought of, and how it was most impactful. 

Thank you all in advance! 

Tammy Bearden
816-738-4280
1898 & Co., Part of Burns & McDonnell


Some of my drafted messaging to shed a bit more light:

You do great work, but sometimes there's a lull between your projects. How can you be a great player while sitting the bench? Pick up a gig and give it a swing!

Whether you have more work than you can hold on your plate and need a helping hand or you are one who has completed a project and are looking for short-term gigs…this is the place for you!! In the Gig Marketplace, you can post small projects and tasks that you need help with or you can pick up a task or two to help a colleague. While these are not usually billable, they all are valuable as we further build out our capabilities. 

List your gig!

Pick up a gig!

Why?

Why?

  • Your team doesn’t have enough time or the skillset to complete a specific non-billable task needed for your department or business line…in-source it!
  • You need a little help but are unsure how to find the right combination of skills, abilities, interests, and capacity…let them find you instead!
  • Keeping the work in-house allows you advance your capabilities while growing new competencies within our employee-owners.
  • You like variety and get to explore a short term project of interest outside of your usual role.
  • You will get to work with people you may otherwise never meet, which builds your network across 1898 & Co.
  • You are an unselfish collaborator and can’t imagine a better way to spend time between projects than by helping someone else. 

How?

How?

  • Add a gig or task in the marketplace with a title, mini-description, your name, and a due date.
  • Keep tasks short and manageable. They may get reprioritized by a new client project need.
  • When you no longer need help on that gig, close it out.
  • Shop the marketplace for a gig that interests you.
  • Contact the gig-poster directly to understand requirements and time commitment, and determine of this gig is a good fit.
  • Search and set alerts to watch for gigs by keyword.

Reminder

Reminder

  • The xxxxxxx team has many capabilities for in-sourced billable work. (Contact xxxxxxx)
  • The Marketplace is ideal for non-billable gigs.
  • Billable client work takes priority over these mini-projects. ;-)

 


Re: KM ROI #value #question

Bruce Boyes
 

Hello Sachin, the information and resources in this article may be of interest: https://realkm.com/2020/11/13/potential-alternative-approaches-to-evaluating-km-program-performance/ 

Cheers,
Bruce.

www.bruceboyes.info
www.realkm.com 


Re: Sharing experiences in professional services #consulting #biz-dev

Matt Moore
 

Hi,

Professional services companies regularly cropped up in the Most Admired Knowledge Enterprise (MAKE) Awards with case studies written up.

Paula Young in the UK used to be the global KM lead for PwC - not sure who the best contact would be now.

Regards,

Matt Moore
+61 423 784 504

On Nov 14, 2020, at 9:19 AM, Stan Garfield <stangarfield@...> wrote:


      Cristina, these recorded webinars may be useful:

    1. Selling KM — Reuse Proven Practices — Part 1: Microsoft Services and Large Professional Services Firm
    2. Selling KM — Reuse Proven Practices — Part 2: Large Systems Integrator
    3. Selling KM — Reuse Proven Practices — Part 3: Large Defense Integrator
    4. Selling KM — Reuse Proven Practices — Part 5: Digital Equipment Corporation (DEC) and The Hewlett-Packard Company


Re: Sharing experiences in professional services #consulting #biz-dev

Stan Garfield
 

      Cristina, these recorded webinars may be useful:

    1. Selling KM — Reuse Proven Practices — Part 1: Microsoft Services and Large Professional Services Firm
    2. Selling KM — Reuse Proven Practices — Part 2: Large Systems Integrator
    3. Selling KM — Reuse Proven Practices — Part 3: Large Defense Integrator
    4. Selling KM — Reuse Proven Practices — Part 5: Digital Equipment Corporation (DEC) and The Hewlett-Packard Company


Re: Sharing experiences in professional services #consulting #biz-dev

Eugene Victorov <evgeny@...>
 

Hi Cristina,

In my previous experience in 2008-2010 I've worked as a KM in an HR consultancy firm. 
We captured knowledge about projects right in the CRM system (that was a custom developed solution), and developing that tool was part of my job as well.

It was structured as a set of views around clients, candidates (that was an executive search firm), companies and industries.

They were quite small (100-150 people), so no CoPs, just capturing, but that was quite powerful then. Also, onboarding and storytelling from the softer side of KM.
---
Best regards, Evgeny Victorov
.
Knowledge Management and Digital Workplace expert.


Re: Teaching data curation / knowledge management for data scientists #data-science #curation #learning

Frank Guerino
 

Hi Gavin,


Congratulations on the grant and your progress.  I think this is great and very useful.  I’ll definitely look into it.

 

My Best,


Frank

--

Frank Guerino, Principal Managing Partner

The International Foundation for Information Technology (IF4IT)
http://www.if4it.com
1.908.294.5191 (M)

Guerino1_Skype (S)

 

 

From: <main@SIKM.groups.io> on behalf of Gavin Chait <whythawk@...>
Reply-To: <main@SIKM.groups.io>
Date: Thursday, November 12, 2020 at 9:37 AM
To: <main@SIKM.groups.io>
Subject: [SIKM] Teaching data curation / knowledge management for data scientists

 

Hi everyone …

 

I’ve been developing a 12-month taught masters degree syllabus in data science. The course has the objective of training complete data scientists, who will learn how research works through the application of analytical tools to appropriate case-studies.

 

The links to the first four lessons are below (out of an eventual 20 plus 4 electives). They cover a solid grounding in data lifecycle management and I’d appreciate your thoughts and feedback on the work to date.

 

  • Lesson 1: Introduction to data as a science (view)
  • Lesson 2: Research and experiments with data (view)
  • Lesson 3: Probability, randomness, and the risk of de-anonymization (view)
  • Lesson 4: Sampling, data distribution, and secure data custody (view)

 

Each lesson is structured around, and defined by, the following four topics:

 

  • Ethics: determine the social and behavioural challenges posed by a research question;
  • Curation: establish the research requirements for data collection and management;
  • Analysis: investigate, explore and analyse research data;
  • Presentation: prepare and present the results of analysis to promote a response;

 

The initial pedagogy and lesson outcomes were funded with a small grant from the Gates Foundation, and I’ve been developing it slowly ever since as different clients fund the extension.

 

As background, Data as a Science is based on the Sloyd model of technical training. Each lesson starts with a research question, and progresses by teaching a complete, and practical, set of skills. Case-studies and tutorials are drawn from biomedical science and public health, and the course is accessible to anyone with an interest in data. If you’re interested in all the lesson outcomes, you can see them it the Github repository for the course: https://github.com/whythawk/data-as-a-science/issues

 

Thanks, and I hope you find it interesting.

 

Regards

 

Gavin

 

 

>--------------------<

Gavin Chait is a data scientist and development economist at Whythawk.

uk.linkedin.com/in/gavinchait | twitter.com/GavinChait | gavinchait.com

 


Teaching data curation / knowledge management for data scientists #data-science #curation #learning

 

Hi everyone …

 

I’ve been developing a 12-month taught masters degree syllabus in data science. The course has the objective of training complete data scientists, who will learn how research works through the application of analytical tools to appropriate case-studies.

 

The links to the first four lessons are below (out of an eventual 20 plus 4 electives). They cover a solid grounding in data lifecycle management and I’d appreciate your thoughts and feedback on the work to date.

 

  • Lesson 1: Introduction to data as a science (view)
  • Lesson 2: Research and experiments with data (view)
  • Lesson 3: Probability, randomness, and the risk of de-anonymization (view)
  • Lesson 4: Sampling, data distribution, and secure data custody (view)

 

Each lesson is structured around, and defined by, the following four topics:

 

  • Ethics: determine the social and behavioural challenges posed by a research question;
  • Curation: establish the research requirements for data collection and management;
  • Analysis: investigate, explore and analyse research data;
  • Presentation: prepare and present the results of analysis to promote a response;

 

The initial pedagogy and lesson outcomes were funded with a small grant from the Gates Foundation, and I’ve been developing it slowly ever since as different clients fund the extension.

 

As background, Data as a Science is based on the Sloyd model of technical training. Each lesson starts with a research question, and progresses by teaching a complete, and practical, set of skills. Case-studies and tutorials are drawn from biomedical science and public health, and the course is accessible to anyone with an interest in data. If you’re interested in all the lesson outcomes, you can see them it the Github repository for the course: https://github.com/whythawk/data-as-a-science/issues

 

Thanks, and I hope you find it interesting.

 

Regards

 

Gavin

 

 

>--------------------<

Gavin Chait is a data scientist and development economist at Whythawk.

uk.linkedin.com/in/gavinchait | twitter.com/GavinChait | gavinchait.com

 


Re: Sharing experiences in professional services #consulting #biz-dev

Alison Jones
 

Hi Cristina,

 

Prior to my current role, I was knowledge manager and librarian at am Australian law firm.

 

My involvement with business development and marketing projects included:

  • Developing corporate profiles of competitors and potential clients;
  • Developing a searchable document library for tenders; and
  • Researching and writing content for our website and for annual reports etc.

 

Please feel free to get in touch with me directly if I might be of further assistance – alison.jones@...

 

Kind regards,

Alison

 

Alison Jones
Knowledge Manager
________________________________________
Geoscape Australia
Unit 6, 113 Canberra Avenue
Griffith
ACT
2603
(02) 6260 9031
Alison.Jones@...
www.geoscape.com.au
Create a free account
This message contains information that may be privileged or confidential and is the property of PSMA Australia Ltd trading as Geoscape Australia ABN 23 089 912 710. It is intended only for the person to whom it is addressed. If you are not the intended recipient, you are not authorised to read, print, retain, copy, disseminate, distribute, or use this message or any part thereof. If you receive this message in error, please notify the sender immediately and delete all copies of this message.  All outgoing emails and attached files are virus scanned, but we do not represent that this email and any attached files are free from computer viruses or other defects. Further, we do not accept any liability for any damage caused by this email or attachments. 

From: main@SIKM.groups.io <main@SIKM.groups.io> On Behalf Of Cristina Whelan via groups.io
Sent: Thursday, 12 November 2020 8:51 AM
To: main@SIKM.groups.io
Subject: [SIKM] Sharing experiences in professional services #conversation

 

Hi All

I was looking to speak to other professional services firms that have implemented KM, specially around their marketing and business development practices. I'm building a business case for a project within my firm and would like to be able to demonstrate how this is being done elsewhere.

Would anyone be up for a chat?

Thank you!
Cristina.

Cristina SS Whelan

Head of Knowledge and Insights, Marketing and Business Development

Grant Thornton UK LLP


Sharing experiences in professional services #consulting #biz-dev

Cristina Whelan
 

Hi All

I was looking to speak to other professional services firms that have implemented KM, specially around their marketing and business development practices. I'm building a business case for a project within my firm and would like to be able to demonstrate how this is being done elsewhere.

Would anyone be up for a chat?

Thank you!
Cristina.

Cristina SS Whelan

Head of Knowledge and Insights, Marketing and Business Development

Grant Thornton UK LLP


Re: Resource Questions #KM101 #question #resources

Julien Tremblay-McLellan
 

Thank you so much for every Stan, this is a wealth of information.


Re: KM ROI #value #question

Stephen Bounds
 

Hi John,

That only works if there is an actual saving.

If I have a hidden manufacturing fault that would require me to discard an entire monthly batch of product, but it is sufficiently rare that it only occurs 1 in 500 batches, as CEO with a tenure of 5 years it is probably "worth" not spending the money on cost avoidance to boost the bottom line and gambling that the loss never materialises.

(84% of CEOs agree!)

Cheers,
Stephen.

====================================
Stephen Bounds
Executive, Information Management
Cordelta
E: stephen.bounds@...
M: 0401 829 096
====================================
On 11/11/2020 3:56 am, John Antill wrote:

Instead of ROI you can say a cost avoidance. It shows a direct link to the bottom line. Just a different way of saying something, I saved 8 hours per person on a project or There was a 8 hour cost avoidance per person on the project. avoidance speaks higher.
ROI is if I bought a new thingamajig and was trying to recoup costs. Avoidance means I got to save that money.
John Antill
MCKM CKS IA KT
MLS KM Student
256-541-1229


On Tue, Nov 10, 2020 at 12:39 PM Frank Guerino via groups.io <frank.guerino=if4it.com@groups.io> wrote:

Hi Stephen,

 

You wrote: “The problem with the idea of going back and checking ROI against actual achievement is that ROI is simply a flawed metric in low-frequency, high-variability situations. It's not a matter of how "mature" you are, there will never be enough data -- measured directly.”

 

Agreed.  This is the plight of measuring ROI.  If your data is good, you can get to very good ROI assessments.  If it’s not, you’re at the other end of the spectrum, where you use (mostly educated but still) SWAGs.  The quality of the data you can pump back into your iterative feedback loop dictates the quality of your final calculations (as is the case with any similar algorithm).

 

My Best,


Frank

--

Frank Guerino, Principal Managing Partner

The International Foundation for Information Technology (IF4IT)
http://www.if4it.com
1.908.294.5191 (M)

Guerino1_Skype (S)

 

 

From: <main@SIKM.groups.io> on behalf of Stephen Bounds <km@...>
Reply-To: <main@SIKM.groups.io>
Date: Friday, November 6, 2020 at 9:16 PM
To: <main@SIKM.groups.io>
Subject: Re: [SIKM] KM ROI #question

 

Hi Frank,

The problem with the idea of going back and checking ROI against actual achievement is that ROI is simply a flawed metric in low-frequency, high-variability situations. It's not a matter of how "mature" you are, there will never be enough data -- measured directly. At best, solutions will be interpreted as "successful" or "failed" because of survivorship bias, not because of any inherent soundness to the decisions being taken.

A simple scenario: A company identifies that poor processes are sometimes leading to litigation and multi-million dollar payouts. They put in place a you-beaut technology which promises to improve these processes.

The very next year they lose another major suit in court again. "This is rubbish," the executives decide, and the project is canned. Now under the hood their risk has actually decreased 90% -- in reality, it was the best possible thing to do -- but because of that one high-value realisation of risk early, the ROI looks terrible.

As the frequency of events goes up, the more likely you are to establish a cluster of outcomes that can you can use to actively manage your organisation and determine whether process improvements are working. This is necessarily less certain than directly monitoring and adjusting to the results of a high volume of outcomes, but if this is not possible your best bet is to:

  • seek a high-volume metric that strongly correlates with high-value risk outcomes (caveat caveat, Hawthorne effect etc)
  • estimate an RROI on options to change that metric in a positive way

If even this isn't possible in a cost-effective way, the most rational choice of action is to simply ignore that the risk exists. Which describes more small businesses than you might think 😊

Cheers,
Stephen.


====================================
Stephen Bounds
Executive, Information Management
Cordelta
E: stephen.bounds@...
M: 0401 829 096
====================================

On 7/11/2020 3:16 am, Frank Guerino wrote:

Hi Stephen,

 

You wrote: “Any time you are seeking to implement an intangible benefit, or at least a strategy which will have an impact one degree or more away from a direct financial return (this mostly, but not always equates to marketing and/or brand reputation)”

 

  1. I agree (more so with brand recognition/reputation than marketing, such as in the case of direct marketing, where such investments can still be correlated with impacts on sales revenue). 

 

Re: #1: Agreed.  DR is a very strong example.  However, even things like DR often still can and do get clearly written into bottom line expenses (deductibles) that can be measured against revenues for overall profits and ROIs.  DR ROI can be measured against time to recover, costs to recover, lost revenue for time down, etc., and they often are.

 

Re: #2: Saying that such items are “fatally” flawed may be a bit dramatic but I get your point.  The reality is that, where accurate measuring is not achievable, honest and competent people make their assessments based on educated guesses that they can often explain.

 

In short, I think that we agree on the premise that there is a science to ROI math that often bleeds into an art which drives how we come up with some of the numbers which we plug into our math.  In the cases where measurements cannot be accurate, educated guesses and even SWAGs often get reviewed and adjusted for improvements.   As I stated in my response to Matt, in the U.S. the key is to be consistent, leverage independent auditors (or other competent reviewers) to help stay within the guidelines of critical constraints set by your internal organizations like compliance or your external organizations like the U.S.’s IRS.

 

In the case of measurement against revenue generation, ROI is a live and constantly changing metric so there is constant oversight and re-evaluation.  In the case of DR, we often see the reality that very few organizations go back and measure the accuracy of their initial investments against their real costs and their down times & recovery times of their disasters because disasters are few and far between.  Only the most advanced organizations seem to.  Those that are not so mature simply suck up the costs of recovering and somehow role those costs into bottom line expenses (even if not clear as to why).

 

In the end, even “maturity” is a function of ROI.

 

My Best,

 

Frank

--

Frank Guerino, Principal Managing Partner

The International Foundation for Information Technology (IF4IT)
http://www.if4it.com
1.908.294.5191 (M)

Guerino1_Skype (S)

 

 

From: <main@SIKM.groups.io> on behalf of Stephen Bounds <km@...>
Reply-To: <main@SIKM.groups.io>
Date: Thursday, November 5, 2020 at 1:07 AM
To: <main@SIKM.groups.io>
Subject: Re: [SIKM] KM ROI #question

 

Hi Frank,

As Matt notes, all of these measures translate to "money" anyway. It's one of the key strengths and weaknesses of ROI.

Any time you are seeking to implement an intangible benefit, or at least a strategy which will have an impact one degree or more away from a direct financial return (this mostly, but not always equates to marketing and/or brand reputation), I am not a fan of ROI.

There are two reasons for this:

  1. Non-direct interventions will always have a range of financial impacts due to uncertainty. A sound initiative might have little impact on your bottom line one quarter and an outsized return in another (eg think disaster preparedness).

    In these scenarios, it is more productive to talk about RROI (= relative return on investment). This allows you to rank the relative impacts of various initiatives on things the company does value, which allows a quantifiable, challengable evaluation of why a particular strategy is the correct one without promising $X return for a particular quarter.
  2.  When you try and use ROI calculations for a non-ROI measure, too many people fall back on "X minutes saved * Y transactions a year = $Z BILLION saved in staff costs". 99% of the time, this is a fatally flawed approach due to the non-harvestable savings. You need to find a better, tangible proxy measure to target (eg # of complaints processed).

PS Patrick - Your Weick quote is so spot on in relation to middle management in any large corporation or government agency, where they are too far down to have major strategic influence, but too high up to have an operational role for day-to-day productivity.

Cheers,
Stephen.

====================================
Stephen Bounds
Executive, Information Management
Cordelta
E: stephen.bounds@...
M: 0401 829 096
====================================

 


Re: KM ROI #value #question

John Antill
 

Instead of ROI you can say a cost avoidance. It shows a direct link to the bottom line. Just a different way of saying something, I saved 8 hours per person on a project or There was a 8 hour cost avoidance per person on the project. avoidance speaks higher.
ROI is if I bought a new thingamajig and was trying to recoup costs. Avoidance means I got to save that money.
John Antill
MCKM CKS IA KT
MLS KM Student
256-541-1229


On Tue, Nov 10, 2020 at 12:39 PM Frank Guerino via groups.io <frank.guerino=if4it.com@groups.io> wrote:

Hi Stephen,

 

You wrote: “The problem with the idea of going back and checking ROI against actual achievement is that ROI is simply a flawed metric in low-frequency, high-variability situations. It's not a matter of how "mature" you are, there will never be enough data -- measured directly.”

 

Agreed.  This is the plight of measuring ROI.  If your data is good, you can get to very good ROI assessments.  If it’s not, you’re at the other end of the spectrum, where you use (mostly educated but still) SWAGs.  The quality of the data you can pump back into your iterative feedback loop dictates the quality of your final calculations (as is the case with any similar algorithm).

 

My Best,


Frank

--

Frank Guerino, Principal Managing Partner

The International Foundation for Information Technology (IF4IT)
http://www.if4it.com
1.908.294.5191 (M)

Guerino1_Skype (S)

 

 

From: <main@SIKM.groups.io> on behalf of Stephen Bounds <km@...>
Reply-To: <main@SIKM.groups.io>
Date: Friday, November 6, 2020 at 9:16 PM
To: <main@SIKM.groups.io>
Subject: Re: [SIKM] KM ROI #question

 

Hi Frank,

The problem with the idea of going back and checking ROI against actual achievement is that ROI is simply a flawed metric in low-frequency, high-variability situations. It's not a matter of how "mature" you are, there will never be enough data -- measured directly. At best, solutions will be interpreted as "successful" or "failed" because of survivorship bias, not because of any inherent soundness to the decisions being taken.

A simple scenario: A company identifies that poor processes are sometimes leading to litigation and multi-million dollar payouts. They put in place a you-beaut technology which promises to improve these processes.

The very next year they lose another major suit in court again. "This is rubbish," the executives decide, and the project is canned. Now under the hood their risk has actually decreased 90% -- in reality, it was the best possible thing to do -- but because of that one high-value realisation of risk early, the ROI looks terrible.

As the frequency of events goes up, the more likely you are to establish a cluster of outcomes that can you can use to actively manage your organisation and determine whether process improvements are working. This is necessarily less certain than directly monitoring and adjusting to the results of a high volume of outcomes, but if this is not possible your best bet is to:

  • seek a high-volume metric that strongly correlates with high-value risk outcomes (caveat caveat, Hawthorne effect etc)
  • estimate an RROI on options to change that metric in a positive way

If even this isn't possible in a cost-effective way, the most rational choice of action is to simply ignore that the risk exists. Which describes more small businesses than you might think 😊

Cheers,
Stephen.


====================================
Stephen Bounds
Executive, Information Management
Cordelta
E: stephen.bounds@...
M: 0401 829 096
====================================

On 7/11/2020 3:16 am, Frank Guerino wrote:

Hi Stephen,

 

You wrote: “Any time you are seeking to implement an intangible benefit, or at least a strategy which will have an impact one degree or more away from a direct financial return (this mostly, but not always equates to marketing and/or brand reputation)”

 

  1. I agree (more so with brand recognition/reputation than marketing, such as in the case of direct marketing, where such investments can still be correlated with impacts on sales revenue). 

 

Re: #1: Agreed.  DR is a very strong example.  However, even things like DR often still can and do get clearly written into bottom line expenses (deductibles) that can be measured against revenues for overall profits and ROIs.  DR ROI can be measured against time to recover, costs to recover, lost revenue for time down, etc., and they often are.

 

Re: #2: Saying that such items are “fatally” flawed may be a bit dramatic but I get your point.  The reality is that, where accurate measuring is not achievable, honest and competent people make their assessments based on educated guesses that they can often explain.

 

In short, I think that we agree on the premise that there is a science to ROI math that often bleeds into an art which drives how we come up with some of the numbers which we plug into our math.  In the cases where measurements cannot be accurate, educated guesses and even SWAGs often get reviewed and adjusted for improvements.   As I stated in my response to Matt, in the U.S. the key is to be consistent, leverage independent auditors (or other competent reviewers) to help stay within the guidelines of critical constraints set by your internal organizations like compliance or your external organizations like the U.S.’s IRS.

 

In the case of measurement against revenue generation, ROI is a live and constantly changing metric so there is constant oversight and re-evaluation.  In the case of DR, we often see the reality that very few organizations go back and measure the accuracy of their initial investments against their real costs and their down times & recovery times of their disasters because disasters are few and far between.  Only the most advanced organizations seem to.  Those that are not so mature simply suck up the costs of recovering and somehow role those costs into bottom line expenses (even if not clear as to why).

 

In the end, even “maturity” is a function of ROI.

 

My Best,

 

Frank

--

Frank Guerino, Principal Managing Partner

The International Foundation for Information Technology (IF4IT)
http://www.if4it.com
1.908.294.5191 (M)

Guerino1_Skype (S)

 

 

From: <main@SIKM.groups.io> on behalf of Stephen Bounds <km@...>
Reply-To: <main@SIKM.groups.io>
Date: Thursday, November 5, 2020 at 1:07 AM
To: <main@SIKM.groups.io>
Subject: Re: [SIKM] KM ROI #question

 

Hi Frank,

As Matt notes, all of these measures translate to "money" anyway. It's one of the key strengths and weaknesses of ROI.

Any time you are seeking to implement an intangible benefit, or at least a strategy which will have an impact one degree or more away from a direct financial return (this mostly, but not always equates to marketing and/or brand reputation), I am not a fan of ROI.

There are two reasons for this:

  1. Non-direct interventions will always have a range of financial impacts due to uncertainty. A sound initiative might have little impact on your bottom line one quarter and an outsized return in another (eg think disaster preparedness).

    In these scenarios, it is more productive to talk about RROI (= relative return on investment). This allows you to rank the relative impacts of various initiatives on things the company does value, which allows a quantifiable, challengable evaluation of why a particular strategy is the correct one without promising $X return for a particular quarter.
  2.  When you try and use ROI calculations for a non-ROI measure, too many people fall back on "X minutes saved * Y transactions a year = $Z BILLION saved in staff costs". 99% of the time, this is a fatally flawed approach due to the non-harvestable savings. You need to find a better, tangible proxy measure to target (eg # of complaints processed).

PS Patrick - Your Weick quote is so spot on in relation to middle management in any large corporation or government agency, where they are too far down to have major strategic influence, but too high up to have an operational role for day-to-day productivity.

Cheers,
Stephen.

====================================
Stephen Bounds
Executive, Information Management
Cordelta
E: stephen.bounds@...
M: 0401 829 096
====================================

 


Re: KM ROI #value #question

Frank Guerino
 

Hi Stephen,

 

You wrote: “The problem with the idea of going back and checking ROI against actual achievement is that ROI is simply a flawed metric in low-frequency, high-variability situations. It's not a matter of how "mature" you are, there will never be enough data -- measured directly.”

 

Agreed.  This is the plight of measuring ROI.  If your data is good, you can get to very good ROI assessments.  If it’s not, you’re at the other end of the spectrum, where you use (mostly educated but still) SWAGs.  The quality of the data you can pump back into your iterative feedback loop dictates the quality of your final calculations (as is the case with any similar algorithm).

 

My Best,


Frank

--

Frank Guerino, Principal Managing Partner

The International Foundation for Information Technology (IF4IT)
http://www.if4it.com
1.908.294.5191 (M)

Guerino1_Skype (S)

 

 

From: <main@SIKM.groups.io> on behalf of Stephen Bounds <km@...>
Reply-To: <main@SIKM.groups.io>
Date: Friday, November 6, 2020 at 9:16 PM
To: <main@SIKM.groups.io>
Subject: Re: [SIKM] KM ROI #question

 

Hi Frank,

The problem with the idea of going back and checking ROI against actual achievement is that ROI is simply a flawed metric in low-frequency, high-variability situations. It's not a matter of how "mature" you are, there will never be enough data -- measured directly. At best, solutions will be interpreted as "successful" or "failed" because of survivorship bias, not because of any inherent soundness to the decisions being taken.

A simple scenario: A company identifies that poor processes are sometimes leading to litigation and multi-million dollar payouts. They put in place a you-beaut technology which promises to improve these processes.

The very next year they lose another major suit in court again. "This is rubbish," the executives decide, and the project is canned. Now under the hood their risk has actually decreased 90% -- in reality, it was the best possible thing to do -- but because of that one high-value realisation of risk early, the ROI looks terrible.

As the frequency of events goes up, the more likely you are to establish a cluster of outcomes that can you can use to actively manage your organisation and determine whether process improvements are working. This is necessarily less certain than directly monitoring and adjusting to the results of a high volume of outcomes, but if this is not possible your best bet is to:

  • seek a high-volume metric that strongly correlates with high-value risk outcomes (caveat caveat, Hawthorne effect etc)
  • estimate an RROI on options to change that metric in a positive way

If even this isn't possible in a cost-effective way, the most rational choice of action is to simply ignore that the risk exists. Which describes more small businesses than you might think 😊

Cheers,
Stephen.


====================================
Stephen Bounds
Executive, Information Management
Cordelta
E: stephen.bounds@...
M: 0401 829 096
====================================

On 7/11/2020 3:16 am, Frank Guerino wrote:

Hi Stephen,

 

You wrote: “Any time you are seeking to implement an intangible benefit, or at least a strategy which will have an impact one degree or more away from a direct financial return (this mostly, but not always equates to marketing and/or brand reputation)”

 

  1. I agree (more so with brand recognition/reputation than marketing, such as in the case of direct marketing, where such investments can still be correlated with impacts on sales revenue). 

 

Re: #1: Agreed.  DR is a very strong example.  However, even things like DR often still can and do get clearly written into bottom line expenses (deductibles) that can be measured against revenues for overall profits and ROIs.  DR ROI can be measured against time to recover, costs to recover, lost revenue for time down, etc., and they often are.

 

Re: #2: Saying that such items are “fatally” flawed may be a bit dramatic but I get your point.  The reality is that, where accurate measuring is not achievable, honest and competent people make their assessments based on educated guesses that they can often explain.

 

In short, I think that we agree on the premise that there is a science to ROI math that often bleeds into an art which drives how we come up with some of the numbers which we plug into our math.  In the cases where measurements cannot be accurate, educated guesses and even SWAGs often get reviewed and adjusted for improvements.   As I stated in my response to Matt, in the U.S. the key is to be consistent, leverage independent auditors (or other competent reviewers) to help stay within the guidelines of critical constraints set by your internal organizations like compliance or your external organizations like the U.S.’s IRS.

 

In the case of measurement against revenue generation, ROI is a live and constantly changing metric so there is constant oversight and re-evaluation.  In the case of DR, we often see the reality that very few organizations go back and measure the accuracy of their initial investments against their real costs and their down times & recovery times of their disasters because disasters are few and far between.  Only the most advanced organizations seem to.  Those that are not so mature simply suck up the costs of recovering and somehow role those costs into bottom line expenses (even if not clear as to why).

 

In the end, even “maturity” is a function of ROI.

 

My Best,

 

Frank

--

Frank Guerino, Principal Managing Partner

The International Foundation for Information Technology (IF4IT)
http://www.if4it.com
1.908.294.5191 (M)

Guerino1_Skype (S)

 

 

From: <main@SIKM.groups.io> on behalf of Stephen Bounds <km@...>
Reply-To: <main@SIKM.groups.io>
Date: Thursday, November 5, 2020 at 1:07 AM
To: <main@SIKM.groups.io>
Subject: Re: [SIKM] KM ROI #question

 

Hi Frank,

As Matt notes, all of these measures translate to "money" anyway. It's one of the key strengths and weaknesses of ROI.

Any time you are seeking to implement an intangible benefit, or at least a strategy which will have an impact one degree or more away from a direct financial return (this mostly, but not always equates to marketing and/or brand reputation), I am not a fan of ROI.

There are two reasons for this:

  1. Non-direct interventions will always have a range of financial impacts due to uncertainty. A sound initiative might have little impact on your bottom line one quarter and an outsized return in another (eg think disaster preparedness).

    In these scenarios, it is more productive to talk about RROI (= relative return on investment). This allows you to rank the relative impacts of various initiatives on things the company does value, which allows a quantifiable, challengable evaluation of why a particular strategy is the correct one without promising $X return for a particular quarter.
  2.  When you try and use ROI calculations for a non-ROI measure, too many people fall back on "X minutes saved * Y transactions a year = $Z BILLION saved in staff costs". 99% of the time, this is a fatally flawed approach due to the non-harvestable savings. You need to find a better, tangible proxy measure to target (eg # of complaints processed).

PS Patrick - Your Weick quote is so spot on in relation to middle management in any large corporation or government agency, where they are too far down to have major strategic influence, but too high up to have an operational role for day-to-day productivity.

Cheers,
Stephen.

====================================
Stephen Bounds
Executive, Information Management
Cordelta
E: stephen.bounds@...
M: 0401 829 096
====================================

 

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