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Business Case for KM #value


sry204@...
 

I am new to an organization who is looking at a potential KM Project in the upcoming year and have asked me to write a business case with only very broad direction that would help them evaluate whether it becomes an approved project. I am a little "stuck" given the magnitude of the initiative, any advice on getting a good start on the planning stage?


Stephen Bounds
 

Hi sry,

Have you got a set of identified business problems that the KM project is, or is likely to, help to solve? And is the scope of the activities of the KM project well-known, or is that still speculative as well?

You can use a RROI matrix calculator to show linkages between activities with diffuse benefits and business outcomes. This same activity prioritises your KM activities in the event that you have to operate within a constrained budget.

Cheers,
-- Stephen.

====================================
Stephen Bounds
Director & Principal Consultant
knowquestion Pty Ltd
E: sb@...
M: 0401 829 096
====================================
On 14/12/2017 6:46 AM, sry204@... [sikmleaders] wrote:

 

I am new to an organization who is looking at a potential KM Project in the upcoming year and have asked me to write a business case with only very broad direction that would help them evaluate whether it becomes an approved project. I am a little "stuck" given the magnitude of the initiative, any advice on getting a good start on the planning stage?


James Lewis
 

I agree with Stephen.  You need to articulate the "why" before the "how".

It may help to break it down into parts:
*  Here is our problem ...
*  The result of this problem is ....
*  We can solve for this problem by ...
*  The expected outcomes of this project are ...

If you are really stuck, I'd suggest holding an hour-long "problem statement" workshop with your key stakeholders.  It will help get down on paper what you are trying to do and has the side benefit of aligning various points of view.  Get them to collectively agree to the following (sticky notes work great here):
The problem of ...
Affects ...
The importance of which...
A successful solution would ...

If you do the problem statement workshop, spend a full hour and really press your stakeholders to dig deep.  It's time well spent and can set direction for your project, as well as give you insight into scope and scale.

Best,

Jim Lewis
Principal Consultant, KM & Collaboration
Paragon (now part of CGI)


Aaron Buchsbaum
 

@Stephen – do you have any references / templates for RROI matrix calculators? Don’t know that I’ve ever heard of one (ROI yes, “RROI” not ringing a bell…)

 

Thank you!

Aaron

 


Anthony Rhem
 

In my latest book (https://www.routledge.com/products/9781466562523) I detailed the Case for KM and putting together your KM Business Case. I have attached a PDF of the chapter. Let me know if there are any questions.


Best Regards


Dr. Anthony J. Rhem, PhD.

Principal

A.J. Rhem & Associates, Inc.

www.ajrhem.com

Office: 312-396-4024



Stephen Bounds
 

Hi Aaron,

RROI = relative return on investment. It's a useful way to rigorously evaluate alternatives when direct financial benefits aren't applicable.

The basic steps are:

  1. Identify a suite of proposed interventions (KM or other)
  2. Estimate cost of administering each intervention
  3. Assess relevance of interventions to identified business problems
  4. Determine expected financial benefits of reducing or eliminating each identified business problem
  5. Assign proportionate benefit accruing to each intervention based on relevance
  6. Calculate RROI as benefit accruing / cost expended

To be clear: with RROI, even though dollar calculations are used it is not a promise to change the bottom line by that amount. Rather, the line of reasoning is:

  1. Here are things we want to improve
  2. These are things we can do to make improvements
  3. Doing X is the most effective for the cost involved

I have attached a spreadsheet with a simple worked example for your reference.

Cheers,
-- Stephen.

====================================
Stephen Bounds
Director & Principal Consultant
knowquestion Pty Ltd
E: sb@...
M: 0401 829 096
====================================
On 15/12/2017 12:42 AM, Aaron F Buchsbaum abuchsbaum@... [sikmleaders] wrote:

@Stephen do you have any references / templates for RROI matrix calculators? Dont know that Ive ever heard of one (ROI yes, RROI not ringing a bell)

Thank you!

Aaron



Stan Garfield
 

Scott Young, welcome to the community!

Here are three suggestions:
  1. See The KM Business Case: Assessing the situation by Craig Roth
  2. See the section So what should we do instead of focusing on ROI?
  3. In Proven Practices for Promoting a Knowledge Management Program (get a free digital copy) see Chapter 3: OBTAIN LEADERSHIP COMMITMENT - Make the Business Case - page 45


Matt Moore <innotecture@...>
 

There’s a lot of good suggestions in the other answers but I would just like to note that “business case” is a very vague term and the comment “only very broad direction” raises all kinds of red flags for me.

New to an organization, I would want to see examples of successful (and unsuccessful for contrast) business cases. I would want to speak to those who will make decisions based on them. I would want to understand the processes in which the business case would be used.

Then I would take the material suggested here and work out what is and isn’t applicable to my situation.

Sorry if I’m stating the obvious.

Matt Moore
+61 423 784 504

On Dec 14, 2017, at 6:46 AM, sry204@... [sikmleaders] <sikmleaders@...> wrote:

 

I am new to an organization who is looking at a potential KM Project in the upcoming year and have asked me to write a business case with only very broad direction that would help them evaluate whether it becomes an approved project. I am a little "stuck" given the magnitude of the initiative, any advice on getting a good start on the planning stage?


Aaron Buchsbaum
 

Thank you kindly for sharing, Stephen! Much appreciated.

 

Cheers,

Aaron