Knowledge Management: Processes, People and Culture as an enabler to - PowerPoint PPT Presentation

Knowledge Management: Processes, People and Culture as an enabler to improving healthcare performance Presented at the the 2000 Annual HIMSS Conference and Exhibition John M. Kundtz & Keith Kistler-Glendon Version: 2 - Draft IBM Global Services

AGENDA ! New Completive Landscape ! Knowledge Management - An Introduction ! Knowledge Management & Health Care ! Technology; Enabler vs. Solution ! Considerations for a KM Framework ! Process ! People ! Culture ! Getting Started

88% of CEO’s surveyed for the Malcom Baldrige Quality Award listed improving Knowledge Management was a top priorities … 1. Increasing Globalization (94%) 2. Improving Knowledge Management (88%) 3. Reducing Cost and Cycle Time (79%) 4. Improving Supply Chains Globally (78%) Source: The Nations CEOs Look to the Future , Survey for Foundation for the Malcolm Baldrige National Quality Award, July 1998. “Personally, I believe that future leadership companies and future leadership institutions of all kinds will be those that know how to compete and win on the basis of knowledge - learning, adapting and improving this vital asset we know as information.” Louis Gerstner, CeBit ‘98 Keynote Address

“…traditional businesses - so often portrayed as deer in the Web headlights - have been studying the new guys well.” ◆ Nimble ◆ Quick line Exploit Exploit e-business e-business Opportunities Opportunities ◆ Brand Equity Traditional Business Traditional Business ◆ Knowledge Source: Fortune, May 24, 1999

Below the e-line there exists a dysfunctional knowledge environment … line Dysfunctional Knowledge Environment Dysfunctional Knowledge Environment → Reinventing the wheel → Reinventing the wheel Knowledge-hoarding Knowledge-hoarding Information overload → Poor decision making Information overload → Poor decision making → Variance in performance → Variance in performance Slow diffusion of innovation Slow diffusion of innovation $100M+ + $100M+ + and and Speed to Market Speed to Market

There is significant untapped value in Tacit Knowledge … Knowledge Insights and context from the mind - what the knower knows Information A semi-structured message, with a sender, a receiver and an intent to inform Data A record of a transaction Represented Knowledge Tacit – Embedded Knowledge – Explicit

Much of a Company’s Tacit Knowledge Resides in Informal Communities … People People Adapted from The Knowledge Creating Places Places Company by Ikujiro Nonaka and Hirotaka Takeuchi (OUP, 1996) • Content • Processes • Content • Processes Things Things • Rules • Practices • Rules • Practices

Knowledge Management; what and why? Tacit knowledge: Leveraging the vast, untapped potential of tacit knowledge in a firm drives organizational performance Knowledge Management: “... dependent on a firm’s ability to know what it knows, utilize what it knows, and how fast it can learn new things.” –Larry Prusak To what end? Optimizing knowledge improves organizational: Productivity Competency Responsiveness Innovation

Health Care and Knowledge Management … •The Health Care industry has traditionally allocated a lesser percentage of revenue to IT spending than other sectors •Healthcare, like so many other industries, is an increasingly information-based sector. •Healthcare has begun to embrace knowledge management concepts and technology - a trend that began with administration and is broadening •Knowledge Management holds great potential to lend advantage to health care providers

Technology; An enabling component of Knowledge Management - Not a stand-alone solution ... Meeting ADVANTAGE Marketplace needs Improving IMPROVEMENT Performance ENABLERS Tools & Technology Process / People / Culture KM FRAMEWORK

How Can Companies Frame Managing Knowledge in a Programmatic Manner? Embodied Represented Embodied Represented Embedded Embedded (Tacit) (Explicit) (Tacit) (Explicit) Observe/Listen Gather Hypothesize Sense Sense Build Context Categorize Map Organize Organize Communicate Disseminate Simulate Socialize Socialize Apply Decide Act Internalize Internalize

An important step in building a KM framework is understanding existing knowledge-creating processes, and identification of process gaps ... •Process Analysis In The Field Help Desk Help Desk -L1 Help Desk -L2 Help Desk -L3 Closed Call Log File Log Sheet Closed Call Log File Log Sheet Rx User Rx User Problem Problem •Where is Knowledge Question Question Performs Level 1 Problem Performs Level 1 Problem Request Request Determination; Escalate to Determination; Escalate to Fixed? Fixed? Jamie Jamie created? •Problem Call Sheet No •Problem Call Sheet Key Person •How to questions Key Person •How to questions System Admin. No System Admin. Work on Work on Fixed? •Problem Classification Fixed? •Problem Classification Problem Problem •Hardware •Hardware •How does Knowledge •Medical Records/O.E. •Medical Records/O.E. Calls H.D. Yes •Financial (billing) •Financial (billing) Connie Connie Route to area •Payment Distribution Route to area •Payment Distribution Expert Expert flow today? Closed Call Log •Bug / Enhancement •Bug / Enhancement Closed Call Log Sarah Sarah Determine Determine Classification File Log Sheet Classification File Log Sheet Paula Paula Area Area Voice Mail Escalate to S.A. •What are the Escalate to S.A. pages reps in Escalate to Jamie or Programmer Escalate to Jamie or Programmer succession Yes No Jamie Jamie and Sheri and Sheri Yes Fixed? Fixed? Closed Call Log Closed Call Log organizational work No OASIS OASIS A. A. Auto Attend. Bug? Auto Attend. Bug? No Problem? Problem? Non- Fixed? Non- Fixed? CMS File Log Sheet CMS File Log Sheet flows? Yes No Voice Mail Voice Mail Yes Enter into CMS - Enter into CMS - Issue # Issue # Call Log in open Call Log in open Log file Log file •Gap Identification Closed Call Log Closed Call Log Problem remains open and tracked by H.D. in process A. 1 Open Issue Log Open Issue Log A. CMS A. CMS Help Desk Call Flow Model - Revision 1.3 •Process Design

Process component of a Knowledge Management framework addresses at least 5 key areas ... The Knowledge Management Process Loop Assess Intellectual Capital (IC) needs Advertize IC needs Determine means of acquisition Acquire IC Verify completeness of submission Assess submission Acquire Approve, decline, or conditionally accept Locate and obtain IC Consult listed contacts as needed Provide feedback on IC Use Value Participate in discussions to facilitate the transition Evolve from "tacit" knowledge to "explicit" Format and edit IC Publish Structure Categorize appropriately Evaluate "tacit" knowledge requirements & establish appropriate levels of access Make available Advertise IC availability to the appropriate communities

People - networks - collaboration - Much of an organization’s tacit knowledge resides in informal communities ... •Who knows what? •How do communications flow? •Where / what are the barriers? •Who has influence - the “Champions”?

Knowledge Management initiatives involve a change in the way organizations behave. Culture thus becomes a crucial consideration ... •What are the cultural barriers / facilitators to Knowledge Management? •What is the capacity for change in the organization? •Is teaming strongly ingrained throughout the organization, or in certain factions thereof? •Is incentive to share one's Knowledge and insight provided in the organization culture? Is there a disincentive? •Does the organizational culture & leadership establish a value of Knowledge?

The “People” component of Knowledge Management •Organized competencies and specialization •Knowledge Networks built into the organizational structure - leveraged in KM framework •Embrace sharing and knowledge transfer - mentoring ingrained •Self-motivators with drive for continual progress •Team-oriented •“Core Teams” formed around informal networks of colleagues

The Five Knowledge Management Technologies Business Intelligence Business Intelligence Collaboration Collaboration Knowledge Transfer Knowledge Transfer Knowledge Discovery Knowledge Discovery & Mapping & Mapping Expertise Expertise

The technologies alone provide limited value, a framework will provide a better perspective … Knowledge Opportunities Knowledge Opportunities Design, Deploy Business Design, Deploy Business Intelligence Intelligence Strategy for Action Strategy for Action & Enhance & Enhance Collaboration Collaboration How can we What How should How can we What How should leverage opportunities we implement leverage opportunities we implement Knowledge Knowledge knowledge should we and manage knowledge should we and manage Transfer Transfer to support address and these to support address and these value how? opportunities value how? opportunities Knowledge Knowledge Discovery & Discovery & creation? to deliver the creation? to deliver the Mapping Mapping benefits? benefits? Expertise Expertise