# Presentation: 682878

## 10 Strategies for Successful Knowledge Sharing at Ford

**Sanjay Swarup, **Specialist,** **
- Process Reeng. & Knowledge Management, Ford Motor Company

**KMWorld  2002,  Santa Clara, CA**

**October 29-31, 2002**

**Notes:**
Simple message, repeated often

##  Agenda

**Ford Profile, Comments**
**Achieved Vision, History**
**Principles and Process of BPR**
**Results**
**10 Strategies...**
**Conclusion**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
Mention some names of people that you met previous evening

## Ranked #4 by Fortune 500

2001 Global Revenues  -- $162 Billion

2001 Global Unit Vehicle Sales – 7 million

 354,000 Employees

**2001 Global Revenues  -- $162 Billion**
**2001 Global Unit Vehicle Sales – 7 million**
** ****354,000 Employees**

**Ford Profile**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
According to FORTUNE 500 listing of May 2001
 Ford is ....
Revenues ....
2001 Vehicle unit sales
We have 354, 000 employees

In addition worth noting
We have 108 plants in 26 countries

## Overview Comments

**Ford has many Knowledge Sharing Processes: Enterprise Portals, Document Repository, GIS, e-Books, Best Practice Replication(BPR)...**
**Write, Search, and Read access to BPR is limited to Ford Employees, with valid ID and who have received proper training.**
**Detailed BPR Process is considered confidential information.**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

## Achieved Vision

_**Robust business process**_** for the collection and approval of **_**high value**_** practices that can be shared and implemented throughout the enterprise.**
_**Establish Collaborative Capabilities**_** and build **_**people relationships**_** by sharing valuable knowledge.**
_**Technology to enable**_** nimble and intuitive communication of knowledge.**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

## History 

**Jun ’95**: **Informal process of faxing practices amongst vehicle operations.**
**Jun ’96**: **Launched BPR across vehicle operations – 53 plants globally.**
**Feb ’00**: **Derivative of process for Health and Safety for communicating concerns and incidents. Developed and Launched BPR version 2.0**
**Dec ’00**: **Derivative of the process for Environmental application.**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
June 95: Paper dependent. The Key is that the process for sharing knowledge had been launched.
June 1996: Broke away from the constraints of paper dependency.

## History (Contd.)

**Feb ’01**: **Adapted process for replicating key findings of 6-Sigma projects.**
**Aug ’96 – Present**: **Launched 53 Communities of Practice: Product Development, Ford Land, HR, Quality, Service, Finance, MP&L, Ford Production System, Recruiting, Plant IT, Paint, Final Area, Body, Machining, Facilities Engineering, Engine Design....**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

## Principles

- Capture only _**proven**_**, **_**high value**_ practices.
- Quantify _**value-add**_ to the business.
_**Manage**_ the process.
- Business Partners provide the _**people**_ and the _**content**_, IT group provides the _**enabling tool**_.

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Typical Community of Practice**

**Senior Leadership**

**Site 1**

**Focal Point**

**Focal Point**

**Focal Point**

**Focal Point**

**Site 3**

**Site 2**

**etc.**

**Community **
**Gatekeeper**

**Knowledge  Workers**

**Knowledge  Workers**

**Knowledge  Workers**

**Knowledge  Workers**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
Definition of Community of Practice:
A group of people doing similar tasks in geographically dispersed locations.
Dotted Lines imply virtual organization

COP allow one to share knowledge across the organization that shatters hierarchy and implied bureaucracy 
Smallest COP --    Locations; Largest COP --- Locations        Average COP --     Locations
  Use one candle to light another, you don’t lose the light.
Let us face it: If the people doing similar tasks are in the same building then they walk up to each other – they do not need a web application for helping them share best practices.

Louisville, Kentucky – F250, F 350
Saarlouis, Germany – Focus
Coventry, England – Jaguar

I’ll be darned, each of these plants do: 
Painting,
Assemble brakes
Plant IT

Subject matter experts at each of these facilities is called a Focal Point. 
Gatekeeper/Administrator: Typically a senior staff person with many years of experience in the field. 
Need sponsorship from leadership: Necessary but not a sufficient condition. Just like clouds are necessary but not a sufficient condition for rain. You need the passion that fgives you the spark that makes it work. Not a mandate either – this will create blind obedience.
What you need is the passion, pride for sharing and this is what is the lightning or spark that makes it work of make it rain to continue the analogy.

## Selection and Replication of Proven Practices at Ford 

**IMPLEMENTATION**

**LOCAL REVIEW**

**APPROVE & **
**DISTRIBUTE**

**COLLECT**

**MANAGEMENT**
**REVIEW OF**
**RESULTS**

**FEEDBACK**

**Lessons**
**Learned**

**Dreams**
**Nightmares**

**FPS**

**CPIPS**

**Site**
**Visits**

**PROVEN VALUED PRACTICES**

**Task**

**BEST PRACTICE REPLICATION PROCESS**
**WITH PRESCRIBED ROLES & RESPONSIBILITIES**

**SOURCES  OF IDEAS**

**8D’s**

**6-Sigma**

**Selection and Replication of Proven Practices at Ford*** *

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
Very important graphic that shows the importance of inputting proven practices

Many sources....

Was it implemented at a Ford Facility, 
Does it add value – Hard Savings, Process Improvement, Quality Improvement, Customer Satisfaction.

Only then does it go into eBPR system

## Create & Capture Knowledge: BPR Steps 1-3

- # 1: **Draft Practice**: Focal Point at a Location enters Proven Practices into BPR.

- # 2: **Review Draft Practice:** Gatekeeper reviews Draft Practices for clarity and completeness. Collaborates with Subject Matter Experts.

- # 3: **Approved Practice:** Gatekeeper approves only High-Value Proven Practices.

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
9 Steps – 43 steps – 108 steps process 
This is one of the most elegant ways of managing knowledge

#1: Filter 1

# 2 Filter #2 Was it implemented at a Ford Facility, 
Does it add value – Hard Savings, Process Improvement, Quality Improvement, Customer Satisfaction.

# 3 Approval

## Communicate & Leverage Knowledge: BPR Steps 4-6

- # 4: **Automatic email notification** of Approved Practices to all the Community Focal Points at each Location.

- # 5: **Practices reviewed** by team members at each location to determine applicability.

- # 6: **Adopt/ Not Adopt Decision**: At each location Leadership decides priorities of applicable practices.  “Copy with Pride”

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
#4 ; Nancy Dixon: Target communication, not a black hole
Build it and they will not come
80% Tacit Knowledge and 20% explicit knowledge – Carla O’Dell – COP Communication

#6 : Application of Knowledge is the key to performance – Peter Drucker

## Manage and Recognize: BPR Steps 7-9

- # 7: **Feedback: **At each location, Focal Point provides feedback to the System - adoption decision and value of the adoption.

- # 8: **Reports:** Location Summary Report, Community Summary Report, etc., available to any Ford Employee.

- # 9: **Recognition** of both the Best Practice Creator as well as the Replicator – Placards.

- IN RECOGNITION OF REPLICATING HIGH VALUE IDEAS

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
Tom Stewart visit to Michigan Truck Plant.
Fortune Magazine article

## Results Summary

**10,000+ replications/yr.**
-  **2800+ active high value practices have resulted in:**
**$1.5+ Billion of identified value**
**$1 Billion of actual value added to the company**
**53 Communities of Practice launched with 2115 Focal Points.**
**Health & Safety and Environmental derivates of the process proactively distribute incidents and corrective actions.**
**Patents have been applied for the software and process derivatives.**
_**Process**_ **licensed to Shell Oil, Nabisco, and Kraft Foods.**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

## 10 Strategies for Successful Knowledge Sharing

**# 10: Tell stories, with sufficient details.**

**# 9: Establish a process for filtering out trivial, low-value practices.**

**# 8: If you build it they will not come.**
**   ****Push the knowledge to users. **

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
# 10 Like the pre workshop session that we had last night. The power of story tellng is amazing.
MP&L # 567 $1.6M at Norfolk assy plant, and a total of $ 10.5M for 7 Locations

# 9: Three stages of filtering, Focal Point, Administrator, and of course peer pressure – if the Focal Points in the community start seeing low value practices in the system, the originator will surley hear about it

#8. Stamping Stds and Strategies # 9. 2000 diff codes for gloves. ( Paint Finish, Lifting heavy materials, chemical handling) Now we are down to 250 codes only with a cost reduction of $3M per year.

Why do we need KM:
Globalization
Attrition
Faster Product Launches

## 10 Strategies for Successful Knowledge Sharing

**# 7: System must be able to capture the value of the practice.**

**# 6: Senior Leadership sponsorship is necessary, but not sufficient.**

**# 5: The system must be available to the grass-roots level.**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
#7: Ford Financial External Sales: # 2;  $3.3 saved 

# 6 One of my primary jobs is to Persuade, Influence and Convince Directors of diff departments. How do I convince – I tell why they need KM. Identify the elements of Knowledge Capital – 1. Human Capital ( Employees and their skills); 2.Structural Capital ( Process, Procedures, Patents, Databases) and 3 Customer Capital( Relationships with customers and suppliers) – Johnson & Johnson Tylenol 1982 vs Roman Catholic Church in 2002
3 hour discussion, but I will give a brief overview in 5 minutes.
The Value of KM: 

Help identify competencies
Plant IT Director was convinced that it was right thing to do but there was no passion from the senior managers and so the knowledge sharing effort languisged

#5 MP&L # 567

## 10 Strategies for Successful Knowledge Sharing

**# 4: Provide peer-recognition of people who share knowledge.**

**# 3: Hi-Tech works only if there is**
** ****Hi-Touch.**

**# 2: System must have automatic feedback.**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
# 3 We have 6 month gatekeeper meetings 
Some of the feedback we got was that they did not care for certain features and would like to have certain new features

## 10 Strategies for Successful Knowledge Sharing

**# 1: Culture of knowledge sharing must exist.**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

**Notes:**
CULTURE:
Passion
Leadership sponsorship
Recognition of participants
Willingness to share
Procedures and processes

Larry Prusak “ Successful Projects”

## Conclusions

**Capture Hi-Value, Proven Practices. **
**Recognize participants**
**Culture of knowledge sharing**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company

## Contacts

**Stan Kwiecien **
**skwiecie@ford.com**
**Best Practice Replication Deployment Manager**
**Sanjay Swarup**
**sswarup@ford.com**
**Specialist: Process Reeng., & Knowledge Management**
**Robyn Valade**
**rvalade@ford.com**
**Best Practice Integration Manager**
**Dar Wolford**
**dwolford@ford.com**
**Manager, Venture Transitions and Knowledge Management**

- Copyright c 1998. 1999, 2000, 2001, 2002 Ford Motor Company