# Presentation: 434557

## KNOWLEDGE NETWORKING

- Key to Success in a Global Environment
- Michael Salkind
- B.MET.E. – RPI 1959
- Ph.D. – RPI 1962
- President, OAI
- Rensselaer Polytechnic Institute
- September 17, 2001

## Knowledge Management

- “If only Hewlett-Packard knew what Hewlett-Packard knows we could be 3 times more profitable”

- Hewlett-Packard CEO

## KM Pays Off

-  	Buchman Labs - sales up 50%, revenue up 10%
-  	Texas Instruments - $1.5 billion cost avoidance
-  	Dow Chemical - $40 million annual savings
-  	CIGNA - went from $250 million loss to $90 million profit
-  	Skaudia - started up in 7 months, not 7 years
-  	Chevron - $650 million annual savings
-  	USAA - customer phone service increased from 30 to 70%

- O’Dell and Grayson, if only we knew what we know

- An Investment in Knowledge Pays the Best Interest
- Benjamin Franklin

## Knowledge Management

## Knowledge Networking

- Ford, E&Y, BP Amoco
- Team Mates, Peer Assistance, Best Practice

## KM Myths

-  Build it and they will come
-  Technology can replace face-to-face
-  First you have to create a learning culture

- N. Dixon, Common Knowledge

## BP Amoco KM Experience

-  	1997 saved $20M, 1998 saved $700M
-  	Applied to: restructuring, building retail sites, refineries, oil wells
-  	How: “Learn Before Doing”
-  	Web-based folders of artifacts, videoclips, checklists, and **hyperlinks to people****	****- **desk top video, multi-media email, real-time shared whiteboard
-  	Most important: Hyperlinks to people with stories to tell	- BP Amoco has a **voluntary** intranet yellow pages: 30,000+ listings
-  	Peer assist: Team comes to site to advise on planning	- Ask specific questions, not “tell me everything you know”
-  	After action review (US Army): 15 minutes	- What was supposed to happen?  What actually happened?	- Why is there a difference?  What can we learn and do?
-  	Spin off KM in 1999 as Knowledge Transformation, Int.

- Telling Tales at BP Amoco, Fortune , May 1999

## Knowledge Is:

-  	Information with
-  	Sufficient context to
-  	Provide meaning to the user in
-  	Doing work that is
-  	Important to the enterprise

- Knowledge is
-  	In people’s heads
-  	In conversations
-  	On paper
-  	In digital form (audio, video, other)

- Arian Ward, Work Frontiers Int.

## What’s Different AboutKnowledge?

- Data
- “1840KL0617”

- Information
- “The KLM flight leaves Detroit at 1840”

- Knowledge
- “That’s not a good flight; often busy and delayed”

_**Relationships and trust are required**_
_** **__**for knowledge transfer and re-use**_

***©2000 Knowledge Transformation *****TM*****  International, Inc. , all rights reserved***

**What’s Different About****Knowledge?**

## Knowledge Pyramid(People, Documentation, Software)

***©2000 Knowledge Transformation *****TM*****  International, Inc. , all rights reserved***

_**Knowledge Pyramid**_(People, Documentation, Software)

## Knowledge Pyramid(People, Documentation, Software)

**Data**

_***Wisdom***_

**Knowledge**

**Information**

***©2000 Knowledge Transformation *****TM*****  International, Inc. , all rights reserved***

_**Knowledge Pyramid**_(People, Documentation, Software)

## Making maximum use of what your organisation and ‘networks’ know
Doing this systematically and continuously

**John Browne, BP Amoco**

**Making maximum use of what your organisation **_**and**_** ‘networks’ know**
**Doing this systematically and continuously**

-   Never making the same mistake twice
-   Right decisions, first time, every time
-   Cutting the learning curve
-   No unlearning curve

***©2000 Knowledge Transformation *****TM*****  International, Inc. , all rights reserved***

**What is ****knowledge management?**

## The marketplace is going global
Changing ever more rapidly
Cheap, networked computing
Drowning in information, starved for knowledge
Engineering focus on task in era of networking (need to turn ‘nerds into nodes’)
No choice...

- Changing ever more rapidly
- Cheap, networked computing
- Drowning in information, starved for knowledge
- Engineering focus on task in era of networking (need to turn ‘nerds into nodes’)
- No choice...

**‘‘****To make knowledge work productive will be the great management task of this century, just as to make manual work productive was the great management task of the last century’’**
- - Peter Drucker

***©2000 Knowledge Transformation *****TM*****  International, Inc. , all rights reserved***

**Why Now?**

## An Emerging Business Imperative

**Source: Adapted from Peter Drucker and Karl Albrecht**

**Pre-Industrial****Model**

**Industrial****Model**

**Information Age**
**Model**

**Cottages**

**Currency**

**Labor**

**Capital**

**Product**

**People**

**Technology**

**Knowledge**

**Craftsmen**

***©2000 Knowledge Transformation *****TM*****  International, Inc. , all rights reserved***

**An Emerging Business Imperative**

## Implications for behavior

**Structure****	****Deep Hierarchy****	****Flat and Networked**
**Focus****	****Inside the Silo****	****Virtual Enterprise**
**Style****	****Command & Control****	****Trust, Empowerment**
**Driver****	****The Boss****	****The Customer**
**Technology**** ****	****Basic****	****Advanced**
**Power Base****	****Knowledge Hoarding****	****Knowledge Sharing**
**Direction****	****From the Top****	****Shared Vision**
**Thinking****	****Atomistic****	****Systemic**
**Conflict****	****Political, mediated****	****Dialog, **
**	****	****share assumptions**
**Leadership****	****Make decisions****	****Create learning space**
**Change****	****Paced, focused****	****Exponential, dispersed****	****Order****	****Chaos**
**	****Traditional clock****	****Internet clock**

***©2000 Knowledge Transformation *****TM*****  International, Inc. , all rights reserved***

**Implications for behavior**

## The Knowledge Iceberg

**UNCONSCIOUS TACIT**
- 	Needs mining by skilled questioning
- 	Socratic method

- Nick Milton, Knowledge TransformationTM Int.

**EXPLICIT**
- 	Can be documented

**TACIT**
- 	Personal – embedded in experience
- 	Can be articulated

## How Do You Articulate 

- How Do You Articulate
- Unconscious Tacit Knowledge

-  How did you choose a university?

-  How did you choose a career?

-  How did you choose a spouse?

-  How did you choose a home?

-  How do you ski?

-  How do you stand up?

- Could you have written a useful final report on each of these projects

## The Knowledge Spectrum

## The Challenge of Far Transfer of Knowledge

- The knowledge is in hishead.  He is probably unaware of what he knows

- The knowledge needs to bein her head.  She is unawareof what she needs to know

- After Nick Milton, Knowledge TransformationTM Int.
- In Knowledge Management, Vol.2, 1999

## Learning Before Doing-An Interview with Bill Kirton, BP Amoco Exploration

- Learning Before Doing-An Interview with Bill Kirton, BP Amoco Exploration

- I was the wells team leader for Schiehallion in 1995.  We...estimated about $600million.  “All that you are going to get is $500 million.”  We realized that we couldn’t do things the way it had always been done.  We believedmany best practices we needed were in use somewhere already.
- One of our people overheard a conversation on the rig where a new roughneck came on board.  “This business about me giving them ideas – I have seen it before and they
- never listen, so I’m not giving them my stuff.”  The other guy said “let me tell you something, this rig is different.  You give them your ideas and they will listen.”
- Foinaven (was) the previous best in class field.  They were about 20-22 days per 10K (after a year and a half). (Our) first well was 20 days per 10K. We started at their
- best.  We drilled six of the 7 fastest wells in the UK that year.
- We also made mistakes.  We fell back into the action trap when we did not help oneof our new team members learn before.

- Source: Knowledge TransformationTM Int.

## Networking (BP Amoco)

| Defined | Voluntary |
| --- | --- |
| Business | Members |
| Yes | No |
| Formal | Informal or None |
| High | Low or None |

**Formal (50)**

**Informal (250)**

- Membership

- Customer

- Performance
- Contract

- Management

- Company
- Resources

- Examples:

- Maintenance Managers
- Operations Managers

- Produced Water
- Green Operations

- Source: Nick Milton and Walt Palen, Knowledge TransformationTM Int.
- KNOWLEDGE MANAGEMENT, March, 2000

## The Knowledge Universe

- After Liam Fahey, Babson College and Tony Kuhel, Knowledge TransformationTM  Int.

**You Know**
**What You**
**Know**

**You Know**
**What You**
**Don’t Know**

**You **
**Don’t Know**
**What You**
**Don’t Know**

**You Don’t**
**Know What**
**You Know**

## The Knowledge Universe

**USE IT**

- KNOWLEDGE
- MINING

- RESEARCH
- OR
- ACQUIRE

- TRANSFORMATION

- After Liam Fahey, Babson College and Tony Kuhel, Knowledge TransformationTM  Int.

## KM in the University

-  Embed KM in the university culture

-  Historically, universities are exemplars of KM

- - Outstanding at explicit knowledge

- - OK at tacit knowledge

- - Could use work at tacit unconscious knowledge

-  Avoid courses in KM

-  Embed KM in all courses

## KM in Engineering Education

-  Expand Course Selection
-  Pre-energy curriculum
-  Team projects
-  Co-ops, interns
-  What is it?
-  KM Principles

-  Culture of sharing
-  Knowledge Café
-  Team Classes
-  Story Telling
-  KM Courses
-  Team Projects (simulate life)
-  Reuse
-  Team Attrition

-  Learning Village
-  Knowledge Portal
-  Cribs
-  Etc.

- Warren Stevenson, Purdue University

## Knowledge Re-Use

-  Engineers fail to re-use designs because they  	don’t know the context and applicability

- “PLAGIARISE!” Tom Lehrer

- Opportunities:
-  Design
-  Proposals
-  Technical Documentation
-  Software
-  Cost/Schedule
-  Presentations

## Is There a Better Term for 

- Is There a Better Term for
- Knowledge Management

- Knowledge Networking

- Knowledge Sharing

- Knowledge Ecology

- Knowledge Capitalization

## How do we integrate KM (tools and techniques) into the academic learning and discovery environment for engineers?
Let the journey begin!

**Let the journey begin!**

**The Way Forward?**