Measuring the Impact of Knowledge Management 1228557025699374 8(2)

8/8/2019 Measuring the Impact of Knowledge Management 1228557025699374 8(2)

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Copyright 2008 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Measuring the Impact ofKnowledge Management (KM)

Steve Kaukonen - Accenture

KMWorld, September 23rd, 2008


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2Copyright 2008 Accenture All Rights Reserved.

Agenda

Accenture Overview

Metrics & Measurement

ROI of Knowledge Management


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3Copyright 2008 Accenture All Rights Reserved. 3

Accenture OverviewAccenture is a global management consulting, technology services and outsourcing company. Combiningunparalleled experience, comprehensive capabilities across all industries and business functions, andextensive research on the world's most successful companies, Accenture collaborates with clients to helpthem become high-performance businesses and governments.

Over $19.7 Billion in Revenue (FY07)

Over 178,000 Professionals in 49 Countries 94 of the Fortune Global 100

2/3 of the Fortune Global 500

All of our top 100 clients have been clients for at leastfive years, and 85 have been clients for at least 10 years

Over $500M in R&D expenditures Over $500M in Training expenditures

Consulting

More than 90% of the worlds topcompanies benefit from our insights andsolutions.

Technology

Our experienced professionals bring thelatest technology to deliver solutions, nomatter how complex or risky.

Outsourcing

Using our global delivery network, we canhelp clients focus on their core business.

Bottom Line People and Knowledge are our mostimportant assets


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Knowledge Sharing at Accenture revolves around the sharing of

information, expertise, knowledge & assets to enable project teams

to sell & deliver work more efficiently & effectively.

Example: Sales team at client X is looking to sell offering Y they are able to: See where we have done similar work before Access & leverage previously developed sales decks, point-of-views,

sales collateral Collaborate with experts via people profiles, discussions, blogs, wikis

Knowledge Sharing at

Accenture


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KM Organization at

Accenture

Technology

AccentureLearning

KM Services

CapabilityDevelopment

CIO(includingTech Labs)

AssetDevelopment

Strategy

Content

People/Skills

Research

Global KM


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Metrics & Measurement


7/227Copyright 2008 Accenture All Rights Reserved.

KM Measurement

Framework

(V-model applied to KM)

LEVELSMeasurement

5

4

3

2

0

ROI

Business

Results

Business

Issues

Apply

Knowledge

Capability

Requirement

Performance Support

Requirement

Locate

Information

Enablement

Requirement

Access

System/s

SolutionSystem/s

Status

1



Reporting

CapabilitiesMeasurement

ROI

BusinessResults

Apply

Knowledge

Locate

Information

Access

System/s

System/s

Status

End User InputEnd User Input(i.e. Site/(i.e. Site/

DocumentDocumentEmbeddedEmbeddedFeedback,Feedback,SurveysSurveys

TransactionTransactionReportingReporting

CapabilitiesCapabilities

Integration ofIntegration ofsystems/cost datasystems/cost data

,

882%

1543%

2139%

0%

500%

1000%

1500%

2000%

2500%

ROIminimumestimate(basedon"least"

timesavingsestimate)

ROI(basedonaverageweeklytimesavings

attributabletoKX)

ROImaximumestimate(basedon"most"

timesavedestimate)

ROI



Taking ActionTeam Leads

Tying strategy to metrics example: capability blueprints

Evaluating effectiveness of KM tools/programs

Providing input for recognition programs

Measuring effectiveness of marketing knowledge sharingactivities

Content Owners Evaluating Content

Managing Content on topic pages

Measuring effectiveness of knowledge harvesting activities



ROI for Knowledge Management



Accentures KM

Impact Study

Recognized as the "2007 Best Impact Study" bythe ROI Institute at the 2007 Global ROIConference in Chicago

The annual Best Impact Study award recognizesthe study that best exemplifies successful use and

application of ROI Methodology.



Key success factors Focus on one component of Knowledge Management Knowledge

Exchange, specifically People to Content

Focus on single benefit (Time Savings) with ability to follow-up to gather

additional benefits

Process should be transferable to other KM initiatives (e.g. CoPs, otherKM tools)

Short, efficient survey with minimal impact on employees

Use branching logic to ask relevant questions

Report Key Metrics at each V-model level

Credible process and metrics Strategic random sampling

Scalable, Continuous measurement model

Minimize manual processes



Accentures

Knowledge Exchange The Knowledge Exchange (KX) is the place where an exchange

of ideas, content, information & knowledge takes place by

connecting People to People and People to Content to help

Accenture sell and deliver work to our clients.

A one-stop-shop for employee knowledge needs including:

Materials to support proposal development

Information about Accentures diverse market offerings

Delivery tools and sample deliverables

Discussions/blogs/wikis People profiles


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Return on investment

(ROI) - Time Savings

1. ROI % =Cost

BenefitsNet_=

Cost

CostBenefits

Time Savings is only one of the potential benefits of KM. It is the only benefit

currently used in the ROI calculation. Other benefits are considered intangibles.

Time Savings

Increased Output

Increased Quality

Increase in Sales

Decreased Costs

Increased EmployeeEngagement or

Satisfaction

Increased

Networking


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Select Questions

Please try to remember documents or other information you've obtained byusing the Knowledge Exchange, during just the last two weeks. Which of thefollowing are true about your use of the KX?

I found useful information that I have applied directly in my work. I found useful information that I have NOT been able to apply directly

to my work. I strengthened my business network. None of the above.

Please estimate the amount of your time that you saved during the last twoweeks as a result of this information.

"During the last 2 weeks, this information saved me AT LEAST:" "During the last 2 weeks, this information saved me AT MOST:"


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Key MetricsKey Impact Metrics* Level

FIND useful information as a result of KX 78% 2

APPLY information found through KX to work 75% 3

Build business NETWORK through KX 28% 4

SAVE TIME as a result of KX 67% 4

Increased QUALITY of work as a result of KX 55% 4

Overall SATISFACTION with KX % 80% 1-3

Overall SATISFACTION with KX, mean 4.19 1-3

*Sample figures due to sensitivity of data


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Knowledge Exchange Design, Development, Maintenance

Global KM Salary & Benefits* Outsourced KM Salary & Benefits*

Deployed KM Teams Salary & Benefits*

Other Global Administration and Evaluation

Costs

*Portion Allocated to Knowledge Exchange activities (includes activities such as Content Management, TopicPages; does not include activities such as Communications, Communities of Practice, Discussions)


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ROI Summary*

*Sample figures due to sensitivity of cost information


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Applying Sample to

Population for ROI

3,294Sample Size

626 Never Accessed the KX 626 Never Accessed the KX No BenefitNo Benefit

1904 Accessed the KX,1904 Accessed the KX,but did not respond to survey but did not respond to survey

No BenefitNo Benefit

387 Accessed the KX,387 Accessed the KX,Responded to Survey, indicated 0Responded to Survey, indicated 0

time savings No Benefittime savings No Benefit

388 (11.7%) Accessed the KX,388 (11.7%) Accessed the KX,Responded to Survey,Responded to Survey,

indicated x time savings Benefitindicated x time savings Benefit

OnlyOnly14,841 (11.7%)14,841 (11.7%)

BenefitBenefit

111,159111,159

EmployeesEmployees

No BenefitNo Benefit

126,000

TargetPopulationoftheKX


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Overall ROI for the

Knowledge ExchangeROI, based on time savings attributable to the Knowledge ExchangeFor every $1.00 spent, we see a benefit of $25.06

2506%

3540%

1379%

0%

500%

1000%

1500%

2000%

2500%

3000%

3500%

4000%

1 2 3

ROI

ROI minimum estimate(based on "least"

time savings estimate)

ROI maximum estimate(based on "most"

time saved estimate)

ROI (based on average timesavings attributable to KX)


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What does this mean

in financial terms?Spend $10,000,000*

Benefit of $250,600,000**Sample figures due to sensitivity of cost information

Measuring the Impact of Knowledge Management 1228557025699374 8(2)

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