Quantified value stories in KM – numbers 115, 116 and 117

As part of our series of stories and examples of quantified value from KM, please find below three examples from a 2015 article in the UAE National, entitled “Knowledge management is power for companies”

An example of KM in action is the case of El Paso Corporation – a 5,000-employee North American provider of natural gas and related products. To maximise the benefits of a new organisational structure and encourage communication, El Paso decided to try a KM programme focused on business opportunities and challenges. Its aim was to foster expertise within the workforce and share technical knowledge with a scorecard used to measure and report on the programme. Its elements included: savings, improvements, successes, costs and milestones. In the first year, the goal was to save the organisation US$500,000, but it delivered $1.2 million in savings.

“A recent best-practice transfer between KOC and other k-Companies in Kuwait, where technology and know-how have been transferred between companies resulted in savings of several million Kuwaiti dinars,” (Abdul Jaleel Tharayil, project leader of Knowledge Management Practice for Kuwait Oil Company) says.

“Another example is an internal collaboration between deep drilling and development drilling, which brought forth a reduction in non-production time by introducing a change in casing design, leading to savings of around 250,000 dinars.”

The Kuwaiti Dinar is currently worth about  3.3 US Dollars.

View Original Source (nickmilton.com) Here.

Quantified value stories 112, 113 and 114; three examples from customer service

From a blog post called “In praise of Knowledge Management” come the following examples of quantified KM value, all from customer service centers;

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  • “A leading European mobile phone retailer saw a stark increase in contact deflection of 27.3 percent while markedly improving NPS  (Net Promoter Score) by 12 base points after implementing a knowledge management system”.
  • “One of the largest global insurance providers realised a massive decrease in agent training costs by 50 percent, and a sharp drop of 30 percent in complaints”.
  • “An Australian Government agency saw its customer satisfaction levels surge to 93 percent as well as raise agent satisfaction and reduce handling time by 53 percent”.

The article concludes that “it is these kinds of success rates and improvement which make knowledge management a serious contender for inclusion in any list of top ten contact centre technologies”.

View Original Source Here.

Quanitified value story number 111, multiple benefits at Goodyear Tire company

As the 111th entry in our ever-growing list of examples of Quanitified Benefit from Knowledge Management, here is a story on value and value measurement at Goodyear Tire Company, described by KM World Magazine.

Goodyear use what they call “value pyramids” for each key KM initative, to track knowledge impact on delivery results, Using this approach, they have identified the following KM value impact:

  • a 50 percent reduction in development cycle time;
  • associates using KM-developed Learning Journals achieve competency three months faster,
  • project teams using the Knowledge Sweep method/service have saved up to eight weeks in development time, and
  • the ACE Lessons Learned method has resulted in numerous updates to design standards.

This has been delivered through:

  • findability skills,
  • online collaboration habits,
  • expertise definition and location,
  • lessons learned definition and sharing,
  • use of and benefits of tagging,
  • cross-functional and cross-geographical valuation,
  • knowledge worker recognition methods and
  • multigenerational team approach.

View Original Source Here.

Quantified KM value story 110 – cutting development cycle time by 2-3 years at NASA

As the 110th entry in our ever-growing list of examples of Quanitified Benefit from Knowledge Management, here is an example from NASA

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The example is given by Jim Rostohar; the CKO of NASA’s Johnson Space Centre.

In the Space Centre, KM is used mainly to support programs and projects, and the Engineering Directorate. One of the tools used in this support is a new contextual search engine.  Jim describes the benefit as follows:

If this tool wasn’t available, the Orion team would have had to decide what level of program resources should be applied to develop and certify contingency measures for the Orion capsule. According to the Engineer, development of a test article would take two to three years and add an additional cost of several million dollars.

View Original Source Here.

Quantified KM value story 109 – Navidad Energy

The best place to find KM value stories is in well-metricated environments, where the effects of learning are easily measured. 

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Oil drilling is the ideal environment for seeing KM value. Drilling is very well metricated, and the time between learning something and measuring the results of that learning is measured in weeks and months rather than years. Drilling is also an expensive operation, so the value of KM tends to run into millions of dollars.
This slideshare from a 2015 presentation looks at organisational learning and KM in oil drilling, and the effects of learning curves on performance. Slide 12 discusses how the steepness of the learning curve affects overall performance, as we discussed here, and slide 14 makes the point that learning typically accounts for 55% of the cost of the first 6 wells in a drilling program.  This 55% can be reduced through good knowledge management
Navidad Energy introduced a KM program to address this potential value. They introduced a KM coach, captured lessons, created a lesson management system, developed and continuously improved operational best practices, and discussed lessons when planning and when changing shifts.

As a result, over a 13 month program, they delivered direct savings from their learning initiative of $9,2 million, with an ROI of 10:1.

View Original Source Here.

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