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KnowledgeManagementatBain
MostexecutivesarenothappywithKM“HowSatisfiedAreYouwithEachManagementTool?”“HowGoodisEachManagementToolatGettingFinancialResults?Source:BainManagementTools&TechniquesSurvey(2001)2
WhyKMOftenFailsNotenoughthoughtbeforetechnologyNotproperlydefiningKMfortheorganizationViewingKMasaseparatefunction,versusjustapartofbusinessstrategyMisguidedfocusonpeopleandprocess3
BainhascreatedaleadingKMcapabilityAgoodstrategyforcontentcreationandcaptureFocused,highvalueinvestmentsinintellectualcapitalDeepminingofongoinglearningsfromprojectsTheGXC-agreatKMsystemClassification/taxonomiesIntegrationofinternalandexternalcontentIntegrationoflearningandknowledgePowerfulsearchAlean,value-addedKMteamthatmakestheprocessworkfitsintoexistingcompanystructuresAcultureofsharing,nothoardingTacitCodified4
WhyKMmatterstoconsultingfirmsTwocoreassets:peopleandreputationOur“product”isintangibleGlobalbusiness,butwithlocaldifferencesPartnerships,nothierarchiesNature:GenericframeworksanddataarecommoditizingIndustrylifecyclesshrinkingMoreMBAs,lowentrybarrierscompetition!GlobalserviceisrequiredTrends:“Knowledge”isacriticalcapabilityforconsultingfirms5
KnowledgeexampleinconsultingYou’reworkinginthePCIndustryDataKnowledgeMarketsizeMarketshareCompetitorpricesAcommodityThebestwaytosegmenttheconsumermarketHowtostreamlinethesupplychainImpactofsupplierconsolidationonOEMsAdifferentiatorWorldclassKMprogramsmanage&shareboth6
OverviewofBainandCompanySanFranciscoMexicoCityBostonTorontoChicagoMoscowRomeMunichMilanBrusselsLondonTokyoSeoulHongKongSingaporeSydneyDallasParisZurich«««««««««««««««««««««Beijing«Atlanta«LosAngelesMadrid«StockholmJohannesburg«SaoPaulo«NewYork«26offices,workingin9languagesOver2,500consultingstaff,“generalist”modelStrictconflictandsharingstandards7
ManyKMfailuresoverourfirst26years(1973-83)“WordofMouth”(1983-93)“ExperienceCenter”(1993-99)“BRAVA”ManyattemptsatKMoverourfirst25yearsButnoneworked.Examplesofoureverydaypain…Proposalsstillkeptbyeachpartner–requiringemailandfaxResearchtoolsweren’tsufficienttodothejobOur“best”workwasstillinfilecabinetsWestilldependedonwordofmouthtofindexpertsWeredidthesameworkmultipletimeseachyear8
Bain’sapproachforgettingitrightCreateCaptureOrganizeTransferUseBusinessstrategyKMObjectivesDefineKMforthecompanyDefineyourcontentstrategy,andwhatneedstobecreatedtosupportyourstrategyDeterminehowtocapture(e.g.,format,timing)Organizeandclassifyknowledgebasedonthebusiness’“viewoftheworld”DeterminebestmodesforTransferringandsharingknowledgeEnsureformatsandaccess(e.g.,IT)makeuseaseasyaspossibleKeyelementsofKM:9
TheobjectivesofKMforBainWhatIt’sNotAdvancethescienceBecomefamousauthorsFancyportalsDocumentmanagementWhatItIsProvideourstaffwiththetoolsandskillstodevelopEnableourconsultingstafftoworkbetterandfaster-sellingtonewclients-startingupwork-“crackingthecase”ApplyBain’sbestglobalinsightsandapproaches-No“re-inventingthewheel”Driveclientresults10
Bain’sknowledgeiscenteredaroundourcaseteamsKnowledge“Needs”Bain’spointofviewontheindustryandcasetopicGreatexamplesandapproachesAccesstointernalexpertsExternalResearchKnowledge“Outputs”NewindustryinsightsNewapproaches(andsolutions)toproblemsUpdatetoBain’spointofviewInsightsonmanagingthecaseandclientClientDevelopmentCaseStart-upIn-DepthWork&RecommendationsImplementation(Partner)(Partner,Managerandteam)(1-3weeks)(1-2weeks)(1-6months)(6months+)11
OurcontentstrategyMajorresearchdatabasesTopexternaldatasourcesExternalcontentBain’scase&peopleexperienceSanitizedsummariesofeveryclientprojectStaffprofiles&expertiseFor“tacit”sharingCodifiedBaininsightsBain’scriticalIPIndustryverticalsCapabilityareas“Reusable”formatsShortshelflifeToolsandskillsBain’scoreglobaltoolkitEmbeddedinourstafftrainingprogramsLongshelflife12
TheBVUandGXCExternalcontentBain’scase&peopleexperienceCodifiedBaininsightsToolsandskillsBVU1.0Launched1999GXC1.0launched2000GXC2.0BVU2.0LaunchedOctober200213
GXC2.0homepage14
Additionalscreenshotsremovedduetosensitivity15
10industrypagesontheGXC16
Presentationsareinaneasy-to-use,web-basedformat17
BainVirtualUniversity18
BVUvideomodules19
NewExternalSourcesPagespeedsupyourresearch20
TheGXChaschangedthewayBainworks“ThankstotheGXC,IwasabletopulltogetherapreezontheimpactofaproposedmergerintheinternetspacehereinAustraliainjust24hours.Thedeadlinewouldnormallyhavebeenimpossibletomeetwithanyquality,butwegotitdone.Ilovethistool!”Manager,Sydney“WepulledacaseexampleonAssetManagementintheFinancialServicesPagetocreateapresentationfortheclientinonly1day.Itwasfantastic!”VP,Munich“GXCisfantastic,Iamsavinghoursalready!”AC,Dallas“YourKMsystemisoneofthemostintuitiveandsophisticatedthatIhaveeverseen.Youcoulddoalottohelpusoutinthisarea.”BainClient21
BainknowledgecreationandcaptureProposalsCasesummariesIn-depthcodifiedmodulesTopexternalsourcesSellingprocessCaseStart-upCase-endMinimumGoal:Captureon50%ofcases100%complianceAccuratecasetaggingOnegoodmoduleon50%ofcasesNewdatasourcesfromeverycaseOutput:FocusedinvestmentsCreatenewBainpointsofviewIPDevelopmentDrivenbyIndustry&CapabilityPractices22
ManyrolesmakethisprocessworkDedicatedfacilitatorsforknowledgecaptureandsharingOffice-basedGXCevangelistRunsofficeincentiveprogramsBestexternaldatasourcesResearchdatabasesPartnerswhooverseeBain’sglobalCapabilityandIndustrypracticesContributebestworktoshareacrossBainCaseTeamPracticeAreasKnowledgeOfficerInfoServicesKnowledgeBroker23
KnowledgeBrokersatBainKnowledgeSpecialistRegionalKnowledgeBrokerAssignedbyIndustryorCapabilityPracticeAreaManagestheGXCcontentandwebsiteintheirareasCoordinatesIPdevelopmentandcapturewithPracticeAreaVPsSupportsPracticeAreaoncommunications,projectsandincentivesAssignedbyofficeGeneralistKMsupporttoteamsintheirofficesAssistfindingcontent/peopleEnsuresaccuratecasetaggingHelpswritecasesummariesProbescaseteamstofindpotentialteaminsightstocodifyCaseendmanagerinterviewInterfaceswithrelevantKnowledgeSpecialistsRunsofficeincentiveprogramswithKnowledgeOfficer“Officegeneralists”“Globaltopicspecialists”24
MetricsandincentivesOfficePracticeAreaIndividualOfficeKMScorecardMeasuresallofficeKMcontributionsNormalizesforsizeSentquarterlytoofficeheadsandMDKMfactoredinOfficeHeadperformanceAnnualOfficeKnowledgeAward1large,1smallofficeForallKMeffortsPracticeScorecardMeasuresKMprogressinPASentquarterlytoPAheadsandMDKMisacorefactorofperformanceandcompforPAheadsAnnualVPratingsAssessKMcontributionsbyeachVPFactoredintoannualcompOffice-based“sticksandcarrots”25
Sowhat’stheimpact?Wecan’tandwon’tmeasureROIMostofthecostsare“soft”andcan’tbemeasuredOurproductisintangibleKMisonlyoneofmanyinputsTodaywecapturemanykeysuccessindicatorsUsageSatisfaction(annualsurveys)OnlinequalityratingsInformal“feel”But,thisisnotsufficient26
OurframeworkforKMimpactImproveStaffProductivityBuildRelationships/IncreaserevenuesDecreasecostsDriveclientresults27
WhatweknowsofarImproveStaffProductivityBuildRelationships/IncreaserevenuesDecreasecostsDriveclientresultsTeamsdeliverbetterqualityandresults,inlesstimeMoretimeto“crackthecase”Accesstothe“best”insightsBetterclientcollaborationOurclientworkisgloballyconsistentPartnersbuildproposalsin30%lesstimeThecaseteamprocessruns30%+fasterContactwithintheBainnetworkhasincreasedClientleadshaveincreasedWinratesat“bakeoffs”havegrownClassroomtrainingcostscutby$1MShorterprogramsNopaperCaseteamexpenseshavedecreasedResearchTelecomcosts28
OurnextstepsImproveStaffProductivityBuildRelationships/IncreaserevenuesDecreasecostsDriveclientresultsInstitutionalizeregularcustomerresearchontheimpactofKMonourjobsPartnersOtherconsultingstafflevelsStructuredinterviewsandsurveys,builtaroundthisimpactframeworkUseresultstodirectChangestocontentstrategyandprioritiesAdditioninvestmentsintheGXCFurtherprocessimprovements29
OurkeylearningsInternalandexternalknowledgetogetherContentandthoughtfirst,beforethetechnologyMassivefocusonpeopleandprocessKnowledgeBrokersPracticeAreaVPsCommitmentfromtopmanagementQualityoverquantityBuildaroundhowpeoplereallyworkandwhattheyneed30
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