Knowledge Management System Saves Over $57k Annually

by Jacalyn S. Smeltzer

Triad - Farmington Hills, Michigan

Primary Topic

Knowledge Management

Problem Definition

Triad, a consulting firm located in Farmington Hills, Michigan, works with Fortune 500 companies to create custom learning and performance support solutions.

A performance analysis of the firm itself indicated that Triad’s performance gaps were: (a) inconsistencies in the way Triad people were finding and fulfilling work, and inconsistencies in other support processes, and (b) the lack of a common language to promote consistency.

The disparity in the way people worked and talked about projects made it extremely difficult for employees to discuss the business in a way that was consistent and clear to everyone. One term meant one thing to one group of people and it meant something different to another group. Speaking and working consistently is critical to effectively troubleshoot problems and make improvement decisions. For example, if a project was not profitable, isolating the problem was nearly impossible because everyone was doing his or her work differently.

Analysis Tools

Performance Analysis: Brethower’s Total Performance System concept, Rummler & Brache’s Super System diagram, and Rummler & Brache’s Process Relationship map

Cause Analysis: Gilbert’s Behavior Engineering Model, facilitation of focus groups

Performance-Support Inventory: Questionnaires, direct observation, MS Access database

Business Process Analysis: Cross-functional process maps, disconnect analysis

Information-Systems Infrastructure Analysis: hired to be done by an external vendor

Root Cause

The following are the factors, which contributed to the performance gaps according to Gilbert’s Behavior Engineering Model:

Data
- Lack of clear or consistent expectations for doing project work
- Lack of a clear and consistent vocabulary for discussing project work among area offices

Instruments
- Insufficient tools available to support work performance
- Inefficient project management and time tracking application (too slow for the size of Triad)
- Lack of integration of business processes across functions, which affected operational efficiency (Example: an average of 42 days was required to send an invoice once it had been created)

Incentives
- Top performers are not consistently recognized for their contribution

Individual Knowledge
- Project managers were not knowledgeable about best practices for managing projects
- Some project managers lacked the skills necessary to manage projects effectively

Individual Capacity and Motivation
- No deficiencies noted

Solution

Triad designed and implemented a knowledge management system (KMS) to promote consistency, standardize language and processes, and to support performance. They began by defining the key business processes for their project work and for other organizational supports such as invoicing, time and expense tracking, etc. for all locations.

Triad designed the taxonomy of its KMS around their key business processes. The taxonomy includes:

- Naming conventions for identifying types of knowledge items
- Organizing structure based on the key business processes
- Keywords for searching and retrieving knowledge items

In designing the taxonomy in this way, Triad was able to standardize the language used. They based the common language on key business processes and then worked into the taxonomy of the KMS. In addition, Triad created a glossary of all terms used in their KMS.

By basing the organizing structure on their key business processes, they were able to support the performance of their knowledge workers or those roles in the organization that rely heavily on the exchange of information to do their jobs. For every step in each process, Triad provided knowledge items (job aids, templates, policies, etc.) to support each task and overall performance.

Triad also embedded expectations for using its KMS into the culture of the organization so that the “rules” for using the KMS were explicit, which helped guide employee behavior.

Solution Tools

- Changepoint professional services automation application with knowledge management features
- A taxonomy incorporating Triad’s key business processes and a knowledge-management business process
- A communication and maintenance strategy
- Expectations of key knowledge sharing behaviors (both using and contributing) were included in the organizational mission, position descriptions, and feedback system

Results

Triad realized a 100% return on investment in 16 months and now realizes a savings of $4,786 in efficiencies per month or $57,432.00 annually. Subjective measures indicated a positive effect on employee satisfaction and productivity; and performance measures indicated a significant increase in the frequency of using a specific knowledge item for one of the two subject groups (chi-square for independence test); and a significant improvement in the quality of performance supported by that knowledge item for both subject groups (t-tests for independent samples).

Bio

Jacalyn S. Smeltzer, Ph.D.

jacalyns@triadperform.com

Jacalyn has been working as a performance consultant with Triad since 1999. She has expertise in process definition and improvement, and knowledge management systems, as well as experience in supporting large-scale, enterprise-wide application design and implementation. Jacalyn has designed, developed, and implemented learning, coaching and feedback systems, competency models, and measurement systems. Additionally, she has helped organizations re-design and develop their infrastructure to become global in presence.

Jacalyn’s doctoral dissertation was entitled “A Behavior Systems Analysis Approach to Designing a High-Impact Knowledge Management System.” Her expertise in knowledge management (KM) has positioned her to consult with organizations that have implemented a KM application but are not reaping the expected benefits, as well as organizations that are either planning to implement KM or are beginning the design. Her training in organizational behavior management and human performance combined with a KM approach and methodology that can be used with any application, allows her to help organizations get better business results from their existing KM programs.

Jacalyn’s work with standardizing business processes and implementing an enterprise-wide application received an Outstanding Human Performance Intervention award from the Michigan chapter of the International Society for Performance Improvement (ISPI). She has presented both locally and nationally at over 10 regional, national, and international conferences. She taught an advanced course in Behavior Analysis at Western Michigan University for two years and is currently in the process of writing articles for several peer-reviewed journals. Jacalyn holds a doctor of philosophy degree in behavior analysis from Western Michigan University.

References

1. Beckman, T.J. (1999). The current state of knowledge management. In J. Liebowitz (Ed.), Knowledge Management Handbook (pp. 1-1 to 1-22). Boca Raton: CRC Press.
2. Brethower, D.M. (1995). Specifying a Human Performance Technology Knowledgebase. Performance Improvement Quarterly, 8 (2), 17-39.
3. Smeltzer, J. (2003). A Behavioral Systems Analysis Approach to Designing a High-Impact Knowledge Management System. Ph.D. Dissertation. Western Michigan University. Kalamazoo, MI: UMI. A Bell & Howell Information Company.
4. www.brint.com