RESEARCH - AUSTRALIAN FINANCIAL REVIEW

Entered 10 June 2002

AUSTRALIAN FINANCIAL REVIEW KM SPECIAL

LEAD ARTICLE SUMMARY
'THE CORPORATE WORLD IS WISING UP.'
by Mark Lawson

The latest KM trends are presented. The conclusions are :

                KM in Australia is undergoing revival.
                KM is being seen now as a management concept rather
                    than the European view of it still as a technological solution.
                Critical success factor is the cultural practices that integrate
                    and leverage knowledge workers with each other and with                      technology.

EVIDENCE FOR GROWING POPULARITY

Boards of management have little trouble now being convinced of KM's effectiveness for their business.

1. Mapping current knowledge : At Sinclair Knight Merz (SKM), a global engineering firm, KM people practices and technology practices have saved the firm potentially millions in savings by minimising duplication and reinvention of procedures. Example : Proposal Preparation Time for large scale projects like the design and construction of power stations. SKM trained knowledge workers to properly submit and retrieve project tendering proposals in a database that their colleagues around the world could also access. It also acted as a recruitment repository of expertise to develop project teams. And SKM also trained them to develop intranet project websites...virtual teams. People practices fused with technology practices resulting in :

       ' never any problem of convincing the firm's board that the
        investment would make an excellent return. The return-on
        -investment case was so good that it was "embarrassing."'

2. Mapping innovative knowledge : At Australian Defence Force's Aircraft Research and Development Unit (ARDU), they not only submit project pro formas but project insights. They refer it to the 'lessons learnt' that evaluate the process of engagements producing strategic insights ie., systematic post mortems. This is new, leading knowledge that results in strategic knowledge that is then stored in appropriate databases for enterprise-wide access. A project cannot be signed off until an evaluation and insights report is completed.

3. The Australian financial sector shows confidence in the concept of KM.
A recent joint survey from Monash University and Fuji Xerox showed that 60 % of the banking institutions are starting to implement KM processes, as are 30 % of insurance companies. 85 % of all participants see KM as a management concept.

4. The US market is showing renewed confidence in KM initiatives.
The US consultancy, Meta Group, has seen a hiatus in KM initiatives in recent years but now "it is making a big comeback." The critical success factor is the ability to integrate the people processes with the new technology processes. Technology cannot solve the problem of average communication between knowledge workers.

       "There seems to be a realisation that there must be a sequence
        of events when undertaking enterprise KM. Cultural and organisational         principles must be promoted, incentivated and championed prior
        to any technological solutions being implemented."

Business units need to learn people processes of working well together.

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