RESEARCH - ROI NOW OBVIOUS IN AUSTRALIAN TELECOMMUNICATIONS GIANT.

ROI NOW OBVIOUS IN AUSTRALIAN
TELECOMMUNICATIONS GIANT.

Pawle,F.(2002) Case Study: Michael Ossipoff,
Telstra -How to measure use of and returns on KM
Australian Financial Review Boss Magazine.February p.54-55

RATIONALE

New generation competitors are "quickly replicating" every new product.

Innovation by being customer sensitive - "if you know what a client is interested in and can deal with it in a unique way, you can create an opportunity."

Staff productivity - "An empowered workforce is always going to be far more productive."

Staff morale - "We all like to feel we are well-informed."

Customer satisfaction - "When you interact with a representative from a company who can answer all your queries, you walk away feeling good, and the representative feels good."

RESULTS

     Major improvements in all of the above.

     Specifics - Savings of $1 million year by document retrieval time
     reductions for 1,000 sales staff.

     Specifics - Savings of $9 million in duplicated sales tools and training.

     Specifics - High KM tools-using business units generating dramatic
     returns. Forced to proactively encourage lower performing business
     units on KM tools.

     Specifics - KM is "now a core function of Telstra."... officially strategic.

SUCCESS FACTOR

Reguarly evaluating effectiveness of tools. Measuring every staffer's usage of KM tools - not for enforcement reasons. So..regular reality checks of the value of each database tool. "If no one is using it there's no point persisting with it."

OBSTACLES

New culture required - Perceived increased job insecurity if knowledge and insights are given away. "Will the company still need me ?" Staffers and management need to see that "the true value and the true power (is not in knowledge hoarding but) is in the way you share knowledge."

SUMMARY

Telstra relies on a set of major databases for their staff to be kept informed. They have persisted with developing better information tools resulting in a higher uptake of tools usage. Financially they have seen dramatic returns
from its everyday use and has proven itself to be a core function of the company.

"Those who have it understand you cannot do without it."

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