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KnowledgeManagementatBainMostexecutivesarenothappywithKM“HowSatisfiedAreYouwith

EachManagementTool?”“HowGoodisEachManagementToolatGettingFinancialResults?Source:BainManagementTools&TechniquesSurvey(2001)2WhyKMOftenFailsNotenoughthoughtbeforetechnologyNotproperlydefiningKMfortheorganizationViewingKMasaseparatefunction,versusjustapartofbusinessstrategyMisguidedfocusonpeopleandprocess3BainhascreatedaleadingKMcapabilityAgoodstrategyforcontentcreationandcaptureFocused,highvalueinvestmentsinintellectualcapitalDeepminingofongoinglearningsfromprojectsTheGXC-agreatKMsystemClassification/taxonomiesIntegrationofinternalandexternalcontentIntegrationoflearningandknowledgePowerfulsearchAlean,value-addedKMteamthatmakestheprocessworkfitsintoexistingcompanystructuresAcultureofsharing,nothoardingTacitCodified4WhyKMmatterstoconsultingfirmsTwocoreassets:peopleandreputationOur“product”isintangibleGlobalbusiness,butwithlocaldifferencesPartnerships,nothierarchiesNature:GenericframeworksanddataarecommoditizingIndustrylifecyclesshrinkingMoreMBAs,lowentrybarrierscompetition!GlobalserviceisrequiredTrends:“Knowledge”isacriticalcapabilityforconsultingfirms5KnowledgeexampleinconsultingYou’reworkinginthePCIndustryDataKnowledgeMarketsizeMarketshareCompetitorpricesAcommodityThebestwaytosegmenttheconsumermarketHowtostreamlinethesupplychainImpactofsupplierconsolidationonOEMsAdifferentiatorWorldclassKMprogramsmanage&shareboth6OverviewofBainandCompanySanFranciscoMexicoCityBostonTorontoChicagoMoscowRomeMunichMilanBrusselsLondonTokyoSeoulHongKongSingaporeSydneyDallasParisZurich«««««««««««««««««««««Beijing«Atlanta«LosAngelesMadrid«StockholmJohannesburg«SaoPaulo«NewYork«26offices,workingin9languagesOver2,500consultingstaff,“generalist”modelStrictconflictandsharingstandards7ManyKMfailuresoverourfirst26years(1973-83)“WordofMouth”(1983-93)“ExperienceCenter”(1993-99)

“BRAVA”ManyattemptsatKMoverourfirst25yearsButnoneworked.Examplesofoureverydaypain…Proposalsstillkeptbyeachpartner–requiringemailandfaxResearchtoolsweren’tsufficienttodothejobOur“best”workwasstillinfilecabinetsWestilldependedonwordofmouthtofindexpertsWeredidthesameworkmultipletimeseachyear8Bain’sapproachforgettingitrightCreateCaptureOrganizeTransferUseBusiness

strategyKMObjectivesDefineKMforthecompanyDefineyourcontentstrategy,andwhatneedstobecreatedtosupportyourstrategyDeterminehowtocapture(e.g.,format,timing)Organizeandclassifyknowledgebasedonthebusiness’“viewoftheworld”DeterminebestmodesforTransferringandsharingknowledgeEnsureformatsandaccess(e.g.,IT)makeuseaseasyaspossibleKeyelementsofKM:9TheobjectivesofKMforBainWhatIt’sNotAdvancethescienceBecomefamousauthorsFancyportalsDocumentmanagementWhatItIsProvideourstaffwiththetoolsandskillstodevelopEnableourconsultingstafftoworkbetterandfaster

-sellingtonewclients

-startingupwork

-“crackingthecase”ApplyBain’sbestglobalinsightsandapproaches

-No“re-inventingthewheel”Driveclientresults10Bain’sknowledgeiscenteredaroundourcaseteamsKnowledge“Needs”Bain’spointofview

ontheindustryandcasetopicGreatexamplesandapproachesAccesstointernalexpertsExternalResearch

Knowledge“Outputs”NewindustryinsightsNewapproaches(andsolutions)toproblemsUpdatetoBain’spointofviewInsightsonmanagingthecaseandclientClientDevelopmentCaseStart-upIn-DepthWork&RecommendationsImplementation(Partner)(Partner,Managerandteam)(1-3weeks)(1-2weeks)(1-6months)(6months+)11OurcontentstrategyMajorresearchdatabasesTopexternaldatasourcesExternalcontentBain’scase&

peopleexperienceSanitizedsummariesofeveryclientprojectStaffprofiles&expertiseFor“tacit”sharingCodifiedBain

insightsBain’scriticalIPIndustryverticalsCapabilityareas“Reusable”formatsShortshelflifeTools

andskillsBain’scoreglobaltoolkitEmbeddedinourstafftrainingprogramsLongshelflife12TheBVUandGXCExternalcontentBain’scase&

peopleexperienceCodifiedBain

insightsTools

andskillsBVU1.0Launched1999GXC1.0launched2000GXC2.0BVU2.0LaunchedOctober200213GXC2.0homepage14Additionalscreenshotsremovedduetosensitivity1510industrypagesontheGXC16Presentationsareinaneasy-to-use,web-basedformat17BainVirtualUniversity18BVUvideomodules19NewExternalSourcesPagespeedsup

yourresearch20TheGXChaschangedthewayBainworks“ThankstotheGXC,IwasabletopulltogetherapreezontheimpactofaproposedmergerintheinternetspacehereinAustraliainjust24hours.Thedeadlinewouldnormallyhavebeenimpossibletomeetwithanyquality,butwegotitdone.Ilovethistool!” Manager,Sydney“WepulledacaseexampleonAssetManagementintheFinancialServicesPagetocreateapresentationfortheclientinonly1day.Itwasfantastic!” VP,Munich“GXCisfantastic,Iamsavinghoursalready!”

AC,Dallas“YourKMsystemisoneofthemostintuitiveandsophisticatedthatIhaveeverseen.Youcoulddoalottohelpusoutinthisarea.”

BainClient21BainknowledgecreationandcaptureProposalsCasesummariesIn-depthcodifiedmodulesTopexternalsourcesSelling

processCase

Start-upCase-endMinimumGoal:Captureon50%ofcases100%complianceAccuratecasetaggingOnegoodmoduleon50%ofcasesNewdatasourcesfromeverycaseOutput:FocusedinvestmentsCreatenewBainpointsofviewIPDevelopmentDrivenbyIndustry&CapabilityPractices22ManyrolesmakethisprocessworkDedicatedfacilitatorsforknowledgecaptureandsharingOffice-basedGXCevangelistRunsofficeincentiveprogramsBestexternaldatasourcesResearchdatabasesPartnerswhooverseeBain’sglobalCapabilityandIndustrypracticesContributebestworktoshareacrossBainCaseTeamPractice

AreasKnowledgeOfficerInfoServicesKnowledgeBroker23KnowledgeBrokersatBainKnowledgeSpecialistRegionalKnowledgeBrokerAssignedbyIndustryorCapabilityPracticeAreaManagestheGXCcontentandwebsiteintheirareasCoordinatesIPdevelopmentandcapturewithPracticeAreaVPsSupportsPracticeAreaoncommunications,projectsandincentivesAssignedbyofficeGeneralistKMsupporttoteamsintheirofficesAssistfindingcontent/peopleEnsuresaccuratecasetaggingHelpswritecasesummariesProbescaseteamstofindpotentialteaminsightstocodifyCaseendmanagerinterviewInterfaceswithrelevantKnowledgeSpecialistsRunsofficeincentiveprogramswithKnowledgeOfficer“Officegeneralists”“Globaltopicspecialists”24MetricsandincentivesOfficePracticeAreaIndividualOfficeKMScorecardMeasuresallofficeKMcontributionsNormalizesforsizeSentquarterlytoofficeheadsandMDKMfactoredinOfficeHeadperformanceAnnualOfficeKnowledgeAward1large,1smallofficeForallKMeffortsPracticeScorecardMeasuresKMprogressinPASentquarterlytoPAheadsandMDKMisacorefactorofperformanceandcompforPAheadsAnnualVPratingsAssessKMcontributionsbyeachVPFactoredintoannualcompOffice-based“sticksandcarrots”25Sowhat’stheimpact?Wecan’tandwon’tmeasureROIMostofthecostsare“soft”andcan’tbemeasuredOurproductisintangibleKMisonlyoneofmanyinputsTodaywecapturemanykeysuccessindicatorsUsageSatisfaction(annualsurveys)OnlinequalityratingsInformal“feel”But,thisisnotsufficient26OurframeworkforKMimpactImproveStaffProductivityBuildRelationships/IncreaserevenuesDecreasecostsDriveclientresults27WhatweknowsofarImproveStaffProductivityBuildRelationships/IncreaserevenuesDecreasecostsDriveclientresultsTeamsdeliverbetterqualityandresults,inlesstimeMoretimeto“crackthecase”Accesstothe“best”insightsBetterclientcollaborationOurclientworkisgloballyconsistentPartnersbuildproposalsin30%lesstimeThecaseteamprocessruns30%+fasterContactwithintheBainnetworkhasincreasedClientleadshaveincreasedWinratesat“bakeoffs”havegrownClassroomtrainingcostscutby$1MShorterprogramsNopaperCaseteamexpenseshavedecreasedResearchTelecomcosts28OurnextstepsImproveStaffProductivityBuildRelationships/IncreaserevenuesDecreasecostsDriveclientresultsInstitutionalizeregularcustomerresearchontheimpactofKMonourjobsPartnersOtherconsultingstafflevelsStructuredinterviewsandsurveys,builtaroundthisimpactframeworkUseresultstodirectChangestocontentstrategyandprioritiesAdditioninvestmentsintheGXCFurtherprocessimprovements29OurkeylearningsInternalandexternalknowledgetogetherContentandthoughtfirst,beforethetechnologyMassivefocusonpeopleandprocessKnowledgeBrokersPracticeAreaVPsCommitmentfromtopmanagementQualityoverquantityBuildaroundhowpeopler

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