3M Knowledge Management-Group 1

8/10/2019 3M Knowledge Management-Group 1

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KMS

3M Knowledge management 0

Designing KnowledgeManagement Strategy for3M Organization

KMS Major Assignment

November

16

2014

Group-1Peeyush Anurag Ray U113158

Siddharth Sourav Padhee U113113

Manish Yadav U113029

Risheek Raizada U113008

Atandrita Aparajita U113013

Aniroodh Ganeriwala U113190


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Executive Summary

3M aims at becoming the most innovative organization in the world. (AdamBrand, (1998),"Knowledge

Management and Innovation at 3M", Journal of Knowledge Management,).3M serves customers through

five diverse business segments: Consumer, Safety & Graphics, Industrial, Health Care, and Electronics &

Energy. To be innovative in highly competitive industries and global markets requires the effective use

of Knowledge Management. Amidst all these diversities, it was necessary to have information access to

various functions in the organizations .For instance, 3M makes more than 10,000 products [and]

operates 30 business unit, the scope and pace of customers questions began taking a heavy toll on call

centre agents and managers. Training agents to handle questions relating *to all 3Ms products and

services+ was becoming impossible (Edwards, 2000).Also internally within 3M, synergy among all the

labs scattered in various geographical location is necessary for continual development and for answeringtechnical queries and information sharing, a knowledge management system is necessary. An attempt

to understand the solution to above problems has been made through secondary research .The sources

for the same has been listed in the references. After continuous attempts to improve customer support

at 3M, the management realised the need of an appropriate environment to be in place which will

motivate people to input and access such systems. On similar lines, incorporating the knowledge

conversion process laid down by Nonaka , 3M concentrates on the tacit to tacit area in the belief that if

socialization functions well, other aspects of Knowledge Management will fall more readily into place.

For internal knowledge exchange the Socialcast portal was incorporated.


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Background of 3M

3M Commercial Care is a diversified supplier of cleaning and maintenanceproducts and programs for commercial, health care, educational, retail andindustrial facilities. 3M Commercial Care manufactures chemical management

systems, floor finishes and cleaners, disinfectants, carpet care products, floor padsand brushes, hand pads, matting and traction products.

Every day, 3M people find new ways to make amazing things happen. Whereverthey are, whatever they do, the company's customers know they can rely on 3M tohelp make their lives better. 3M's brands include Scotch, Post-it, Scotchgard,Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti. Serving customers inmore than 200 countries around the world, the people of 3M use their expertise,technologies and global strength to lead in major markets including consumer andoffice; display and graphics; electronics and telecommunications; safety, security

and protection services; health care; industrial and transportation.

3M is a global innovation company that never stops inventing. Over the years, ourinnovations have improved daily life for hundreds of millions of people all over theworld. 3M have made driving at night easier, made buildings safer, and madeconsumer electronics lighter, less energy-intensive and less harmful to theenvironment. 3M even helped put a man on the moon. Every day at 3M, one ideaalways leads to the next, igniting momentum to make progress possible around theworld.


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Methodology

1. To understand the business objectives and the strategy associated for comprehensive

knowhow as to how the business processes are executed so as to achieve its goals

2. We used secondary data to identify various departments and functions and also we take

two different processes which are highly critical for the business and understand the flow of

process and information

3. After understanding the current process and the challenges, we make an attempt to draw

the probable KM strategy, followed by architecture and then the proposed systems

4. Finally, we identified the infrastructure required to implement the knowledge

architecture. This includes the technology to be used and the roll out plan including a

roadmap with well-defined milestones mapped to KPIs.

5. Lastly we lay down a sampleChange Managementprocess.


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Data Collection

SecondaryThrough websites and other documents

Business goals & their impacts

3M Values

Act with uncompromising honesty and integrity in everything 3M do.

Satisfy our customers with innovative technology and superior quality, value and service.

Provide our investors an attractive return through sustainable, global growth.

Respect our social and physical environment around the world.

Value and develop our employees' diverse talents, initiative and leadership.

Earn the admiration of all those associated with 3M worldwide.

3M at a Glance (Year-end 2013)

Global sales: $30.8 billion.

International (non-US) sales: $19.7 billion (64 percent of company's total).

Operations in more than 70 countries.

3M products sold in nearly 200 countries.

88,667 employees globally.

2013 3Mgives cash and product donations totaled $60.2 million.

3M Brand Identity Vision

3M earn customer loyalty and respect when 3M effectively differentiate from our competition and

leverage the 3M brand identity standards as a vehicle for impact and success. As a diversified technology

company, 3M relies on the delivery of our brand promise (what 3M bring to the marketplace), align with

the expression of our brand essence (how 3M is able to achieve that brand promise) to ensure

understanding and connection with our company, brands and products.

3M Brand Promise

Practical and ingenious solutions that help customers succeed3M Brand Essence

Harnessing the chain reaction of new ideas


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The integration of these core building blocks reinforces the trust, leadership, quality and innovation for

which 3M has grown to be recognized and respected. In addition, of course, 3M also have strategic

brands, which provide further relevance and differentiation in key market categories.

3M Brand Identity Objectives

The objectives of our brand identity system are to:

Manage the 3M brand globally - expressing our promise, personality and values.

Build the ability of the 3M brand and strategic brands to instill familiarity, reinforce brand/product

experience and protect our equity.

Provide tools to facilitate consistent and effective delivery of the brand promise with every point of

contact.

3M Brand Identity StrategiesTo build a truly global brand, 3M need to maximize awareness and relevance of our single, unifying 3M

brand. To achieve this, our strategies are to:

Increase familiarity of the 3M brand identity through consistent application of our identitystandards worldwide.

Build equity in identity assets that are globally recognized.

Build market leadership in every market 3M serve.

Industry Analysis (PESTEL)

Political Factors

Political factors include government regulations and legal issues and define both formal and

informal rules under which the firm must operate. Some examples include:

* tax policy

* employment laws

* environmental regulations

* trade restrictions and tariffs

* political stability


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Economic Factors

Economic factors affect the purchasing po3Mr of potential customers and the firm's cost of

capital. The following are examples of factors in the macroeconomy:

* economic growth

* interest rates

* exchange rates

* inflation rate

Social Factors

Social factors include the demographic and cultural aspects of the external macroenvironment.

These factors affect customer needs and the size of potential markets. Some social factors

include:

* health consciousness

* population growth rate

* age distribution

* career attitudes

* emphasis on safety

Technological Factors

Technological factors can lower barriers to entry, reduce minimum efficient production levels,

and influence outsourcing decisions. Some technological factors include:

* R&D activity

* automation

* technology incentives

* rate of technological change


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KM Strategy

KM Architecture 3M Knowledge Management Framework

The figure below shows the Knowledge Management framework for 3M

Knowledge Goals for

specific business process to

be outlined

Either Head of Departmentor functional expert

Latest IT enables

infrastructure to

manage knowledge

Fostering the reuse of

existing of knowledge to

validate and further

refine the knowledge

Processes and policies to

develop Knowledge

Learning and Sharing

CultureKnowledge by

Design. Knowledge by

culture

Knowledge Aquisition

Processes and

policies to distribute

Knowledge

Processes and policies to

Preserve Knowledge

through security measures


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SUB PROCESS Procedures, testing, quality check, apparatus settings

OBJECTIVE To modularize product development process across labs

CONSTRAINT Complacence with processes, acceptance of new practices,difference in time zones, different work culture

METHOD Video conference, remote file transfer protocol etc

SYSTEM Internal communications, one to one communication

channel

ACTORS Product development Managers, workers, scientists,

assistants ,HR

ID Category Process Description

KM Process Knowledge

Sharing

Sharing

knowledge

between lab

KNOWLEDGE

MANAGEMENT

KNOWLEDGE

PROCESS

KNOWLEDGE

INTENSIVE

BUSINESS

PROCESS


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KM Organizational structure

3M has numerous products and many a times it may so happen that when a customer care

representative is asked some question regarding a product s/he does not have a concrete answer to that

neither does s/he find the answer in the existing database. There may be instances when relevant datais present in the database but due to unstandardized metadata the representative is not able to retrieve

the exact information from the database. Below is the process flow to be followed in case similar

situation arises.

KM ORGANIZATIONAL STRUCTURE:

A knowledge management structure

Traditional hierarchical management structures allow vertical knowledge transfer through typical chain

ofcommand, but inhibit horizontal knowledge transfer that must cross the organization's functionalboundaries. Increasing competition and ever shortening rates of technological change necessitate better

transfer of knowledge across organizational boundaries (Gopalakrishnan and Santoro, 2004), with

organizational structure identified as one of five factors attributing to knowledge transfer performance.

The development of knowledge teams composed of knowledge workers from crossfunctional areas of

the organization is a first step towards developing a fully distributed knowledge transfer system (both

Customer enquires

something

Customer enquires

something

Customer care rep

searches database

Relevant

Document

found

Similar

doc found

not exact

one

Reply to customer

Use a standardized

format which ensures

future smooth retrieval

of data

Induct relevant document

to the database through

KM process

No document with such

queries present in

database

Problem with metadata

management

Escalate the

issue

YesYes

No No


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vertical and horizontal) within the organization. Crossfunctional team members provide knowledge

sharing from their knowledge team back to their original functional areas.

However, the scope of teams is limited to the organizational problem assigned to the team and results

in limited knowledge sharing throughout the organization. The idea of teams and knowledge sharing

must be extended to include all aspects of the organization. A knowledge teambased organizationalstructure is displayed in Figure 2. The knowledge organization of Figure 2 is composed of knowledge

groups that are composed of knowledge teams, which are built from knowledge workers selected for

participation on a knowledge team due to their tacit knowledge and skills. Ideally, the knowledge

workers on any knowledge team come from different organizational (and educational) backgrounds and

will bring a diversity of tacit knowledge and skills to the team.

Adoption of a new organizational structure (the knowledge organization) or managerial methodology

(knowledge culture) faces resistance within the organization (Goh, 2003; Zammuto et al., 2000).

Resistance to change may be minimized by reducing the perception of change for the stakeholders.

Initially, the knowledge team management structure may be aligned to an existing hierarchical

management structure by aligning the knowledge groups with the existing functional areas of the

organization including: accounting, marketing, production, and research similar to the idea of

communities of practice. Knowledge teams or intermediate groups of knowledge communities are then

aligned with the subdivisions within each functional area.

The recognition of individual personnel as knowledge workers will promote the development of new

knowledge teams to address an organization's opportunities and consequently will facilitate the

development of knowledge team communities that are diverse and more focused on knowledge

oriented problem solving. Knowledge workers are expected to share and utilize knowledge with other

team members to produce the highest quality decisions. New knowledge teams and groups must be

promoted to develop around product lines or other core competencies of the enterprise as opposed to

functional area team composition. Knowledge teams should be created dynamically to take advantage

of an organization's business opportunities or new business strategies.

Over time, the idea of an accounting (or other functional) branch of the organization will be replaced by

communities of knowledge workers that have knowledge/expertise in accounting and may thus utilize

other tacit knowledge to specialize in functional capabilities within a knowledge group. Communities of

practice will still be an important element within the knowledge organization structure to enable

knowledge team members to interact with members of other knowledge teams with similar interests

and competencies and further promote interteam knowledge sharing. Furthermore, communities of

practice have been identified as a strategy to improve organizational performance through enhancedknowledge sharing (Lesser and Storck, 2001).

Knowledge teams that identify the need for specific knowledge (e.g. accounting or marketing) would

then recruit knowledge workers that had the desired tacit knowledge to join the team (from a dissolving

team that has already accomplished it's primary purpose or from a team that did not have a current

need for the requested knowledge worker's tacit knowledge). The role of a knowledge librarian or


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expertise locater system can facilitate the identification and location of knowledge workers with desired

tacit knowledge and skills.

ORGANIZATION STRUCTURE (3M):

Framework for creating communities of practice

Chairman and CEO

Mr. Inge Thulin

Lead Director

Mr. Vance Coffman

Director

Mr. Michael Eskew

Director

Mr. Edward Liddy

Lead DirectorMr. Vance Coffman

CFO

Mr. Nicholas Gangestand

Electronics and

Energy

Consumer Business

Design

Healthcare

Industrial Business

International

Operations

Safety and Graphics

Business

Development

Human Resources

Legal Affairs

Sales and Marketing

M & A

Audit

Control and Acc.

New Ventures

Treasurer

France

Mexico

APAC

West Europe

Latin America

Talent Recruitment

Director

Ms. Linda Alvarado

Director

Mr. Herbert Henkel

Director

Ms. Soudra Barbour

Director

Mr. Muhtar Kent

Director

Mr. Thomas Brown


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Source: apqc.org, knowledge management best practices, Oct 09, 2012

Roles & ResponsibilitiesCKO

Its the responsibility of the CKO decide the budget allocationfor knowledge

management process. CKO also has to decide who will be the resources

involved in this activity and what will be their roles and responsibilities. A

roadmapfor implementation is also decided by CKO.

Working Groups

Working group consists of business units heads. They have to prioritizethe

KM process based on the business impact. Apart from that, they also assign

budget and resources.

Working group also have to define KPIsfor the resources involved in the KM

process. These KPIs have to align the business goals with the KM process so

that the KM related tasks become a part of daily work of the resources. Cost

and roadmapsare also defined by working group.

COP

COP is a group of people who are experts in their fields and they collaborate

with others and share their learnings. The resources selected for COP are


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classified as Subject Matter Experts (SMEs) based on their past records,

certifications completed, experience etc.

COP also have the responsibility of reviewing the documents created by

other COP members (Peer Review). Peer review is followed by an expertreview. SLAs for review process is based on the amount of time taken for

reviewing a document. These SLAs must be in line with the KPIs identified

by the working groups.

COP is responsible to define Good Practices. Defining KM process,

implementingand rolling out the pilotphase is done by COP.

KM Objectives, KM Plan and Roles & Responsibilities

KM Objectives KM PlanRoles &

Responsibilities

To serve all sections of the societyequally by making healthcareservices, knowledge andinformation accessible to all

A Central Database whichprovides all Information onCloud for easy access to all

CKO Supervises it. TheMOHFW is the owner.

To plan a innovation systemwhich can be implemented allover the country with slightmodifications to meet regionalneeds

Feedback is taken from allregions and Important pointsare included in the documentwhich is rolled out at laterstage

Additional Secretary takesthe responsibility offeedback and distributingthe report

To make all real time data to beavailable from everywhere andhelp in innovation

Centralized Servers(atdifferent location) connectedto the Computers

Data entry operators arerequired to input all the data

To make the public aware aboutproducts

Public awareness AudioVisual Campaigns

Conducted by 3M


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KM Processes & Metrics

KM Process and Metrics

The KM process will comprise of the following steps:

a) Knowledge Detection/Discovery:

a. Tacit: The tacit knowledge is present with the officers who attend the Daily

Traffic Review Meeting (DTR). They take decisions of allotment in consultation

with the various stakeholders.

b. Explicit: This is largely a process of sorting through documents and other records,

as well as discovering knowledge within existing data and knowledge

repositories.

b) Knowledge Assessment & Organization:The tacit knowledge of the officers is capturedand stored in manuals and cases and various templates which makes the knowledge

explicit by documenting it.

c) Knowledge Sharing :

a. Articulation:Defining what a user needs

b. Awareness:Awareness of the knowledge available. The Knowledge creator is

encouraged to make use of directories, yellow pages, maps, corporate etc.

c. Access:Access to the knowledge.

d. Guidance: Defining the areas of expertise of the members of the 3M, guide their

contributions, assist users, and be responsible for the language used in

publications and other communication material. This is so as to avoid aninformation/knowledge overload.

e. Completeness:Access to both centrally managed and self-published knowledge.

The former is often more scrutinized but takes longer to publish and is not as

hands-on (and potentially relevant). Self-published information on the other

hand runs the risk of not being as reliable.

d) Knowledge Review: This explicit knowledge of the various decisions taken during

allotment of berth is reviewed by the CoP and then further by the KM champions.

e) Knowledge Store : The knowledge asset once reviewed is stored in the portal or the

repository by the Knowledge Manager.

f) Knowledge Reuse: This knowledge is used by various officials the port to taken better

informed decisions thereby ensuring improved performance and enhanced quality of

service delivery.


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Metrics:

Organization Efficiency

Organizational effectiveness.

staff turnover

KM Phase Process Metrics

Creation Phase Quantity of discussion groups on process orproduct innovation

Quantity of valid contributions for organizational

memory

Storage Phase Quantity of messages or documents

stored in the system

Number of registered users who use

the system

Quality of stored knowledge

Experts evaluation to check quality

Quantity of editions or updates Level of knowledge updating

Users feedback

Dissemination Phase Quantity of active communities of

practice

Statistics on use of organizational

memory / intranet

Perception of collaborators with

available internal means of

communication

Cost of distribution

Utilization Phase Quantity of useful suggestionsincorporated to productive processes

and/or products

Statistics of utilization of the system

Statistics of utilization of the search

mechanism

Number of ideas or patents

Measurement Phase Comparison between number of

measurement planned hours and actual

hours

Number of evaluations made in

comparison with the plan

KM Architecture


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Data Captured at

Hospital Levels

Data Reviewed bythe Matron, Peer

Doctors (atleast-1)

of the Hos itals

Data Stored atState Level to

Regional to

Central Level

Data Manual input

by the doctors

[Grab your

readers attention

with a great quote

KM

Proc

ess

Major challenges faced by 3M are as follows

-

Unsatisfactory

quality of data

Data is the main ingredient of any knowledge management system. For the KM system to

help in forming better policies and in taking better decisions, it is important to use good

quality of data.

Non- availability of data for knowledge generationThe data that is captured is not in standardized format. This makes it difficult to store

data in common database. To ensure availability of data, we need to make sure it is in

uniform format.

Inadequate dissemination of knowledge

Tacit

Explicit

ReviewStore

Reuse


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Knowledge management system cannot be a success until it helps in spreading the

required information to correct people. For this different mediums like internet, kiosks

etc. can be helpful. Along with presence of information and medium, proper training need

to be given to people who will generate and use the data.

Change Management

CHANGE MANAGEMENT:

Knowledge is always considered very important for a company like 3M which is completely innovation

driven. It is very imperative for all the stakeholders or at least for the employees to be aware of all the

developments happening in the company. Considering the importance of knowledge, the managementof knowledge within the organization plays a vital role. So various knowledge management strategies

are applied in the form of new technologies, change in work culture or modification of workflow

processes. But employees always resist the change. So KMS introduction in the organization needs

preparations and strategies to avoid rejection of the employees. The rejection might become a

bottleneck in the implementation process and its future use.

Factors that could affect Change Management KM strategy:

One of the factors that heavily affects the new KM strategy implementation is the employees

resistance to change. Employees have followed a process for a long period of time and they are

never willing to change the way they work or to adopt new processes in work. It will take a lot of

convincing to make them understand what benefits the new KM strategy would bring to him

and to the company as well.

Other factor can be top managements commitment to the KM strategy. Implementation of Km

strategy would take some time and the benefits will only be realized after it is practised for fair

amount of time. During this time top management should remain fully committed to the

process. Change management is a top down approach so the commitment and involvement of

top management is very vital.

Another factor is even if employee agrees to the new strategy without any motivation s/he may

not practise that. Employees should be forced to adopt to the changes but not through coercion

but by linking it to the KPIs.

Framework for change management strategy for KMS Implementation:

To formulate the framework for change management strategies for KMS implementation we adopt

some relevant concepts like System Thinking Approach, SWOT analysis, SKEPTIC analysis, theory of


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Technology Acceptance Model, theory of Lewins three step model and Analytic Hierarchy Process. The

process follow would follow the sequence

First step is to analysing future environment. For this process SKEPTIC analysis is to be used

which would help us to know organization opportunities and threats.

Second step is to determining objectives of KMS implementation. Through the help of KMSfunctions what objectives are expected to achieve is analysed in this step.

Third step is to formulate the success criteria. Through CSFs we determine the KPIs which

essentially help in motivating employees to adopt to the change.

Fourth step is to analyse the current situation of the organization. Through Technology

Acceptance Model we take a stock of organizations strengths and weaknesses.

Fifth step will be to prioritize the change management strategies and to map the strategies to

corresponding functions.

Sl

No

PROCESSES OBJECTIVES

1

Analysing Future Environment

Organization Opportunities and

threats

2 Determining objectives of KMS

implementation

Expected Objective to be achieved

3 Formulate the success criteria Determine KPIs

4 Analyse the current situation of

Organization

Organizations strength and

weakness

5 Prioritize the change management and

map the strategies to corresponding

business process

Prioritize change management and

map strategies to business process


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Rewards and Recognition:

KM practices are linked as KPIs to every employee and at initial stage employees are rewarded for the

compliance to KM practices. Rewarding employees for compliance to KM practices is used as tool for

change management. Employees feel motivated with the reward scheme and it drives their motivation

to keep on contributing to KMS. But with experience this tactics may not work and managers need to

switch to recognition as a motivating factor. Recognition can be of many forms like giving credit for

some work, public appreciation etc.

ROI:

COST (in dollars)

Year 1 Year 2 Year 3 Year 4 Year 5 ASSUMPTIONS

Server Purchase 1830 0 0 0 0

Rs 110000,

dollar:rupee =

60:1

Database

Purchase 20000 0 0 0 0

100TB

database;

$200/ tb

Set

up/Development

cost 10000 0 0 0 0

Transition cost 1000 0 0 0 0

Server/Database

Maintenance 1000 1100 1210 1331 1464.1

$500 peranum; 10%

increase YoY

Training /

Communication

cost 50000 52500 55125 57881 60775

5% increase

YOY

Per Year total 83830 53600 56335 59212 62239

5 year total 315217

BENEFITS Year 1 Year 2 Yer 3 Year 4 Year 5 ASSUMPTIONS

Rework Reduced 15000 16500 18150 19965 21961.5

R&D

budget$1.5

billion

dollars,grows

10% each year;

reduced

rework saves

0.001% of R&D

cost


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Reduced repeat

calls 10000 11000 12100 13310 14641

0.01% increase

in efficiency of

customer care,

reduce the

man power in

customer care

by 0.01%.

YEAR WISE

TOTAL 25000 27500 30250 33275 36602.5

5 YEAR TOTAL 152627.5

ROI 48.42

References

References:

1.Adam Brand, (1998),"Knowledge Management and Innovation at 3M", Journal of KnowledgeManagement, Vol. 2 Iss 1 pp.1722

2.3M Case Study-Socialcast Gives 3Ms Global Labs a Distinctly Local Feeling

3.http://users.jyu.fi/~japawlow/slides/06_GKM_processes_2013.pdf

1.

Documents

3M Knowledge Management-Group 1