This information is confidential and was prepared by Bain & Company, Inc. solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent.

Knowledge Management at Bain

2NY Infotoday

preez 1

Most executives are not happy with KM

Average of31 Tools

KnowledgeManagement

3.76

3.22

0.0

1.0

2.0

3.0

4.0

Satisfaction (1 to 5)

Average of31 Tools

KnowledgeManagement

3.55

2.96

0.0

1.0

2.0

3.0

4.0

Rating (1 to 5)

“How Satisfied Are You with Each Management Tool?”

“How Good is Each Management Tool at Getting Financial Results?

Source: Bain Management Tools & Techniques Survey (2001)

3NY Infotoday

preez 1

Why KM Often Fails

Not enough thought before technology

Not properly defining KM for the organization

Viewing KM as a separate function, versus just a part of business strategy

Misguided focus on people and process

4NY Infotoday

preez 1

Bain has created a leading KM capability

A good strategy for content creation and capture- Focused, high value investments in intellectual capital- Deep mining of ongoing learnings from projects

The GXC - a great KM system- Classification/taxonomies- Integration of internal and external content- Integration of learning and knowledge- Powerful search

A lean, value-added KM team that - makes the process work- fits into existing company structures

A culture of sharing, not hoarding- Tacit- Codified

5NY Infotoday

preez 1

Why KM matters to consulting firms

Two core assets: people and reputation Our “product” is intangible Global business, but with local differences Partnerships, not hierarchies

Nature:

Generic frameworks and data are commoditizing Industry life cycles shrinking More MBAs, low entry barriers competition! Global service is required

Trends:

“Knowledge” is a critical capability for consulting firms

6NY Infotoday

preez 1

Knowledge example in consulting

You’re working in the PC Industry

Data Knowledge

Market size Market share Competitor prices

A commodity

The best way to segment the consumer market

How to streamline the supply chain

Impact of supplier consolidation on OEMs

A differentiator

World class KM programs manage & share both

7NY Infotoday

preez 1

Overview of Bain and Company

San Francisco

Mexico City

BostonToronto

Chicago

Moscow

RomeMunichMilan

BrusselsLondon

Tokyo

Seoul

Hong Kong

Singapore

Sydney

Dallas

Paris Zurich

Beijing

AtlantaLos AngelesMadrid

Stockholm

Johannesburg

Sao Paulo

New York

26 offices, working in 9 languages Over 2,500 consulting staff, “generalist” model Strict conflict and sharing standards

8NY Infotoday

preez 1

Many KM failures over our first 26 years

(1973-83)“Word of Mouth”

(1983-93)“Experience Center”

(1993-99) “BRAVA”

Many attempts at KM over our first 25 years

But none worked. Examples of our everyday pain…-Proposals still kept by each partner – requiring email and fax-Research tools weren’t sufficient to do the job-Our “best” work was still in file cabinets-We still depended on word of mouth to find experts -We redid the same work multiple times each year

9NY Infotoday

preez 1

Bain’s approach for getting it right

Create

Capture

Organize

Transfer

Use

Businessstrategy

KM Objectives

Define KM for the company

Define your content strategy, and what needs to be created to support your strategy

Determine how to capture (e.g., format, timing)

Organize and classify knowledge based on the business’ “view of the world”

Determine best modes for Transferring and sharing knowledge

Ensure formats and access (e.g., IT) make use as easy as possible

Key elements of KM:

10NY Infotoday

preez 1

The objectives of KM for Bain

What It’s Not

Advance the science

Become famous authors

Fancy portals

Document management

What It Is

Provide our staff with the tools and skills to develop

Enable our consulting staff to work better and faster - selling to new clients - starting up work - “cracking the case”

Apply Bain’s best global insights and approaches - No “re-inventing the wheel”

Drive client results

11NY Infotoday

preez 1

Bain’s knowledge is centered around our case teams

Knowledge “Needs” Bain’s point of view on the industry and case topic

Great examples and approaches Access to internal experts External Research

Knowledge “Outputs” New industry insights

New approaches (and solutions) to problems

Update to Bain’s point of view

Insights on managing the case and client

Client Development

Case Start-upIn-Depth Work &

RecommendationsImplementation

(Partner) (Partner, Manager and team)(1-3 weeks) (1-2 weeks) (1-6 months) (6 months +)

12NY Infotoday

preez 1

Our content strategy

Major research databases Top external data sourcesExternal content

Bain’s case & people experience

Sanitized summaries of every client project

Staff profiles & expertise For “tacit” sharing

Codified Baininsights

Bain’s critical IP- Industry verticals- Capability areas

“Reusable” formats Short shelf life

Tools and skills

Bain’s core global toolkit Embedded in our staff

training programs Long shelf life

13NY Infotoday

preez 1

The BVU and GXC

External content

Bain’s case & people experience

Codified Baininsights

Tools and skills

BVU 1.0Launched 1999

GXC 1.0launched 2000

GXC 2.0BVU 2.0

Launched October 2002

14NY Infotoday

preez 1

GXC 2.0 home page

15NY Infotoday

preez 1

Additional screen shots removed due to sensitivity

16NY Infotoday

preez 1

10 industry pages on the GXC

17NY Infotoday

preez 1

Presentations are in an easy-to-use, web-based format

18NY Infotoday

preez 1

Bain Virtual University

19NY Infotoday

preez 1

BVU video modules

20NY Infotoday

preez 1

New External Sources Page speeds upyour research

21NY Infotoday

preez 1

The GXC has changed the way Bain works

“Thanks to the GXC, I was able to pull together a preez on the impact of a proposed merger in the internet space here in Australia in just 24 hours. The deadline would normally have been impossible to meet with any quality, but we got it done. I love this tool!”

Manager, Sydney

“We pulled a case example on Asset Management in the Financial Services Page to create a presentation for the client in only 1 day. It was fantastic!”

VP, Munich

“GXC is fantastic, I am saving hours already!”AC, Dallas

“Your KM system is one of the most intuitive and sophisticated that I have ever seen. You could do alot to help us out in this area.”

Bain Client

22NY Infotoday

preez 1

Bain knowledge creation and capture

• Proposals • Case summaries

• In-depth codified modules

• Top external sources

Sellingprocess

CaseStart-up

Case-end

Minimum Goal: • Capture on

50% of cases

• 100% compliance

• Accurate case tagging

• One good module on 50% of cases

• New data sources from every case

Output: • Focused investments

• Create new Bain points of view

IP Development

• Driven by Industry & Capability Practices

23NY Infotoday

preez 1

Many roles make this process work

Dedicated facilitators for knowledge capture and sharing

Office-based GXC evangelist

Runs office incentive programs

Best external data sources

Research databases

Partners who oversee Bain’s global Capability and Industry practices

Contribute best work to share across Bain

Case TeamPractice

AreasKnowledge Officer

Info Services

Knowledge Broker

24

Knowledge Brokers at Bain

Knowledge Specialist

Regional Knowledge Broker

Assigned by Industry or Capability Practice Area

Manages the GXC content and web site in their areas

Coordinates IP development and capture with Practice Area VPs

Supports Practice Area on communications, projects and incentives

Assigned by office

Generalist KM support to teams in their offices

- Assist finding content/people- Ensures accurate case tagging- Helps write case summaries

Probes case teams to find potential team insights to codify

- Case end manager interview- Interfaces with relevant

Knowledge Specialists Runs office incentive programs

with Knowledge Officer

“Office generalists”

“Global topic specialists”

25NY Infotoday

preez 1

Metrics and incentives

Office Practice Area Individual

Office KM Scorecard- Measures all office

KM contributions- Normalizes for size- Sent quarterly to

office heads and MD

KM factored in Office Head performance

Annual Office Knowledge Award

- 1 large, 1 small office

- For all KM efforts

Practice Scorecard- Measures KM

progress in PA- Sent quarterly to PA

heads and MD

KM is a core factor of performance and comp for PA heads

Annual VP ratings- Assess KM

contributions by each VP

- Factored into annual comp

Office-based “sticks and carrots”

26NY Infotoday

preez 1

So what’s the impact?

We can’t and won’t measure ROI- Most of the costs are “soft” and can’t be measured- Our product is intangible- KM is only one of many inputs

Today we capture many key success indicators- Usage- Satisfaction (annual surveys)- Online quality ratings- Informal “feel”

But, this is not sufficient

27NY Infotoday

preez 1

Our framework for KM impact

ImproveStaff

Productivity

Build Relationships/

Increaserevenues

Decreasecosts

Drive client results

28NY Infotoday

preez 1

What we know so far

ImproveStaff

Productivity

Build Relationships/

Increaserevenues

Decreasecosts

Drive client results

Teams deliver better quality and results, in less time

- More time to “crack the case”

- Access to the “best” insights

- Better client collaboration

Our client work is globally consistent

Partners build proposals in 30% less time

The case team process runs 30%+ faster

Contact within the Bain network has increased

Client leads have increased

Win rates at “bakeoffs” have grown

Classroom training costs cut by $1M

- Shorter programs

- No paper

Caseteam expenses have decreased

- Research- Telecom costs

29NY Infotoday

preez 1

Our next steps

ImproveStaff

Productivity

Build Relationships/

Increaserevenues

Decreasecosts

Drive client results

Institutionalize regular customer research on the impact of KM on our jobs

- Partners - Other consulting staff levels

Structured interviews and surveys, built around this impact framework

Use results to direct- Changes to content strategy and priorities- Addition investments in the GXC- Further process improvements

30NY Infotoday

preez 1

Our key learnings

Internal and external knowledge together

Content and thought first, before the technology

Massive focus on people and process- Knowledge Brokers- Practice Area VPs

Commitment from top management

Quality over quantity

Build around how people really work and what they need