1

Information Knowledge Management at De Beers Group

Helen Monagle 23/04/2012

http://diamonds-pearls-jew.blogspot.co.uk/2010/04/de-beers-petra-diamonds-inks-deal.html

2

Themes• Introduction• Introduction to the De Beers Group• Introduction to KM at De Beers• The Strategic Context• Objectives• Timeline for KM at De Beers• The Implementation Process• The Benefit of the Implementation to Organisational

Performance

3

Introduction

• Albers (2009) states that in order to successfully leverage corporate knowledge, organisations should implement knowledge management strategies that enable them to capture, share, and integrate knowledge within their environments.

4

Introduction to the De Beers Group

• De Beers was established in 1888 and is the world’s leading diamond company with unrivalled expertise in the exploration, mining and marketing of diamonds.

• With geographically diverse world-class mining assets, De Beers has the largest diamond resource and reserve position in the world, as well as a value-adding global distribution network.

• In May 2001, a leveraged buy-out of De Beers, transformed it from a public company to a privately owned one, while retaining and building on the aspiration to be the world’s leading diamond company. This was the impetus for KM within the organisation.

5

Introduction to KM at De Beers

• A luxury market like this is not without risks, and the slump in 1981, the growth of diamond production from Russia, plus the political developments in South Africa, altered De Beers to the need to rethink its business model, to develop a more competitive footing, and to become a learning organisation.

• KM within De Beers arose out of a project looking at the intellectual capital of the organisation, led by Ian Corbett, a geologist, who came to realise that studying intellectual capital (IC) was one thing, but that increasing the value of that capital through KM could yield even more benefit to the organisation.

6

The Strategic Context• In the 21st century, De Beers can no longer rely solely on size or market

dominance for success, especially when competing in new countries; they need to draw on its more enduring asset: its vast wealth of knowledge and experience developed over 100 years of diamond mining in a wide variety of operational environments.

• De Beers operates eight major diamond mines within South Africa, is involved in three mines within Botswana, six extraction areas in Namibia, and two projects in Canada. Despite the great variety of operational settings, these operations have many issues in common, and there is great value in sharing learning.

• In terms of corporate social responsibility, De Beers in South Africa has made a commitment to Employment Equity – redressing the balance of workforce diversity to reflect the diversity in the South African population.

7

Objectives

• Corbett and Nick Milton (BP), through KM, hoped to address the challenge of removing the waste and inefficiency that can be caused by repeating mistakes, reinventing wheels, and failing to apply better practice systematically.

• Corbett’s strategy for KM at De Beers lay in creating an environment for conversation – in the frenetic pace of change, people were losing the time to reflect and discuss what they had learnt. His stated objective was to have secured the support of the senior team by mid-2002.

8

Timeline for KM at De Beers

9

The implementation process

Corbett brought together the information professionals and other interested parties in KM within De Beers, to develop a more coherent and systematic approach to KM. The early stages of implementation were all about trial, piloting, and proof of concept.

Senior management made the decision to appoint a full-time Knowledge Manager for the Exploration and Operation Division (EOD) to support Corbett in the implementation of KM, Rene Ward was appointed in April 2002.

In July 2002, Nicky Oppenheimer, Chairman of De Beers, updated senior management of the group’s EOD at the strategic review following the privatisation of the company, with his intention and commitment towards the organisation’s intellectual assets through sharing knowledge.

10

Face to Face IKM:

December 2001: A workshop was held to introduce skills and processes into De Beers, to develop the start of a Knowledge Management Community of Practice, and to begin to work on an implementation strategy.

!Gariep Retrospect: The Retrospect process was used as a way of harnessing some of the tacit knowledge into explicit knowledge. Former !Gariep team members were flown in from around the world, the lessons were identified and captured on tape, video and in notes, and were packaged into a knowledge asset for future use.

11

• Peer assist at Finsch: was used to draw on the knowledge and experience of other mines (over 240 man years) and evolving the relationship with the supplier before investing heavily in earth-moving equipment. Sharing knowledge delivered crucial insights and improved the outcome for mutual benefit.

Communities of Practice and technology: KEx: a community portal known as Knowledge

Exchange (KEx) was commissioned, which allowed the members of the community to post challenges to knowledgeable colleagues, to seek guidance, and to have questions answered.

12

• Stakeholders involved in the implementation process: the workshops were held with representatives from all parts of the exploration and operations side of the business, people who had an interest in KM, or who were already working in KM or information management.

• !Gariep involved 25 members of the project team, with up to four years’ history with the project.

• The peer-assist was a meeting hosted by Finsch mine, and attended by 15 individuals from other mines and from De Beers’s major suppliers.

• Cyber-librarians were also a key part of the KM team with the integration of the Virtual Library, where information is held about mining and diamonds.

13

The Benefit of theImplementation to

Organisational Performance• KM has helped De Beers face its competitive market by drawing

on the value of over 100 years’ worth of knowledge and experience. This can be shown by the success of the peer assist at Finsch prompting Premier mine to try the same process of exchanging knowledge before planning its underground extension.

• KM has been embedded within the organisation and has helped deliver R80 million in added value for Finsch mine. Achieving 90% penetration within a year, the future focus for De Beers will be building organisational capacity, skills, and awareness.

14

References• ALBERS, J.A., (2009) ‘A Practical Approach To Implementing Knowledge Management’, Journal of Knowledge Management Practice, 10, (1). [online] [cited

27/3/2012] http://www.tlainc.com/articl174.htm • DE BEERS GROUP., [online] [cited 26/03/2012] http://www.debeersgroup.com/ • GORELICK, C; MILTON, N; APRIL, K., 2004. Performance Through Learning : Knowledge Management In Practice. [online] Elsevier Butterworth-Heinemann, eBook

Collection [cited 28/3/2012] http://web.ebscohost.com/ehost/ebookviewer/ebook/nlebk_114172_AN?sid=1bbbf62e-b125-4f63-b3ea-0ed5dce18200@sessionmgr12&vid=1

• INSIDE KNOWLEDGE., (2003) Case study: De Beers mines for knowledge gems [online] [cited 4/4/2012] http://www.ikmagazine.com/xq/asp/sid.0/articleid.2785E934-6F28-4FE0-86D1- 2999063089A2/eTitle.Case_study_De_Beers_mines_for_knowledge_gems/qx/display.htm • INVESTMENTS & INCOME.COM., (2011) De Beers Group [online] [cited 1/4/2012] http://www.investmentsandincome.com/investments/de-beers-diamonds-investment.html

• KNOCO STORIES., (2009) KM and content management, the turf war [online] [cited 3/4/2012] http://www.nickmilton.com/search?q=de+beers • KNOCO STORIES., (2010) KM and innovation [online] [cited 3/4/2012] http://www.nickmilton.com/search?q=de+beers

• KNOCO STORIES., (2011) Quantified KM success stories 21 - Peer Assist at De Beers [online] [cited 3/04/2012] http://www.nickmilton.com/search?q=de+beers

• RIDER, P.J; ROODT, A., (2003) ‘Diamond value management—knowledge management and the measurement of value addition’ The Journal of The South African Institute of Mining and Metallurgy, 103, (9), pp.551-555.