APQC recently talked to Beth Houlis, manager, knowledge management and information technology at Liberty Mutual Insurance, about the challenges her organization faced in building a knowledge management program from the ground up. Beth discusses the keys to making a business case, getting funding, building a strategy, and measuring initial ROI.
Beth Houlis will be a breakout session presenter at APQC’s 2015 Knowledge Management Conference April 30-May 1.
APQC: Liberty Mutual launched its formal KM program about a year ago. To do that, you had to make the business case to leadership. What is the key to doing this right?
Beth: I think the key to developing a successful business case is to fully understand the problem you are solving and have executive sponsorship before you even start writing the business case. By the time you formally present a business case to executives, they should already be on board. In other words—no surprises! It’s also critical to ensure you spend time listening, not only to executives, but to the audience where the knowledge management program will be implemented. You need to have a full picture of the problem before you propose a solution.
APQC: Once you acquire funding, what’s the next logical step when building a KM program?
Beth: The first step is to assess the organization’s current state. What are the pain points? What barriers exist¾whether virtual (technology, etc.) or cultural? Take the most critical pain points and gaps and then shape the strategy and tactics to address the most urgent challenges. This will ensure your program provides relief right away where your audience needs it. I think a lot of people confuse strategy with tactics, so be careful not to jump right into the tactical piece of the program first. Make sure there is a clear vision of what the program is going to achieve.
Then, it’s on to the most important part: execution. Executing a KM program takes time, energy, and human capital. In our organization, we are currently working to address the challenge of finding resources to execute successfully. Successful KM program execution can’t happen with part-time resource dedication, or only one person leading the charge. Execute with excellence and the KM program will be a success.
APQC: What are mistakes people make when defining an initial KM strategy?
Beth: Focusing too much on a technical solution. For most people, when you mention “knowledge management,” their minds go right to an IT solution¾and that’s not real knowledge management. A comprehensive knowledge management program should use a variety of tactics (such as communities of practice), and they all should be aligned and complement each other.
APQC: When you face resistance during KM implementation, what are ways to overcome it?
Beth: An excellent branding, communications, and change management plan is essential. Make sure you’re listening to stakeholders and incorporating feedback in a visible way. The program is all about them, after all, and it won’t work without their partnership.
APQC: Even though your KM program is relatively young, you’ve been able to measure early ROI. Can you share any tips on defining and assessing the value of KM?
Beth: Establishing a baseline is important. It’s critical to have a line in the sand so you can demonstrate the improvements the KM program makes. Make sure the baseline measures are tied to a financial metric. For example, will the KM program make employees more effective? Great, then tie that to dollars per hour or annual salary.
Another good early measure is employee opinion surveys. If your company has an annual survey, choose the dimensions that relate to KM and monitor any change. Of course, there are other factors that likely impact those dimensions besides a KM program, but you can certainly point to positive changes as a result of KM.