Compaq KM Case Study focusing on people and

Compaq KM Case Study …focusing on people and process Denise M. Schilling Manager Compaq Knowledge Management Office Kimberly Lopez Senior KM Consultant American Productivity & Quality Center © Compaq Computer Corporation and American Productivity & Quality Center

Today’s agenda. . . Who we are Compaq and APQC What we’re doing supporting the business strategy through KM How we’re succeeding KM at Compaq today © Compaq Computer Corporation and American Productivity & Quality Center

Our belief… people enabled by great technology can achieve great things © Compaq Computer Corporation and American Productivity & Quality Center

Do you know that Compaq is? Leader in High Availability #1 in High Performance technical computing 6 of 7 supercomputing wins power the 15 largest exchanges #1 marketshare in Web servers Market Leader in Windows 2000 deployment 60% marketshare with 8 -Way servers #2 worldwide in PCs #1 in storage volume shipped #1 in SANs © Compaq Computer Corporation and American Productivity & Quality Center

Do you know about APQC ? The APQC Mission Connect Disseminate Discover Members – Global Firms and Governments Consortium Training Publications Founded 1977 to find and share best practices © Compaq Computer Corporation and American Productivity & Quality Center

APQC’s Work in Knowledge Management § Research on KM since 1993 § Research Consortia started 1995 – Over 150 firms in APQC’s KM Consortia – 45 Best Practice firms studied in detail § Shared knowledge with thousands of KM practitioners – – – Publications Training Conferences § Helping firms implement KM using best practices © Compaq Computer Corporation and American Productivity & Quality Center

The Compaq and APQC KM Partnership • APQC International Benchmarking Clearinghouse member since 1996 • Sponsored more than 17 APQC Benchmarking Studies including the recent Building & Sustaining Co. Ps • September 2000 – APQC participates in developing a corporate Knowledge Management Strategy • January 2001 - Compaq Knowledge Management Office created and partners with APQC to implement the corporate KM Strategy • July 2001 - CKMO leverages APQC expertise to create first cross-organizational Community of Practice pilot © Compaq Computer Corporation and American Productivity & Quality Center

Today’s agenda. . . Who we are Compaq and APQC What we’re doing supporting the business strategy through KM How we’re succeeding KM at Compaq today © Compaq Computer Corporation and American Productivity & Quality Center

Strategic priorities § Developing innovative products § Integrating them into solutions § Serving the global market Achieving profitable growth. © Compaq Computer Corporation and American Productivity & Quality Center

Evolution of computing Mainframe Era Client/Server Era PC Vendor Driven Pervasive Information Era Internet Technology Driven Customer Driven Standardization Waves © Compaq Computer Corporation and American Productivity & Quality Center

The intelligent Internet …it’s all about delivering knowledge for effective decision making Knowledge Data Store and Decision Making © Compaq Computer Corporation and American Productivity & Quality Center Computing and Communication

Strategic Position of Knowledge Management Aligning KM with Business Strategy Knowledge Redefining Employee Behavior & Experience and Decision Making Ensuring Organizational Success through Partnerships © Compaq Computer Corporation and American Productivity & Quality Center

Today’s agenda. . . Who we are Compaq and APQC What we’re doing supporting the business strategy through KM How we’re succeeding KM at Compaq today © Compaq Computer Corporation and American Productivity & Quality Center

Key Components of Knowledge Management Process People Ø Ø Ø Knowledge workers Communications and Training Formal Communities of Practice Measurement and reward systems Knowledge sharing culture Ø Ø Ø Ø Forming Communities of Practice Collaboration process Shared standards Common taxonomy Survey, census, requirements analysis Metrics and reporting Cross-organizational integration Feedback loop Technology Ø Ø Ø Ø Ø Collaboration Workflow & project management Repositories Content management Learning Portals Search engines & locators Document management Problem resolution systems © Compaq Computer Corporation and American Productivity & Quality Center

© Compaq Computer Corporation and American Productivity & Quality Center

Compaq KM Journey Corporate KM Strategy Complete CEO Request KM Strategy Development End of Qtr Factors Launch Co. P Pilot Expand CKMO Initiatives Create CKMO Reorg/ Layoffs © Compaq Computer Corporation and American Productivity & Quality Center

Compaq KM Journey Corporate KM Strategy Complete CEO Request KM Strategy Development Deliver KM Strategy Launch Co. P Pilot Expand CKMO Initiatives Create CKMO Reorg/ Layoffs © Compaq Computer Corporation and American Productivity & Quality Center

Co. P Pilot “Business Opportunity” Selection Criteria § Positive Financial Impact § Measurable Results § Bridge Organizational Boundaries § Transferable Learning § Sponsorship § Time to Results © Compaq Computer Corporation and American Productivity & Quality Center

Identifying the Business Opportunity Co. P Pilot - ISSG/CKMO Partnership Warranty Cost Reduction § Reduce warranty costs in 2001 § Executive level “balanced scorecard” goal § Cross-organizational stakeholders include: – Product Engineering, Engineering Design, Manufacturing, CPQ Global Services, Global Services Fulfillment, Global Services Operations, Procurement, Channel groups, Finance, Quality & Customer Satisfaction © Compaq Computer Corporation and American Productivity & Quality Center

KM Approach: Community of Practice A New Organizational Form Problem § If only we knew what we know about warranty cost drivers § Explosion of disparate warranty technology tools Warranty Event Analysis Co. P Vision § Create an organized “cross-organizational community” of people that can provide guidance in understanding how to use warranty event analysis information to drive and maintain warranty cost reduction Warranty Event Analysis Co. P Value Proposition § Focus on connecting people with people and people with information § Create a formal framework and process for collaboration among warranty stakeholders § Ability to sustain and leverage gains resulting from the current © Compaq Computer Corporation and American Productivity & Quality Center warranty process improvement initiatives

Warranty Event Analysis Co. P Steps to Success § Established selection criteria for identifying the Co. P opportunity § Formed a Business Unit partnership to leverage and expand existing KM activities addressing warranty issues § Secured executive and senior management sponsorship § Identified and engaged key stakeholders from across Compaq organizations § Created a WEA Co. P Design Team and Extended Team § A consistent and persistent Co. P driver © Compaq Computer Corporation and American Productivity & Quality Center

Warranty Event Analysis Co. P Pilot Successes Organization Value Proposition Approach Technology ISSG and Procurement Lower warranty costs by demonstrating Supplier responsibility for product quality Warranty Co. P Leveraging facilitates existing KM knowledge transfer technology ISSG Engineering Design, and Product Engineering Get product defect knowledge into the hands of product design engineers earlier Warranty Co. P facilitates transfer of Best Practices Leveraging existing KM technology ISSG Design Services, CPQ Direct, CPQ Mfg, Supplier Mfg Increase Product Quality and improve Customer Satisfaction Warranty Co. P knowledge sharing and reuse “upstream” in the product development lifecycle Web enabled Process Improvement Tracking System © Compaq Computer Corporation and American Productivity & Quality Center Results $Millions savings from Supplier reimbursements through enforcing warranty recovery Warranty cost avoidance Designing product quality in and product defects out through a proactive vs. reactive approach.

SUCCESSES - WEA Co. P Pilot § “Creating the WEA Co. P was something like aligning the planets. ” § “A critical goal of the product stabilization initiative is to focus on identifying product defects during the first 120 days, but we didn’t have the tools to efficiently and effectively look at the crucial repairs data. The WEA Co. P has put new emphasis on developing the processes for analyzing the repair data through an automated system. ” § “Through connecting people to people, the WEA Co. P has identified and shared best practices for analyzing repair data between ISSG Systems and ISSG Server Storage & Infrastructure groups. ” § “The WEA Co. P provides the opportunity to highlight issues and take action to improve business practices. ” © Compaq Computer Corporation and American Productivity & Quality Center

Lessons Learned on the Compaq KM Journey Strategic Focus Obstacles §Explosion of technology §Organizational silos §Uncertainty about corporate role and responsibilities §Budget constraints © Compaq Computer Corporation and American Productivity & Quality Center

Lessons Learned on the Compaq KM Journey Strategic Focus Successes §CEO and Senior Management Sponsorship §Identified several KM grass-roots activities §Perceived value for KM §Commitment to “keep on keeping on” © Compaq Computer Corporation and American Productivity & Quality Center

Lessons Learned on the Compaq KM Journey Tactical Focus Obstacles §Unclear about Co. P Handbook target audience and deployment §Severe resource constraints §Difficulty in managing the Co. P scope §Not understanding the relationships between KM and Process Improvement Program © Compaq Computer Corporation and American Productivity & Quality Center

Lessons Learned on the Compaq KM Journey Tactical Focus Successes §Created the Co. P Handbook §Secured BU support for implementing a Co. P pilot §Identified strategic business imperative that resonated across organizational boundaries §Aligned with Q&CS Black Belt program © Compaq Computer Corporation and American Productivity & Quality Center

Other Compaq KM Success Stories Organization Target Value Proposition NA Sales Reduce cost of doing business, Increase sales revenues and employee effectiveness Global Accounts, and Geo organizations Revenue growth Cross. Web site organizational Co. P Getting critical information into the hands of Global Account Managers to increase bid-wins Customer Services and Global Business Solutions Improve customer service delivery efficiency, Improve customer satisfaction Self Service Reduced time for training, reduced time for problem resolution, Increased employee retention Approach Technology Results Web portal, Web. Self Service, enabled issues “Facilitated” Self tracking Service application, e. Mail publications to target audiences Web enabled Knowledge Centered Support System © Compaq Computer Corporation and American Productivity & Quality Center Increased bid-wins via single point of access to technical sales, marketing, and training information

Concluding Thoughts Culture doesn’t change overnight § It’s learning in action! § It requires commitment! § It’s hard! § It’s rewarding! § Keep talking! © Compaq Computer Corporation and American Productivity & Quality Center

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Co. P Roles & Responsibilities KM Co. P Design Team § A cross-functional team that represents the BU or functional area of a KM initiative § Refines the scope of the KM pilot or initiative § Identifies the pilot users and “high-voltage knowledge” to achieve early success § Evaluates costs and infrastructure requirements § Recommends communication, training, rewards and other approaches to effect cultural acceptance § Creates project plan with staged activities and milestones © Compaq Computer Corporation and American Productivity & Quality Center