Finding the Lasting Value of Knowledge Management

By Tom Davenport

PAGE 2

Most important, the effort is showing results. The "Urban Slums and Upgrading" thematic group, for example, used knowledge management-based approaches to begin circulating ideas around the Bank for dealing with the problems of slums in developing nations. They developed a CD-based "electronic tool kit," for those who need help in designing and implementing large-scale urban infrastructure projects. They also developed an approach to "tacit knowledge download" to help new staff members learn from experienced ones.

See, See Ryder

OK, maybe you’re more interested in dollars made than dollars loaned. If so, Ryder System is your poster child for using knowledge management to transform the business. Ryder is a leader in the business of providing integrated logistics and transportation management solutions. Sure, that includes trucks—companies can rent, lease or even buy used trucks from Ryder—but it also includes knowledge. For example, say you are a PC manufacturer and you want to optimize your distribution network for your PCs. You need to know things like how many warehouses you should have, what’s the right mix of truck and air transportation, what distribution strategies will minimize the rapid depreciation of your products and how to deal with product returns. Making use of Ryder’s truck fleet may be part of the solution to these problems, but a more valuable component is the knowledge of the company’s "Logistics Solutions Experts" and "Transportation Solutions Experts." Ryder’s integrated logistics business is fast-growing, already big (almost $2 billion in revenues) and extremely dependent on knowledge-based solutions.

So the company is implementing a major knowledge management initiative. Leading the effort is Gene Tyndall, Ryder’s executive vice president of global markets and e-commerce. "Ryder’s employees, the knowledge they have and the knowledge they create are the corporate assets that impact our performance more than any other form of capital," says Tyndall.

Like many companies, Ryder’s knowledge initiative has a technical component. It’s called the Knowledge Center, and it has some spiffy elements. It’s in part a repository or centralized knowledge portal, with role-specific customization. It also supports collaboration. Allowing a team for example, seeking the best solution for a customer’s supply chain to come together online and share best practices in a virtual work space.

One of the biggest challenges to successfully implementing KM is to properly address the cultural change issues. Unlike many companies, Ryder’s efforts are focused on that aspect of organizational change. The Ryder implementation program includes communications, training, policies and procedures, knowledge proficiencies, incentives, a comprehensive measurement system, and the creation of an organizational team to lead and support the knowledge management effort.


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