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Notes On ‘Knowledge
Management in Action- How BP is learning to fly’
9/3/01
Abstract:
As corporate members of SOL-UK (Society for Organisational Learning) BP are
used to sharing their experiences with the world wide business community. In
this active workshop Geoff Parcell and Chris Collison showed us how they planted
the ‘egg’ into BP by way of the ‘Connect’ programme in which the
employees are the driving force of knowledge management (KM). They also initiated
the drive towards company-wide excellence in operations and learned new ways of
applying ‘after action reviews’ and ‘lessons learnt sessions’ which
avoided a blame culture. We learnt of the ‘peer assist’ process which is a
key mechanism for mobilising and harnessing knowledge from around the world and
which taps into the ‘tacit’ knowledge of people as well as the explicit.
From the egg came the fledgling project which has now taken off. ‘Learning to
fly’ is the title of their current book on knowledge management.
Director of
Complexity Research and Organisational Learning :
Eve Mitleton-
Kelly
London School of Economics
Houghton Street
London WC2A 2A
Presenters :
Chris Collison and Geoff Parcell
Compiled For
The LSE by Geoffrey J.C. Higgs
Introduction
Knowledge management
(KM) can be broadly understood as either the processes involved in acquiring new
knowledge in the strategic areas of the company or as creating an environment in
which knowledge is disseminated in a form that can be best utilised by those
business units which require it. The sharing of knowledge may take place on a
formal or an informal basis so it is important that people interact on a
personal level as well as playing the role which their job dictates. BP has
100,000 employees in 150 countries and has undergone a series of mergers and
acquisitions in which wide and different cultures have had to be assimilated.
The current emphasis has been on making connections or getting the ‘right’
people talking to each other.
The US Army Story
The importance of
quick accessibility to relevant information is illustrated by the story of the
colonel in the US Army who was ordered to give any support necessary to an area
hit by a hurricane. The colonel’s experience was of life at the ‘front line’.
He had no previous experience of this kind of task but as part of his ‘executive
education’ he had been introduced to what was called ‘the Centre for Army
Lessons Learned’. Using his lap top computer he contacted the Centre and asked
the question ‘what does the Army know about hurricane support?’ Within four
hours he had accessed the following:
1. A profile of the deployment of
troops in the last three hurricanes in North America including number of staff,
types of staff, number of skills and types of skills.
2. A proforma budget with information of how past requested budgets had compared
with actual budgets.
3. Ten questions he was likely to be asked in the first few minutes of his
arrival.
4. A list of every state and federal agency that had had any contact with this
kind of situation including the names of the people he had to contact and the
Army liaison person who worked with the agency.
5. The names of people on an advisory team two of which were now generals and
one a colonel who had agreed to give this service.
The Brain Analogy
BP, like the U.S.
Army, can be compared to the human brain: different parts of it can be
associated with different functions. But learning to store the right kind of
information or making the best response is not always easy. In dealing with
children who have learning difficulties Chris’ wife uses what is called an ‘accelerated
learning approach’. This involves ‘brain gymnastics’ in which each child
might be encouraged to perform a circular motion with the right hand in one
direction and suddenly switch to the opposite motion with the left hand. Or
perhaps to recite the alphabet forwards and then backwards. The fact that the
switch is awkward is thought to be due to switching from one functional area in
the brain to another but after 5 minutes practice at creating such connections
the children appear more receptive to learning.
BP needed to make new connections some of which were undoubtedly awkward in
order to mobilise and utilise the knowledge that flows undetected in and out and
around the organisation and to make it quickly accessible on a wider basis. The
aim of knowledge management is not to create a huge encyclopedia of everything
that everybody knows; a sort of downloading of every individuals brain but to
establish a way of keeping track of people in the organisation who know the ‘recipe’
for doing something. The aim was to get such people in contact both through
technology and through change in the company culture.Whereas the U.S. Army was
good at capturing new knowledge in the form of ‘lessons learned’, BP wanted
to create the right connections. This was BP’s aim though other organisations
will decide for themselves whether ‘connectivity’ or ‘new knowledge
capture’ is a priority.
The Learning Process
Learning within an organisation
can be seen as a three-step process:
Learning before action
>learning during action >learning after action
Learning before action: there are
a number of ways in which knowledge can be more easily accessed at the start of
a project. In BP, whenever people have a problem or an issue or are starting a
project about which they feel they have insufficient information meetings can be
arranged to which those employees judged able to help are invited. Managers are
actively encouraged to release staff for this purpose which may be a ten minute
conversation or, depending on the importance of the project and the proximity of
personnel, somewhat longer. Meetings have a certain formality. The project
leader will give the background to the project and a brief resumé of his or her
experience together with any ideas that the person has. There is usually a need
to find a common ground or language and questions concerning clarity may be
asked but people are discouraged from making value judgments until all
contributions have been made.
This kind of ‘brainstorming’ may involve a cross section of management or it
may involve a meeting between people of equal status. What is important is that
that they will have past knowledge or experience of the task or problem in hand.
People are more inclined to share knowledge with those in an equal position in
the organisation and BP has been keen to encourage this with what they call ‘peer
assist’. There are a number of ways in which people can be brought more in
contact with each other but a very powerful one is via the Internet. Some 20,000
staff have created their own website including a ‘friendly’ photograph and
personal information about their interests and skills. Typically people will
combine their own offers of information or assistance with a request for some in
an area in which they are lacking but often people belong to ‘communities of
practice’ which offer specialist knowledge or expertise which is not directly
concerned with BP’s operation.Very little in BP is mandated but people are
encouraged to think beyond their own environment. When a connection is made it
is possible to see who else has logged in. So not only can you ring someone up
or send an e-mail but if you’re a refinery operator on site and feeling lonely
you can pick on a friendly face and have a chat. There is also an on-line
newspaper to which people can send their stories, a group calendar and a ‘tool
kit’ of useful assessment processes. People can write reviews on whether such
tool kits are useful. So the whole process becomes very democratic.
‘Explicit’ knowledge or that which has been codified or written so that it
consists of relevant and coherent facts or theory or a recipe for some process
has obvious exchange value. ‘Tacit’ knowledge which is in the heads of
people or in their skill in carrying out a process must be learned either
through conversation or some kind of other contact such as apprenticeship. The
ways of getting to ‘lessons learned’ may be formal or informal and it is
therefore important to engender not only a feeling of loyalty and responsibility
to a particular division but to the organisation as a whole. This doesn’t
stifle competition but it does keep it friendly and as members of a ‘community
of practice’ people are encouraged to make practical and intellectual assets
available. It is the responsibility of the knowledge management team to create
an easy access system and BP has very specific ‘delivery networks’ which
were created to solve particular problems, but it also has what might be called
‘enabling networks’ which keep the ‘communities of practice’ in touch.
In BP the difference is:
Delivery networks have:
Enabling networks have:
A
sponsor
No sponsor needed
Appointed
leader
Emergent leader
A
budget
No budget
People meet
physically
People usually ‘meet virtually’
A performance
contract
A mission or vision statement
Measurable
value
Value is hard to measure
. If ‘captured’ knowledge is
made explicit it has to be in a form which is easily assimilated. It is very
easy to have ‘graveyards’ of knowledge in certain areas because the
knowledge is either too esoteric or insufficiently publicised or simply too
much. It is often impossible to read all the reports on similar projects and
information must be abstracted to certain levels. So for example the questions
might be, ‘what are the top ten things a person needs to know to deal with an
‘X’ situation?’ ‘Who can a person talk to if he or she needs more
information?’ There has to be an easy way of running through different levels
of details or complexity.
Learning during action: this
involves a trick taken from the U.S. Army called ‘after action review’.
After a specific action individuals or teams ask the following questions:
(1) What was supposed to happen?
(2) What actually happened?
(3) Why was there a difference, if any between (1) and (2) and was it good or
bad?
(4) What have I learned?
Of course the ‘peer assist’ process should always be available. If someone
is running a refinery turnround which involves a shutdown it is a very costly
procedure and it’s useful to be in touch with the people who have done it
before. ‘Enabling networks’ arise spontaneously and people find value in
sharing information because it enhances their individual or their team’s
performance. As in other organisations a contract involves a simple progression
of things to be done: : PROMISE
ACT DELIVER.
Learning after action: Post
project appraisals often gather dust and are full of reasons why mishaps were
nobody’s fault. Somehow successes as well as failures have to come out in
order to be learned from without establishing a ‘blame culture’. Moreover
many ‘lessons learned’ are those people might gain from five minutes chat at
the bar rather than hours ploughing through reports. BP’s answer is try to get
to get all those involved in a project together in an immediate and personal
sense maybe for a half or a full day. Some of that may be for merely eating or
having a drink together but the remainder will be a structured review of the
operation. Each individual is invited to give reasons why the project was
successful (if indeed that was the case) and reasons why the project was not
more successful (if indeed that was the case). These can be subjected to the
five ‘why questions’, designed to elicit the overall or underlying reasons
for success or failure. It’s useful to adopt the role of a team called upon to
advise those on a similar future project and even perhaps to have a client in
the room so advice can be given first hand. More importantly this event should
take place as soon as possible after the project to avoid too much ‘post hoc
rationalisation’. Finally individuals are asked to give the operation marks
out of ten and possibly to say what could have made the operation efficiency ten
out of ten. None of this information exchange gets shared beyond the meeting
unless expressed permission is given by those concerned. The aim is that blame
should be decoupled from individual responsibility and that though the final
report should contain all relevant advice about what to do and who to contact it
is not a vehicle for showing up incompetence. Building up sufficient trust in
this procedure is of prime importance.
How can KM be assessed?
Clearly, if knowledge
management is to be adopted as a policy, there has to be some way in which it
can be assessed. BP has devised a series of categories in which a KM strategy
combined with indicators such as degree of innovation, capturing knowledge,
learning before and after and how well the organisation is geared to knowledge
sharing is assessed in terms of five levels. Each organisation must find their
own form of words for this schema but the following is an example:
KM Assessment
Categories
|
|
Strategy |
Innovation |
Organisation |
Learning
(before/during/after) |
Knowledgecapture |
|
Level 5 |
KM /business strategy.
Framework & tools. |
Clear targets/markets for
innovation. Creativity sessions |
Clearly defined roles.
Networks have clear purpose. |
Prompts for learning built
into processes. language/template common |
Relevant knowledge is
efficiently pushed to operators. |
|
Level 4 |
Awareness of organisation’sintellectual
assets. |
Process for filtering ideas.
Good people identified. |
KM is everyone’s
responsibility. Networks organised |
‘Learning before, during
and after’adopted. Clientsparticipate. |
Knowledge is distilled and
refreshed by named individuals. |
|
Level 3 |
Some strategy exists but not
linked to business results. |
Research to find how best to
do it. |
People networking. Job
descriptions for sharing. |
People can find out what the
company knows. Peers help peers. |
Knowledge collected in a
common format |
|
Level 2 |
People using a number of
tools to learn and share. |
Innovation is rewarded. Good
examples get implemented. |
Resources defined for KM. Ad
hoc networking to help individual. |
Some learning before doing.
Program review sessions. |
Access to lots of knowledge
but no abstracts. |
|
Level 1 |
People agree sharing
knowledge important. |
No standard procedures. Few
innovations get adopted |
People talk about how to
knowledge share. |
People conscious of need to
learn but little time to follow up |
Few contribute
lessons learned’.
Few search. |
Discussion
It was suggested that
organisations outside the oil industry are often very different and that the
learning and sharing policy might be very different between the public and the
private sector. It is appropriate to talk about a common language across an ‘operational
community’ such as the oil industry and in considering KM assessment it is
relatively easy to agree what form of words should go in at the different
levels. Whether it is a refinery in Grangemouth, a chemical factory in the US or
offshore platform in Australia people talk about much the same issues. Some
organisations such as universities are not accessible to breaking down into ‘communities
of practice’ in the same way. Their emphasis is on generating new knowledge,
not necessarily with a clear purpose but with a great deal of diversity and
crossing of boundaries. In science, for example, there might be a shared purpose
but it isn’t goal oriented. The ‘publish or perish’ policy also goes
against sharing information and makes people very selfish.
Whilst learning from success might not be as easy as learning from failure it is
often difficult to avoid the ‘blame culture’especially if a person happens
to be something like an air traffic controller. People are also very reluctant
to share failure in a society in which litigation is widespread. However in
general, positive and negative feedback especially from peers is very productive
and increases awareness of unforeseen ramifications in a project.
How KM affects the performance
management process
A lot of the process
at BP is concerned with ‘operational management’; managing production and
distribution of crude oil and its products, running chemical plants, refueling
aircraft etc. Though people tend to see their own business as unique, everyone
is concerned with managing cost, ensuring competency, good relations with the
outer community, and even managing corrosion is a common concern. Some two years
ago people started looking at the things that were core to every part of the
operation and a cross section of the staff were brought together to identify and
assess practice areas. What was required was a common assessment tool; a form of
words that could be applied to all areas. Every business unit would then have a
benchmark against which it could measure itself. So ‘operation excellence’
was born.
‘Operation Excellence’
The overall operation
was split into a number of functions or practices and a common procedure was
instigated as shown below:
Practice areas diagram:

Procedure:
1. Every business unit benchmarks
itself against a set of key practices using the common assessment tool.
2. Targets for improvement are
agreed by business units and offers and requests are recorded.
3. Results are collated and
analysed to build up the overall picture.
4. Business units use a ‘dating
agency’ to share strengths with others.
5. ‘Good practice’, ‘tools’,
offers and requests are made available on the Intranet ‘community centre’.
‘Offers and Requests’
A diagonal slice
across workforce and management for each business unit is invited to assess the
overall picture. People from each unit can then identify areas that they want to
improve on, set some targets and develop action plans which can be built into
contracts. In this way every business unit benchmarks itself against the common
criteria of practice. Again categories of practice can be given different levels
so that business units can see what they are good at in the organisation and
where they may need to improve. Just as the ‘learning after action’ process
was designed to avoid the ‘blame culture’ so this assessment avoids making
direct comparisons in terms of ‘league tables’. So called ‘river’
diagrams (line graphs) indicating where units are on particular practices and
where they are aiming to be and ‘stair’ diagrams’ showing how each unit is
coping with a particular practice are not meant to single out individual units
for blame. There may be very good reasons why for example, some particular unit
remains at ‘level 1’ on say corrosion. On the other hand people may see
themselves at ‘level 5’ and want to say ‘we are good at this because of so
and so’. People who see themselves at a lower level can make ‘requests’
for help of various kinds. In fact every business unit is encouraged to make
three offers and three requests. This balance makes it acceptable to make
requests and not a matter of swallowing one’s pride. The ‘dating agency’
gets the right people in contact between units and all the rest of the
communication channels, from ‘success stories’ in the Newsletter to the ‘peer
assist’ procedure, keeps the information flowing. The BP fledgling has learnt
to fly.
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