


Unilever Indonesia
Ul has long recognized the value of their personnel. However, the economic crisis that hit Indonesia in 1997-98 affected both their business and the way they deal with people. UI is one of some 400 publicly-listed companies in Indonesia, around 84% of which were home and personal care items and 16% of sales were accounted for by food items. In aiming for its vision, UI uses the strategy of people development through a learning organization. UI implemented the Unilever business excellence model (UBEM), designed to enable a management team to assess progress focusing on KM. They also introduced the Enterprise Award, a scheme to encourage innovative and enterprising projects.
The first approach to KM implementation was to nurture senior managers to become a coach in their respective departments. The coaching method is used for developing people and also serves the purpose of being a KM enabler. The development of this generative coaching culture was the guiding anchor in the process of initiating the “uplifting people engagement” program, and this was followed by “building growth leaders”. UI’s employees are encouraged to proactively listen to their consumers, customers, and the community to collect insights that can contribute to further product improvement. Later, UI introduced the collaborative planning, forecasting, and replenishment (CPFR) program to improve its relationship with its trading partners through collaborative processes and shared information. The Key Performance Indicators (KPIs) of CPFR are forecast accuracy (actual sales vs. forecast), order accuracy (Order vs. forecast), case fill (actual delivery vs. order). UI has different kinds of Communities of Practice (CoPs) that involve business sharing in talk shows, group learning, book club sharing, discussions, video cafĂ© sessions, “Retrospect” (a program to retrieve tacit knowledge from previous corporate projects as documented, disseminated, and applied by others, to make tacit knowledge become explicit), and Cinemania (watching a movie followed by a discussion).
UI adopted the total productive maintenance (TPM) system that involves all company departments. One unique aspect of TPM is the “circle”, a group of shop floor employees with a leader whose goal is to be a communication channel. Each circle member works within the Plan-Do Check-Action (PDCA) cycle for continuous improvement. In integrating KM with existing systems and tools, UI re-launched its website-Learning Planet-as a one stop learning experience to provide easy access to all information for employees.
UI launched the Learning Award (LA) program to encourage UI management staff to share their ideas, knowledge, skills, and experience with others, to reward and recognize people who are willing to contribute/facilitate in any learning activities, and to motivate coaching and cascading best practices and failures.
The Retrospect Project is UI’s way to improve continuously. After a project has been completed, a team meeting is conducted to develop lessons for future project teams. The learning steps include Call the meeting (the key to willingness), Invite the right people (the key to team sharing), Appoint a facilitator (the key to good sharing), The right start (the key to effective sharing), Revisit the plan for delivery (the key to systematic learning), Ask “what went well?” (the key to start acknowledging), Ask “why did these aspects go well?” (the key to start learning), Ask “what could have been done better?” (the key to start improving), Explore specific difficulties encountered (the key to the next improvement), Uncover the special skills employed (the key to uncover hidden skills), Request participation feedback (the key to self-rating), Summarizing the learning (the key to acknowledgment), Publish the lesson learned in retrospect (the key to translating tacit into explicit knowledge), Give awards (the key to starting the behavior).
The learning award was taken to the factory, and resulted in a new enthusiasm for learning, confidence in trainers to conduct sessions, new standards of module development, higher morale, pride and motivation, a climate of harmonious industrial relations, and the preservation of knowledge not captured previously.
Qiang Hu Corporation limited is a leading exporter of ornamental fish with export links to more than 60 countries worldwide, Qian Hu’s key products and services include full ornamental fish process, covering import, export, breeding, quarantine, conditioning, and farming and distribution activities. Qian Hu has also created its own brands of aquariums and pet accessories, including some innovative products like a pet odor eliminator, deodorizer made of pure natural ingredients. Qian Hu manufactures its own plastic bags that are used to pack the ornamental fish at points of sale. As a breeder, distributor, manufacturer, and retailer, its business model hinges on four areas of growth: export of ornamental fish and accessories, distribution of ornamental fish and accessories, manufacturing of aquarium and pet accessories, breeding of dragon fish.
Implementation Steps
As Kenny Yap (Executive Chairman and Managing Director) took over a family business, he clearly defined the roles and responsibilities of each member who are still family so as to balance family and company needs. He implemented several technological changes to upgrade farm infra structure and to purchase stock. He also built a 4.2 hectare, high-tech farm and also integrated breeding, farming, and import and export activities. To ensure that Qian Hu’s people management strategy supports business objectives, Kenny implemented performance reward system where the highest achievers are acknowledged symbolically and financially.
Selection and Adaptation of KM Tools and Techniques
Integrating KM with CRM and Supply Chain Management: Qian Hu’s customer relations management (CRM) system is integrated with KM and provides a platform of global networking and knowledge-sharing among it various stake-holders. KM Enablers: Technology and Leadership: the expansion of Qian Hu’s website to cover all other explicit knowledge required by other stake-holders of the company is “interactive” and “educational”. The collection and storage of all the relevant knowledge for the stake-holders on the common platform allows further knowledge-sharing and transfer among the players in the company. KM Enablers: HRM Practices and Culture: Qian Hu’s HR requirements and plans are deployed through five HR systems, which are manpower planning and staffing; employee involvement and commitment; education training and development; employee health and satisfaction; performance management and recognition. In Qian Hu’s work culture, there are also regular chill-out sessions, job enlargement, and job rotations, and training programs for the employees. Training and development are utilized on par with the innovation process, so that employees can keep up with the innovations.
Internal and External Sensing
To ensure that the performance and recognition system in Qian Hu are effective, an employee opinion survey (EOS) is used as formal mechanism to continuously review the company’s performance management system. Also, Qian Hu conducts comparative and benchmarking studies to improve its processes by identifying companies it should compare itself with and then seeking to learn from thiese external knowledge agents.
Qian Hu also capture and create knowledge through managerial Community of Practice (CoP), used to gather knowledge workers for sharing and creating new knowledge, R&D. In addition, to facilitate locating and capturing knowledge, knowledge-sharing, and the use of knowledge, Qian Hu developed a web-based KM system that captures and disseminates the working knowledge of individuals within the organization, providing features such as access control, info approval, info subscription, automated reminder, and mass broadcast capabilities. This is then supported by the utilization of knowledge through Best Practice Transfer and CRM. As the company’s expertise and best practices are documented in the web-based KM system, employees can access information about these best practices securely via email and SMS. Then, CRM reports are frequently reviewed and evaluated by senior management with marketing or project managers as Qian Hu works toward the objective of long-term customer retention and a win-win formula. This knowledge and knowledge from employees with customer contacts are then used to model best customer relations practices.
Qian hu also conducts performance reviews of key management support processes such as quality assurance or information system (KM) to evaluate and ensure process effectiveness. The various requirements and performance indicators for each process are documented.
Samsung Advanced Institute of Technology (SAIT)
Samsung’s achievement over the last decade have been impressive by any measure. Once perceived widely to be just another “me,too” player, providing “reasonable” quality at a “reasonable price, the Samsung group of companies has now successfully established itself as a global multi-technology leader. Currently, the Samsung Group of Companies consists of over 60 different affiliate companies in four broadly defined industrial sectors: electronics, finance, machinery and chemicals, and trade and services. While not often publicized outside the Samsung Group, many recognize that the Samsung Advance Institute of Technology (SAIT), has made critical contributions to ensure the Samsung Group’s position at the leading edge of technology. For almost a decade, KM has been a key performance driver at SAIT. SAIT has been responsible for three basic knowledge activities at Samsung: knowledge identification, knowledge creation, and knowledge delivery. The growth of KM at SAIT can be broadly classified into three basic phases. The first phase was establishing foundations and infrastructure, the second phase was when the first IT based KM system was introduced and up-graded, and the third phase was integrating KM and other management initiatives into the work processes to maximize operational efficiencies. SAIT considers KM as a journey, rather than a goal. SAIT’s efforts to address their goals can be divided into three broad groups: an IT-based Knowledge Management System (KMS), a process-based KM approach, and a cultural/behavioral change management.
As knowledge creation and sharing begun to grow substantially, the need to establish a systematic evaluation system of the knowledge quality increased accordingly. To address this issue, SAIT decided to align the Six Sigma methodologies and processes with KM. as a result, key knowledge experts, called Knowledge Managers, are positioned at critical points along the research process to provide guidance for further progress and to evaluate research quality.
SAIT’s process based approach (extension from SAIT Standard Process/SSP) divides the process into five phases, from the beginning of project conceptualization to the transfers for commercialization. The concept of Design Review (DR) is intended to anticipate problems or challenges, to provide guidance and possible solutions, and to share knowledge across technological disciplines. SAIT has identified five DR steps: Planning DR, Starting DR, Validation DR, Completion DR, and Product DR. Knowledge created in each phase of the SSP is redefined according to each relevant template and undergoes a formal review and evaluation process.
Realizing the value of discussion groups in facilitating knowledge generation and sharing, SAIT encouraged and supported their development in to CoPs (Communities of Practice), integrating their activities into SAIT’s KM agenda. SAIT CoPs have now progressed from a simple means of discussing and sharing core research ideas to an essential tool for sharing and distributing knowledge as SAIT decided to expand the scope of CoP activities to also involve the business development and marketing teams of the affiliate companies. In addition, SAIT held Patent Expo, a festival-like environment where researchers of any technological background may choose to display research ideas and/or challenges. To further stimulate collaboration and integration across traditional technological boundaries, SAIT keeps a careful track of new ideas and their providers, called the “idea ownership” system.
Conventional wisdom would suggest that a successful KM system requires a careful marriage between a set of KM system and/or an infrastructure and reinforcement mechanism. Therefore, SAIT established the Cyber Research Center (CRC) which became an essential element of KM and has proved to be an especially effective means of collaboration with the expert community. Moreover, to stimulate internal communications, SAIT adopted Knowledge Intensive (KI) staff meetings which are integrated into the formal problem-solving processes. KI meetings are supplemented by other means of internal communications which include Praise Ground, which is a less formal means than KI meetings. Praise Ground plays a critical role in embedding KM practices into the various activities and processes at SAIT. It is essentially a relay of praises among SAIT members.
More formal approaches, such as the CoPs and Samsung Patent Expo, have been carefully coordinated with more informal or softer initiatives, such as the praise relays and KI meetings, and have been implemented to reinforce KM’s success.