Managing for Quality and Performance Excellence 10th Edition by James Evans ,William Lindsay

Exercise 30

ConocoPhillips is an integrated energy company engaged in four core businesses:
1. petroleum exploration and production;
2. midstream natural gas processes and marketing;
3. petroleum refining, marketing, supply, and transportation; and
4. chemicals production and distribution.
Since 1999, ConocoPhillips has evolved through acquisitions involving more than 12 companies. The current organization employs almost 30,000 people worldwide and is known for its technological expertise in areas such as reservoir management and exploration, 3-D seismic technology, high-grade petroleum coke upgrading, and sulfur removal.
The main motivations behind ConocoPhillips' introduction of knowledge sharing in 2004 were to promote functional excellence, better leverage knowledge across the organization, and ensure that the next generation of technicians and engineers has access to the critical knowledge they need to do their jobs. In addition, a large percentage of ConocoPhillips' technical work force is either retirement-eligible or will become so in the next five years. These highly experienced employees possess valuable business knowledge that the organization needs to capture.
Knowledge sharing at ConocoPhillips is based on the FAST (Find, Ask, Share, Trust) model:
• FIND -the ability to locate trusted, validated content,
• ASK -peer Q A and problem solving through discussion forums,
• SHARE -expertise location, and
• TRUST -strong global relationships on which employees can depend.
Figure 12.13 describes the organization's knowledge architecture. The Knowledge Management (KM) approach centers on 140 networks of excellence (i.e., virtual communities of practice) aligned with business functions. Each network has a Web-based portal that includes:
• a discussion board where members can post technical questions and answers,
• a knowledge library that houses content and reference materials, and
• expertise location tools for members seeking people with specific knowledge.
In addition to the network-based tools, the organization maintains an enterprise-wide wiki for technical knowledge. Networks are built in SharePoint, and the wiki is built in MediaWiki.
Knowledge sharing at ConocoPhillips is structured as a three-tiered support model:
1. the knowledge sharing team is responsible for enterprise KM process, tools, and templates,
2. IT partners provide infrastructure support and some SharePoint site maintenance, and
3. external consultants maintain SharePoint sites and provide customization and KM expertise.
The knowledge sharing team is responsible for overseeing networks of excellence. Formed in 2006, the team comprises seven full-time equivalent (FTE) employees led by a director of knowledge sharing. The director reports to the senior vice president of planning and strategy, who is a member of the executive team and reports to the chairman and CEO. A separate, 30-person knowledge sharing leadership team made up of functional leaders sets direction and strategy for KM.
FIGURE 12.13 Knowledge Architecture Model at ConocoPhillips

Funding for networks is allocated to business streams. Some networks receive corporate seed money to get started, but funding is expected eventually to be distributed across relevant business units. The knowledge sharing team has a budget for technology platforms, but costs associated with network staffing and time are allocated to the business units. Senior executives support KM through participation in knowledge sharing leadership team meetings, communications, and appeals for employees to include KM goals in their individual commitments each year.
ConocoPhillips evaluates its networks of excellence using health checks that pinpoint strengths and areas for improvement within each network. It also assesses the maturity of each network on a six-point scale. Other measures include adoption/utilization data and success stories submitted by employees. The success story program is described in detail in the next section.
Assessing the financial impact of KM is important to most organizations, but ConocoPhillips tracks impact and return on investment in a unique way. Employees are encouraged to submit success stories based on their experiences using the networks of excellence. As part of the submission process, they are asked to provide details on measurable gains, such as cost savings, reduced cycle times, safety and environmental improvements, and other tangible business benefits. Each success story includes a benefits summary that leadership must certify as accurate before it is published.
Explain how is the knowledge-sharing approach shown in the Figure 12.13 Knowledge Architecture Model is aligned with Conoco-Phillips' strategic motivation for knowledge management.