Knowledge Exchange at GlaxoWellcome.

Knowledge management is a process that drives innovation by capitalizing on intellect and experience. In support of this concept, GlaxoWellcome Inc. Canada has designed and implemented The Knowledge Management Exchange[TM]. Its focus is on developing a learning organization that continues to capitalize on the new knowledge it generates.

GlaxoWellcome Inc. Canada, in Mississauga, Ontario, is a leading research-based pharmaceutical firm committed to bringing innovative medicines and services to patients and health care providers. The subsidiary of England-based GlaxoWellcome plc employs approximately 1,300 people. The company's prescription medication line includes more than 60 products. In particular, GlaxoWellcome is known as a leader in respiratory, central nervous system, AIDS/HIV, and anti-infective research.

Along with the rest of the pharmaceutical industry, GlaxoWellcome faces major challenges. Competition is strong in the marketplace and in the development of new drugs. Costs of product development continue to soar, and the need to bring new drugs to market much faster (but without risk) is increasing. These challenges are difficult to overcome in the traditional knowledge-hoarding silo structure still prevalent in many organizations.

GlaxoWellcome Canada's vision is that making the organization's collective knowledge available to employees when and where they need it will bring valued, innovative, and timely solutions to their customers faster than competitors can. It will also ensure that no employee ever stands alone in the face of competition.

The results of a process reengineering initiative changed an organization with poor access to information, little appreciation for what it knew, and constant relearning to one with immediate and global access to information. The result is an organization that knows what it knows (and doesn't know) and minimizes rework. The end product of the reengineering process is something GlaxoWellcome calls The Health Outcome Map[TM] (HOM).

The HOM tracks the flow of patients through a health system and identifies every major health care decision point (HCDP) along the way. It can be used to review any disease to understand what decisions need to be made and to measure the impact of decisions on an economic, clinical, and humanistic basis.

A high-level representation of the HOM was developed to enable and simplify the GlaxoWellcome internal planning process. It identified the areas that drive or can achieve specific objectives. For example, it became clear that the potential for accelerating prescription growth from x to y over a specified period of time is driven by actions taken at specific points in the overall process. It also became easier to understand where GlaxoWellcome should take action to defend its leadership position in a specific brand area. The HOM was also used to identify areas of strength and weakness and to better understand where more (and better) knowledge could benefit the company.

The HOM demonstrated that the key to GlaxoWellcome's reaching its full potential lies in capturing the learning process results and applying lessons learned in one business to another. Secondly, the HOM provided a way to view decisions across a process, not in the traditional silos, and provided an ideal way to understand how to manage information in context.

Rick Scully, director of knowledge management for GlaxoWellcome Canada, was given the task of developing a learning environment wherein the results of the learning process could be reused; the environment would offer a challenge to maximize everyone's potential through shared learning. He designed and developed an environment that supported the generation, sharing, and better application of knowledge as a way of life. Scully recognized that knowledge is gained through the experience of learning and that organizational learning begins with the individual and is enhanced through groups or communities of practice. Knowledge is optimized when it is embedded in the systems within the organization. Last but not least, leadership is the catalyst for learning.

Using the HOM as a foundation, Scully began developing The Knowledge Exchange to help increase access to information and collaboration among the research teams. Joe Felix, director of commercial systems at GlaxoWellcome Inc. Canada, managed the technical design of the closed loop discussion group system that includes threaded discussions, newsgroups, and chatrooms. The framework for participation is built on five basic concepts:

1. I want to share. This is an area where employees are encouraged to help others by sharing what they have already learned.

2. What we already know. This area may already contain the answer to a question, and employees are encouraged to check here first in order to save time.

3. Does anyone know? This is the place to ask questions and provide answers to help others.

4. Tip-of-the-week archive. This area provides help in the effective use of The Knowledge Exchange and provides a bilingual (French and English) collection of past e-mail tips.

5. Feedback. Questions, comments, and other input are encouraged.

The intranet-based system was built using OpenText's LiveLink[R] knowledge capture and exchange system. In order to support collaboration between various workgroups and communities of interest, the environment was designed around the concept of a village, whereby the user can enter a "building" to access the desired function.

In early tests, The Knowledge Exchange met with some success, particularly with dispersed teams and individuals. The result was a reduction in travel costs and time. Local teams, however, found it was just as easy to walk around the corner to ask a neighbor as it was to use the system.

Glaxo Wellcome realized that for The Knowledge Exchange to become a critical element of how people work, its benefits would need to be better understood. The organization made a concerted effort to educate everyone in the merits of learning, capturing learning outcomes, knowledge sharing, and collaboration.

Scully sought input from GlaxoWellcome employees as well as external innovators, attended conferences, and read voraciously about KM and the learning process. Their discussions revolved around how to:

* Define and quantify the knowledge potential. How much would be saved by sharing best practices, initially on an intra-regional scale and eventually on an inter-regional scale?

* Recognize the social nature of knowledge sharing. Is it enough to connect everyone electronically and ask them to start sharing with each other?

* Defuse the I-don't-have-time and it's-not-my-job objections. Break through the "What's in it for me?" barriers and make the benefits obvious.

* Demonstrate the value proposition. People will buy into something much faster if they can experience the benefits. Show people that knowledge sharing is beneficial to everyone.

* Make sure there is a common understanding of what the concept means. Be sure that people are not talking at cross-purposes.

* Focus collective energy on the external competitor. Could the old adage that "knowledge ownership is power" be broken down?

* Recognize that technology is only an enabler, but it is important. What is the best way to connect people to people, and people to information?

* Accommodate the fact that people respond to reward and recognition. How can the desired behaviors be encouraged?

* Incorporate story-telling as one of the best ways to share knowledge. How can the viscosity of this type of knowledge transfer be captured?

* Maintain momentum. Change takes time and it is easy to lose enthusiasm along the way. The benefits of The Knowledge Exchange were dependent on commitment from a large group of employees. Critical mass is essential for the knowledge to retain its freshness and continue to increase in value.

Scully and his associates agreed that addressing these issues meant actively involving prospective users. The concept of KM and its processes had to be experienced in order for the benefits to be appreciated. Exposure to the Knowledge Exchange and its potential for drastically improving the sharing of knowledge and information at GlaxoWellcome was essential for getting everyone's commitment and buy-in.

Capitalizing on learning was so important that all potential users were brought together for a hands-on, experiential learning exercise. Led by Scully, a small team of innovators worked with Mind Over Media, a company based in Toronto, Ontario, to develop a business simulation game that would help users deal with all the issues and defuse any possible showstoppers. The simulation took place during a four-day national business conference and involved the entire Canada-wide commercial sales department, some 450-500 people at all levels of the organization.

Because organizational learning is more effective when participants can relate the lessons to real-life situations, the simulation game was based on GlaxoWellcome's business. Real data and situations were used, although all names were fictitious. The game was designed to involve teams of 10 participants in three rounds of play, each lasting approximately two-and-a-half hours.

The game was designed around the health care decision points involved in the HOM. The simulation's stated objectives were to demonstrate the commercial benefit of sharing and the application of learning. The simulation facilitated learning across three key dimensions.

* Business acumen -- allows understanding of the whole business, its complexities and trade-offs, and leads to better business decisions

* Team effectiveness -- forms more efficient and effective teams and facilitates stronger team performance

* Knowledge sharing and application -- unleashes the collective power

Pre-work for the participants involved reading the 1998 annual report for PharmEcho, a fictitious pharmaceutical company developed by the design team and used as the game's foundation. To support play, the design team produced a game board for each participating team. Prior to the conference, participants received information about how to play the game.

Pre-conference communication prepared participants by creating a common understanding and language for The Knowledge Exchange. Because the simulation was intended to develop acceptance of knowledge sharing as a concept (rather than train people in the tool's use), a non-automated version of the intranet-based Knowledge Exchange tool was used. This eliminated the risk of participants getting caught up in learning the technology and allowed them to focus on the benefits of a knowledge-sharing and learning environment.

A physical knowledge exchange, using the same model as the intranet-based system, was an essential element of the simulation. The real objective, of course, was to have the teams understand that their performance could improve significantly in less time if they all worked together sharing,best practices and learning from one another. On day one, people behaved in the traditional way, keeping knowledge to themselves or only sharing with their own team members. They viewed the other teams in the room as the competition.

As the three days wore on, however, the participants began to understand that the competition was external, not in the room with them. They learned that sharing was more beneficial than hoarding and that many lessons can be drawn from decisions made -- good or poor. Performance measures for teams included revenue and growth in their regions as well as overall team effectiveness. An independent study conducted by a third party after the simulation game provided the results shown in tables1, 2, and 3.

Table 1: Business Acumen

                                                  Percent of
                                                 employees who
Business Acumen Result                             said this

Better understanding of how the business works        94%

Better prepared to contribute innovative              89%
ideas and take good business risks

Better prepared to make business decisions            94%
that will be good for the whole company

Better understanding resource allocation              97%
Table 2: Team Development and Effectiveness

                                                  Percent of
                                                 employees who
Team Development and Effectiveness Result          said this

Better realize the power of one team                  87%
(i.e., collaborating and sharing knowledge to
beat the competition)

Better prepared to be an effective team member        92%
on their current team or in the future

Well prepared to meet their personal and team         92%
challenges for 1999
Table 3: Power of Knowledge Sharing

                                                 Percent of
                                                employees who
Knowledge Sharing Result                          said this

Better prepared to seek, share, and apply            85%
knowledge with others at GlaxoWellcome

Better realize the power of collaborating and        87%
sharing knowledge to beat the competition

Better recognize the importance of sharing           98%
learning behind each decision.

The simulation was only a game, albeit based on the business. How could GlaxoWellcome take the learning and behaviors from the game and apply them directly to the real business?

Everyone left the conference with a Knowledge Exchange CD training program and received The Knowledge Exchange icon in an e-mail when they returned to their desks. To make user participation as easy as possible, templates were designed to facilitate input. For example, the I-want-to-share component prompts contributors through the following:

Title:

Author: (A pick list of all employees is provided.)

What did you achieve? (Describe your success.)

How did you do it? (Describe what you did that made it successful.)

Who helped you? (A pick list of all employees is provided.)

Product(s): (Choose from pick list, none, or all.)

Disease(s): (Choose from pick list, none, or all.)

Customer type(s): (Choose from pick list, none, or all.)

Health care decision point(s): (Choose from pick list, none, or all.)

Process(es): (Choose from pick list, none, or all.)

The on-screen language maps directly to the language used during the simulation game. Knowledge can be collected, sorted, and viewed by many different fields and categories. The system is designed to support the needs of multiple interest groups and to provide quick response; ideally, any question should be answered within 24 hours.

A modest incentive program encourages participation. The most valuable contributions are rewarded with points or merchandise dollars redeemable for items from a merchandise catalog. Over time, the objective is to make contribution to The Knowledge Exchange part of the performance measurement process.

In addition to the incentive program, there are weekly tips on how to take better advantage of The Knowledge Exchange, a monthly newsletter, and continued internal promotion of the program. The goal is to make the use of The Knowledge Exchange a natural part of the job, integrating it with common business processes. There are also plans to connect people to individual experts through the use of Yellow Pages and to shift the emphasis from rewarding quantity of participation to quality of participation.

Scully, Felix, and their colleagues have learned the following lessons:

* Old habits die hard; will does not necessarily equate to commitment.

* Individuals use knowledge for both control and security.

* The Knowledge Exchange is a major corporate initiative; patience is needed.

* Making the intellectual connection between people and business performance is easy; investing in it is not.

* Executive support is critical, but it is not easy to get.

Currently, most perceive The Knowledge Exchange as a place for withdrawing rather than contributing. Consequently, the content is not growing as quickly as it should. The knowledge miners must become contributors if the high quality and timeliness of responses is to continue.

This issue could be addressed through the combined efforts of two main strategies:

* drawing users into the Knowledge Exchange through incentives, senior-level motivation, promotion of Knowledge Exchange content and performance, and some minor design modifications

* moving users into the Knowledge Exchange through face-to-face knowledge sharing workshops, promotion of group initiatives, and generally providing reasons for people to go to the Knowledge Exchange

So what is the message for information managers? KM is:

* more than locating, organizing, transferring, and using information

* not a technology issue, but a people and cultural issue

* learned behavior that takes time and effort

* important to the future of all types of organizations

* central to the learning process, both as a product and a resource

Overall, promoting The Knowledge Exchange needs to shift into the next phase. It is important to highlight successes, and users should be continuously reminded that The Knowledge Exchange is a relevant and logical outcome of the greater knowledge-sharing environment that is much needed.

In summary, The Knowledge Exchange is operating and evolving from a position of strength. Users are almost universally aware of its existence and most are, to varying degrees, familiar with its use. The potential value that the Knowledge Exchange can bring to GlaxoWellcome is recognized, and the challenge is to move it to the next level -- change employee behavior over time and make it a valuable part of the day-to-day routine.

Thanks to Rick Scully, director, knowledge management at Glaxo Wellcome (at the time the article was written), and to Joe Felix, director, commercial systems at GlaxoWellcome Inc., Canada, for their help in preparing this article.

Jan Duffy is vice president solutions research with IDC Canada, an information technology research and publishing company. She is a business improvement professional with a special interest in designing total systems -- people, processes, and technology - to support knowledge work and knowledge workers. Duffy is a frequently published author on the topic of knowledge management. The author may be contacted at [e-mail].