Thursday, 3 December 2009

Quantified KM Success Case Study 12

Here you can read about Cisco systems use of collaboration to save US$691 million and to increase productivity 4.9 percent in a single fiscal year (2008), representing a 900% ROI.

"Specifically, research from the Cisco Internet Business Solutions Group (IBSG) shows that in fiscal year 2008 Cisco used collaboration technologies to reduce costs by $251 million, to increase profit margin by $142 million, and to generate time savings for employees worth US$380 million. The total cost to achieve these benefits was just $82 million, resulting in overall net savings of $691 million".

I was struck, in this study, by the focus they applied (prioritising what they called "impact zones"), their staged implementation approach (very similar to the Knoco staged implementation approach, with its assessment and trialling stages), and by the clarity of leadership expectation that they developed, especially the accountabilities associated with this.

New behavioral expectations need to be clearly defined, developed, and
incorporated into an organization’s culture. Leadership and management systems
need to align with hew collaboration efforts for the proper behavior expectations
to be set, operationalized, and measured (that is, made accountable).

So - well done Cisco

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