Caterpillar Nurtures Knowledge-Sharing Environment

Saturday, June 30, 2007 - by ASTD Staff

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A long with the formation of Caterpillar University came the realization that the Peoria, Illinois-based manufacturing company needed to create and nurture an environment where information is readily accessible and shared seamlessly throughout the organization and within the organization's value chain.

To meet this challenge, Caterpillar implemented a knowledge-sharing system that enables all employees worldwide to access knowledge through three social networks:

Communities of practice. More than 46,000 employees have accessed one or more of the company's 3,942 communities of practice in the last 12 months. These communities are organized around a specific business-related topic. Anybody with access may initiate a threaded discussion involving members from around the world.

Knowledge entries. Employees may post knowledge entries that pertain to a specific work process, tool, problem, solution, quality issue, or other problems. Entries are validated pieces of information that must be approved by the community manager. As the number of knowledge entries grows, so does the repository of knowledge.

Community discussion. Bulletin boards enable anyone with access - including external experts, suppliers, and partners - to post information relevant to the community. Employees may view these bulletin boards to gain access to required expertise.

The corporate university's knowledge-sharing mission was created to provide efficient, reliable, and easy access to knowledge. Use of the tool quickly spread to other functional areas of the corporation, as well as through the value chain of dealers, customers, and suppliers. Its goal was to share knowledge as effectively, efficiently, and broadly as possible.

Culture of sharing

The knowledge-sharing process and tool are implemented throughout the organization - functionally and globally. While management and salaried employees are the primary users of the knowledge-sharing tool, it is available to anyone with the necessary security identification - including the production workforce and company retirees. There are 184,000 unique community memberships and 3,900 communities of practice available for employees.

Currently, 25 percent of full-time management employees from the corporate university use the knowledge-sharing tool. The yearly budget of $200,000 includes the staff and related expenses, as well as costs related to maintenance and enhancement.

In a corporate culture that encourages sharing, the knowledge-sharing tool is a key enabler. It supports informal learning and best practice transfer. A recent search within the tool of the term "best practices" came up with more than 1,600 entries related to best practices from a broad range of disciplines and functional areas.

The knowledge-sharing tool effectively leverages the intellectual capital of the organization and its value chain by providing collaborative space and access to expertise across the globe through communities of practice. The communities - which are grouped based on key corporate business processes - cross business unit, geography, and value chain boundaries and range in size from small teams to thousands of people. In many ways, the knowledge sharing helps drive appreciation for diversity - for example, a good idea is a good idea; it is not localized to a given job, job level, or global location.

The knowledge-sharing tool makes it easy to collaborate over distances, provides easy access to experts, contains a wealth of best practices and lessons learned, and is organized based on key corporate business processes. It provides a variety of additional organizational and employee benefits, such as speed to knowledge, cost reduction or avoidance through leveraged use of best practices and lessons learned, and 24/7 availability as a forum for innovation and knowledge generation. The knowledge-sharing tool has helped people take risks, drive innovation, and achieve higher quality results more quickly than would otherwise be possible.

Return-on-investment

The knowledge network enables people to quickly engage the expertise and knowledge necessary to solve complex technical problems. An employee joins a community of practice, initiates a discussion thread, and interacts with other community members who contribute ideas and resources to the discussion. Quickly collaborating with people over geographic distances enables the issue to be addressed more quickly and, in many cases, differently than would have happened without using the knowledge network.

Documenting the knowledge-sharing tools financial benefits was accomplished on a case-by-case basis for two communities of practice. One community - the bolted joints and fasteners community - was a mature community, one of the five most active communities, and dealt with the core of the business. Another community - the company dealer service training community - was one of the newer communities, was less active, and dealt with a support group.

The threaded discussions of each community were examined and selected for inclusion in the study if there was at least one response to the thread originator and the thread was not merely informational in nature - for example, it distributed meeting notes or gave notice of a meeting. There were a total of 252 members in the bolted joints and fasteners community, of whom 24 were selected for inclusion in the study. The study used information from 23 discussion threads. There were a total of 96 people in the dealer service training community, of whom five were selected and participated in the study.

"The concept of knowledge sharing is not new to the organization," says Chris Glynn, President of Caterpillar University."Prior to establishment of the corporate university and development of the knowledge-sharing tool, employees shared what they knew, but without the global reach and speed required today."

The knowledge-sharing process provides easy access to knowledge, helps new employees or employees in new positions assimilate quickly, provides access to best practices and lessons learned, and promotes informal learning.

"The broad accessibility of the knowledge sharing tool enables users from a variety of areas to work on the same issues while bringing a range of perspectives and experiences into play," says Glynn.

Caterpillar Nurtures Knowledge-Sharing Environment

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