Buckman Laboratories is a science-based company, operating around the world. Manufacture speciality chemicals and was founded on a unique solution to the control of the growth of micro-organisms and the exploitation of knowledge has always been key to success.
In 2002, Buckman Laboratories were ranked first in the Most Admired Knowledge Enterprise (MAKE) survey for the second time. However, the company has won recent awards both for training in particular and human resource management in general and this co-ordinated approach to becoming a learning organisation is important as the context in which success with KM has been achieved. In other words, all three elements: IS strategy, human resource strategy and KM strategy should be co-ordinated to achieve optimum results.
The founder realised in the mid-1980s that they needed to become more effective in managing the knowledge of their 1300 scientific staff. Buckman Laboratories therefore created an on-line discussion forum through which staff could share their expertise. Initial attempts were unsuccessful, and little sharing took place. As acknowledged by Buckman's KM staff, Buckman's Laboratories has made many mistakes along the way as leaders in the field (Elli & Rumizen, 2002). Managers then instituted a series of organisational changes to encourage greater use. These included producing weekly statistics showing which staff had used the system. Non-users were penalised, frequent contributors rewarded. Processes were also changed to ensure the immediate capture of information during projects, rather than waiting till later. They attribute a 50% rise in sales from new products and a 51% increase in sales per sales associate since the inception of their K'Netix knowledge sharing system in 1992.
The K'Netix knowledge sharing initiative has been accompanied by a re-examination in the Buckman Laboratories business model from one that heavily relied on products (push) to rapidly moving to a customer intimacy model (consultation). As explained by Elli & Rumizen (2002) this model focuses on delivering a customised version of a company's product mix that provides the best total value to the customer. This way of doing business places a premium on individual and corporate knowledge and the capacity to act on it.
As this experience at Buckman Laboratories confirms, KM may change an organisation's external relationships as well as those internal to it. Buckman Laboratories case it concerns customers. This shift in the relationship with customers through KM is explained further below. (A crucial point that readers should bear in mind is that KM need not equate knowledge hoarding by any individual or by the organisation itself).
The K'Netix knowledge sharing initiative was followed by the establishment of multi-lingual, online courses in 1994 leading to a combined knowledge sharing / training strategy with the Bulab Learning Center in 1997. The Bulab Learning Center assisted the introduction of new ideas, products and processes and, in addition, acted as a vehicle for cultural change within the organisation. Thus, in 1998, the Bulab Learning Center was used as a forum for all employees to discuss changing the corporate mission statement in order to bring it up to date, reflecting the new practices. It was as a result of this debate that a new mission was created, more clearly spelling out what Buckman Laboratories should mean to its customers: “We, the associates of Buckman Laboratories, will excel in providing measurable, cost-effective improvements in output and quality for our customers by delivering customer-specific services and products, and the creative application of knowledge”
Buckman Laboratories, from this point on, began project aimed at cataloguing all processes that occur between customers and the organisation with a view to improving these interactions for mutual benefit. As explained by Elli & Rumizen (2002) the primary developer was a key associate with over 30 years of sales experience' in the industry. A significant example of a repeatable, customer-focused process addressed the difficulties customers faced when switching from another product supplier to Buckman. Typically, there is considerable disruption and high cost resulting from such a switch. Accordingly, Buckman initiated a Transition Workshop in 1998 introducing customers to a process to keep disruption to a minimum and deal with problems of change. This is an example of the customer-intimate approach, driven by a KM initiative that increases Buckman's competitive ability in respect of the market and creates a competitive advantage for Buckman since the combination of initiatives involved cannot be copied in a simplistic way.
Reference(s) | |||
Journal | Ellis, S. M. & Rumizen, M. C. (2003) The Evolution of KM at Buckman Laboratories. Knowledge Management Review, Volume: 6, Issue: 1, Page(s): 12-15. [Available on: Provider's Edge: http://www.providersedge.com/docs/km_articles/The_Evolution_of_KM_at_Buchman_Labs.pdf]. | ||
Web | Rumizen, M. C. (2003) Leader of the pack [Online]. Wilmington Publishing & Information: United Kingdom (UK), England, London. [Accessed on: 2013-01-26]. [Available on: ARK: http://www.ikmagazine.com/xq/asp/sid.B85BC126-D1AB-4291-B70B-C0E52B18590F/articleid.C5B9FF64-2EDF-4DA6-87D8-15E0B3516D57/qx/display.htm]. |
Reference (or cite) Article | ||
Kahlon, R. S. (2013) KM Project Successful Case Study of Buckman Laboratories [Online]. dkode: United Kingdom (UK), England, London. [Published on: 2013-01-26]. [Article ID: RSK666-0000088]. [Available on: dkode | Ravi - https://ravi.dkode.co/2013/01/km-project-successful-case-study-of.html]. |
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