A Guide to Agency-Wide Knowledge Management for State Departments of Transportation (2015)

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9 Guide to Agency-Wide Knowledge Management for State DOTs Understanding KM “Those who cannot remember the past are condemned to repeat it.” – George Santayana Talking about KM What Is Knowledge? The words “knowledge” and “information” are often used interchangeably, but they are not the same. In this Guide, the term “knowledge” is used to refer to what exists inside the human brain – as opposed to “information,” which can be represented on paper, independent of any person. Knowledge is built over time through education, work experience, and interactions. It enables people to make good decisions and act in an effective manner. In any organization, there are veteran employees that are the source of institutional knowledge – accumulated through years of experience. Sometimes this institutional knowledge is not helpful and inhibits positive change – as in “we’ve always done it this way.” However, much of this knowledge is very valuable. If properly tapped, it can help the organization to avoid repeating past mistakes and improve on past performance. Once employees leave, this knowledge may be lost forever. How Do You Manage Knowledge? “Knowledge Management” is an umbrella term for a variety of techniques for building, leveraging and sustaining the know-how and experience of an organization’s employees and partners to carry out its mission in an intelligent manner. Information Data and documents that have been given value through analysis, interpretation or compilation in a meaningful form. Example: A map showing high crash locations. Knowledge The basis for a person’s ability to take effective action or make an effective decision. Example: A safety professional’s understanding of what countermeasures would be appropriate in different situations.

10 Guide to Agency-Wide Knowledge Management for State DOTs Building knowledge requires providing opportunities for employees to learn from their peers – both within and outside of the organization. Leveraging knowledge requires making sure that individuals and project teams are learning from prior experience and are not re- inventing the wheel. Sustaining knowledge requires retaining critical capabilities and institutional memory as employees retire or transition to other jobs- either within or outside of the organization. Fundamental activities of KM are knowledge capture and knowledge transfer. Both of these are needed in order to build, leverage and sustain an organization’s institutional knowledge. Knowledge Capture. A technical expert can be interviewed and asked to summarize important lessons and techniques they have learned. These lessons and techniques can be recorded and made available to others. This is called “knowledge capture” – and, in effect, results in transforming human knowledge into codified information. Knowledge Transfer. A seasoned project manager can be asked to mentor or collaborate with others as they tackle a task or project. This allows for “knowledge transfer” – person-to-person. Different Types of Knowledge There are different types of knowledge and each type may require different approaches to capture and transfer: Descriptive knowledge concerns the “what” – e.g., what projects similar to this have been done over the past five years? Causal knowledge concerns the “why” – e.g., why was this pavement mix type selected? Procedural knowledge is concerned with the “how” – e.g., what are the options for procuring services of a particular type? Social knowledge is concerned with “who” – e.g., who is the best person to talk to about how to handle a particular customer concern? Knowledge and Information Management Knowledge management and information management are interrelated and have overlapping activities: Information management is the means by which an organization collects, stores and provides access to information. Preserving Knowledge “Most of the engineers who were part of the design teams planning, designing and building the highways in Maine from the 1950s through the 1970s have retired. Moreover, that was the ‘golden years’ for highway construction in Maine when most of its limited-access highways were built. The knowledge of how the planning, design and construction of those highways occurred is starting to wane.” “The objective of this project was to have influential engineers from the ‘golden years’ of road construction give seminars where they presented highlights from their careers and to document how large projects in the state of Maine were done and what can be learned from this for future large projects.” Source: Institutional Memories of Road Design See reference [11]

11 Guide to Agency-Wide Knowledge Management for State DOTs KM can rely on information management practices to ensure access to digital and paper content, but it emphasizes activities related to employee networking, collaboration, learning and knowledge application that fall outside of the realm of information management. To understand how information and KM are interrelated, it is helpful to look at the information and knowledge life cycle illustrated in Figure 1. This cycle highlights the touch points between knowledge and information management. Key activities in the information life cycle are: Information is created or acquired – for example, a new procedure document is drafted. Information is documented and classified – the new procedure is assigned keywords, and a brief description of it is added. Information is stored or archived for active use or long-term preservation – the procedure is posted on the agency website. Information is periodically culled to identify what should be saved and what is no longer needed, subject to applicable records retention schedules – older versions of procedures are discarded to avoid confusion. Information is discovered and accessed through search engines, web pages or library catalogs. Key activities in the knowledge life cycle are: Employees build knowledge through a learning process – informed by content that they discover and access and/or through collaboration or mentoring relationships with their peers. Employees use and apply their knowledge in the course of carrying out their jobs. Periodically, employee knowledge is captured and codified for use by others. This capture process may yield information in multiple forms – e.g., procedural documents, training materials, lessons learned descriptions, blog posts or taped interviews. This captured knowledge becomes an input to the information cycle. Figure 1. The Information and Knowledge Life Cycle Information management and KM are synergistic – coordinating activities in these areas is a successful strategy.

12 Guide to Agency-Wide Knowledge Management for State DOTs KM for Transportation Agencies The Business Case for KM at a DOT DOTs are simultaneously facing changes in their missions, project and service delivery methods, customer expectations, revenue streams and workforce demographics. These changes are creating both challenges and opportunities. Effective DOT leaders recognize that “business as usual” is not an option. They understand the need to retool their organizations to be more adaptable and resilient. An agency-wide approach to KM can help DOTs make the necessary changes in workforce capabilities and culture to achieve this resilience. DOTs can use KM to foster innovation, improve delivery of transport- ation projects and leverage increasingly limited resources (Figure 2). Figure 2. Business Case for KM at a DOT Improving Organizational Efficiency and Effectiveness. DOTs are facing increased competition for available funding, shrinking revenues and growing public expectations for accountability about what tax dollars are buying. In this context, agencies are under pressure to increase efficiencies and strengthen performance measurement and management capabilities. Agencies have a compelling incentive to identify stronger and weaker performers within the organization and bring all work units up to a higher level of performance. Workforce Knowledge Loss “With slightly less than half of the workforce with 10 years or less department experience, the number of employees who possess the seasoned expertise and process ‘wisdom’ is in short supply.” – Texas DOT Strategic Plan 2013-2016

13 Guide to Agency-Wide Knowledge Management for State DOTs Strengthening Organizational Resilience. When there is an emergency situation or a critical need to be met with little or no tolerance for error, most DOT managers will put their “A Team” on it. The “A Team” understands what is needed, and has the experience and skills to get to the finish line and handle any curve balls thrown along the way. DOTs, like most organizations, have a limited number of “A Team” members. And many agencies are facing a “brain drain” with the loss of their most experienced staff from the baby boomer generation. Knowledge – the ability of staff to take effective action and make good decisions – is often in short supply. Without a solid strategy for replacing critical employees, building bench strength, getting new staff up to speed and growing expertise and experience in the right areas, DOTs face a steady decline in their resilience – and an increase in their risk exposure. Strengthening Workforce Capabilities. One important success factor for all DOTs is having a strong and capable workforce that is aligned with the agency’s mission and public expectations. As the role of the DOT shifts from construction to more of a focus on operations and maintenance, DOTs need to reassess the types of skills, capabilities and experience that are needed. KM techniques can leverage existing workforce planning capabilities and bring a rich understanding of the organization’s strengths and vulnerabilities, considering anticipated retirements and changing demographics. KM strategies are also available to foster culture change – to reduce information hoarding, build more effective teamwork, and reward employees that share their knowledge with others for the benefit of the organization. Leveraging External Expertise. Constraints on hiring mean that DOTs rely on outside contractors for a wide range of services. With increased use of outsourcing and public-private partnerships, DOTs must consider how best to leverage external capabilities of partners, while providing opportunities for knowledge transfer from contractors back to agency staff. Fostering Learning and Innovation. Knowledge is becoming a key limiting factor in a DOT’s ability to make progress and adapt to changing requirements. As the need for innovation in areas such as performance management, traffic operations and project delivery/finance increases, DOTs need to make sure that they tap into and share the latest available knowledge about requirements, techniques and lessons learned. Rapid advances in technology have created opportunities for DOTs to deliver improved services at a lower cost. There are additional opportunities for gaining efficiencies through creative use of contract resources for project delivery, Organizational Resilience “Organizational resilience is anchored in organizational processes aimed at enhancing an organization’s overall competence and growth (especially the ability to learn and to learn from mistakes) … quickly process feedback and flexibly rearrange or transfer knowledge and resources to deal with situations as they arise.” – Sutcliffe & Vogus (2003) Organizing for Resilience. See reference [26]

14 Guide to Agency-Wide Knowledge Management for State DOTs maintenance and operations. In order to take advantage of these opportunities, DOTs must have the ability to change established ways of operating. Innovation requires a boost to the level and speed of communication, learning and knowledge transfer within the agency. Reducing Vulnerability to Employee Transitions. DOTs have been facing workforce challenges over the past decade, related to the large wave of baby boomer generation retirements. Workforce issues are still an important concern today. KM practices can help DOTs to proactively manage workforce transitions as senior employees retire and mid-level employees move on to other opportunities. KM can also be used to minimize the consequences of losing an employee with mission-critical knowledge such as a veteran chief financial officer or chief engineer. How KM Can Help DOTs can use KM to strengthen capabilities and reduce risks. Establishing a KM lead in the organization can provide a focal point and ensure a strategic approach to these activities. Consider Intellectual Capital Within DOT Strategic Planning. An agency KM lead can be charged with identifying the gaps between the agency’s current skill and experience profile and the profile that will likely be needed over the next 5-10 years. (See Figure 3.) Use KM to: Benefits: Elevate consideration of intellectual capital within DOT strategic planning. Better targeting of human resources investments and practices to support strategic objectives of the DOT. Transition the DOT to meet emerging needs. Strengthen critical skill areas – e.g., contract negotiation, operations, technology integration. Build bench strength. Reduce vulnerability to loss of employees in critical areas. Better leverage available expertise. Strengthen employee collaboration and information sharing. Build on lessons learned – avoid “reinventing the wheel.” Reduce duplication of effort. Foster innovation. Transition from “we’ve always done it this way” to a more streamlined approach. Figure 3. KM Benefits

15 Guide to Agency-Wide Knowledge Management for State DOTs Transition DOT to Meet Emerging Needs. Armed with an understanding of gaps, the KM lead can work in a proactive fashion to identify how to develop and/or acquire the necessary mix of skills and experiences. Build Bench Strength. KM techniques can be used to establish and support networks for knowledge sharing and mentoring to build expertise and capabilities in critical areas. Strengthen Collaboration. An agency KM lead can work to improve collaboration and teamwork across the organization, using Communities of Practice (CoPs) and other techniques. They can ensure that lessons learned through projects and initiatives are documented – and that relevant lessons are identified and applied to future practice. Foster Innovation. An agency KM lead can support the innovation process by facilitating access to the experience of peer agencies, and supporting internal knowledge transfer through CoPs within target domain areas. Key Elements of Agency-Wide KM A Holistic, Agency-Wide Approach This Guide emphasizes an agency-wide approach to KM that is driven by a strategic view, and draws on a wide variety of available KM techniques. An agency-wide approach to KM makes sure that: KM activities are focused on the organization’s greatest risks and opportunities; Expected outcomes are clearly defined and tracked; and The most appropriate and effective KM tools and techniques are applied to achieve the desired outcomes. Some organizations view KM as primarily a staff development or succession planning activity that is within the purview of the Human Resources (HR) unit. For others, KM is synonymous with content management or business intelligence. They view KM as a function of the Information Technology (IT) unit – or perhaps as a library reference desk responsibility. These more narrow views of KM are not incorrect. However, organizations that pigeonhole KM as a single- A holistic, agency-wide approach to knowledge management ensures that the right combination of techniques is applied to tackle an agency’s most pressing needs.

16 Guide to Agency-Wide Knowledge Management for State DOTs dimensional function within a training or IT unit make two mistakes: Mistake #1: not taking a strategic view of KM and Mistake #2: only having a single tool in the KM toolbox. What Does an Agency-Wide KM Approach Look Like? An agency-wide approach to KM ideally includes the following four elements: 1. Leadership & Direction. Agency leadership makes the connection between KM and critical business goals. They show clear support for KM, designate a KM lead, articulate what outcomes they expect, and provide resources needed to accomplish these outcomes. They request regular updates on status and achievements. 2. Collaboration & Communities. The organization fosters a culture of collaboration and provides its employees with both online and face-to- face opportunities for knowledge sharing, mentoring and problem solving. Newer employees are able to quickly identify who to talk to when they have questions, and they are encouraged to learn from colleagues. 3. Knowledge Codification & Dissemination. Mission-critical, unique and at-risk knowledge is proactively identified and either documented and made available online, or transferred from person to person as appropriate. Standard operating procedures are put in place to capture lessons learned from completed activities and fully leverage the organization’s base of prior experience as new activities are undertaken. 4. Succession & Talent Management. Human Resources and Training functions work together with the management team to identify emerging workforce knowledge gaps and risks. They pursue a coherent and synergistic approach to addressing these gaps and risks through recruiting, employee onboarding (steps to orient new employees and help them adjust to the organization), training, and succession management activities. In addition, information about the skills and training of individual employees is made available to enable the organization to make best possible use of the available talent. Where Do We Start? The next section of this Guide takes you through a four-step process for implementing KM. This section can be used to identify specific areas where KM would benefit your organization, develop an initial implementation strategy, identify which specific techniques are suitable, and set up a process for monitoring results. KM at Virginia DOT (VDOT) In 2003, VDOT began using proven KM techniques to maximize effective management and delivery of 15 mega-projects, with a total construction value of approximately $7-$8 billion. VDOT reasoned that even small improvements in these projects could have substantial payoffs. These early KM efforts were well-received by agency staff and gained senior management support. Over 10 years later, VDOT has expanded use of KM agency-wide and has become a national KM leader in the DOT community.