Knowledge Management at

Bain

This information is confidential and was prepared by Bain & Company, Inc. solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written
consent.
Most executives are not happy with KM

“How Satisfied Are You with “How Good is Each Management

Each Management Tool?” Tool at Getting Financial Results?
Satisfaction (1 to 5) Rating (1 to 5)
4.0 3.76 4.0
3.55
3.22
2.96
3.0 3.0

2.0 2.0

1.0 1.0

0.0 0.0
Average of Knowledge Average of Knowledge
31 Tools Management 31 Tools Management
Source: Bain Management Tools & Techniques Survey (2001) NY Infotoday
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Why KM Often Fails

Not properly defining KM for the organization

Viewing KM as a separate function, versus

just a part of business strategy

Not enough thought before technology

Misguided focus on people and process

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Bain has created a leading KM capability

A good strategy for content creation and capture

- Focused, high value investments in intellectual capital
- Deep mining of ongoing learnings from projects

The GXC - a great KM system

- Classification/taxonomies
- Integration of internal and external content
- Integration of learning and knowledge
- Powerful search

A lean, value-added KM team that

- makes the process work
- fits into existing company structures

A culture of sharing, not hoarding

- Tacit
- Codified
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Why KM matters to consulting firms

Nature: Two core assets: people and reputation

Our “product” is intangible
Global business, but with local differences
Partnerships, not hierarchies

Trends: Generic frameworks and data are commoditizing

Industry life cycles shrinking
More MBAs, low entry barriers  competition!
Global service is required

“Knowledge” is a critical
capability for consulting firms

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Knowledge example in consulting

You’re working in the PC Industry

Data Knowledge
Market size The best way to segment
Market share the consumer market
Competitor prices How to streamline the
supply chain
Impact of supplier
consolidation on OEMs

A commodity A differentiator

World class KM programs manage & share both

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Overview of Bain and Company

Stockholm
Brussels 
London    Moscow
Toronto Paris   Zurich
Chicago Boston Milan  Munich Beijing Seoul
San Francisco Dallas New YorkMadrid  
Rome
Los Angeles  Atlanta  Tokyo
Mexico City  Hong Kong


Singapore

Sao Paulo

 Sydney

Johannesburg

26 offices, working in 9 languages

Over 2,500 consulting staff, “generalist” model
Strict conflict and sharing standards
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Many KM failures over our first 26 years

(1973-83)
“Word of Mouth”

(1983-93)
“Experience Center”

(1993-99)
“BRAVA”

Many attempts at KM over our first 25 years

But none worked. Examples of our everyday pain…
-Proposals still kept by each partner – requiring email and fax
-Research tools weren’t sufficient to do the job
-Our “best” work was still in file cabinets
-We still depended on word of mouth to find experts
-We redid the same work multiple times each year

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Bain’s approach for getting it right
Key elements of KM:

Define KM for the company

Define your content strategy,
Use and what needs to be created
Create to support your strategy
Determine how to capture
(e.g., format, timing)
KM Objectives Organize and classify
knowledge based on the
Business business’ “view of the world”
Transfer strategy
Determine best modes for
Capture Transferring and sharing
knowledge
Ensure formats and access
(e.g., IT) make use as easy
Organize as possible

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The objectives of KM for Bain

What It’s Not What It Is

Advance the science Provide our staff with the tools

and skills to develop
Become famous authors
Enable our consulting staff to
Fancy portals work better and faster
- selling to new clients
Document management - starting up work
- “cracking the case”

Apply Bain’s best global

insights and approaches
- No “re-inventing the
wheel”

Drive client results

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Bain’s knowledge is centered around our
case teams
Client In-Depth Work &
Case Start-up Implementation
Development Recommendations

(Partner) (Partner, Manager and team)

(1-3 weeks) (1-2 weeks) (1-6 months) (6 months +)

Knowledge “Needs”
Bain’s point of view
on the industry and case topic
Great examples and approaches
Access to internal experts
External Research

Knowledge “Outputs” New industry

insights
Update to Bain’s point of view
New approaches (and solutions) to
problems
Insights on managing the case and client
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Our content strategy

Major research databases

Top external data sources
External content

Sanitized summaries of
every client project
Bain’s case & Staff profiles & expertise
people experience For “tacit” sharing

Bain’s critical IP
Codified Bain - Industry verticals
insights - Capability areas
“Reusable” formats
Short shelf life

Tools Bain’s core global toolkit

and skills Embedded in our staff
training programs
Long shelf life

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The BVU and GXC

External content

GXC 1.0
launched 2000 Bain’s case &
people experience
GXC 2.0
BVU 2.0
Codified Bain Launched
insights October 2002

Tools
and skills

BVU 1.0
Launched 1999
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GXC 2.0 home page

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Additional screen shots removed due to
sensitivity

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10 industry pages on the GXC

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Presentations are in an easy-to-use, web-
based format

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Bain Virtual University

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BVU video modules

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New External Sources Page speeds up
your research

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The GXC has changed the way Bain works

“Thanks to the GXC, I was able to pull together a preez on the

impact of a proposed merger in the internet space here in Australia
in just 24 hours. The deadline would normally have been impossible
to meet with any quality, but we got it done. I love this tool!”
Manager, Sydney

“We pulled a case example on Asset Management in the Financial

Services Page to create a presentation for the client in only 1 day.
It was fantastic!”
VP, Munich

“GXC is fantastic, I am saving hours already!”

AC, Dallas

“Your KM system is one of the most intuitive and sophisticated that

I have ever seen. You could do alot to help us out in this area.”
Bain Client
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Bain knowledge creation and capture

IP Selling Case
Case-end
Development process Start-up

Output: • Focused • Proposals • Case • In-depth codified

investments summaries modules
• Create new • Top external
Bain points sources
of view
Minimum
Goal: • Driven by • Capture on • 100% • One good
Industry & 50% of compliance module on 50%
Capability cases • Accurate of cases
Practices case • New data
tagging sources from
every case

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Many roles make this process work
Dedicated facilitators
for knowledge capture
and sharing

Knowledge
Broker

Partners who Case

Office-based
oversee Bain’s Practice Team Knowledge
global Capability GXC evangelist
and Industry
Areas Contribute best Officer Runs office
work to share
practices across Bain incentive
programs

Info
Services
Best external data
sources
Research databases
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Knowledge Brokers at Bain
Regional Knowledge
Broker
“Office generalists”
Assigned by office
Generalist KM support to teams
in their offices
- Assist finding content/people
- Ensures accurate case tagging
- Helps write case summaries
Probes case teams to find
potential team insights to codify
- Case end manager interview
- Interfaces with relevant
Knowledge Specialists
Runs office incentive programs
with Knowledge Officer
Knowledge
Specialist
“Global topic specialists”
Assigned by Industry or
Capability Practice Area
Manages the GXC content
and web site in their areas
Coordinates IP development
and capture with Practice
Area VPs
Supports Practice Area on
communications, projects
and incentives
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Metrics and incentives

Office Practice Area Individual

Office KM Scorecard Practice Scorecard Annual VP ratings

- Measures all office - Measures KM - Assess KM
KM contributions progress in PA contributions by
- Normalizes for size - Sent quarterly to PA each VP
- Sent quarterly to heads and MD - Factored into annual
office heads and MD comp
KM is a core factor Office-based “sticks
KM factored in Office of performance and and carrots”
Head performance comp for PA heads

Annual Office
Knowledge Award
- 1 large, 1 small
office
- For all KM efforts

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So what’s the impact?

We can’t and won’t measure ROI

- Most of the costs are “soft” and can’t be measured
- Our product is intangible
- KM is only one of many inputs

Today we capture many key success indicators

- Usage
- Satisfaction (annual surveys)
- Online quality ratings
- Informal “feel”

But, this is not sufficient

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Our framework for KM impact

Drive Improve Build

Relationships/ Decrease
client Staff
Increase costs
results Productivity revenues

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What we know so far

Drive Improve Build

Relationships/ Decrease
client Staff
Increase costs
results Productivity revenues

Teams deliver Partners build Contact within Classroom

better quality and proposals in the Bain training costs cut
results, in less 30% less time network has by $1M
time increased - Shorter
The case team
- More time to process runs Client leads programs
“crack the 30%+ faster have - No paper
case” increased Caseteam
- Access to the
Win rates at expenses have
“best” insights
“bakeoffs” decreased
- Better client have grown - Research
collaboration
- Telecom costs
Our client work is
globally
consistent
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Our next steps

Drive Improve Build

Relationships/ Decrease
client Staff
Increase costs
results Productivity revenues

Institutionalize regular customer research on the

impact of KM on our jobs
- Partners
- Other consulting staff levels
Structured interviews and surveys, built around
this impact framework
Use results to direct
- Changes to content strategy and priorities
- Addition investments in the GXC
- Further process improvements
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Our key learnings

Content and thought first, before the

technology

Build around how people really work and

what they need
Quality over quantity
Internal and external knowledge together
Massive focus on people and process
- Knowledge Brokers
- Practice Area VPs

Commitment from top management

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