How Do Communities Work in Leading Organizations?

Below are descriptions of the CoP strategies and programs at select best-practice organizations. For more information on some of these enterprises and their communities of practice, see APQC's 2005 best practices report Using Communities of Practice to Drive Organizational Performance and Innovation.

Accenture

Accenture provides global management, consulting, and outsourcing services to more than 150 locations across 50 countries.

Communities of practice have been a part of Accenture's KM approach since the mid-1990s. There are currently 150 existing communities at various stages of maturity; all of them use SharePoint with blog and wiki capabilities. The organization's knowledge-sharing application, the Knowledge Exchange, has more than 100,000 contributed items containing more than 300,000 attachments and topic pages. Accenture reports that its Knowledge Exchange system has reduced yearly spending on application operations by more than $2 million.

Air Products and Chemicals Inc.

Air Products and Chemicals Inc. (APCI) is a Fortune 500 company serving customers in the technology, energy, health care, and industrial markets. It offers a unique portfolio of products, services, and solutions, providing atmospheric gases, process and specialty gasses, performance materials, and chemical intermediates.

APCI is recognized for its innovative culture, operational excellence, and commitment to safety and the environment. Its employees build lasting relationships with their customers and communities based on understanding, integrity, and passion. Customer relationships are the organization's differentiator in the marketplace, and this customer commitment characterizes how APCI employees spend their time. In short, they talk to each other a lot. These personal interactions form the organizational platform for CoPs.

Over the past decade, APCI has translated this type of ad hoc networking into more formal, sustainable behavior by providing a CoP structure that aligns with the organizational culture and facilitates the accomplishment of personal and corporate goals. APCI has a single community framework with three types of communities: communities of interest, communities of practice, and centers of excellence. Currently, APCI has 30 active communities of interest, primarily related to technical subjects. It also has 79 active communities of practice and 20 active centers of excellence. The communities of practice generally fall into one of three categories: technology, best practices sharing, and new ideas. Approximately 27 percent of the work force participates in one or more communities, and a core KM group provides support and structure to the CoP effort.

Arup Group Limited

Arup Group Limited is an engineering, architectural, and planning services organization. Its mission is to "shape a better world." One of Arup's strategic drivers for communities came from its founder Sir Ove Arup, who encouraged employees to create a "composite mind" because he felt that the field of possibilities could not be surveyed in a single mind. Other strategic drivers relate market challenges: Arup is facing global competition and has realized that, in order to respond to market changes and be agile, it has to optimize knowledge transfer and leverage knowledge to drive its business. Arup accomplishes this through innovative solutions delivered by the organization's global knowledge and skills networks (communities of practice), which focus on bringing together a variety of people with diverse skills and backgrounds and mobilizing them to converge on solutions.

Arup's 40 networks are structured around the organization's disciplines and business domains. These formal and informal networks vary greatly: The largest has approximately 1,000 members, but many of the more informal networks have only 10 to 20 members.

Caterpillar, Inc.

Caterpillar, Inc. is the world's No. 1 producer of earthmoving machinery and a leading supplier of agricultural equipment.

The organization's strategic driver for communities was just-in-time learning. In the past, Caterpillar employees attended in-class training on topics they might or might not find relevant to their daily jobs. By constrast, CoPs provide a platform through which employees can obtain timely answers to current issues or problems. Communities at Caterpillar are very narrowly focused in order to maintain a direct relationship between community activities and daily work. Communities are a way for Caterpillar employees to connect with the organization's global partners, customers, or teams in a virtual environment.

Caterpillar currently has approximately 3,500 CoPs with about 40,000 unique participants. Approximately 7,000 Caterpillar dealers also participate in the organization's CoPs.

Ernst & Young

Ernst & Young (E&Y) is one of the world's largest accounting firms, offering auditing and accounting services around the globe.

The strategic driver for E&Y's communities was directly related to the organization's core business. Its consultants needed to be educated about the issues that its clients face and know where to find solutions to those issues. Although the required knowledge existed within the organization, it wasn't accessible or organized. The realization that content needed to be identified and organized led the organization to create a Center for Business Knowledge, which became responsible for identifying communities that would be able to submit and transfer relevant content.

Ernst & Young's investment in knowledge has proven to be value-added; the firm has been able to grow revenue without growing headcount. By accessing and leveraging the firm's CoPs, new hires and experienced hires are able to immediately inculcate the firm's policies, procedures, and methodologies.

Federal Highway Administration

The Federal Highway Administration (FHWA), established in 1893, is a major agency of the U.S. Department of Transportation (DOT). FHWA has its headquarters in Washington, D.C. with geographically dispersed locations (offices) across the United States. Two-thirds of its offices are outside of the Washington, D.C. area. FHWA has many customers including citizens, businesses, the U.S. Congress, and its state partners who are responsible for building, owning, and maintaining the roads. While its programs are growing, FHWA has half the employees of 20 years ago, declining from a high of 4,295 employees in 1980 to 2,645 in 2000.

The Federal Highway Administration (FHWA) is a major agency of the U.S. Department of Transportation. FHWA's main strategic objective is neither saving money nor increasing operational efficiency: It is the noble goal of saving lives. The agency's overall ambition is to reduce transportation fatalities by 20 percent.

Exchanging knowledge with its partners (e.g., state transportation departments, metropolitan planning organizations, and industry associations) is one of FHWA's primary means to improve transportation. In order to exchange knowledge, the agency conducts highway R&D, regulation interpretation, and technical assistance (e.g., sharing good practices from state to state, moving R&D into practice, and training and education).

FHWA has 20 CoPs of various sizes covering more than 140 critical business topics. Some of FHWA's CoPs are customer- or partner-facing, which means that they are open to federal, state, and local governments as well as academia, nonprofit, and industry members. One example of an active customer CoP is the Re:NEPA community, which is focused on the National Environmental Policy Act. Internally focused communities, on the other hand, are accessible only to FHWA staff.

Fluor Corporation

Fluor Corporation is one of the world's largest publicly owned engineering, procurement, construction, and maintenance services companies.

Like many other advanced COP users, Fluor is facing radical changes in the "way business is done."  Global projects, competition, work force scarcity and lack of mobility, mergers and acquisitions (fewer clients), and the need to minimize job-site time are some of the drivers behind Fluor's CoPs. The organization can meet its overall goal--to provide value to clients--only by integrating and leveraging the collective intellectual capital of its employees, thereby enhancing their skill sets and improving business performance.

Fluor began implementing its CoP initiative in 1999 and currently operates 38 knowledge communities. Knowledge communities are divided into two categories: functional communities (such as finance, HR, IT, and procurement) and industry communities (which focus on the diverse industries that Fluor serves, such as life sciences, government, and oil and gas). Overall, Fluor's communities have approximately 14,000 members from 90 different locations, which represent nearly half of the employee population.