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CASE STUDY 6.1

BUCKMAN LABS

Buckman Labs was established in 1945 as a family-firm engaged in the production of
specialist chemicals for aqueous industrial systems. The business grew rapidly under
the hard driving leadership of Dr Stanley Buckman. The management philosophy was
to change radically, however, in 1978 when Stanley died from a heart attack at his
office. His son and successor as CEO, Bob Buckman had a new vision for the company.
This involved, first, a change in management style away from centralized control. As
he later commented, ‘I knew I didn’t want to do it Dad’s way. Every single business
decision had to be approved by my father. I thought, this is too much work.’ Second,
he aimed to develop a new strategy for the business that would allow it to compete
not on cost alone, but by exploiting its knowledge base more effectively.
By the end of 1992, Buckman Laboratories had invested $8 million to lay the
groundwork for a new knowledge transfer system. For a total investment of $75,000
per month in access charges and the provision of an IBM ThinkPad 720 with modem
to each employee, all Buckman staff were able to make a single phone call that
established online contact with headquarters and provided the necessary real-time
access to global information services. With this infrastructure in place, management
developed a global knowledge transfer network which they termed K’Netix. Seven
discussion forums were established (three customer-focused forums and four region-
al-focused forums) to allow employees to share experience in particular areas. By
March 1993, every employee was able to access K’Netix, and this made it possible
to deliver knowledge-based services to customers in over 90 countries worldwide.
The K’Netix Knowledge Management system was divided into two basic parts:
organizational forums and codified databases. The focus, however, was very much on
connecting individuals rather than stockpiling knowledge for its own sake. The system
enabled the electronic sharing of knowledge both between associates themselves and
between associates and customers. The most knowledgeable experts at all levels of
the organization were therefore kept in touch with each other, encouraging group
problem-solving and the sharing of new ideas and knowledge (Buckman, 1998).
While the technological infrastructure was being established, an equally impor-
tant development was the attempt to foster a knowledge-sharing culture at Buckman
Labs. In many respects, this attempt to change ‘hearts and minds’ was an even big-
ger challenge as established ways of thinking and working tend to be both culturally
and politically embedded within organizations. Bob Buckman sought to overcome
such resistance within the firm, by seeking to create a culture in which employees
who shared their knowledge would be the most influential and sought-after individu-
als within the company.

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