Knowledge Management Strategies: Frito-Lay vs. Step Two

Introduction

It is common for manufacturers, system integrators, and consultants to vary in their definitions of and approaches to implementing knowledge management systems. This is precisely what is happening with Frito-Lay and Step Two. This essay assesses how each organization defines knowledge management, including a comparative analysis of the problems each faced, the solutions each implemented, and an evaluation of how effective each approach proved to be.

Defining Knowledge Management

For Frito-Lay, knowledge management was defined primarily by the ability of systems and processes to integrate disparate, siloed sources of content — from sales data to manufacturing information. The company could quickly equate the absence of effective knowledge management with lost sales. Their assessment encompassed every potential knowledge management component, from large, complex, and often partially integrated databases to information isolated on hard drives in key sales administrators' laptops and desktop computers.

Experiencing massive duplication of effort in serving their sales force with information, Frito-Lay first defined knowledge management by the pain of lost sales and reduced profits resulting from an inability to serve their sales force as effectively as possible. Second, the company recognized that the disconnected nature of their knowledge management systems was making it more difficult to serve customers and keep remote channel sales representatives and partners informed. Frito-Lay also determined that better knowledge management could significantly improve the execution of sales representative service processes and create greater efficiency in selling.

For Step Two, knowledge management as it related to Frito-Lay meant getting the most accurate and up-to-date information to contact center and call center representatives by redesigning the processes used to generate and deliver that knowledge. This required significant Business Process Re-engineering (BPR), which compelled Step Two to anticipate and respond to the unmet needs of call center representatives — first by re-architecting the workflows needed to deliver knowledge, then by tailoring that knowledge to the specific needs of call center personnel. Step Two's definition was far more process-centric and encompassed both digital and paper content. It also considered the time value of information, specifically how to enable first-response effectiveness. This produced a definition of knowledge management focused on information flow and the need to quantify the responsiveness of information delivered.

Comparing Problems Across Both Case Studies

Analysis of both cases reveals several shared problems associated with knowledge management strategies at Frito-Lay and the Regional Transport Authority (RTA) via the Step Two consultancy.

While neither case study explores this area as deeply as a real-world implementation would require, the need to address disparate systems and the processes used to update their content deserves greater attention. Integration efforts carry exceptionally high costs in services and consulting fees. Frito-Lay's decision to unify search through the use of search vendor Autonomy was sound, as it formed the foundation for their enterprise-wide content and knowledge management system and reduced the massive duplication of effort documented during the case study period. As is common in repeated integration efforts, however, Frito-Lay failed to capture a clear roadmap of those efforts over time. Step Two's contribution to the RTA project was nonetheless significant, integrating electronic and manual content into a unified system.

In both case studies, the organizations involved faced major challenges in making the content within their knowledge management and content management systems available to users. This is a well-documented problem in the knowledge management field. Of the two cases, Step Two faced the additional challenge of converting manual content into electronic form so that it could be more easily used and accessed over time. Making content accessible across entire organizations was extremely difficult in the early stages due to a lack of integration — a point illustrated clearly by the Frito-Lay example, where database and systems integration proved pivotal.

Change management is an area of weakness in the composition of both case studies. While each case clearly identifies who the "internal customer" is for the system, it is difficult to believe that employees would change deeply ingrained work habits and adopt a new system based solely on introductory materials. It is also exceptionally difficult to persuade outside sales teams — many of whom work remotely — to alter their daily routines without added incentive. Both cases illustrate how systems are often designed by senior management and handed to employees to use, as was the case with Step Two, and how critical it is for senior leadership to champion change and demonstrate a willingness to modify their own work practices as part of system adoption. Frito-Lay's successful adoption among remote sales teams required their active input and sense of ownership — a point downplayed in the case study, but clearly present given the outcome.

Conclusion

Despite their different starting points — Frito-Lay's integration-focused definition versus Step Two's process-centric model — both organizations demonstrate that effective knowledge management requires attention to systems, people, and processes in equal measure. The shared challenges of integration costs, content accessibility, and change management underscore that no single technology solution is sufficient on its own. Long-term value will depend on sustained leadership commitment, user adoption, and the continued alignment of knowledge systems with evolving organizational needs.