Develop Your Corporate Memory

Another key is ensuring that a company retains, and can quickly retrieve, the information that it accumulates. Gates calls this "corporate memory." And it isn't only employees who need access to vital information; customers, too, should have access to this information. This way, account managers and customers can refer to the same document when discussing an account or a billing issue. In the same spirit, all customer interactions should also be documented.

Think of all this as a complete digital archive that will allow employees and customers to locate a form or record in seconds. Gates also feels that most companies (including Microsoft) have too many forms, and he suggests that companies eliminate as many as possible. He also recommends that companies put all forms online and encourage feedback from users. Gates has a litmus test that helps companies evaluate their progress in this vital area:

Your corporate memory is not very good unless somebody who is working on a project can sit down at their PC and in less than 60 seconds call up any memos or documents that might relate to a similar project that was done in the past. If it takes more time than that, people probably won't go and find it. So in that sense, your corporate memory is not an asset.

Here are some ways to improve your organization's corporate memory:

• MAKE SURE THAT YOUR CUSTOMERS AND SUPPLIERS HAVE THE SAME ACCESS TO INFORMATION AS YOUR EMPLOYEES. This will make all transactions that much easier. Such an approach may require a radical shift in mind-set, as well as a realignment of the ways in which your organization interfaces with key constituencies.

• MAKE SURE THAT IT TAKES NO MORE THAN 60 SECONDS TO RETRIEVE ANY DOCUMENT OR FILE. If your organization cannot pass this test, the digitization of all those transactions and forms is of little use.

What Would Bill Gates Do?

Returning to the case of the frustrated woodworking company CEO, it is apparent that you went wrong when you instructed the outside contractor to allow only limited access to information. By restricting access to information by function, you created functional silos within the company and made a mess of the entire system. When sales managers and salespeople have to ask which products are in stock, you know you have a big problem.

Bill Gates would know that information can't be restricted by function. In order for information to flow properly within a digital nervous system, all employees— and suppliers and customers as well—must have access to all relevant company information. Anything less than that will hamper productivity and slow things down. Your outside contractor knew that and advised you against restricting access to information. Your concern about employees leaving and taking information with them helped to undercut the entire system. Was your concern well placed? Perhaps. Did your decision to restrict access to information cost more than the alternative? Probably.

The good news is that you can fix things rather easily by making all information available to all departments. If you think about it, there is actually very little information that your competitors could learn that would hurt you. You can go one step further by inviting key suppliers and customers in and training them as well, and giving them access to relevant forms and screens. By doing so, you can create a far more efficient and capable organization, reduce frustration, and boost morale.