Re: Weighing the benefits of productivity improvements #value
I was asked a similar question this morning and have also been formulating a response.
I like the general approach you have taken in the draft of your article. Without getting in too much detail, you do a good job describing one of the potential benefits of KM. In our environment, KM can also help mitigate risk. By leveraging not only best practices but by avoiding worst practices, we avoid making potentially costly mistakes over an over again. The impact on the business can be significant.
I am adapting Yelden and Albers (2004) (http://www.tlainc.com/articl69.htm) approach to establishing business cases for KM initiatives to our environment. They advocate the following framework for developing business cases around KM initiatives:,
1. Strategy assessment
2. Knowledge audit
3. Knowledge and business strategy alignment
4. Opportunity identification
5. Value, business benefits, and evaluation
6. Risk reduction techniques
"In order to make a successful justification, it is necessary to clearly identify all the options available with the associated risks involved with each choice. Furthermore, it is required to first identify and separate the benefits of a given initiative, then determine its value to the firm, before proceeding to infer an associated cost and expected return for undertaking the effort. Clearly delineating the expected hard and soft benefits of each aspect of the initiative will greatly aid in effectively justifying its need."
I will send you a copy when I am finished.
Thanks for sharing your draft.
Ernst & Young, LLP