Re: KM ROI #question #value


 
Edited

Hello Sachin - this is a topic that comes up frequently in KM, and has been discussed several times on this forum (here is my take on a similar question a few months ago: https://sikm.groups.io/g/main/message/7463).  There are a variety of perspectives on it, as I’m sure you will see as responses start coming in to your question here. 

My take on it is based on something I read from management guru Peter Drucker. His basic thesis was that knowledge confers two principle benefits to a firm: increased revenue and increased productivity. I would add a third: increased quality (or effectiveness if you like). 

So what does this tell us as KM practitioners? 

It tells us that if we want to quantify the benefits of our KM efforts, we should start by looking at business challenges that KM can be applied effectively to that are related to one of the above two (or three categories). Where in the business are we seeing productivity-related challenges? Where do we see a lot of effort being expended, driving cost? Better leveraging expertise or lessons learned is one way KM can help.

Where are we feeling the pinch of declining revenues? Is organic growth a priority? KM for innovation is one possible solution.

These are just examples of how KM practitioners can think about the client situation they’re facing, and work backwards from a real business issue to a potential KM intervention that might effectively address it. This is the approach I used to good effect on numerous KM client engagements. It worked because I was able to start with a real business issue that I could quantify from the beginning, and then measure any improvement I could make via a KM solution. 

Good luck with your efforts. 
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-Tom
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Tom Short Consulting
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