Re: KM ROI #question #value

Stephen Bounds

Hi Sachin,

KM4Dev Journal was recently good enough to publish a journal article on mine on the topic. It is my view that relative return on investment (RROI) is generally the correct benefits evaluation tool for KM programs.

Excerpting from the article, I examine four ways of determining benefit:

  • ROI can be used by a government regulator for the purpose of optimising like-for-like process efficiency (i.e.performance improvements that can be made without compromising the quality of their work).

  • SROI measures may be adopted by a service enterprise to demonstrate the theory of change (TOC) underpinning its corporate social responsibility (CSR) activities, increasing the benefits accruing to the company brand.

  • RROI measures can be used by a public company CEO to justify their strategic choices to a board, for a marketing division to justify their spending mix – or indeed, for a KM manager to sell their program to their boss. It is worth noting that RROI is also increasingly relevant for the purposes of valuing impact on the creation or curation of external communities.

  • CBA assessments may be undertaken by not-for-profits to make a case for the release of funds by government or philanthropic services for the use of the non-profit.


Stephen Bounds
Executive, Information Management
E: stephen.bounds@...
M: 0401 829 096
On 16/10/2020 12:08 am, Sachin Joshi wrote:

Hello all, this is my first post on this very insightful forum/group.

I am KM consultant in IT organization. We implement and monitor lot of good KM practices in our teams. We also see good benefits of all these, unfortunately showcasing them as quantitative benefits is always a challenge (I am talking about benefits such as reduction in xxxx, improvement in xxxx and so on... not about quantitative KM dashboard data such as no. of SMEs, no. of posts, no. of assets, no. of sessions, etc.).

The question which is always asked on KM performance is, what is the benefit. Change in culture, improvement in collaborating, creation of assets, etc. is not an answer to this. since this is just an output but not measure of benefit/success. Can someone share, how we can correlate KM with business benefits OR how can we show return on investment in KM. Thank you.

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