Re: KM ROI #question #value

Frank Guerino

Hi Sachin,


Something to consider.  You can only measure ROI through the gains associated with:


  1. Money
    • cost savings
    • revenue generated
  2. Time (Performance)
    • Time saved, which translates to cost savings.
    • Time to market, which translates to revenue generated.
  3. Quality
    • Minimization of incidents and/or failures, which translates to customer satisfaction/perception and avoidance of lost money (i.e. avoidance of unnecessary spend/costs, avoidance of lost revenue, avoidance of lost lives, etc.)


Most leaders speak in the above language so I recommend that, as you identify the benefits that you’ve achieved from your implemented KM solutions, consider clearly mapping these benefits to the above items and also providing clear metrics/measurements that depict how much the target has improved items 1, 2 and/or 3.


  • For example: “Training program ABC helped our manufacturing organization improve quality from 3 sigma to 4 sigma, which in turn resulted in a rise in customer satisfaction from 75% to 90%”
  • For example: “Implementing communities of practice (CoPs) for our development team resulted in being able to effectively and successfully release product upgrades every two weeks instead of every month, resulting in our customers getting access to new features, faster.”
  • For example: “Training program XYZ, which cost us $10K, helped our sales team close on 10% more deals in the last quarter, leading to a revenue increase of 14% and a net profit increase of 8%.”


Clearly, how you set metrics and how you measure according to those metrics are specific to the context areas that you wish to improve.


I hope this helps.




Frank Guerino, Principal Managing Partner

The International Foundation for Information Technology (IF4IT)
1.908.294.5191 (M)

Guerino1_Skype (S)



From: <> on behalf of Sachin Joshi <sachinjoshi.a@...>
Reply-To: <>
Date: Thursday, October 15, 2020 at 10:08 AM
To: <>
Subject: [SIKM] KM ROI #question


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.

Join to automatically receive all group messages.