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Value of KM - Qualitative & Quantitative Pointers to demonstrate #value


Vijayanandam VM
 

Back to timeless discussion. 


How to demonstrate value of KM to sponsors, specifically on investments on KM vs. benefits that can be demonstrated in the organizations.


Please share your experiences, guidance covering both Qualitative and Quantitative Pointers. 


Appreciate your insights. 


Vijay

 


Stan Garfield
 


Stephen Bounds
 

Hi Vijay,

My favourite post on this topic actually comes from a discussion on social media investment, which has a similar problem is measuring direct ROI:
http://www.conferencesthatwork.com/index.php/tag/relative-return-on-investment/

Their solution, which I also endorse for KM programs, is to instead talk about relative return on investment (RROI). In short, this method means that you:
  • agree on desirable behaviours
  • agree on one or several methods for achieving these desired behaviours
  • use RROI as a metric to assess the cost effectiveness of each method in achieving its stated goals
This still requires agreement that there is an intrinsic good (ie certain behaviours). But to be frank if you don't have that level of buy-in then you have more problems than how to define ROI. Here's the RROI justification in a neutral context (ie no marketing-specific references):

RROI sidesteps the problem of assigning a monetary value to Return. Instead it concentrates on providing a practical comparison between desirable and measurable [outcomes] and the Investments allocated to [initiatives]. In effect, we’re replacing Return with the changes in concrete metrics that we believe are important to our [team's/organisation's] objectives. The units of RROI are then {change in metric} per unit of currency invested, e.g. decrease in weekly customer support calls per euro. Using RROI we can do experiments and make decisions about where we want to allocate [resources].

Cheers,
-- Stephen.
====================================
Stephen Bounds
Director & Principal Consultant
knowquestion Pty Ltd
E: sb@...
M: 0401 829 096
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On 22/03/2017 3:54 PM, vijayanand@... [sikmleaders] wrote:
 

Back to timeless discussion. 


How to demonstrate value of KM to sponsors, specifically on investments on KM vs. benefits that can be demonstrated in the organizations.


Please share your experiences, guidance covering both Qualitative and Quantitative Pointers. 


Appreciate your insights. 


Vijay

 



Vijayanandam VM
 

Thanks Stan for sharing insights. I have referred your article in our conversations with in the team as well as with sponsors. Appreciate your quick feedback.
 
Vijayanandam V M | HPE Software Services | WW Delivery | È+91 98868 38923 | vijayanand@...


Vijayanandam VM
 

Thanks Stephan for sharing Relative ROI (RROI) concept. Its interesting one. Also focus the discussion on expectations from sponsors (as they evolve over a period of time, and they are not constant), and desired outcommes, for example Knowledge sharing or other behavior changes expected in the organization. 

Appreciate your quick feedback. 
 
Vijayanandam V M | HPE Software Services | WW Delivery | È+91 98868 38923 | vijayanand@...