Just had a quick call with a colleague whom I inspired to get into KM. I explained to them that it’s important to have a way to show how knowledge equals dollars as one of the foundations of their design. Thinking about it, I thought I would post while the topic was hot in my head.

In twenty years of working on Knowledge Management implementation projects, I can honestly say that more important than the ecology is the clear and concise method you use to convert knowledge capital to dollars. A good KM system will work out its issues in taxonomy, processes, licenses, etc., but it can’t do that if the funds aren’t there to keep people working on and maintaining the project.

Every three years, the KM program comes into question by leadership. When it does, whatever state the program is in, its future will depend on the value the knowledge capital has that leadership can understand. If you have to figure that out on the fly because it wasn’t reporting its financial value as a function since day one, you’re going to be in bad shape.

Leadership doesn’t have time for you to teach them KM — they need to see they’re saving enough money that it justifies continuing or more investment.