Knowledge Management: How to Use KM Effectively

Knowledge management (KM) is the process of amassing and sharing knowledge within an organization. Knowledge sharing allows all company stakeholders to benefit from the same trove of facts and methodologies, no matter their department, their job title, or their history with the company. Successful knowledge management processes can help new employees catch up with seasoned team members, and thus quickly contribute to the company goals like revenue growth and a better customer experience.

The concept of knowledge management strategy first emerged in the business community in the 1990s. Today, it plays a major role in shaping organizational culture as companies use it to onboard new hires, facilitate knowledge transfer between departments, and process lessons learned. Information technology also plays a role; many contemporary companies invest in knowledge management software to help organize their information assets. Some companies even employ a chief knowledge officer (CKO) who specializes in utilizing institutional knowledge.

Without sharing information, business processes can slow and become less profitable. Decision-making slows as team members lack the knowledge base to act with confidence. By contrast, a sturdy knowledge base, whether assembled manually or via content management systems, gives employees the know-how needed to execute business processes. The major benefits of knowledge management systems include:
1. Plugged skill gaps: Companies can use their intellectual capital and organizational knowledge to buttress the skills of their new and existing employees. Not everyone brings the same competencies to a job, but they can learn new skills as they work. Using the company’s knowledge management system, team leaders can provide these employees with relevant information and useful skills to help them fill in any gaps.
2. Streamlined workflows: Effective knowledge management facilitates more efficient workflows. Shared knowledge helps team members perform their individual roles and improve their task completion. This, in turn, advances the company’s mission.
3. Stronger decision-making: KM offers companies a competitive advantage because it allows all stakeholders to reap the benefits of collective knowledge. This empowers more team members to make informed decisions on behalf of the company.
4. Deeper understanding of customers: When one department learns about customer behavior and customer preferences, it can share that information with the whole organization via a knowledge management system. Not only will the business offer better customer support; it will also use knowledge of its customers to aid its product development and marketing efforts.
5. Data security: Digital knowledge management solutions allow companies to customize permissions for sharing information and viewing documents. They can secure proprietary documents in various databases and content management systems (CMS). The employees who need access to specific information can get it, while prying eyes are kept away.

Business strategists group knowledge management into three main categories.

1. 1. Tacit knowledge: Tacit knowledge, or unspoken knowledge, is gained through real-life experience, making it more difficult to codify in writing. Tacit knowledge includes leadership skills, communication skills, and emotional intelligence. While companies may struggle to establish metrics that measure tacit knowledge, they nonetheless appreciate its value.
2. 2. Explicit knowledge: Knowledge workers also utilize explicit knowledge, which can be clearly articulated in guides, training manuals, user dashboards, case studies, white papers, video recordings, and audio recordings. Companies archive explicit knowledge in document management systems that team members can search when they need specific information. Employees can automate these knowledge management tools so that they archive all knowledge documents by default.
3. 3. Implicit knowledge: Implicit knowledge is the knowledge employees gain while doing their job. This form of new knowledge creation comes with experience; it cannot instantly materialize during an employee onboarding session. Do not confuse implicit knowledge for tacit knowledge. Tacit knowledge involves global skills, like leadership, that an employee may bring with them to the job. Recruiters can often gauge them via job interviews and resumes. Implicit knowledge accrues through the process of doing a job. It can be hard to archive implicit knowledge through document management systems, but it can be shared via teamwork and mentoring.

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