Knowledge management is not at all directly quantitative and thus it is quite hard to measure aside from using “judgments”. However, just because there is no particular science as to how this can be monitored, this cannot be neglected. Humans and their knowledge are the absolute most important resource for businesses and most managers do acknowledge this. However, despite the fact that most managers understand the significance of the knowledge of their workers, they still fail to take action to better utilize this resource.
It is well known that knowledge management is hard to monitor but regardless it is still worth focusing on and working to better. One way for a company to monitor the success of its knowledge management is through analyzing the return on investment. The influences on profit that knowledge management strategies have should be one of the focuses that businesses analyze to monitor the success of knowledge management. This is because the ultimate goal of every business is to increase profit and the goal of any business strategy is to improve the success of the business. So, indirectly the change in profit and change in return on investment can be viewed to determine the success of knowledge management strategies.
Aside from trying to evaluate knowledge management numerically, there are also other ways to determine the success of knowledge management. Surveying employees about their take on the knowledge management system is also another way to determine the success of the strategy the business is utilizing. This is because initially the knowledge management systems may not impact profit but that impact can occur overtime. If employees feel like it is helping them improve their efficiencies in the workplace it may be worth having because the cost is low and even if there is no change in profit initially that can occur later. Maybe for instance, the addition of the knowledge management will increase customer service and it may cause increased profit in the long term as a result of the better service. So, look into more than just the initial numbers when considering the success of a knowledge management system.
Knowledge management has been known to really help businesses improve their success. Success is usually fairly straightforward to evaluate, but for evaluating knowledge management it is a complex component to evaluate. Do not ignore knowledge management tools just because it is not so straightforward to evaluate. It can dramatically increase the success of your business because of its relationship with every businesses most important resource, human knowledge.