Knowledge Management Metrics in Knowledge Management

What are the different metrics of Knowledge management?

Basically the intellectual assets are classified into human capital, structural capital and relationship capital. Human capital refers to the know-how of the knowledge workers. Structural capital refers to the organization policies, procedures and applications. Relationship capital refers to the customer relationships and the loyalty built.

In order to access the progress of the organization, there are many knowledge management measurement techniques made available. Some of these techniques are the balances scorecard method, benchmarking method, house of quality matrix etc.

It is essential to have a clear picture about what exactly the metrics need to answer. There are several questions, to which the knowledge management metrics have the answers for. Some of such questions are as follows -

  • Whether the knowledge management is properly working or anything else is required?
  • Does knowledge management executed properly or anything else is required?
  • Is the work properly done by the people?
  • Is value properly delivered?

Measuring KM Implementation

The important aspect is to measure the implementation of the knowledge management.

At the starting stages of the knowledge management implementation the assessment is being run and baseline metrics are being developed such that the improvements can be measured against it.

The different aspects of the organizational knowledge flow are measured by the knowledge management assessment protocol. The different obstacles in the flow of the knowledge are also being identified by the knowledge management assessment protocol.

Measuring KM Compliance

For instance, it can be assumed that the framework of knowledge management is being introduced in the organization in the form of policies and standards which have clear accountabilities and expectations.

Here to examine whether other people are complying with the expectations, some of the analytical tools and dashboarding can be used by the employee in order to keep track on the project members. In other different functions of the organization also, the same king of dashboards are required.

Measuring KM Activity

The different elements of the knowledge management system can be tracked using other forms of the activity based metrics.

Measuring Business Outcome

Knowledge management is always meant for enhancing the performance of the organization. The enhancement of the efficiency and results of the organization depends on the improvement of the knowledge. Hence the performance of the business will be enhanced only these methods are deployed and implemented.

What is Benchmarking?

The practices that are considered as the best practices that result in superior performance is known as benchmarking. This is a kind of the knowledge management metrics to start with.

Other companies that function similar to our company are being studied to understand and determine how things are being incorporated such that the same methods can be adopted in the organization. It goes by the saying “One becomes best when one knows the best.”

Benchmarking can be of two types. They are -

  • Internal benchmarking – Internal benchmarking is when two different units of the same company are compared or when the individual unit over different periods of times are compared.
  • External benchmarking – External benchmarking includes comparison with other companies.

What is Balanced Scorecard?

The vision and the strategy of the organization is being clarified by a judgement and management system, which is known as Balanced Scorecard. The strategic performance is improved by balanced scorecard by offering internal and external business processes.

The vision of the organization is being converted into performance indicators which are being distributed among the various dimensions. The different dimensions are as follows -

  • Financial Dimension – Some of the financial measures are return on capital employed, operating incomes and economic value added.
  • Customer Dimension – Some of the measures included in customer dimension are customer satisfaction, retention and market share.
  • Internal Business Processes – Some of the measures of internal processes are cost, throughput and quality.
  • Learning and Growth – Satisfaction levels of the workers, retention strategies and the skill set are included.

The performance of an organization can be monitored by the balanced scorecard with respect to finances, customer satisfaction, business process etc. Balanced score card also helps in improving the processes, educate the employees and enhance the information systems.

Both profit-based and non-profit organizations apply this method of balanced score card including both private and public sectors. Many advantages are provided by balanced score card. Even the goals of the organization can be continuously monitored by the balances score card. In order to move from the current state to the desired state, the changes that are required are being initiated by the balances score card.

What is the House of Quality Method?

The link between the quality, features of quality and the features of the process are being identified and discovered by the house of quality method. This house of quality method is being demonstrated with the help of a fishbone diagram, where the head part includes the true qualities and the features of the process are included in the bones part of the fish.

Fishbone Diagram

This method can also be renamed as Quality Function Deployment as the needs of the customers are linked with the functions such as marketing, design, development, engineering, manufacturing and service. This is mainly used for software products and services.

This system mainly concentrates on customer satisfaction and maximizes the customer satisfaction by measuring it in terms of metrics, such as market share and repeat business.

Both the spoken and the unspoken needs are being identified and value is delivered by this quality method. These are being converted into design targets and the targets are being communicated within the organization.

Apart from these, the customer requirements are prioritized and are compared with those of the competitors and the features are optimized such that competitive advantage can be ascertained.


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