For further information:
Brian Hackett
(212) 339-0367
The Conference Board
For Release Monday, May 10, 1999
Release # 4485 A
KNOWLEDGE MANAGEMENT SPREADING WORLDWIDE
But Most Companies Need to Develop Better Goals For These Programs
The majority of today's companies are using knowledge management programs and almost all say they will increase these efforts over the next five years, according to a new study by The Conference Board.
The study is based on a Conference Board survey, sponsored by PricewaterhouseCoopers, of 150 top executives of 96 leading companies (83% U.S., 14% Europe, 3% Asia/Pacific).
Eighty-two percent of the surveyed companies said they are involved in knowledge management activities. The study defines knowledge management as an integrated, systematic approach to identifying, managing, and sharing all of an enterprise's information assets, including databases, documents, policies, and procedures, as well as previously unarticulated expertise and experience held by individual workers.
In addition, 97% of companies say they would be involved with knowledge management at some level within five years, and 63% say they think such activities would be an enterprise-wide practice within five years.
"Knowledge management is about new ways to work," says Brian Hackett, senior research associate at The Conference Board and author of the report. "While many organizations recognize the importance of knowledge management, few have developed integrated programs which directly link to their business strategy and to the goal of deeper customer relationships."
Fifteen percent of companies surveyed by The Conference Board said they have no clear goals for their knowledge management initiatives. In addition, many survey participants say human resources programs in such key areas as compensation, retention, recruiting, and career development are not tied to knowledge management efforts. ( m o r e )
THE FUTURE OF KNOWLEDGE MANAGEMENT
The main obstacle for most firms is that the need to manage knowledge is not clearly articulated. Hackett says an organization must have a working definition of knowledge before it can attempt to manage it. Of the 82% of companies surveyed with knowledge management involvement, only 15% said their company has specific, stated goals for their objectives.
Thirty-nine percent of surveyed companies cited increasing collaboration within the company as the primary goal for their knowledge management efforts. Other objectives: increasing productivity and reusing existing knowledge (18%); transferring individual employee knowledge (10%); improving decision-making (7%); increasing innovation (7%); and transferring customer knowledge (4%).
While 17% of survey participants said HR should now focus its KM initiatives on changing the organizational culture, 60% said they should begin to do so within the next five years. Other areas mentioned as necessary focal points included leadership support, better rewards and incentives, perception of need of knowledge management, technology for sharing, globalization, collaboration between functions, financial support, customer expectations, cultural diversity, and environment for sharing.
Research & development, marketing, customer service, and strategic planning provide the leadership and implementation of knowledge management programs. Only 27% of companies surveyed have a chief knowledge officer or an equivalent position. Most respondents agree that knowledge management programs are most effective when learning is integrated into everyone' s job.
Mark Koskiniemi of Buckman Labs, a leader in knowledge management programs, said: "Contributing to the solution of customer challenges through our knowledge sharing tools is part of everyone's responsibilities and makes up part of the 'universal' expectations we have for all our associates."
Companies participating in The Conference Board survey included Alcoa; Buckman Labs; Chevron; Colgate-Palmolive; IBM; Nortel; Royal Dutch/Shell Group; Saturn; Steelcase; Toyota; and Union Bank of Switzerland.
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Source: HR Executive Review-- Managing Knowledge: The HR Role, Volume 6, Number 4 The Conference Board
Information on ordering this publication can be obtained by calling The Conference Board's Customer Service Department, 212-339-0345. Copies are available free to the media (212-339-0231).
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