KM Gains Ground Yet Faces Challenges
Today, most large firms have developed knowledge management (KM) systems, but only a fraction say that their systems could be considered a success, according to a new survey by the Human Resource Institute. The survey sheds light on some of the impediments to KM success, such as the sheer complexity of these systems and the cultural barriers to making them work well. These results suggest that KM systems have yet to attain their full potential in most organizations.
It's clear that interest in knowledge management has spiked since 1999, when only 19% of HRI survey respondents had formal KM programs. HRI's most recent survey, conducted in the summer of 2002, finds that nearly 89% of the 32 responding firms have such systems. This growth is understandable in light of the importance that corporate leaders attach to such systems. Over three quarters of respondents – mainly HR professionals, all working at organizations with 1,000 or more employees – say that their executives regard KM concepts as either "important" (59%) or "extremely important" (19%).
Well over half (56%) of respondents say that, since installation, the number of people using their KM systems has consistently increased. And nearly three quarters report that the volume of knowledge contained in these systems has steadily risen. Over half say that their KM systems attract over 5,000 users each month.
Yet, despite these trends, KM systems face some serious challenges. When asked to respond to the statement "The KM system's implementation in this organization could generally be considered a success," only a quarter agreed or strongly agreed, while 21% either disagreed or strongly disagreed (54% said they neither agreed nor disagreed). This suggests that some real problems are plaguing KM systems, keeping them from being widely viewed as successful.
In fact, over half of respondents reported significant or very significant conceptual, complexity or cultural problems. The most commonly cited problem (74%) was complexity, meaning that there's too much information involved and too many resources are required to integrate and align the full body of knowledge. Cultural issues also represent a significant problem, according to 59% of respondents. After all, it's often difficult to work out issues such as who "owns" certain knowledge and how such knowledge can be shared in an efficient way. But despite the commonness of such problems, just half of respondents said their firms had developed specific strategies or tactics to address them.
A lack of resources may help explain some of these findings. Just a third of participants agreed that "the KM system's initiative had received sufficient resources to facilitate its success," while fully 42% disagreed. Not only are many systems underfunded and understaffed, but they are in a vulnerable position in many companies. Fully 71% of respondents agreed with the notion that "without the support of one or two key individuals, the KM system would not likely survive."
On a more positive note, most responding companies seem to be fairly good at communicating across organizational boundaries. This is important because good knowledge management depends not only on databases and other computer systems but on face-to-face and voice-to-voice communication. Very few respondents (15%) say that people in different departments dislike interacting with one another. Two thirds believe that in their organization "it is easy to talk with virtually anyone you need to, regardless of rank or position." And just as many think that "there is ample opportunity for informal 'hall talk' among individuals from different departments in this organization."
On the other hand, fewer than a third of responding organizations actually reward people for sharing knowledge, and fewer than half provide training that emphasizes knowledge sharing.
Overall, the HRI survey suggests that – although KM systems have become more popular in recent years – they're still a long way from being permanently and successfully integrated into many organizations. Not only do many organizations require more training and resources, they also need to boost their ability to cope with the sheer complexity of KM systems.
It's clear that interest in knowledge management has spiked since 1999, when only 19% of HRI survey respondents had formal KM programs. HRI's most recent survey, conducted in the summer of 2002, finds that nearly 89% of the 32 responding firms have such systems. This growth is understandable in light of the importance that corporate leaders attach to such systems. Over three quarters of respondents – mainly HR professionals, all working at organizations with 1,000 or more employees – say that their executives regard KM concepts as either "important" (59%) or "extremely important" (19%).
Well over half (56%) of respondents say that, since installation, the number of people using their KM systems has consistently increased. And nearly three quarters report that the volume of knowledge contained in these systems has steadily risen. Over half say that their KM systems attract over 5,000 users each month.
Yet, despite these trends, KM systems face some serious challenges. When asked to respond to the statement "The KM system's implementation in this organization could generally be considered a success," only a quarter agreed or strongly agreed, while 21% either disagreed or strongly disagreed (54% said they neither agreed nor disagreed). This suggests that some real problems are plaguing KM systems, keeping them from being widely viewed as successful.
In fact, over half of respondents reported significant or very significant conceptual, complexity or cultural problems. The most commonly cited problem (74%) was complexity, meaning that there's too much information involved and too many resources are required to integrate and align the full body of knowledge. Cultural issues also represent a significant problem, according to 59% of respondents. After all, it's often difficult to work out issues such as who "owns" certain knowledge and how such knowledge can be shared in an efficient way. But despite the commonness of such problems, just half of respondents said their firms had developed specific strategies or tactics to address them.
A lack of resources may help explain some of these findings. Just a third of participants agreed that "the KM system's initiative had received sufficient resources to facilitate its success," while fully 42% disagreed. Not only are many systems underfunded and understaffed, but they are in a vulnerable position in many companies. Fully 71% of respondents agreed with the notion that "without the support of one or two key individuals, the KM system would not likely survive."
On a more positive note, most responding companies seem to be fairly good at communicating across organizational boundaries. This is important because good knowledge management depends not only on databases and other computer systems but on face-to-face and voice-to-voice communication. Very few respondents (15%) say that people in different departments dislike interacting with one another. Two thirds believe that in their organization "it is easy to talk with virtually anyone you need to, regardless of rank or position." And just as many think that "there is ample opportunity for informal 'hall talk' among individuals from different departments in this organization."
On the other hand, fewer than a third of responding organizations actually reward people for sharing knowledge, and fewer than half provide training that emphasizes knowledge sharing.
Overall, the HRI survey suggests that – although KM systems have become more popular in recent years – they're still a long way from being permanently and successfully integrated into many organizations. Not only do many organizations require more training and resources, they also need to boost their ability to cope with the sheer complexity of KM systems.