Knowledge Management 101:

Knowledge Management Cycle,

Processes, Strategies, and Best
Practices
by Becky Simon on Aug 28, 2017

In This Article 

Regardless of industry or product, all companies rely on the knowledge of their employees to be successful.
Organizations must treat knowledge as an asset, but it’s not enough to simply hire skilled employees. Instead,
successful companies should build in processes to store, grow, and share knowledge to increase the knowledge
base of the overall workforce. This concept is known as knowledge management.
In this article, you’ll find everything you need to know about knowledge management: what it is, types of
knowledge, and the history and evolution of the field. Then, we’ll break down the benefits and challenges of
implementing knowledge management, and discuss multiple models of the knowledge management life cycle.
Finally, we’ll look at the rise of knowledge management systems, and offer free, downloadable templates to get
you started building a knowledge management plan.

What Is Knowledge Management?

Knowledge management (KM) is the process(es) used to handle and oversee all the
knowledge that exists within a company. Knowledge management relies on an understanding
of knowledge, which consists of discrete or intangible skills that a person possesses.
The field of knowledge management identifies two main types of knowledge. Explicit
knowledge is knowledge or skills that can be easily articulated and understood, and therefore
easily transferred to others (this is also called formal or codi ed knowledge). Anything that can
be written down in a manual - instructions, mathematical equations, etc. - qualify as explicit
knowledge. Tacit knowledge, by contrast, is knowledge that is difficult to neatly articulate,
package, and transfer to others. These are usually intuitive skillsets that are challenging to
teach, such as body language, aesthetic sense, or innovative thinking. (A third knowledge
type is implicit knowledge, which is information that has not yet been codified or transferred,
but that would be possible
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and tacit knowledge.)
You can break these knowledge types down further into four categories:
Factual Knowledge is measurable, observable, and verifiable data.

Conceptual Knowledge relates to perspectives and systems.

Expectational Knowledge is knowledge rooted in expectations, hypotheses, or judgments.

Methodological Knowledge deals with decision-making and problem-solving.

Knowledge management enables organizational learning, a concept where companies are

invested not only in the reliable, expert production of a product or service, but in the
knowledge that underlies these production processes. Companies devoted to organizational
learning are interested in maintaining and building upon internal knowledge at an
organizational level - not just helping individuals accrue special skills, but ensuring that this
knowledge is available to and dispersed throughout the workforce.
As one Massachusetts Institute of Technology (MIT) paper
(http://web.mit.edu/ecom/www/Project98/G4/Sections/section1b.html) states, the core goal of knowledge
management is to connect “knowledge nodes” - those with knowledge and those seeking
knowledge - to ultimately increase the knowledge within an organization. Within that goal, the
authors identify four objectives of KM: to capture knowledge, to increase knowledge access,
to enhance the knowledge environment, and to manage knowledge as an asset.
Ultimately, knowledge management is an integrated system of accumulating, storing, and
sharing knowledge within a team or organization. KM consists of several components, as well
as strategies to implement it successfully - we’ll delve deeper into these later in the article.

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Who Uses Knowledge Management?
Knowledge management can be implemented enterprise-wide across a number of industries.
However, the way you implement KM might change depending on factors such as industry
and company size.
KM is often used differently for small vs. large organizations, however. Small (and/or young)
companies must carve out a competitive market advantage early on, and therefore benefit
from KM by codifying and storing internal knowledge from the get-go. Large organizations -
even those with unwavering strength in their market - use KM to act quickly in the digital age,
where business changes constantly and often without warning. Without a reliable system to
store existing knowledge and accumulate new knowledge, it would be difficult to react to these
market changes. However, both large and small companies can benefit from KM because it
treats the knowledge that every individual brings as an asset, so employees feel respected for
their skills in the workplace.
For those looking to implement knowledge management in a specific department, you can
also tailor the practice to sub-fields. Other than enterprise KM, knowledge management is
most commonly implemented in IT/information systems and science, organizational
management, business administration, human resources management, content management,
or for personal use.

History of Knowledge Management

Efforts to formally manage knowledge have been in place for most of the past half century. In
the late 20th century, however, with the evolution of computers, organizations began
implementing more reliable storage systems. In the 1990s, the Swedish financial service
provider Skandia created the first Chief Knowledge Officer (CKO) position, which paved the
way for other companies to treat knowledge management as an integral part of their structure.
In fact, several academics have formalized the topic, and knowledge management is now
regarded as a scientific discipline. In the mid-1990s, Ikujiro Nonaka and Hirotaka Takeuchi
published the first academic research on knowledge management, and coined the SECI
model (socialization, externalization, combination, internalization) as a path of knowledge
transfer. Since then, Nonaka and Takeuchi have studied several other aspects of knowledge
within a company, as have other academics. The knowledge management life cycle, which
details how to store and disseminate knowledge throughout an organization, was also set
forth by business academics in the l990s and early 2000s; the four most popular models are
Wiig (1993), Zack (1996), Bukowitz and Williams (2000), and McElroy (2003).
In general, knowledge management has evolved from a loose tendency to accumulate, store,
and teach (and therefore increase) knowledge within a team or organization into a prioritized
method of building a knowledgeable workforce - all with the goal of gaining a competitive
advantage. As we will discuss later on, there are several theories of how to best store
knowledge and stimulate knowledge transfer within an organization. Skeptics say that today’s
knowledge management is simply a “fad,” while others argue that its principles are here to
stay: its strategies, methods, and implementation systems will simply continue to evolve as
technology and business does, too.

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What Is the Primary Benefit of Knowledge
Management?
While it may not seem directly related to the tactics of knowledge management, the primary
goal is to increase company efficiency to improve business decision-making. The idea is that
building expertise into your organization - and dispersing it amongst employees - empowers
you to make more informed, faster, and ultimately more profitable decisions.
Of course, there are several secondary benefits. Successful KM will enable you to:
Increase collaboration and idea generation

Optimize a culture of knowledge sharing

Protect intellectual capital

Treat human capital as an asset (which makes employees feel respected for their
knowledge)

Capture and store knowledge for the future workforce

Kevin D. Murray, CPP, CISM is a technical surveillance

countermeasures (TSCM) specialist with an extensive
career in information security and counterespionage
consulting for business and government. He breaks the
benefits of KM into four value areas:

Control: Not knowing where your information is is the first step to losing it.
Security: ‘You gotta keep the bait in the bucket, not in the pond.’
Access: When you need your information, you will get it faster.
Responsibility: With all the eggs in one basket, one is forced to carry the basket more
carefully, meaning you provide better protection for your information.

RELATED: [Infographic] How Much Time Are You Wasting on Siloed Information?
(https://www.smartsheet.com/blog/infographic-how-much-time-are-you-wasting-siloed-information)

What Are the Challenges of Knowledge

Management?
There are many challenges that businesses face when implementing knowledge
management. Here is a list of some of the most common ones:
Creating a culture of flexibility and collaboration: This is one of the most significant and
enduring challenges of KM. Companies already struggle to implement new policies,
because Discover why over
people naturally tend to90% ofchange.
resist Fortune 100 companies
However, KM can be trust Smartsheet
especially difficult
because employees might want to protect their skills and knowledge, or be reluctant to
to get work done.
learn from their peers.
 Security: You have to design a knowledge transfer system that makes it easy for the
appropriate people to access information, while protecting sensitive or private intelligence
from outsiders.

Measuring knowledge: It can be difficult to define metrics to measure the knowledge

within your organization, especially for tacit knowledge that cannot be easily quantified. To
overcome this, some experts recommend focusing on the purpose of knowledge, rather
than the efforts or results (which are often also unquantifiable).

Identifying an expert: There won’t always be a single “keeper” of every knowledge type,
but you will still have to identify who within the company possesses certain knowledge,
and use them as the base level of knowledge from which you want to build. This process
is difficult tactically, but can also be delicate among employees who might feel competitive
about their skill levels.

Document storage and management: While not all knowledge makes for straightforward
documentation, it will have to be stored and organized in some form. Document
management is a challenge for many companies, but organization is a vital aspect of KM -
otherwise, it will be impossible to locate and use the knowledge you have stored.
Consider using a dedicated document management system to keep everything organized.

Disseminating knowledge throughout an organization: You’ll need to devise a process

where, once you store the knowledge, other team members can access it. This is
complicated both theoretically and tactically, so many organizations opt for a software
system designed specifically for this purpose. We’ll take a closer look at KM systems later
on.

Continual improvement: Like most process-driven strategies, you should continually

improve upon the knowledge management system you implement. Stage periodic reviews
or, if possible, dedicate resources to continually optimize your process.

Determining where KM is housed: If KM serves your entire organization, decide which

department will “own” the strategy. Companies most commonly house KM in HR or IT.
Remember, this department is not only responsible for effectively managing the
knowledge itself, but also for maintaining the community of knowledge sharing and
organizational learning.

How Does Knowledge Management Work?

Basic Components and Strategies
As we’ve discussed, the theory behind knowledge management is that in order to make the
best business decisions, the workforce must be as educated and skillful as possible. One way
to ensure an educated - and continually learning - workforce is to stimulate organizational
learning, which companies can do by implementing knowledge management. This practice
ensures not only that existing knowledge (both explicit and tacit forms) is codified and stored,
but that it can be dispersed among other employees so that people can continue to amass
skills. Another benefit is that KM evenly distributes knowledge so no one is contributing in
silos.
As Nonaka and Takeuchi first stated in their seminal academic papers, there are three main
ways that people approach knowledge management:
1. People-centric: Centered on people, relationships, and how people form learning
communities and other informal ways of knowledge sharing. This idea is also known as
ecological KM theory.

2. Tech-centric: Focused on the technology that facilitates knowledge storage and transfer,
and aims to create technology systems that encourage knowledge sharing.

3. Process-centric: Interested in how the organizational structure and processes

Discover
accommodate why overknowledge
and encourage 90% of Fortune 100organizational
sharing and companies learning.
trust Smartsheet
This
concept includes the production processes, the organizational hierarchy, and the cultural
to get work done.
framework.
The approach you take will depend on how your company currently functions. Organizational
structure, politics, management style, and existing processes all create parameters around
what kind of KM implementation is workable. Regardless of the approach you choose,
however, implementing KM will inevitably affect your organization’s people, technology, and
processes. Therefore, it’s best to keep all three in mind when enacting a knowledge
management strategy.
Theoretical approaches aside, there are some common tactical ways of handling knowledge.
The common strategies include:
Storing knowledge vs. sharing knowledge: Storing knowledge involves accumulating,
codifying, and maintaining knowledge in a reliable storage system. This is a good first
step, but successful knowledge management also requires a system to disperse that
stored knowledge.

Codification vs. personalization: The difference between these strategies are similar to
the previous example. Codification is any activity where you are collecting knowledge
(creating and maintaining databases, content architecture, training to support software
storage systems), and creating awareness of these collection systems. Personalization, is
connecting people to this codified knowledge by forming learning communities, promoting
active discussion and knowledge transfer, and facilitating group interaction.

Push vs. pull: These represent two opposing strategies. In a push strategy, individuals
actively encode their knowledge to make it available for others. In a pull strategy, team
members seek out experts to request knowledge sharing, so you only transfer knowledge
on an as-needed basis.

SECI model: This is the knowledge transfer and strategy model first proposed by Nonaka
and Takeuchi in 1996, and is considered the cornerstone of knowledge management
theory. It outlines the four different types of knowledge transfer:
Socialization: Tacit to tacit, where knowledge is transferred intuitively through
observation, guidance, and practice.

Externalization: Tacit to explicit, which codifies intuitive, intangible knowledge in

order to be taught. This type of knowledge transfer is the most difficult because tacit
knowledge is extremely difficult to break down into digestible directives.

Combination: Explicit to explicit, where codified knowledge is transferred or

combined with other codified knowledge. This type of knowledge transfer is the
simplest.

Internalization: Explicit to tacit, where an organization follows and practices

codified knowledge so that it becomes intuitive.

Data mining is a process of discovering data patterns based on algorithms, and is another
common element of sophisticated knowledge management programs. Because codifying all of
your internal knowledge will result in a huge knowledge library, data mining can help identify
patterns and extract data. It still uses qualitative methods of data analysis, but automated
programs will likely rely on algorithmic work.

The Knowledge Management Life Cycle

As we’ve discussed, the process of knowledge management follows general steps. Today, this
progression has been formalized by several scholars, along with how knowledge should be
stored and disseminated throughout an organization. This how includes the processes, tools,
and technologies that make up the knowledge management life cycle.

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While each life cycle differs in specific steps, this infographic shows the basic steps.
There are multiple, semi-competing theories of the knowledge management life cycle.
However, despite the nuanced theoretical and syntactical differences, the top four all follow a
similar pattern. Here are the top four KM life cycle models:
1. Wiig Model (1993): This model relies on the principle that in order for information to be
useful, it must be organized. Therefore, this model is primarily concerned with organizing
all data once it is codified, but also outlines how knowledge is built, stored, pooled (with
other stored knowledge), and then extended into the organization. The phases of the Wiig
model are creation, sourcing, compilation, transformation, and application.

2. Zack Model (1996): While the phases here are similar to the Wiig model, the Zack model
prioritizes a logical, standardized process when advancing to each new stage. The
phases of the Zack model are acquisition, refinement, storage/retrieval, distribution, and
presentation.

3. Bukowitz and William Model (2000): This model builds upon the previous two by
expanding the definition of knowledge storage to include the infrastructure that supports
this learning community (such as communication, hierarchy, and working relationships).
Bukowitz and William also emphasize the need for not only maintaining your knowledge
repository, but also building it over time. The phases here are: get, use, learn, contribute,
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 4. McElroy Model (2003): Building upon the process focus of the Bukowitz and William
model, McElroy is concerned with knowledge production and integration. It creates ways
for team members to submit “claims” when they fail to receive or understand knowledge,
all in an effort to improve group learning. The phases in the McElroy model are learning,
validation, acquisition, integration, and completion.

Here’s how all the different phases of these model relate to each other:

The integrated knowledge management cycle, proposed by Kimiz Dalkir, Ph.D., combines
several of the concepts we’ve discussed into one general framework. Dalkir identifies three
key stages in her model: knowledge capture and/or creation, knowledge sharing and
dissemination, and knowledge acquisition and application. In this model, Dalkir emphasizes
the cycle aspect in order to ensure continual improvement - not only in the amount and quality
of knowledge stored, but of the underlying processes, as well

How to Improve Knowledge Management

Even with an understanding of the KM life cycle, knowledge management can be difficult to
implement. Below are a few tips on how to improve knowledge management:
Understand the flow of knowledge in your organization: While the various KM life cycle
models list phases to follow, they are merely a blueprint. Knowledge management will only
be successful if you understand how your organization already naturally gains, stores, and
shares knowledge, so use the existing flow of information to structure your formal
knowledge management process.

Clearly define your goals and how you will measure them: Just like any project, you won’t
be able to judge your success without clearly defined goals. Choose objectives and how
Discover
you will measure why
them overyou
before 90% of Fortune
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to get work done.
 Encourage socialization: One way to foster an environment of knowledge transfer is to let
it happen naturally, by talking and casually sharing. Allow team members to talk and form
relationships in-office, which will make them more likely to turn to each other for
information or advice, or to learn new skills.

Generate new knowledge: Remember that knowledge management is not only concerned
with storing existing knowledge; rather, you need to create processes to manage the
ongoing stream of new information. Actively generate new knowledge within your
organization not only to create a robust knowledge stream, but also to show your
employees that you treat new knowledge - and their knowledge - as an asset. This will
make workers more apt to adopt KM.

Employ technology: Technology can play a huge role in standardizing and organizing the
KM process. However, remember that technology itself is not knowledge management,
but simply a tool to enhance your processes. We’ll discuss knowledge management
technology in depth in the next section.

What Is a Knowledge Management

System?
A knowledge management system is any technology that is used to store and manage
knowledge - essentially, a tool to oversee knowledge management. However, a successful
knowledge management system also taps into the underlying goals of KM: codifying
knowledge, retrieving knowledge, improving collaboration, and stimulating overall
organizational learning.
Knowledge management systems have evolved from a useful tool to optimize KM processes
to an integral component of KM itself. Today, organizations rely on KM systems to perform
many of the functions of knowledge management - data storage is an obvious example, but
technology systems can also help foster collaboration and group learning, among other
objectives.
There are several emerging features in contemporary knowledge management systems.
Here’s a look at some of the most prominent ones:
Content and document management: This is a critical component because codifying
knowledge almost always results in documentation (or another form of created content).
When choosing a KM system, make sure the platform can support the file size, type(s),
and volume that you need. This is especially important for enterprise companies who will
need to store massive amounts of data, and scale regularly. (For this functionality, look for
enterprise portals.)

Lessons learned databases: These are systems that aim to make intangible (often tacit)
knowledge clear and available to other users. The focus with lessons learned databases
is as the name implies: on lessons learned by experts that others should follow (think of it
as best practices). The key here is to find a database that can house this kind of
qualitative information and make it accessible.

Groupware: As we’ve discussed, collaboration is a key component of KM. Groupware

refers to any collaborative work platform, and is usually intended for workers who need to
communicate remotely. Groupware is broken down into two categories: synchronous
groupware (collaborate and update in real time) and asynchronous groupware.

Artificial Intelligence (AI): The adoption of AI (as telepresence) into KM systems replaces
the human consultants that had been analyzing the data and monitoring the KM
processes. Today, cognitive computing, adaptive technology, and intelligent filtering tools,
in particular, have huge implications for codifying knowledge, and will likely be adopted by
more KM systems. However, the importance of human quality assurance (QA) in much of
today’s data work has raised concerns about AI’s ability to fully take over this space.

Although KMDiscover why

systems can over
help 90% of
automate andFortune 100knowledge
standardize companies trust Smartsheet
management, there are
several challenges when implementing a system. Security, data accuracy, and changes in
to get work done.
technology (cost, implementation, usability) are focused difficulties that you should keep in
mind from the get-go. A much more pervasive and ongoing challenge, however, is creating a
culture of collaboration and knowledge sharing via technology. People may already be
reluctant to share information with their peers, and technology can create even more barriers
for doing so. Therefore, you’ll need to build in processes that support and stimulate this type
of knowledge transfer.
Kevin Murray offers four key things to look for when choosing a KM system:
1. Security: Information is valuable. Like any other valuable, there are people who will steal
it.

2. Accountability: Information is valuable only when it is accurate. Limit access. Log

intensively. Test for accuracy.

3. Backup: Everyone knows the value of backing up. Not everyone knows how to do it.
Hiding a backup drive in the CEO's desk won't help if the building floods or burns.
Creating, maintaining, and correctly storing back-ups should be an automatic functionality.

4. Ease of Use: If the system is too difficult or demanding to use, people will take shortcuts.
Shortcuts usually reduce security and the integrity of the information you're managing.

When discussing the future of KM systems, many critics claim that knowledge management
itself is a fad. However, others think that KM and KM systems will simply evolve to meet the
demands of today’s business world - likely incorporating more AI-driven systems. Murray
agrees with the latter camp.
“It's no fad. It's an imperative. The amount of information being created grows each year. It
has to be managed, if you want it to be useful,” he says. “KM systems will continue to increase
in popularity, functionality, and ease-of-use, just like the evolution of typewriters and word
processing software. Artificial Intelligence (AI) will blend into the mix even more.”

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