Knowledge Management: The Hidden Asset in Projects (Part 1 of 3)

With the investment of just $2million in Knowledge Management, Chevron Texaco saw a $2B reduction in annual operating costs with $670million alone coming from refinement of best practices. The Olympic Games achieved a reduction in median cost overruns from 166% to 51% in the years following the introduction of a Knowledge Management system.

So what is Knowledge Management and how can we exploit it to increase our success rates in projects?

Knowledge Management (KM) is simply a formalized approach to the organization of the information assets of an enterprise. It determines how knowledge will be collected, classified, assessed, stored and distributed. This knowledge is regarded by many as a critical competitive asset, a resource that is generated as a by-product of the functioning of an enterprise. Therefore, managing this asset, by developing Communities of Practice, employing Knowledge Managers or establishing Knowledge Management Systems, can infer great financial, cultural and operational benefits to a company... Read more

Author: Raymond Poole, Managing Director of PMIS