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Creating a Knowledge Management Strategy

One of a company’s most valuable assets is the collective knowledge of its employees. This collection is generally a
fragmented conglomeration of documents, databases and deliberations that span tens of thousands of man-hours. With such a
medley of data, it’s easy for companies to overlook its value or to dismiss it as purely unmanageable.

But that doesn't have to be the case. The knowledge of any company can be mangaged—that is, identified, categorized, stored and
retrieved—so that employees and managers can capitalize on it. Technology, in particular, gives companies the ability to share
information in ways never before possible. An effective knowledge management strategy prevents companies from duplicating
efforts, ignoring mistakes and prolonging work processes. Bottom line, it gives companies the edge they need to stay ahead of the
competition.

Let’s take a look at four key steps involved in the creation of a knowledge management strategy.

Step 1: Analyze the Business

Every business has its own personality. By studying the mannerisms and idiosyncrasies of your fellow entrepreneurs, employees,
colleagues and vendors, you begin to understand how people in your "world" communicate. This is important because
communication is, in essence, an exchange of knowledge. Unless you understand how this exchange occurs or, more important,
how and when it doesn’t occur, you will never be able to create a strategy to improve upon it. A good knowledge management
strategy uses failures to awaken those who would otherwise overlook its importance. As a small business owner, don't overlook the
importance of management "buy-in" at this stage.

Step 2: Identifying Your Knowledge "Buckets"

Once you have an idea how your company exchanges knowledge, you need to figure out the type of knowledge that exists. As
mentioned in the introduction, most companies maintain such a wide spectrum of information it is many times interpreted as being
unmanageable. What makes information unmanageable is not it’s abundance, but it’s diversity. The fact is if properly organized, a
company that maintains two million documents can be just as manageable as one with two hundred.

This is possible by categorizing information into what I like to refer to as knowledge "buckets". These buckets represent subject
areas that are important to your company based upon how you share knowledge (i.e. communicate). However, make sure to give
this a lot of thought before moving on. It’s easy to throw together all or your Microsoft Word documents, Excel spreadsheets, and
Access databases into their own buckets, but it usually isn’t the most efficient way to organize the information. Creating "Client",
"HR", or "Marketing" buckets are usually more appropriate.

Step 3: Creating a Metadata Repository

The key to any knowledge management strategy is the creation of metadata. The accepted definition of metadata as "data about
data" can mislead, especially management, into thinking that it is less important than it really is. For metadata is to knowledge
management as search engines are to the Internet. The Internet is as popular as it is today because of search engines like Yahoo, WebCrawler and
InfoSeek. Without them, the Internet would simply be another information "black hole" that everyone knew
was available, but no one wanted to use.

In it’s most usable form metadata lies in a database (or searchable repository) and defines in specific detail the contents of your
aforementioned knowledge buckets. Make sure to focus your efforts on how the repository is to be maintained. Your metadata
should not be so complex that it becomes a burden on the business.



Step 4: It’s all in the Presentation

The last component of any knowledge management strategy is the presentation layer. Metadata alone cannot provide users with the
intelligence necessary to make sound business decisions. By providing an interface that presents relationships between metadata
elements, users are given the power to find information on their own. As a result, decisions are made faster and more efficiently. The
most flexible medium for this sort of presentation seems to be the ever-popular web browser, but make sure to select an
environment that meets your companies needs.

Although the aforementioned steps are key to the development of any strategy, they may not work for every situation. I encourage
you to do your homework and find out what’s right for your business. It’s definitely worth the effort!



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