How Do I Measure Knowledge Management Performance?

Knowledge does have an outstanding contribution to the core competitiveness of the organization. Therefore, many scholars and managers have reached a consensus on this point. Performance evaluation is a necessary part of knowledge management and is one of the important issues that need to be solved. However, there are not many studies on the performance evaluation of organizational knowledge management, and the reasons are explored.

Knowledge management performance evaluation

Right!

Knowledge does have an outstanding contribution to the core competitiveness of the organization. Therefore, many scholars and managers have reached a consensus on this point. Performance evaluation is a necessary part of knowledge management and is one of the important issues that need to be solved. However, there are not many studies on the performance evaluation of organizational knowledge management, and the reasons are explored.

(1) Knowledge management is a complex systems engineering, and related disciplines include

In the theory of knowledge management performance evaluation, we can see that this article will use the balanced scorecard method for knowledge management performance evaluation. The four aspects of the balanced scorecard can comprehensively evaluate how well the organization implements knowledge management. The next key task is to determine the evaluation aspects of the facets and the corresponding measurement methods.

Due to the different nature of the organization, there may be differences in the determination of evaluation, and the measurement methods used by the organization are different. Just consider some general aspects, there may be insufficient areas, there are other aspects or better method. This article is for reference only. Organizations should make appropriate improvements based on their own characteristics when establishing knowledge management performance evaluation, establish their own evaluation aspects, and choose their own measurement methods.

Financial perspective

The balanced scorecard still retains the financial aspects of traditional performance evaluation, because financial measurement is a summary and evaluation of past performance and reflects the company's operating results and financial status. What kinds of performance indicators are selected by senior managers often reflect some of their assumptions, and think that those indicators can most effectively increase revenue, improve productivity and asset utilization, etc. Here are some of the commonly used ones.

Economic value added can also be replaced by return on investment. However, economic value added can overcome the shortcomings of return on investment. However, because return on investment is simple, clear and easy to grasp for business managers, people often use return on investment. This article uses economic added value because it reflects the economic value or income added by capital, comprehensively measures the true profit or value creation of an enterprise's production and operation, and takes into account the cost of capital or capital expenses.

Customer perspective

Some of the customer indicators of the balanced scorecard can be calculated directly, and some need to be calculated indirectly through other methods.

In different development periods and different economic environments, the target customers may be adjusted accordingly. Once a company has identified a specific market to serve, customer-specific metrics are easier to determine. There are generally five indicators used by enterprises: market share, customer retention rate, customer acquisition rate, customer satisfaction, and profit from customers. These five measures may seem to be general to each organization. But for maximum results, these measures should be specifically differentiated based on the customer groups that the business unit expects to derive the most growth and profit from them.

3. Learn and grow

In order to achieve financial goals and meet customer needs, it is not enough to just use existing technologies and capabilities, and continuous improvement is required. At the same time, financial, customer, and internal process evaluations identified gaps between existing capabilities and achievement of goals that needed to be filled by learning and growth. Although this aspect is relatively abstract, it can be evaluated through the performance of employees, the use of knowledge management systems, the ability to innovate knowledge, and the use of external knowledge.