Knowledge management has a direct effect on the effectiveness of the organization: study

KM programs also affect employee and customer satisfaction.

Ninety-one per cent of Canadian business leaders say that knowledge management has a direct, positive effect on organizational effectiveness, according to a study sponsored by Microsoft Canada. Sixty-five per cent of survey respondents said it has given their organization a competitive edge.

According to the study, the top three knowledge management practices being used are:

•the development of an intranet;
•holding corporate events to share knowledge; and
•using software that encourages collaboration.

Respondents also said about knowledge management practices:

•They are successful in creating value in improving organizational effectiveness (91 per cent).
•They deliver customer value (88 per cent).
•They positively affect employee satisfaction (89 per cent).
•Their average return on investment is 41 per cent among organizations that are able to calculate a return.
•It is part of, and is nurtured by, their corporate culture (89 per cent).

A third of organizations that did not have a knowledge management program in place plans to implement one in the next year.

The study was based on a survey of responses by senior business and IT decision-makers from 402 Canadian organizations with more than 50 PCs.

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