Aligning a KM Strategy and Developing KM Capabilities

Abstract

Knowledge capitalization has become a major economic driver in business today and has created enormous requirements for organizations as they reconsider their goals and adapt their business strategies. However, the definition of knowledge management in an organizational context is a difficult task to realize (Spiegler, 2000). Although knowledge is a critical resource, it is generally poorly managed (Earl, 2001). Good knowledge management in an organization is likely to help achieve business goals, but require an alignment of knowledge management strategies (KMS) and business strategies (BS). Such alignment can be an effective approach to enhancing interactions and to applying knowledge. This chapter provides, first, a KMS and BS alignment framework and taxonomy in which concepts, links (contextual links among concepts), actors, actions and processes are defined and described to show how they provide the potential for effective knowledge management through alignment and interaction in an organization. Secondly, a KM capabilities framework and taxonomy in which three main dimensions and specific features is presented. The framework presented here is for managers in companies and organizations to use to align their KM strategies with business strategies to improve performance involving financial growth, cost reduction, and customer satisfaction.