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Knowledge Management: Managing Intellectual Assets Helps Reduce Costs

News - July 16, 2004
To efficiently manage intellectual assets, leading companies embed knowledge management activities in their corporate strategy. According to a study by research and consulting firm Best Practices, LLC, identifying and sharing internal best practices enables organizations to gain market position and drive long-term growth. While some companies lay off employees to cut costs in a slow economy, leading companies utilize employees' valuable knowledge reduce expenses.

"Knowledge Management of Internal Best Practices" reveals the importance of employing effective management of intellectual capital technique. Examples from the study include:

  • A leading chemical company outlined a specific procedure for the implementation of its knowledge management system. The system bolstered profits immediately: the company saved more than $1 million within the first 18 months after implementing its six-step system.
  • One benchmarked company determined that an increasing percentage of companies' assets are intangible, approximately 62% for industrial organizations. Managing ideas, concepts, best practices and talents of employees is critical to both near-term competitive advantage and to the preparation for future success.

The leading practices and managerial insights in "Knowledge Management of Internal Best Practices" are drawn from interviews with more than 55 companies across more than 10 industries. Highlights include:

  • How to support critical corporate strategies and initiatives by disseminating appropriately focused best practices
  • Communication tools and activities necessary to implement quantifiable performance improvements across all functional areas
  • Knowledge sharing systems that utilize superior operating practices and continuous innovation, enhancing growth potential and long-term profitability

"When executives search for ways to cut costs, they often overlook what their employees already know," said Chris Bogan, president and CEO of Best Practices, LLC. "Best practice sharing keeps the company positioned to leap forward when the market turns."

To download a summary of "Knowledge Management of Internal Best Practices," visit http://www3.best-in-class.com/rr351.htm.