Knowledge Management a Success in Most Canadian Companies.

According to a new study by Ipsos-Reid and Microsoft Canada Co., a majority of Canadian business leaders indicate that knowledge management (KM) practices have created value by improving organizational effectiveness, delivering customer value, and improving product innovation and delivery. The study reveals that 65% of Canadian companies practising knowledge management believe it has given their organization a competitive advantage.

Knowledge management is a formal, directed process of determining what information a company has that could benefit others in the company, then devising ways of making it easily available. The study results indicate that despite what recent critics have been saying, knowledge management has been a considerable success in most Canadian organizations that have implemented KM practices:

* Ninety-one per cent agree knowledge management practices have succeeded in creating value in improving organizational effectiveness

* Eighty-eight per cent agree knowledge management practices have succeeded in delivering customer value

* According to 89%, the positive impact of KM practices also extends to employee satisfaction

* Of those that have been able to calculate a return on investment, the average return to date is 41%, while the average dollar value has been $41,278

* Eighty nine per cent agree that their organization has a culture that encourages and provides opportunities for communicating ideas, knowledge and experience internally

* One-third of organizations without KM practices in place have plans to implement one in the next 12 months This study is one of the first to measure the prevalence of knowledge management; investigate what specific knowledge management practices are in place in Canadian organizations and determine the success and impact of knowledge management practices. The survey also shows that the top three knowledge management processes in place are the development of an Intranet, conducting events for sharing knowledge throughout an organization and the use of software to encourage sharing and collaboration.

For complete survey results visit www.microsoft.ca/business.

Strategy articles add value

I just wanted to send off a note complimenting you on the array of "strategy" articles written by Ray Suutari in CMA Management magazine. It is refreshing to see good coverage afforded to strategic management issues in addition to our traditional tools of the trade.

As an MBA, CMA and Queen's Executive Program alumnus, I have a strong interest and bias to general management and the value of strategic thinking. Of particular interest was the three-part series of articles in the December/January 2000, February 2000 and March 2000 issues on formulating business strategy. I look forward to future articles.

David Quon, MBA, CMA

Vice-President Finance & Operations Support

ACRO Aerospace Inc.

Richmond, BC