APQCsLevelsofKnowledgeManagement

Maturity
ByCindyHubertandDarcyLemons

This article provides an overview of APQCs Levels of Knowledge Management Maturity, which are
designedtobeusedinconjunctionwithAPQCsRoadMaptoKMResults:StagesofImplementation.

CanYouMeasuretheValueofKnowledgeManagement?
Knowledgemanagement(KM)hasbecomeawidelyadoptedbusinesspractice,yetmanyorganizations
stillstruggletomeasurethegainsitpromisestooffer.Executivesarerightlyasking,Whatinvestment
arewemakinginKM?Isitenough?Toomuch?Whatarewegettingforourmoney?
TheintangiblenatureofknowledgeitselfcausedsomeKMpractitionerstoassumethattheimpactof
KMwouldalsobeintangible.APQChasnotfoundthattobethecase.Wefoundthatfirmscanandare
measuring the impact of KM. In fact, those who invest the most and measure most rigorously are
achievingafinancialreturnoninvestment (ROI)of twodollarsforeverydollarspentperparticipating
employeeahealthyROIbyanystandard.

WhyIdentifyingLevelsofMaturityMatters
IftheimpactofKMismeasurable,thenhowdoorganizationsknowthattheireffortsacrosstheStages
ofImplementationarepayingoff?
APQCs Levels of Knowledge Management Maturity provide a road map for moving from immature,
inconsistentknowledgemanagementactivitiestomature,disciplinedapproachesalignedwithstrategic
businessimperatives.TheLevelsofKnowledgeManagementMaturityareintegratedwithAPQCsStages
of Implementation so that implementation at each stage provides a foundation for success and a
launchingpadtothenextstage.
Regardless of whether an organization is just getting started, conducting the first implementations of
KM pilot projects, or preparing to revitalize or leverage successful KM approaches and tools to other
areasintheenterprise,itshouldhavearoadmapwithmilestonesandcheckpointstoguideitsefforts.
Figure1illustratesthefivelevels.Theremainderofthearticledescribeseachlevelindetailandlistskey
activitiesthatorganizationsshouldundertaketomovetothenextlevelofmaturity.
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TheFiveLevelsofKMMaturity

Figure1

LEVEL1:INITIATE
Thisisthemostbasiclevelofmaturityatwhichmostorganizationsbegintheirknowledgemanagement
journeys. At this level, the organization lacks consistent processes or practices for successfully
identifying,capturing,sharing,transferring,andapplyingitscoreknowledge.Thekeycharacteristicofa
Level 1 organization is random and informal knowledge sharing and transfer that, in turn, yields no
impacttothebusiness.
In order to move quickly through this level of KM maturity, the following objectives should be
communicatedandactedon:
1.
2.
3.
4.

explainknowledgemanagementinawaythatpeopleinyourorganizationcanrelateto;
createacompellingpictureofwhatispossibletoachieveintermsofbusinessoutcomes;
expandinterestandunderstandingamongkeystakeholdersandseniorleaders;and
lookforareasoftheenterprisethatwillbenefitfromtheflowofknowledge.

LEVEL2:DEVELOP
TheprimaryfocusduringthissecondlevelistoestablishthefirstiterationofaKMstrategy.Thestrategy
for KM should link tightly to the enterprises business strategies and objectives and should identify
business opportunities to apply knowledge sharing and transfer approaches. The opportunities and
value of those opportunities should be assessed and clearly documented in a business case. The
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business case should provide the calculation of an ROI that includes investments and valuation of
assumed benefits that can be measured by undertaking KM projects focused on the work of the
business.
TheobjectivestocreateaLevel2KMcapabilityinclude:
1.
2.
3.
4.

developKMthoughtleadershipandgeneratebuyin;
createandbuildsupportfortheintegratedKMstrategy;
selectandsecurebuyinforbusinessopportunitiestotestKMapproachesandtools;and
findresourcestosupporttheinitialKMinitiatives.

GovernanceandsponsorshiparecriticalsuccessfactorsforensuringsuccessfulmovementthroughLevel
2activities.Seniorlevelsupportisimportantforestablishingexecutiveaccountabilityforperformance
of the organizations knowledge management activities and for sponsorship of the KM strategy and
programtoimprovetheorganizationsprocesses.

LEVEL3:STANDARDIZE
The primary focus at Level 3 is to manage the KM strategy, processes, and approaches identified and
definedinLevel2.Duringthisthirdlevel,theKMteamoftenevolvesintoaKMCenterofExcellencewith
oversight responsibilities for the KM approaches and processes. Oversight includes identifying
opportunities to apply select KM approaches and processes, securing funding and resources for the
pilots, marketing and communicating the strategy, implementing a change management strategy, and
refiningtheKMapproachesandprocessesintostandard,replicablemethodologies.
Whyisstandardizationimportant?Usingstandard(andreplicable)approachesandprocessesallowsthe
organizationtogaineconomiesofscale.Standardizationwillbeachievedbyintegratingbestpractices
from the KM approaches and processes already in use and enhancing the results with external best
practicestofillinanygaps.
Inaddition,embeddingthestandardKMapproachesandprocessesintothedailyworkflowallowsthe
organizationtodevelopproofofconcept.Implementationofstandardapproachesandprocessesallows
the organization to learn from its experiences by establishing common measures (at the process or
approach level), capturing/sharing lessons learned, and developing competencies related to the
approachesandprocesses.Developingcompetenciesandcapturing/sharinglessonslearnedenablesthe
organizationtoadaptorcustomizethestandardprocessesandapproachestofitbusinessneedswhile
maintaining the integrity of each approach and process. In addition, standardizing and implementing
theseKMapproachesandprocesseswillbuildthefoundationforaknowledgesharingculture.
Keyactivitiesduringthisthirdlevelinclude:
1. managetheKMapproachesandprocessessothattheyarestandardizedandreplicable;
2. designandimplementpilotopportunities;
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3. capturelessonslearnedtofacilitatecontinuousimprovementofthemethodologies;and
4. communicateandmarkettheKMmethodologies.

LEVEL4:OPTIMIZE
ByLevel4,thefoundationsforKMhavebeenestablishedandstandardized.Level4involvesexpanding
KMinitiativesthroughouttheorganizationbyleveragingthestandardizedKMapproachesandprocesses
(aligned with the KM strategy). At this level, the organizations KM approaches and processes should
work together to create a powerful organizational capability. The primary objective at this level is to
developandmarketanexpansionstrategyleveragingthestandardizedKMprocessesandapproaches.
Tangentially,theorganizationwillalsoneedtomanagethegrowthresultingfromthatexpansion.
KeyactivitiesforLevel4include:
1. developanexpansionstrategy,leveragingstandardKMmethodologiesacrosstheorganizationand
expandingtonewdivisionsorfunctionalareas;
2. managethegrowthandcontroltheconfusionthatmaycomefromleveragingthesemethodologies
acrosstheorganization;and
3. continuetocommunicateandmarkettheKMmethodologies.

LEVEL5:INNOVATE
WhenanorganizationreachesLevel5,leadersarebeginningtocountonKMcapabilitiestosupportthe
business strategy and business model. However, while the organization leverages standard KM
approachesandprocessesaspartofitsexpansionstrategyinLevel4,itmaynotbecapableofachieving
desiredbusinessoutcomesthroughtheKMprocessesandapproachesalone.Theprimaryobjectiveat
thisfifthlevelofmaturityistoimprovecorebusinessprocessesbyoptimizingstandardKMapproaches
and processes and embedding them, endtoend, within those business processes in order to achieve
desiredbusinessoutcomesandbreakthroughinnovation.
In order to optimize the approaches and processes, leadership needs to deploy proactive continuous
improvement activities to close the gaps between current KM capabilities and desired business
outcomes. Continuous improvement should be institutionalized so that it occurs at the individual,
departmental/functional, and organizational levels. At the same time, it should also realign
performanceassessmentswiththeKMstrategy.
KeyactivitiesforLevel5include:
1.
2.
3.
4.
5.

embedstandardKMmethodologiesinthebusinessmodel,
monitorthehealthoftheKMmethodologies,
alignperformanceevaluationandrecognitionwithKMstrategy,
balanceanorganizationalKMframeworkwithlocalcontrol,and
continuethejourney!

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APQC believes that the framework described in this article can help any organization evaluate and
improvethematurityofitsknowledgemanagementprogram.FormoreinformationabouttheLevelsof
KnowledgeManagementMaturityandrelatedtoolsthatcanhelpyouassessyourcurrentstatus,please
contactusatapqcinfo@apqc.org

ABOUTAPQC
For more than 30 years, APQC has been on the leading edge of improving performance and fostering
innovationaroundtheworld.APQCworkswithorganizationsacrossallindustriestofindpractical,cost
effective solutions to drive productivity and quality improvement. We are a memberbased nonprofit
currentlyservingmorethan500organizationsinallsectorsofbusiness,education,andgovernment.

CONTACTINFORMATION
123NorthPostOakLane,ThirdFloor
Houston,TX770247797
phone:+17136814020or8007769676
fax:+17136818578
email:apqcinfo@apqc.org
www.apqc.org

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