Measuring knowledge management effectiveness in communities of practice

This paper outlines an approach to determine key performance indicators and metrics for knowledge management (KM) in communities of practice. The approach is based on analysis of the KM literature on (i) types of knowledge, (ii) processes of knowledge development and social learning, and (iii) metrics for KM, such as from the intellectual capital method. To embed communities of practice and KM processes in an organizational context, we introduce our knowledge governance framework, which combines knowledge resources, KM, and organizational objectives. Our first hypothesis is that successful KM in organizations requires the linking of knowledge resources to organizational objectives. Our second hypothesis is that a precondition for successful KM is that explicit, quantitative indicators are used. We tested the framework in a small organization in the financial industry. According to our first case experience, the model can be applied in a business setting and our first hypothesis is supported: successful KM links knowledge resources to company objectives. Our second hypothesis is not supported: KM in the case is not based on explicit and quantitative indicators.