Rethinking ROI: Managing Risk and Rewards in KM Initiatives: "Knowledge management projects undertaken based on good intentions alone can succeed only by accident. Success is far more likely if projects are undertaken with specific, measurable goals in mind. Predicting and then monitoring return on investment is a classic means of increasing the likelihood of success in IT projects. However, rather than using abstract ROI calculations that are too easily manipulated by project proponents, it is preferable to use measures that closely track a firm’s business and the interests of clients. Leverage, effective rate and profit component are such measures. Knowledge management projects should not be undertaken until the business intelligence tools necessary to measure results are in place. It is preferable to undertake knowledge management projects incrementally, both to mitigate risk and to permit managing such projects (using business intelligence tools) toward a higher net benefit to the firm and to clients."
Posted by gsiemens at February 26, 2004 4:33 PM