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318 Chapter 9

Knowledge Audit
A knowledge audit service identifi es the core information and knowledge needs and
uses in an organization. It identifi es gaps, duplications, fl ows, and how they contribute
to business goals. A knowledge inventory (sometimes called an information audit or
a knowledge map) is a practical way of coming to grips with “ knowing what you
know ” by applying the principles of information resources management (IRM). A
knowledge audit identifi es owners, users, uses, and key attributes of core knowledge
assets. Willard (1993) discusses fi ve key activities of IRM:

Identifi cation What information is there? How is it identifi ed and coded?
Ownership Who is responsible for different information entities and coordination?
Cost and value A basic model for making judgments on purchase and use
Development Increasing its value or stimulating demand
Exploitation Proactive maximization of value for money
A knowledge audit is often carried out in conjunction with a KM assessment, which
provides a baseline on which to develop a KM strategy ( Skyrme 2001 ). This typically
involves taking stock of current KM capabilities and is often carried out as part of a
KM strategy formulation exercise.
A knowledge audit would result in the following types of results:
• Identifi cation of core knowledge assets and fl ows — who creates, who uses
• Identifi cation of gaps in information and knowledge needed to manage the business
effectively
• Areas of information policy and ownership that need improving
• Opportunities to reduce information handling costs
• Opportunities to improve coordination and access to commonly needed
information
• A clearer understanding of the contribution of knowledge to business results

An example from Northrop Grumman is provided (box 9.2).
A KM program or system should never be implemented without a knowledge audit
having been conducted. Most importantly the precursor to spending a lot of money
on KM technology is a proper knowledge audit to determine exactly what tools and
solutions are most appropriate to enable better KM by the knowledge people in the
organization. It is people that will be required to use the newly procured technology
and adapt to the new KM system. It is therefore prudent that every attempt be made
to consult with all or most knowledge people in the organization before any KM