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Gathering the Data 75

occurrences, and numbers. Information is a collection and some
synthesis of data. Knowledge is the mix of information, experience,
and context in a value-adding process. That process occurs first in
the heads of individuals (where it is what we call “uncodified
knowledge”) and can be shared with others through discussions or
documentation (at which point the knowledge becomes “codi-
fied”). KM is the systematic process by which an organization
maximizes the value of the uncodified and codified knowledge in
the firm. In general, this means the codified knowledge has been
captured in databases or documents.
Many executives and academics focus their KM efforts on cod-
ification strategies, including technology platforms. We believe,
and McKinsey teaches, that even the best KM technologies can
capture only a small portion of the true knowledge in a firm.
Therefore, a truly successful strategy must move beyond technol-
ogy if it is to capture and distill the valuable experience that is
walking around the hallways.
Bill Ross, a McKinsey alumnus now working for GE as the
manager of business development for the Transportation Division,
commented on KM in his new firm:

I was fortunate to land at a company that values knowledge
just as McKinsey did. GE is a learning organization, and the
person in charge of that effort is Jack Welch. In fact, Jack
will say that the KM ability of GE is the core element that
has led the company to its great success.
Everyone in the organization pays attention to best prac-
tices, inside and outside of the organization. There is regu-
lar communication between divisions and special groups,
such as a services council, where we stay abreast of every-
one’s key projects. We don’t try to do it through a massive
database, as it would be too hard to keep updating. This is