Knowledge Management: Hog Wash or Lipstick on a Pig?
May 8, 2025
No AI. Just a dinobaby who gets revved up with buzzwords and baloney.
I no longer work at a blue chip consulting company. Heck, I no longer work anywhere. Years ago, I bailed out to work for a company in fly-over country. The zoom-zoom life of the big city tuckered me out. I know, however, when a consulting pitch is released to the world. I spotted one of these “pay us and we will save you” approaches today (April 25, 2025, 5 42 am US Eastern time).
How pretty can the farmer make these pigs? Thanks, OpenAI, good enough, and I know you have no clue about the preparation for a Poland China at a state fair. It does not look like this.
“How Knowledge Mismanagement is Costing Your Company Millions” is an argument presented to spark the sale of professional services. What’s interesting is that instead of beating the big AI/ML (artificial intelligence and machine learning drum set), the authors from an outfit called Bloomfire made “knowledge management” the pointy end of the spear. I was never sure what knowledge management. One of my colleagues did a lot of knowledge management work, but it looked to me like creating an inventory of content, a directory of who in the organization was a go-to source for certain information, and enterprise search.
This marketing essay asserts:
Executives are laser-focused on optimizing their most valuable assets – people, intellectual property, and proprietary technology. But many overlook one asset that has the power to drive revenue, productivity, and innovation: enterprise knowledge.
To me, the idea that one can place a value on knowledge is an important process. My own views of what is called “knowledge value” have been shaped by the work of Taichi Sakaya. This book was published 40 years ago, and it is a useful analysis of how to make money from knowing “stuff”.
This essay makes the argument that an organization that does not know how to get its information act together will not extract the appropriate value from its information. I learned:
Many organizations regard knowledge as an afterthought rather than a business asset that drives financial performance. Knowledge often remains unaccounted for on balance sheets, hidden in siloed systems, and mismanaged to the point of becoming a liability. Redundant, trivial, conflicting, and outdated information can cloud decision making that fails to deliver key results.
The only problem is that “knowledge” loses value when it moves to a system or an individual where it should not be. Let me offer three examples of the fallacy of silo breaking, financial systems, and “mismanaged” paper or digital information.
- A government contract labeled secret by the agency hiring the commercial enterprise. Forget the sharing. Locking up the “information” is essential for protecting national security and for getting paid. The knowledge management is that only authorized personnel know their part of a project. Sharing is not acceptable.
- Financial data, particularly numbers and information about a legal matter or acquisition/divestiture is definitely high value information. The organization should know that talking or leaking these data will result in problems, some little, some medium, and some big time.
- Mismanaged information is a very bad and probably high risk thing. Organizations simply do not have the management bandwidth to establish specific guidelines for data acquisition, manipulation, storage and deletion, access controls that work, and computer expertise to use dumb and smart software to keep those data ponies and information critters under control. The reasons are many and range from accountants who are CEOs to activist investor sock puppets, available money and people, and understanding exactly what has to be done to button up an operation.
Not surprisingly, coming up with a phrase like “enterprise intelligence” may sell some consulting work, but the reality of the datasphere is that whatever an organization does in an engagement running several months or a year will not be permanent. The information system in an organization any size is unstable. How does one make knowledge value from an inherently volatile information environment. Predicting the weather is difficult. Predicting the data ecosystem in an organization is the reason knowledge management as a discipline never went anywhere. Whether it was Harvey Poppel’s paperless office in the 1970s or the wackiness of the system which built a database of people so one could search by what each employee knew, the knowledge management solutions had one winning characteristic: The consultants made money until they didn’t.
The “winners” in knowledge management are big fuzzy outfits; for example, IBM, Microsoft, Oracle, and a few others. Are these companies into knowledge management? I would say, “Sure because no one knows exactly what it means. When the cost of getting digital information under control is presented, the thirst for knowledge management decreases just a tad. Well, maybe I should say, “Craters.”
None of these outfits “solve” the problem of knowledge management. They sell software and services. Despite the technology available today, a Microsoft Azure SharePoint and custom Web page system leaked secure knowledge from the Israeli military. I would agree that this is indeed knowledge mismanagement, but the problem is related to system complexity, poor staff training, and the security posture of the vendor, which in this case is Microsoft.
The essay concludes with this statement in the form of a question:
The question is: Where does your company’s knowledge fall on the balance sheet?
Will the sales pitch work? Will CEOs ask, “Where is my company’s knowledge value?” Probably. The essay throws around a lot of numbers. It evokes uncertainty, risk, and may fear. It has some clever jargon like knowledge mismanagement.
Net net: Well done. Suitable for praise from a business school faculty member. Is knowledge mismanagement going to delivery knowledge value? Unlikely. Is knowledge (managed or mismanaged) hog wash? It depends on one’s experience with Poland Chinas. Is knowledge (managed or mismanaged lipstick on a pig)? Again it depends on one’s sense of what’s right for the critters. But the goal is to sell consulting, not clean hogs or pretty up pigs.
Stephen E Arnold, May 8, 2025
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