Knowledge management is about the acquisition of knowledge by an organization that contributes to its success. The collection of knowledge that resides in an organization is called its intellectual capital. Elements of knowledge management include human capital, structural capital, and relationship capital. The human capital is often defined as to what the intellectual value of each hire is. For example, a degree holder is accredited with a higher rating than the person who does not hold a degree. Structural capital exists in the buildings, facilities, and fleet design, alongside the processes and technology that are a part of these essential services. Relationship capital occurs in relationships with governments and their agencies, their customers and suppliers, and community stakeholders.
Knowledge management requires a careful balance of all three components. Some companies identify, develop and leverage human capital through an organized talent management system, which includes succession planning, career development planning, and performance measurement and review. Many companies invest in strong land holdings and real estate acquisitions to increase their assets and holdings.
Programs that engage management in building relationship capital, such as legislative awareness, which measures contacts with members of parliament, are examples of efforts to build and leverage relationship capital. Political ties are an essential ingredient in the mix. Government incentives can favor those companies that acquire strong relationship capital.
However, all of this is to no avail if not balanced with a lot of fun and light humor to remove the stress of the decision making, strategic planning and optimization of resources. Therefore, the real secret in knowledge management is to understand the basic formula of the Circle Area which equals πr2 for most mathematicians. They will explain the pi is an irrational number or perhaps a transcendental number where no polynomial exists. Wrong. Pi are round cake are squared; which concludes that the secret in knowledge management is to have fun.