Sunday, May 23, 2010

How to measure an Organization’s knowledge


On an earlier post I was arguing about the importance of collective intelligence for any Organization, in this post I will go over two different KPIs from the Gartner's Business value Model – BVM

According to Gartner:

The Employee Training Index shows the commitment of the organization to invest in its employees as the changing demands of its customers require new knowledge and skills.

The skills Inventory Index show the ability of the organization to fulfill its employee skill needs in order to complete its business activities. Outsourced business activities are not considered part of these skill requirements.


Knowledge management and the management of collective intelligence are significant factors in determining business value. Attracting and keeping superior talent will require the evidence of commitment on the part of the organization. The measurement of this indicator in coordination with other business indicators will bring deep insights about the influence of collective intelligence in the overall success of the Organization.


Employee Training Index=Total training days/Amt of Emp * 225


The Skills inventory index is an indication of the organizations ability to move into new lines of business. It is measures as


Skills Inventory index=Total skills filled by existing employees /Total number of skills needed


With the help of these two indicators any Organization should be able to measure their collective intelligence and its influence in business value generation. The question that still remains is how to leverage this asset? That will be the theme of a new post.

Keep tuned.

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