In today’s ever changing global economy organizations are finding it difficult to stay competitive. Under these circumstancesit is no wonder that organizations are considering Knowledge Management (KM) as one of the possiblesolutions. The success stories and benefits reaped by some organizations through effective Knowledge managementluring others to impalement one or the other KM systems. It is difficult to determine if a particular KMproject is successful or not, as many of the benefits are cumbersome to quantify and subjective in its nature. Also,some organizations leave the projects midway as they fail to see financial benefits of the implementation.In this paper we discuss various methods and metrics to monitor KM project implementation and to develop amethodology to determine impact of KM project on financial results. We categorized these metrics into Threegroups; first group of metrics focuses on measuring Knowledge acquisition (the amount of information), secondgroup on measuring effectiveness of KM systems (easy to access, system response time) and third group of metricsfocuses on measuring success of overall project. In the process of developing methodology to identify impactof KM on financial results, we proposed a methodology similar to Event Study methodology used to measure abnormalstock returns caused by firm specific as well as economy wide events.

Prabhakar Tunuguntla, Sanja Berjan