Knowledge management is an increasingly key focus in business, which makes sense given how knowledge management (KM) correlates to productivity and efficiency. This comprehensive blog delves into the core of knowledge management and its pivotal role in enhancing productivity.
In this blog:
Let’s start with understanding knowledge management
Knowledge management "is managing the corporation's knowledge through a systematically and organizationally specified process for acquiring, organizing, sustaining, applying, sharing and renewing both the tacit and explicit knowledge of employees to enhance organizational performance and create value,” according to Davenport & Prusak (2000).
A little more simply put, knowledge management involves managing the knowledge that creates value for the organization. At ClearPeople, you often hear us talk about making the right knowledge available to the right people at the right time.
Traditional definitions of productivity focus on the relationship between input and output. But Peter Drucker reframed productivity for the knowledge economy, defining it as “a balance between all factors of production that will give maximum output with the smallest effort.” Drucker emphasized that knowledge workers rely on clarity, autonomy, and the ability to apply judgment to perform effectively.
Joseph Kessels deepened this perspective by introducing the concept of knowledge productivity, which he described as the ability to signal emerging problems, gather relevant information, create new knowledge, and apply that knowledge to generate value. Kessels’ work emphasizes that productivity depends not only on efficiency but on the ongoing ability to innovate, learn, and adapt.
C. D. Stam (2007) further operationalized this concept by designing and testing diagnostic methods to measure and enhance knowledge productivity. Stam demonstrated that knowledge productivity depends on both human capabilities (learning, collaboration, reflective practices) and organizational conditions (infrastructure, culture, information accessibility). His work highlights that knowledge productivity can be designed, measured, and systematically improved.
At ClearPeople we think of productivity as enabling people and teams to turn knowledge into value consistently. We’re always working on ways to enhance employee productivity, including:
The point is that knowledge management and productivity go together.
It makes sense. Happy, healthy employees are productive. Productivity is the basis of a company’s success. A healthy work environment where people can work productively impacts an employee’s sense of purpose and wellbeing and has a spill-on effect for the level of customer service people are motivated to provide.
Improved productivity means increased output for the same amount of work – or less. And understanding productivity helps you see what may be preventing employees from completing tasks on time.
At the heart of knowledge management is the understanding that knowledge is a key contributor to productivity. When team members have easy access to the organization's collective intelligence, they can perform tasks more efficiently, solve problems more creatively, and innovate more effectively.
Knowledge productivity is therefore how effectively an organization transforms knowledge into improved results. As Kessels argues, productivity emerges when people can create and apply knowledge in context, supported by systems that make learning and problem solving effortless.
Knowledge management involves centralizing the collective intelligence of an organization and making knowledge easily available so that all employees have what they need to do their work.
Here are some ways good knowledge management has a positive impact on productivity:
Here are some examples of how knowledge management can be implemented:
Establishing a knowledge-sharing culture: Encourage a work environment where sharing information is valued and rewarded. This culture fosters collaboration and continuous learning.
Leveraging technology for KM: Implement technology solutions like knowledge bases, intranets, and collaboration tools to facilitate easy access to information.
Continuous learning and development: Invest in training and development programs to ensure employees’ skills and knowledge are up-to-date.
Encouraging cross-departmental collaboration: Break down silos by promoting interdisciplinary teams and projects, enhancing the flow of information across the organization.
Measure knowledge productivity: Regularly assess how KM initiatives are contributing to productivity and make adjustments as necessary.
Knowledge management technology strengthens knowledge productivity in four foundational ways.
Search remains central to knowledge productivity. Employees must find accurate answers quickly. Atlas extends Microsoft search to provide a unified experience across Teams, SharePoint, and other repositories. With preconfigured scopes, rich filtering, and permission trimming, Atlas ensures that users see only what they are allowed to see while making information far easier to find. Atlas functions as a unified knowledge and productivity hub that eliminates fragmentation and accelerates work.
Knowledge productivity increases when knowledge flows freely across the organization. Atlas enables democratized knowledge contribution through Add It, a simple tool for adding knowledge into structured repositories. This reduces reliance on specialists and strengthens organizational learning. Security, compliance, and governance frameworks ensure that democratization does not introduce risk.
AI accelerates knowledge productivity by embedding learning and problem solving directly into workflows. Atlas Knowledge Assistant delivers authoritative answers within Teams, SharePoint, or the Atlas interface. Employees gain immediate access to validated content drawn from Microsoft 365 and other connected sources. The outcome is higher self-service capability, faster decision making, and improved confidence in results.
Visual knowledge improves comprehension and reduces cognitive load. Atlas HoverPoint transforms process documentation, diagrams, and training materials into interactive images. This supports faster onboarding, clearer communication, and more engaging learning experiences. Visual learning is a proven accelerator of knowledge productivity.
Knowledge management and knowledge productivity are no longer optional. They are strategic capabilities that determine whether organizations can innovate, adapt, and stay competitive.
Drucker emphasized that productivity is the defining challenge of knowledge work. Kessels showed that learning and innovation are core components of productivity. Stam demonstrated that knowledge productivity can be diagnosed, improved, and supported through intentional system design.
In a world defined by rapid change and information overload, the organizations that lead will be those that treat knowledge as an active, productive asset - something to apply, improve, and grow continuously.
References
Davenport, T. H., & Prusak, L. (2000). Working Knowledge: How Organizations Manage What They Know. Harvard Business School Press.
Kessels, J. (1996–2001). Foundational works on knowledge productivity and corporate curriculum.
Stam, C. D. (2007). Knowledge Productivity: Designing and Testing a Method to Diagnose Knowledge Productivity and Plan for Enhancement. University of Twente, Netherlands.
For those eager to explore further, a plethora of knowledge management blogs and e-books are available, providing deeper insights and strategies tailored to various industries. Embracing KM is not just about keeping pace with the digital world; it's about leading the charge in innovation and efficiency.
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