Internal Knowledge Sharing and ROI - It's Personal

Why would you give away your knowledge, not to a competitor, but to an internal colleague?  Team work is great, but in the end one person gets primary credit for the sale; one engineer is the lead developer; one customer service manager drives the highest customer satisfaction scores.  And that person gets the promotion, the biggest bonus, and the greatest ego boost. 

Yet organizations are adopting internal social networks with the hope of improving productivity and innovation through greater knowledge sharing.  Prescient Digital (www.prescientdigital.com) reported in their Intranet 2.0 Global Study 2010 that the main reasons that companies invest in intranet 2.0 tools are employee collaboration (76%) and knowledge management (71%).  Does knowledge sharing naturally follow?

Knowledge is far more than data; it includes the analysis and experiential wisdom that we bring to information.  Understanding when we need to share true knowledge and when we need to facilitate the transfer of information helps organizations build effective internal social media networks.  It is critical to driving the ROI of internal social media.

Knowledge versus Information Sharing

Two of the three factors that drive ROI for internal social media depend on knowledge sharing.  Only one factor is primarily data or information driven.  (see http://goo.gl/fb/pdpSI 3 Benefit Measures - The ROI of Internal Social Media Networks) Recognizing the distinction helps the change management process; employees can share at the level that benefits both themselves and the organization.  

v  Enhanced Employee Engagement depends on the give-and-take of knowledge sharing.  Numerous studies have linked higher levels of employee engagement to increased customer satisfaction and loyalty, lower turnover and higher sales.  By facilitating greater sharing of both personal and professional knowledge, internal social media networks boost employee engagement.  Within about 3 weeks of launching its new social networking site, The Hub, SAS had almost 50% of its employees using the site and 425 groups established.  The Hub intentionally blurs the line between the professional and personal, creating stronger, more multi-faceted ties between employees and the company.  Becky Graebe, internal communications manager at SAS, describes the site as “kind of like a Facebook/LinkedIn behind the SAS firewall.” Sharing knowledge creates friendships and connections, across and up-and-down the organization, which drives employee engagement and positive ROI. (For more information, see http://www.ragan.com/InternalCommunications/Articles/SAS_internal_social_network_attracts_5000_users_in_42751.aspx)

v Better, faster innovation requires more structured knowledge sharing.  Success depends on governance structures that facilitate and reward cross-silo and cross-functional work - while continuing to recognize the primary sources of both inspiration and execution.  A key is bringing together individuals with complementary skills and reducing redundancy. Merely sharing data is insufficient for innovation; sharing must involve insight, analysis and creativity.  $21.8 billion pharmaceutical company Eli Lilly implemented an internal social networking solution to enable more efficient and cost-effective processes for new drug development.  R&D scientists and subject matter experts are now in touch throughout the product development process, across multiple divisions and around the globe.  Increased knowledge sharing has helped reduce costs and accelerate innovation.  Personal brands are enhanced not threatened.

v Streamlining operations depends on information sharing, not knowledge sharing.  Many tools enable employees to find data and experts more quickly, and allow executives to ensure that activities are focused on the key strategic initiatives.

Many internal social networks facilitate data sharing; doing the same things more efficiently yields a positive ROI.  Knowledge sharing multiplies the benefits that an organization receives.  Unlike data, however, knowledge is personal and reflects an individual’s value and builds his or her personal brand.  Internal social networks that enable true knowledge sharing must recognize the individual as well the organizational benefits.  The ROI of these networks rocket upward.