5.1.2 The Audit Process
The key to the audit process is to understand that a Knowledge Audit is only useful when there is a clear understanding of what the overall company objectives are and how the management of knowledge relates to the achievement of these objectives. There is no point even beginning a Knowledge Audit until the answer to this question is clearly understood.
(Adapted from Elisabeth Orna, 1999)
Figure 2 The audit process
Step 1 Analyse knowledge implications of objectives
Step one involves defining what it is that the organisation is seeking to do. Questions that need to be asked include:
- What is the organisation’s mission statement?
- What are the key business objectives?
- What knowledge needs to be sourced to achieve these aims?
- Ideally, how would people within the organisation be using knowledge?
The aim is to gain insights as to:
- What knowledge to look for
- Who to speak to
- What questions to ask
- What technological support is needed
- Where to start
Step 2 Ensure support from management
Successful completion of the audit necessitates senior management support. Without it the resources necessary to conduct the audit and the commitment to implement findings are unlikely to be present. Therefore senior management must give a clear commitment to the audit and to acting the findings. To attain this outcome the audit team must:
- Define the objectives of the audit – both short and long term
- Define the benefits expected long term
- Define the scope – e.g. company wide, one division etc
- Define the phases proposed
- Define the benefits expected at each stage
- Define the timescale – start, duration and finish times
- Define the deliverables – progress reports and final reports
- Define the resources required
Top management must be clearly bought into the process and must be willing to provide:
- Support within the organisation
- Access to key people and documents
- Adequate time to complete the audit
- Clear reporting lines to senior management
Step 3 Get support from the people in the organisation
The people within the organisation must be able to see the benefits in assisting in the completion of the audit. All employees and stakeholders must understand the purpose for which the audit is being conducted.
To gain support you must:
- Determine what the benefits of the audit will be to the people within the organisation
- Make a clearly defined request for specific support
- Communicate this in a clear and understandable way
Step 4 Planning the audit
There are three questions that need to be answered:
- What to audit?
- Who should be involved?
- What method to use?
- What to audit?
The ideal is to begin with an area that is clearly defined and not too large to be daunting. It should be an area of strategic importance – that is, it should have clear links to the delivery of the company’s mission. It should also provide for the possibility of quick wins and involve people who are knowledge aware.
Who should be involved?
Who are the key people? Who should conduct the audit? The key people can be divided into: the information ‘guardians’ – those who have responsibility for the acquiring, updating or accessibility of information; and, the stakeholders – those who have a need for particular knowledge.
The audit can be conducted by an internal staff member or an outside consultant. There are pros and cons in each approach including: level of objectivity; cost; confidentiality issues; and time concerns. Each situation will be different and should be treated on its merits.
What method to use? A variety of methods can be used including:
- Analysis of documents and databases
- Observation
- Trial and error
- Structured interviews
- Informal meetings
- Questionnaires
Step 5 Do the audit
Make sure that all questionnaires have been pre-tested and that it is as easy as possible for people to participate in the audit and give unbiased responses.
Step 6 Interpret the audit
The key here is to determine the GAPS. Comparison should be made between the ‘picture’ generated in Step 1 with the results of the actual audit generated in Step 5.
Step 7 Present the results and recommend action
See earlier two elements of our study.
Step 8 to 10 Following up the audit
The action plan should include:
- Immediate changes needed to avoid threats
- Benefits in key areas
- A communication strategy for continuing the momentum from the audit
- A statement on the organisation’s knowledge policy
- A start on a knowledge strategy
- Criteria for monitoring and evaluating changes in key areas
- An assessment of the costs/benefits of various knowledge management initiatives
Reading 1
Mitre Corp. Case Study - Young, D (May 1, 2000) ‘Special Report Case Study: An Audit tale from Mitre Corp.’, CIO Magazine, 8 pages. Sourced July 2001, at http://www.cio.com/archive/050100_mitre.html
Activity 1
Complete the following questions based on the reading/case study above.
- Did Mitre Corp. have a clear idea of what the corporate intranet was intended to address?
- How do you think the company measured the overall financial and operational benefits from the investment in the project and technology?
- List the ways in which the company benefited from the technology.
- What was the more advantageous to the company, the project’s capacity to reduce costs or the improved ability for staff to work together?
- Select an area of your organisation and conduct a brief information audit.
- What recommendations can you make?
- Are there any ‘quick wins’ to be made?
Activity 2
Map and describe a process for completion of a knowledge audit for an operational area of a transport or logistics business.
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