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some large companies, which in turn create a great strain on the firms to train and integrate
these new employees into the firm.
Turnover also affects the knowledge available to the firm. When experienced staff
leave the firm, they take their knowledge with them. Rather than risk the loss of this
knowledge, consulting firms actively collect and codify project-based materials, write
practice guides and methodologies, and synthesize their experience in written, oral, and
multimedia forms. When new inexperienced staff arrive, these codified assets provide
significant leverage. The “push” model of individual training and mentoring of juniors
by seniors has given way to a “pull” model, where experience is made available on demand
through databases and communications networks.
KM in Consulting Companies
The staggering rate of change in the volume of information has accelerated the need
for information and knowledge management. Individuals and companies that have their
fingers on the pulse of the newest and most useful information can command a high price
for their knowledge, if they can bring it to their clients quickly. This, in turn, means that
the experts must access and leverage their own knowledge acquisition and retention, so
that they always have the best information for their clients.
The consulting environment has always required mobility and flexibility, and the
knowledge resources of the firm must be at the fingertips of consultants in the field. As
one manager put it, “We’re all road warriors now.” It’s not clear if staff spend more time
on the road than in the past, or if they are just expected to be available and productive
whether in or out of the office. Consultants are expected to use technology, primarily e-
mail, and to remain connected to the corpus of the firm. In these firms, successful
knowledge management implementations mean that the road warriors can bring the
intellectual resources of the firm with them to client sites. It is not surprising that large
consulting firms were also early adopters of knowledge management technologies (e.g.,
Alavi, 1997; Bartlett, 1996; Chard, 1997; Reimus, 1997). Knowledge management is a
competency of interest to consulting clients, and the ability to demonstrate internal
implementation competence and benefit validates the credentials of the firm to potential
clients.
CASE DESCRIPTION
For SMSI, the ability to leverage its existing experience through KM technology
came none too soon. The late 1990s were very busy times for technology and management
consultants, and SMSI rode the leading edge of the boom. To meet customer demand,
SMSI hired staff at an unprecedented rate. At the same time, staff turnover was very high,
peaking at about 20% per year, as the combination of work pressure and opportunities
in a skill-seller’s market makes retaining staff difficult. Much of the turnover was among
staff with experience in the most current software platforms. As new skills were learned,
many staff left SMSI to chase better offers. This staff churn created a continuing outflow
of knowledge from the firm’s resources.
Surging growth, technical change, and high turnover created great pressure within
the firm to capture and disseminate knowledge and experience. Lessons learned in one