It's a risky business!

I'm amazed at how complacent many of my clients are about their ability to hang in there for a few more months until the recent recession finally fades away. So complacent in fact that they have missed another risk about to land squarely and solidly into their laps - one that will come regardless of financial outcomes.

Their eyes have been so firmly fixed on the financial impact of their decisions, scanning what is happening with their suppliers, their competition and the bank rates, that they have failed to look internally to where they might be vulnerable going forward. The myopic view they have been consumed with has not afforded them a view of other lingering problems that are completely within their grasp to address, and address with little need for huge budgets.

The risk I am referring to is the one that will come when their long term employees, their “go to” people finally decide it’s time to retire. The amount of specialized knowledge these people carry in their heads, means that most companies will suffer an immediate, and dramatic impact on their ability to provide service levels that they currently take for granted.

The baby boomers are planning to leave soon and to leave on mass from your company AND your supplier companies all across the globe!

One of my clients thought about 40% of his workforce were on the brink of retiring – our risk assessment found he was a little low it was actually 60% because he had failed to consider his very mobile middle managers who had career aspirations outside his company. Can you imagine the impact it could have if all of that specialized knowledge walked out the door?

But capturing the knowledge is not an easy problem to solve; it’s far more than getting people to write down their procedures. The tacit knowledge that is told in stories and given as examples, is much tougher to collect, transfer and apply.

Why do you call this person instead of send an email?
What is it about you that makes customer X always turn to you for his needs?
Who is the person to talk to at XYJ company when you want an answer to a problem? Why do we do the job in this way?
Where did that idea come from?

Can you see how tough it is to capture those details and it’s the details that bring context to the decisions that emerge from meetings and board rooms in corporate North America.

We recommend a structured process as the way to determine your company’s vulnerability
1. Conduct a risk assessment just how many of your Subject Matter Experts (SME’s) will exit in the next three years?
2. Who else could fill the void now (at the same level of expertise) if they were to suddenly decide to leave?
3. What is your competitive advantage and how is that knowledge, approach, etc. imbedded into your employee’s jobs?
4. How are ‘lessons learned’ from day to day work captured, shared and stored for future access?

The knowledge that rests in the minds of your employees is the highest vale you have. It exceed s anything you will find on desks, in files, drawers and on the hard-drive! Protect it now for your, long term benefit.

Yes, the loss of corporate knowledge is a very risky business.