If you’ve worked in knowledge management for any length of time, you’ve probably asked yourself this question:
Why is something so strategically valuable still so frequently overlooked when budgets are allocated?
It’s not just a funding issue. It’s a positioning issue, a visibility issue, and at times, a perception issue. Knowledge management (KM) sits at the intersection of operations, culture, and technology. Yet somehow, it remains one of the most misunderstood and underappreciated functions in many organizations
We’ll break down why this happens and how it can be improved.
It’s Hard to Fund What You Don’t Understand
One of the main reasons KM initiatives struggle to get funding is because many decision-makers don’t fully understand what knowledge management actually does.
Unlike IT, sales, or marketing, KM doesn’t always have clear ownership or visibility. It’s not a line item tied directly to revenue, and it often operates behind the scenes. That invisibility leads to skepticism:
“If we can’t measure it clearly, why should we prioritize it?”
Unfortunately, KM is still often viewed as a support function rather than a strategic enabler. That framing alone puts it at a disadvantage during budget discussions.
KM Is Often Framed Too Softly
Executives are used to hard metrics. They fund what produces speed, growth, efficiency, or innovation. When Knowledge Management is presented as a tool for “improving collaboration” or “capturing institutional knowledge,” it sounds helpful but not urgent.
That language is safe, but it’s also vague. It doesn’t make KM feel like a business-critical investment.
The reality?
A well-implemented Knowledge Management system can reduce onboarding time, cut repeated mistakes across departments, prevent knowledge loss during turnover, and accelerate innovation across teams. But if you’re not quantifying that impact or tying it to business outcomes, it will be ignored.
Results Take Time and That Hurts Perception
Knowledge Management success doesn’t happen overnight. It requires change management, stakeholder buy-in, and behavioral shifts. That means early results can feel slow or intangible.
Compare that to a new CRM or ad campaign, where dashboards light up in weeks. KM, by contrast, requires patience. And in a quarterly-obsessed corporate environment, patience is in short supply.
That slow ROI trajectory creates doubt in leadership’s mind. Not because KM lacks value, but because the timeline for payoff doesn’t align with most budgeting cycles.
It’s No One’s Job to Defend It
Here’s something most organizations get wrong. They don’t assign KM to someone with the influence or authority to fight for it.
It often lives in a silo, owned by mid-level champions who understand the value but don’t have a seat at the executive table. Without a strong voice in leadership, Knowledge Management doesn’t just fall through the cracks, it never enters the room to begin with.
The result? No funding, no advocacy, no traction.
Budgeting Bias Toward the Visible and Tactical
Executives are under pressure to deliver outcomes quickly. So, budgets tend to lean toward functions that are clearly visible, easily measurable, and tactically urgent.
That means if you’re in a meeting competing against cybersecurity, customer acquisition, or product delivery, you need to reframe KM in those same terms. Not as a “nice-to-have,” but as a core driver of resilience, performance, and speed.
So, What Needs to Change?
If KM teams want to reverse the trend, here’s what must happen:
- Speak the language of business.
Don’t sell “collaboration.” Sell faster decision-making, reduced duplication, and operational resilience. - Measure what matters.
Build KPIs that align with executive priorities. Time saved, cost avoided, mistakes prevented, and knowledge retained all carry weight. - Secure executive sponsorship.
KM needs a champion who understands its strategic role and can advocate for long-term investment. - Tie KM to core business goals.
Whether it’s innovation, digital transformation, or customer service, show how KM is the connective tissue that enables it all. - Market KM internally.
Visibility matters. Celebrate small wins. Make success stories known. KM should feel indispensable, not invisible.
Final Thought
Knowledge management is not underfunded because it lacks value. It’s underfunded because too often, its value isn’t made visible in the language that leadership understands.
Until we shift how we position, measure, and advocate for KM, the funding gap will persist.
The good news? That shift is entirely within reach.
And it starts with how you tell the story.
Read: Making the Business Case for Knowledge Management Investment
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