Knowledge Value Added (KVA) methodology as a tool for measuring the utilization of knowledge assets aboard Marine Corps installations

Abstract

The past four Commandants of the Marine Corps have published their intent (Appendix A) to adopt better business practices and transform business processes. The compelling urgency to ensure the Corps achieves optimal performance from its limited resources is supported by protracted global commitments, increasing labor and technology costs, and lawmaker and taxpayer demands for fiscal prudence. The Department of Defense, Department of the Navy, and the Marine Corps have adopted Continuous Process Improvement (CPI) programs to foster a culture of ongoing business transformation and process improvement. CPI techniques such as Value Stream Analysis and Lean Six Sigma are being employed at a growing pace to improve processes and redirect savings towards core capabilities. Workforce optimization is central to the success of these efforts. Personnel productivity can be measured using knowledge as a common metric to determine value. Knowledge assets include people and the Information Technology systems that improve their abilities to perform their work. The Knowledge Value Added (KVA) methodology calculates Return on Knowledge (ROK) and utilization rates of knowledge assets. A case study is explored which uses KVA to measure ROK and utilization rates as a means to monitor and set benchmarks for optimal organizational performance in support of CPI programs.