MIT Sloan Management Review

Human Resource Management and Industrial Relations, Leadership and Organizational Studies

 

Strategies for Preventing a Knowledge-Loss Crisis

By Salvatore Parise, Rob Cross and Thomas H. Davenport

July 1, 2006

Departing employees leave with more than what they know; they also take with them critical knowledge about who they know. That information needs to be a part of any knowledge-retention strategy.

When many experienced mechanics left Delta Air Lines Inc. in the mid-1990s, the company was able to reduce compensation costs in the short term, but the remaining, less-experienced employees took much longer to diagnose and repair airplanes. The result: flight delays and cancellations, unhappy customers and an overall increase in Delta’s cost-per-seat mile. After the 9/11 terrorist attacks, Delta had to substantially reduce its workforce to remain competitive. This time, though, management was keen to ensure that critical knowledge wasn’t departing with the 11,000 employees who were leaving.1 In addition to retaining those who were high performers or were in positions with few backups, Delta also focused on employees identified as “go to” people during crises as well as workers who had substantial relationships both inside and outside the organization.2 In doing so, management recognized that critical knowledge loss is not simply what the departing employees know about their job tasks, but also who they know and collaborate with to get work done on time.

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