Leadership and knowledge management make up an important component of human capital management. An organization needs both leadership and knowledge. Leadership is the ability to bring about successful change and growth in the organization, and knowledge is about knowing the way to do it. This is why leadership and knowledge management are very important, because it means both having the ability and knowing how to put that ability into practice.
Leadership and knowledge management is about putting in place a system by which leadership continuity is ensured. Leadership and knowledge management involves
An organization does this by ascertaining the gaps in leadership and closing these. In the process, the organization's leadership ensures that programs which identify the requisite organizational knowledge and foster learning get implemented at all identified levels.
What makes leadership and knowledge management critical for an organization is that it is these qualities that help the organization put its leadership potential into action. An organization's leadership and knowledge management helps it to utilize and leverage the latent potential, but for which the potential ends up getting wasted. Any resource or ability in itself means nothing to the organization unless it has the power to make use of it. This is what leadership and knowledge management makes happen.
Leadership and knowledge management also mitigates risk, because an organization with unutilized and untapped power and talent is nearly as good as useless. This comes to the fore in a situation when a person or group of persons in whom all the organizational knowledge are vested leave or are unavailable. This results in near disruption of business and a steady dip in profits, because the organization has taken a big risk in vesting all the power and knowledge in a limited number of hands.
So, in order to bring about an effective leadership and knowledge management system, the organization has to understand and decide how it is going to invest knowledge in its key resources. Ideally, leadership and knowledge management should ensure that this is spread across a few individuals and levels. This will ensure that knowledge gets distributed to a judicious mix of people in it. No single person should be given the absolute control of the organization's leadership and knowledge management, nor should it be distributed into too many groups or individuals, making it unwieldy and ineffective.