One of the most difficult challenges in measuring the results of
knowledge management is the assessment of the real value of knowledge
assets, in particular tacit knowledge. Since tacit knowledge is usually time-
specific as well as context-specific, the value of individual knowledge and
intellectual capital is most difficult to assess. The challenge lies in the fact
that tacit knowledge does not always lead directly to a useful application or a
marketable product. Often it has only an indirect impact on the organization’s
effectiveness through the creation of better approaches or more effective
work responses. And since it is difficult to trace the indirect impact of
knowledge accurately, top management preoccupied with numbers and clear
facts is not always willing to allocate a budget for investment in knowledge
management.