The article discusses the significant losses organizations face when experts retire, including 27,000 hours of experience with every 700 retirements. Key areas of loss include relationships, reputation, re-work, and regeneration, which can lead to operational inefficiencies and diminished customer satisfaction. To mitigate these issues, organizations should focus on succession planning, knowledge sharing, and effective transitions, although capturing all deep expertise remains challenging.

1. Presented By
Nitesh Khatiwada
Master Of Business
Management
Nepal Commerce Campus
Minbhawan; Kathmandu
What’s Lost
When Experts
Retire
By Dorothy Leonard, Walter
Swap, and Gavin Barton
December 02, 2014
HBR

2. Knowledge Management
Strategies and processes designed to identify,
capture, structure, value, leverage, and share an
organization's intellectual asset to enhance its
performance and competitiveness.
It is based on two critical activities:
a. capture and documentation of individual
explicit and tactic knowledge
b. its dissemination within the organization.

3. Coming to The Article
A research shows that 700 retirement means
loss of 27,000 hours of experience
Most of the time managers don’t know what is
lost until after the experts leave
Difficult to recover
Organizations face critical loss in following
areas in particular
 Relationships
 Reputation
 Re-work
 Regeneration

4. 1.
Relationships
What is Lost?
Networks are destroyed
Right way to deal with different
people
Contact address, phone number or
email address are not sufficient
Problems:
When to use them
How reliable they are
What expertise they have

5. What is Lost?
2.
Reputation
New employees don’t have the right
level of experience and skills
expected
Old employees know their client’s
requirement, failure mode and work
around
Customers get disappointed by
retirement and dissatisfied with
new employ’s work

6. What is Lost?
3.
Re-work
Most time of new employee is spent
on
 Understanding Product line
 Learning informal norms and ways
to get things done
 How organizational units interact
They don’t understand the right
model for operation of business
Huge investment are wasted due to
this problem

7. What is Lost?
4.
Regeneration
Innovation springs form from fresh
thinking
Experience is required for
producing a particular type of
design
Demands complex, unique and hard
earned experiences

8. Findings
With huge retirees in RBB, NBL, NTC and
others the knowledge with deep smarts also get
lost
The trend of job hopping in Nepal also cause
organizations to loose deep smarts
New hires or replacement pose problem in
operations and costumer satisfaction
The value of such losses is estimated to be 20
times more to cost of new recruitment and
training

9. Conclusion
The expertise of deep smarts should be
preserved in an organization
It can be done through
 right succession planning
 knowledge sharing programs
 asking right questions before they leave
But, it is not possible to capture all the deep
smarts of those experts
The problems discussed above are not the only
ones associated with lack of knowledge transfer

10. Thank You