Implementation of Knowledge Management at PT Multi Phi Beta to Prevent Knowledge Loss

: PT Multi Phi Beta, as an engineering consultancy, faces challenges in a competitive industry that demands operational efficiency. The company encounters high employee turnover due to the short-term nature of its projects, leading to a significant risk of knowledge loss. This research aims to evaluate the current state of knowledge management readiness at PT Multi Phi Beta, identify gaps in knowledge management implementation, and propose improvements to mitigate these knowledge loss risks and enhance overall efficiency. The primary method used to obtain data is quantitative, collected through questionnaires. To enrich the primary data, qualitative data is gathered through semi-structured interviews. The findings indicate that PT Multi Phi Beta is at the initiation level of KM readiness, recognizing the need for knowledge management but not yet fully integrating KM practices. To mitigate knowledge loss, the company should capture critical knowledge from transitioning employees, enhance its KM vision and mission, and establish a dedicated KM department. Standardized processes for managing knowledge, conducting after-action reviews, knowledge cafés, and formal mentoring programs are essential. Additionally, providing integrated knowledge repositories and implementing a rewards and recognition program will encourage knowledge sharing and strengthen the company’s KM efforts.


INTRODUCTION
The construction sector is crucial for economic development, significantly contributing to infrastructure growth, employment, and housing.Indonesia's construction GDP, starting at 470.444 billion Rupiah in Quarter I of 2022, peaked at 522.247 billion Rupiah in Quarter III of 2023 (Badan Pusat Statistik, 2023).The budget for infrastructure in 2024 will be 422.7 trillion Rupiah, a 5.8% increase from 2023 (CNBC Indonesia, 2023), with the Ministry of Public Works and Public Housing (PUPR) receiving IDR 146.98 trillion (DetikFinance, 2023).This budget allocation presents opportunities for contractors and engineering consultants.
PT Multi Phi Beta, an engineering consultant specializing in road and highway engineering, stands to benefit from this growth.However, the company faces challenges in a competitive industry with fluctuating project acquisition due to economic instability.The membership of INKINDO has grown from 4,837 in 2014 to 6,252 in 2023, intensifying competition.The company recognizes the need to enhance operational efficiency and is considering restructuring operations, and human resources, particularly its knowledge management system.
In 2015, PT Multi Phi Beta initiated a knowledge management system (KMS) alongside transitioning to an ERP infrastructure.However, the KMS has not been evaluated since.Based on discussions with company representatives, key obstacles identified include a lack of designated mentors, low initiative among knowledge owners, non-standardized document categorization, and an absence of measurement and evaluation metrics.Apart from this problem, the company faces the risk of continuous knowledge loss.

Figure 1. PT Multi Phi Beta Project Period Classification
Based on the blue and red bar in the figure above, over the past decade, the company has largely executed short-term projects followed by medium-term projects.Typically, project execution involves hiring temporary or freelance employees for the project's duration to mitigate wage risks.Consequently, this practice often leads to a relatively high turnover rate as employees come and go with each project cycle.In addition, if the company gets a new project with the same chImaracteristics as the previous one, there is no guarantee that the company can re-recruit former workers with the same project experience.Knowledge loss may occur when experienced professionals leave the organization, taking project-specific insights, lessons learned, and best practices.According to Durst and Wilhelm (2011), when short-term contract employees depart, they often take their acquired expertise with them, which can result in knowledge loss.arrangements (Omotayo, 2015).Besides employee turnover, ineffective KM systems/processes and inadequate IT systems are key drivers of knowledge loss (Daghfous et al., 2023).

Knowledge Retention
According to Karkoulian et al. (2008), when knowledge is poorly retained, current employees with less experience struggle to reach the expertise levels of retired employees.Liebowitz (2011) emphasized the need for organizations to be proactive in developing, applying, and institutionalizing knowledge retention and transfer activities to stay competitive in the future.Angell et al. (2013) found that strategies focusing on retaining tacit knowledge and incorporating it into organizational routines are effective in mitigating knowledge loss.Agarwal and Islam (2015) noted that poor knowledge retention or transfer, coupled with knowledge hoarding, prevents effective knowledge transfer, leaving knowledge tacit.Young (2006) suggested that before implementing a knowledge retention program, companies should identify critical knowledge areas by gathering senior executives to discuss: • Crucial knowledge areas for future success • Most valuable knowledge areas • Knowledge most at risk of loss due to staff turnover • Knowledge that is easily replaced versus irreplaceable knowledge • Companies should focus retention efforts on the most irreplaceable, high-risk knowledge areas.Levy (2011) outlined a three-stage approach to knowledge retention.This process involves: • Identifying which knowledge is of the highest priority for retention • Ensuring the transfer of knowledge that has not been documented • Incorporating the retained knowledge into the organization's business processes for potential reuse

Knowledge Retention Strategy
Retaining knowledgeable employees in key competence areas should be central to the HR retention system.Implementing a remuneration system focused on knowledge is essential to recognize and reward the valuable knowledge, skills, and experience employees bring to the organization (Phaladi & Ngulube, 2024).Paladino (2007) found that another strategy to mitigate knowledge loss is to engage external resources that possess the necessary knowledge: hire outside contractors, bring back retirees as consultants, leverage expertise from employees at other plants or divisions, or seek knowledge through professional associations.Customization is crucial for any knowledge retention solution, and where an organization begins depends on the urgency of the problem (De Long and Davenport, 2003).

Knowledge Management
Knowledge Management is taken as the tools, techniques, and strategies to retain, analyze, organize, improve, and share business expertise (Groff & Jones, 2003).According to North & Kumta (2018), knowledge management is comprised of the following tasks and purposes:  Acquiring knowledge: Ensuring the availability of necessary information and knowledge for business development and processes. Creating knowledge: Developing knowledge in the most suitable locations, inside or outside the company, leading to innovation. Sharing and using knowledge: Facilitating the dissemination, learning, and optimal use of knowledge. Learning: Enabling the organization and its employees to learn, reflect, and apply what they have learned. Protecting knowledge: Treating knowledge as an asset, maintaining its value by keeping it updated through contributions from people.

Asian Productivity Organization (APO) Knowledge Management Assessment Model
The starting point for the APO KM Framework is to understand the organization's vision, mission, business goals, and strategic directions.This understanding helps the organization identify and analyze its core competencies and areas for development.The Four Accelerators help gauge the prevalence of these drivers and enablers within the organization, facilitating a successful KM implementation.The five Core Knowledge Processes provide an initial assessment of existing KM practices that can be leveraged during implementation.Organizations may unknowingly be practicing KM already.The outcomes of KM efforts measure the    The results of the assessment provide an understanding of the level of KM readiness in an organization.This may range from the "reaction" level at its lowest to the "maturity" level at its highest.The conditions describing each of these levels correlate to the presence, absence, or weakness of the four KM accelerators, learning and innovation, and the KM outcomes in the organization.

Conceptual Framework
The conceptual framework involves a systematic approach to address the identified business issue using the APO Knowledge Management (KM) Framework.This includes exploring various aspects such as accelerators, knowledge processes, and outcomes within the framework.Next, an assessment of KM readiness is carried out, followed by thorough data collection and analysis.The findings are then discussed, leading to the development of a KM implementation plan aimed at improving readiness levels and effectiveness while minimizing knowledge loss.

Research Design
The research at PT Multi Phi Beta follows a structured approach, beginning with an introductory phase and progressing through data gathering, analysis, and recommendation.Central to this process is the research design, which serves as a guiding roadmap facilitating research progression from start to finish.

Quantitative Data Collection
The data collection process utilizes online tools, specifically Google Forms, which are spread to all divisions within PT Multi Phi Beta.The questionnaire items are structured based on the APO framework for Knowledge Management (KM).Through this method, quantitative data is systematically gathered from employees across various divisions, allowing for a comprehensive analysis of knowledge management practices within the organization.

Qualitative Data Collection
Through qualitative data collection, it can provide deeper insights into the survey findings, offering explanations, examples, and context that may not be captured in quantitative data alone.This research uses a semi-structured interview method.Hence, the semi-structured interview might provide room for researchers to adjust their research questions if there is a possible change yet still maintain its directive sense since the main topics to discuss have been prescribed beforehand (Ruslin et al., 2022).The following is a list of profiles for semi-structured interviews.

Table 1. List of Interviewee
Position Relevance

Operational Director
The operational director typically oversees the day-today operations of the company, including the implementation of various strategies and initiatives

HR & Legal Manager
The human resources manager is responsible for managing personnel-related matters and responsible for KM design and participation.

DATA ANALYSIS METHOD Sample Size
Slovin's formula is a method used to determine the sample size needed for a survey or research study when the population size is known.It is used in situations where it's not feasible or practical to survey an entire population and if the behavior of a population is not yet known with certainty.The population that will be used as a sample is all employees who work at PT Multi Phi Beta.
The formula:

Validity Test
This research will use Pearson's Correlation to evaluate the relationship between questionnaire variables.This analysis will be conducted following the collection of questionnaire data, aiming to determine the validity and strength of correlations among variables.The test will be performed with Microsoft Excel.Assessing questionnaire validity using the Excel formula "CORREL" involves calculating correlation coefficients (r) between pairs of questions or variables.These coefficients are compared with critical values from a correlation coefficient table or r-table at a specific level of confidence and degree of freedom.

Reliability Test
Cronbach's alpha is a measure of internal consistency or reliability of a scale or set of items within a questionnaire.It assesses the extent to which the items on a scale are correlated with each other, indicating the reliability of the construct being measured.The alpha coefficient ranges from 0 to 1, where higher values indicate greater internal consistency.The criteria for interpreting Cronbach's alpha values vary, but generally, values above 0.7 are considered good for research purposes (Hair et.al, 2003).

APO Questionnaire design
According to Young (2020), There are a total of 42 questions covering the seven audit categories, with a maximum score of 210 points.Each category has a maximum score of 30 points.Each of the questions can be rated from 1 (Doing Very Poorly or Nothing at All) to 5 (Doing Very Well).

Data Triangulation
Triangulation refers to the use of multiple methods or data sources in qualitative research to develop a comprehensive understanding of phenomena (Patton, 1999).In social sciences, triangulation is often used to indicate that more than two methods are used in a study with a view to double checking of results (Hussein, 2009).This approach enhances research by providing diverse datasets that shed light on different aspects of the phenomenon under investigation.It helps address inconsistencies by refuting invalid assumptions from one dataset with evidence from another and can support hypothesis confirmation when findings from one set corroborate another.Additionally, triangulation aids in explaining study results (Carvalho & White, 1997).

FINDINGS AND ARGUMENT Respondent Analysis
The questionnaire was distributed and collected between April 2, 2024, and May 17, 2024.Based on the Slovin formula, with a 90% confidence level and a 10% margin of error, the required sample size is 64 respondents.However, the author managed to collect data from 71 respondents.In this section, the respondent analysis will summarize the age, position, and work tenure of the participants.

Validity & Reliability Test Result
This section summarizes the validity and reliability tests of the questionnaire data.For validity, the correlation coefficient is compared with the r-table value of 0,2335, given a total sample size of 71 and a 5% significance level.The correlation coefficient must exceed this value to be considered valid.For reliability, the Cronbach's alpha value for each category, based on six questions each, must be higher than 0,7.In conclusion, all validity and reliability tests were successfully passed.

Knowledge Management Readiness Level Analysis
After confirming the validity and reliability of the questionnaire data, the next step is to interpret the data based on the total scores.The questionnaire comprises seven categories, each containing six questions.Each question is scored on a scale from 1 to 5, resulting in a maximum score of 30 for each category.Therefore, the overall maximum score across all categories is 210.According to the KM readiness levels, the company falls into the "Initiation" level with a score of 100.This indicates that the company is beginning to recognize the need to manage knowledge but has not yet fully integrated KM practices into its operations.The average score is 14.24.Categories such as technology, process, and learning and innovation are above this average, showing strengths in these areas.leadership, people, knowledge process, and KM Outcomes fall below the average, indicating areas where the organization can focus on improvements to achieve better KM readiness and overall performance.Based on the analysis of each factor from the respondents, the results indicate that the KM readiness level is also at the same level.This suggests that, across different job positions, age groups, and work tenures, the overall average KM readiness level is in the initiation stage.This indicates that the company is at the early stages of recognizing the importance of managing knowledge, yet it has not fully embedded KM practices into its daily operations.While there is an awareness of the necessity for structured knowledge management, the implementation and integration of these practices are still in their early stages.Consequently, there is significant potential for growth and development in the company's approach to KM, highlighting the need for a more effective strategy to enhance and capitalize on knowledge management across all levels of the organization.

Qualitative Analysis -Interview Result
To further enrich the assessment results, an interview was conducted with sessions lasting 2 hours.The author conducted interviews with the Operational Director and the Human Resource Manager.During these interviews, the author first explained the scheme of the APO Questionnaire and then discussed the survey results.The discussion covered various categories, starting from leadership and extending to KM outcomes.At the end of the APO questionnaire discussion, more detailed information about the KM tools currently used by the company was also explored.

Data Triangulation
The goal of data triangulation is to achieve comprehensive results from the combined data to confirm its credibility.In this research, the triangulation validity will cover all categories due to the low assessment scores across the board.By examining these low scores in each category, a thorough triangulation analysis will be conducted to verify the findings.The following analysis outlines the triangulation process and its application to the assessment results across all categories.

and KM induction process
There is a mentoring activity but it is still informal based on the employee or engineer own initiative to tackle problem.and because the KM system is inadequate, the introduction of the company's KM to new staff is not effective

Convergence
There is an absence of formal mentoring and coaching programs.Although teambased problem-solving is common, these efforts need to be better supported by formalized processes and rewards systems.Company sees lack of effective measures to assess the impact of KM efforts as an issues to develop proper metrics.

Business Solution
Based on the assessment, Multi Phi Beta is currently in the initiation phase of knowledge management.This indicates that the company is beginning to recognize the need to manage knowledge but has not yet fully integrated KM practices into its operations.To support the growth of knowledge management, this research suggests focusing on all categories for improvement while leveraging existing strengths.Below are business recommendations to enhance the company's knowledge management system.

Implement standardized KM processes, including guidelines and tools
Multi Phi Beta lacks systematic processes for identifying, creating, storing, sharing, and applying knowledge.As a result, knowledge from completed tasks or projects is often not documented or shared, and critical knowledge from departing employees is lost.

Action Plan
 Develop KM Guidelines: Create comprehensive guidelines for knowledge management processes and define clear processes and procedures for each KM activity. Implement KM tools such as After-Action Reviews (AARs): Conduct AARs after project completion to capture lessons learned and document them systematically.According to Young (2020), the After Action Review (AAR) serves as a foundation for learning from both project successes and failures.It provides a starting point for enhancing future projects.By concentrating on the desired outcomes and detailing specific observations, team members can pinpoint strengths and weaknesses and figure out ways to boost performance going forward.The project team can then document these lessons learned and share them with the rest of the organization to aid in better decision-making. Implement knowledge café: According to Young (2020), a knowledge café is a method for group discussion, reflection, and the sharing of thoughts and insights in a non-confrontational manner.Regular knowledge cafés offer a chance for people to engage in deeper discussions and reflection.Participants typically leave feeling more motivated and inspired, often gaining valuable insights in the process. Integrate KM processes with existing knowledge repositories and systems, such as Resplan ERP.Goals • Enhanced Documentation: Systematic and comprehensive documentation of knowledge from projects and tasks.
• Standardized KM Processes: Consistent and efficient KM practices integrated into the organization's operations.Handzic (2011) emphasized that organizational leadership is a crucial knowledge enabler, impacting knowledge processes both directly and indirectly through organizational culture, measurement, and technology.Angell et al. (2013) added that without strong managerial commitment and drive, knowledge management (KM) efforts would be restricted to merely codifying knowledge and acquiring technological tools and solutions.Managers need to lead by example and actively support the organization's knowledgefocused initiatives.

Action Plan
Develop a Workshop Curriculum Focused on KM Vision and Strategic Goals • Collaborate with key stakeholders to define the KM vision and its alignment with strategic goals.
• Design workshop modules that cover the importance of KM, its benefits, and how it supports organizational objectives.
• Develop guidelines and tools for managers to facilitate and encourage knowledge sharing within their teams.
• Ensure the curriculum emphasizes the role of managers and senior leaders in promoting and sustaining KM.Goals • Unified KM Vision: A clearly articulated KM vision that is understood and embraced by managers and senior leaders, directly tied to strategic goals.• Consistent KM Practices: A consistent and strong emphasis on knowledge sharing and collaboration across all managerial levels, fostering a culture of continuous learning and innovation.

Develop and Implement a Comprehensive Set of Metrics
Implementing a comprehensive set of metrics is essential for organizations to achieve higher productivity, cost savings, and enhanced effectiveness.The Balanced Scorecard (BSC) method provides a framework to translate vision and strategy into measurable goals, ensuring continuous improvement in strategic performance and results.Action Plan Dalkir (2011) outlines the major steps for implementing the balanced scorecard metric as follows:  Translate the knowledge management (KM) vision and strategy into specific, measurable goals. Confirm these goals by reaching a consensus on clear, short-term, and concrete objectives. Communicate and link: continuously measure progress against objectives and evaluate how well the reward system aligns with these objectives.Ensure that employees are trained, motivated, and rewarded for integrating KM into their daily work. Conduct a reality check to ensure that the details are sufficient for measuring progress and assessing how well the objectives are being achieved. Integrate learning and feedback into your metrics by performing both formative and summative evaluations.

Goals:
• Effective Measurement of KM Impact: A comprehensive set of metrics that provide clear, actionable insights into the effectiveness of KM initiatives, enabling the organization to assess their impact accurately.• Enhanced Knowledge Management: Improved management of knowledge resources, leading to better knowledge creation, storage, sharing, and application.

Regularly update and maintain the KM feature in Resplan
Resplan, the company's primary ERP system, was completed in 2015 and includes a range of management functions, including a dedicated Knowledge Management (KM) feature.According to the Operational Director, Resplan's KM feature has the potential to serve as an effective knowledge repository for the organization.The system's categorization and feature set are designed to support comprehensive KM activities.
processes supported by critical success factors (Accelerators, Vision, and Mission).These outcomes should demonstrate enhanced learning and innovation, building capabilities at individual, team, organizational, and societal levels, ultimately improving product and service quality, productivity, profitability, and growth (APO, 2020).The APO KM Assessment Tool is based on the APO KM Framework.The questions in the tools are based on seven Framework elements.

Figure 5 .
Figure 5. Research Design Leaders and senior professionals like Resident Engineers and Chief Inspectors (13 people).This demographic indicates a strong focus on mid-level technical and engineering roles, supported by experienced leadership and streamlined administrative staff. Work Tenure Distribution: The respondent comprises with varied tenure, including 37% with less than 1 year of experience (26 people), 32% with 1-3 years of experience (23 people), 10% with 3-5 years (7 people), 14% with 5-10 years (10 people), and 7% with over 10 years of experience (5 people).This indicates a relatively young and dynamic workforce with a significant proportion of recent hires. Age Distribution: The respondent comprises diverse in age, with 8% under 25 years old (6 people), 24% between 25-30 years (17 people), 27% between 30-35 years (19 people), 21% between 35-40 years (15 people), and 20% over 40 years old (14 people).This distribution shows a balanced mix of young professionals and more experienced employees.

6367 Figure 6 .
Figure 6.Average Category Score Incentives play a significant role in motivating employees to share knowledge, as they provide positive reinforcement for desired behaviors.AsDalkir (2011) stated, knowledge workers need to have a climate in which knowledge sharing is encouraged and they need a reason for sharing the knowledge.Incentives remain one of the more important challenges facing KM today.Action Plan • Conduct a needs assessment to understand what types of rewards and recognition would be most motivating for employees.• Define clear criteria for recognizing KM contributions, such as quality and impact of shared knowledge.• Develop different types of rewards (e.g., monetary bonuses, gift cards, extra vacation days) and recognition methods (e.g., certificates, public acknowledgments, awards).• Align the framework with the organization's strategic goals and values.Goals • Enhanced KM Engagement: Increased employee participation in KM activities.• Recognition and Reward Alignment: A clear and fair system for recognizing and rewarding KM contributions, aligned with organizational goals and values.
According to Angell et al. (2013), a thorough strategy for guiding knowledge management (KM) efforts and managing knowledge resources should be developed and applied throughout the network.Creating dedicated roles, such as a KM officer or director, could enhance strategic coordination and alignment among different units.Young (2020) suggests that a fundamental KM structure should include the following components: 1. KM Steering Committee: Comprising top and middle management, this committee provides strategic oversight, direction, and resources.It serves as the policymaking and decision-making body for KM. 2. KM Center or Central Support Office: This entity coordinates the KM efforts and offers technical support to various knowledge teams as they execute their KM projects.It also assists with KM training and education, promotes KM initiatives, and evaluates KM implementation within the organization.3.Knowledge Team:A cross-functional or multi-disciplinary team focused on a KM project within a specific business area.Action Plan• Identify key roles within the KM department (e.g., KM Director, KM Specialists, Knowledge Analysts, KM steering committee, KM central support office, Knowledge Team).•Define the responsibilities and reporting lines for each role.•Develop job descriptions and required competencies for each position.•Implement modified KM structure based on the person in charge.

Figure 7 .
Figure 7. KM Structure for Multi Phi Beta