The reason to develop a strategy for KM can vary among organizations. In some organizations the starting point might be a decision by the top management that knowledge management is important. In other organizations a strategy for KM can also be a vehicle to inform and convince the top management on the importance of knowledge management.

A strategy for KM articulates the organization's vision for what will achieve through knowledge management, as well as providing a concrete structure and processes. A strategy for KM will ideally function like a magnet that orients and focuses the energies of the organization and their partners. The strategy also serves to strengthen, legitimize and give weight to the position of KM managers and of KM within the organization.

The value of developing a strategy lies as much in the process as the final product. As a result, it is important to that people impacted by the strategy are engaged in the various stages of its development. This establishes a common understanding and facilitates a sense of ownership for the strategy during its implementation. The final product gives a framework for operationalizing KM and is an important precondition for effective monitoring and evaluation. In addition, it is a useful instrument for external communication.