Knowledge Leaks: What are they and how can organisations protect themselves against them?

2/07/25

Innovate. Adapt. Pivot. Change is a constant, never more so in this fast-evolving landscape, and with this comes a workforce of subject matter experts (SMEs) building up specialised knowledge. So, when that knowledge leaves the organisation, at best it is a frustrating and slow process to upskill new teams, and at worst it can be damaging or threatening to an organisation’s customer trust and future. In this blog, we’ll explore what knowledge leak is, the common causes behind it, the potential organisational impact, and practical strategies to protect against it.

Knowledge leaks, does this sound familiar?

A knowledge leak occurs when organisational knowledge is lost, whether unintentionally or deliberately. They often occur after a change project, typically due to staff turnover, inadequate documentation of key learnings, or poor communication and collaboration throughout the project.

Whilst knowledge leaks can happen in BAU settings, they are more common in these change project settings. The scale of change involved and the reliance on short-term resources, such as consultants and contractors, who are exited once the project concludes, means that valuable knowledge goes with them.

Change is often driven from the top down, with a significant portion of focus and budget allocated to senior or strategic levels. Meanwhile, comparatively less investment is made in those responsible for delivering the change. As a result, unless proactively addressed, knowledge leaks can create critical gaps, particularly when senior leaders or contracted staff exit the organisation. This can create a void in knowledge, leading others to revert to previous ways of working and undermining the sustainability of the change. Before exiting the organisation, pivotal knowledge and learnings must be adequately transferred to permanent team members, or else they will be lost: a common cause of change projects failing to meet their KPIs on transition to BAU.

The impact of knowledge leaks

Leaks can lead to operational disruption, decreased efficiency, increased costs, project delays or even failure and lower quality outcomes in subsequent projects. They directly undermine an organisation’s ability to deliver effectively and consistently, which is demanded of organisations now in this fast-paced landscape. In environments where knowledge is not consistently captured or transferred, organisations may find themselves repeatedly investing time and resources in retraining staff, whether it be in the maintenance of legacy systems to the implementation of new technologies and processes. Knowledge leak is usually compounded in organisations where employee turnover is high.

The problem is particularly acute in the public sector, where staff turnover is higher than average, and morale is often low. According to 2024 data, turnover in the UK Civil Service reached its highest level since 2010. In addition, each new government brings shifts in policies, priorities and processes, creating potential risk for knowledge leak.

High turnover exacerbates knowledge loss, especially during change initiatives. When key personnel leave before a project transitions to BAU, or in the early in the BAU transition, they often take with them critical insights and context. Over time, repeated failures due to knowledge gaps can lead to change fatigue: a state where employees become disengaged or resistant to new initiatives, viewing them as burdens rather than opportunities for improvement. It’s something we have seen time and time again after 12 years supporting change and transformation for over 100 organisations.

Strategies for mitigating leaks 

Whilst not all knowledge leaks are completely avoidable, well-prepared and informed organisations can reduce their occurrence through strategic planning and proactivity. Organisations should be embedding knowledge retention strategies into project plans from the outset. Those leading change management should understand the potential for knowledge leaks within the context of their projects, enabling them to mitigate the risks accordingly. Based on years of experience supporting both private and public sector organisations through transformation projects, here are three practical strategies we recommend to mitigate knowledge leaks:

1 - Establish and document a knowledge management process

Ensure robust documentation and knowledge management, and where appropriate, leverage specialist systems to facilitate knowledge capture, management, organisation, and sharing. This process should define how employees, consultants and contractors should use these systems to document, update and organise information, and allow for ease of access across teams. Centralising information within a knowledge library is good practice for consolidating essential information, including lessons learnt, best practices, and critical project documentation. When staff turnover occurs, having this in place allows for continuity and accessibility for smoother transitions and knowledge retention.

2 - Fostering a knowledge-sharing culture

Organisational culture plays a pivotal role in all change, and the change surrounding knowledge retention is no exception. From the outset, set clear expectations around knowledge sharing and introduce initiatives to promote it. Buy-in is higher and change is stickier when individuals feel like they are contributing, so at Grayce, we ensure our team is heavily involved in the planning and running of knowledge exchange sessions. The format of these sessions can be adapted to how teams work best, provided any essential outputs are documented in a consistent format, allowing you to build upon your knowledge resources.

These formats might include something as simple as an informal lunch and learn, where key people share insights or lessons learned through experience, to a more formal upskilling programme focused on key critical information areas. It’s also important to foster a culture of open communication and transparency, so colleagues feel empowered to speak up and share information. Some organisations might even want to consider rotating colleagues between different departments or roles to expose them to broaden employees’ understanding of organisational operations and reduce siloed knowledge.

3 - Prioritise succession planning and retention

One of the easiest ways to keep knowledge within an organisation is to focus on retaining those individuals who hold it. When resource planning for projects, consider the insourced to outsourced balance: knowledge leak is most common where resource is temporary. Many organisations engage with the Big 4 and other specialist consultancies to tap into their wealth of expertise for delivering change, though in doing so, it is pivotal to consider strategies to retain the project knowledge they acquire. For example, Grayce’s transition model allows clients to integrate Analysts into their permanent internal teams after two years.

During this time, Analysts work closely with internal teams, gaining valuable organisational and project-specific knowledge, and therefore, on transitioning to permanent roles, organisations are retaining intellectual property, ensuring continuity, and strengthening internal capabilities. 70% of Grayce Analysts transition to our clients, helping them future proof their operations and embed lasting change.

Final thoughts: knowledge leak doesn’t need to be a given

In today’s evolving workplace, where lifelong careers with a single organisation are increasingly rare, knowledge leaks are seemingly inevitable.  However, they don’t need to be.

Proactively embedding knowledge management practices, fostering a healthy culture where learning is encouraged, and building a strategic project resourcing structure are just some of the ways to mitigate the risk. Ultimately, an understanding of the causes and consequences of knowledge loss allows organisations to put the appropriate measures in place and focus on their core business activities that drive growth and success.