This digest describes the emerging study of Knowledge Management (KM), a field that has much to offer administrators in higher education. KM principles recognize that it is important for organizations to "know what they know." It is the organized complexity of collaborative work to share and use information across all aspects of an institution that marks the effective use of knowledge that KM tries to promote. Companies with a focus on KM pay close attention to issues of collaboration, organizational learning, best practices, workflow, intellectual property management, document management, customer-centric focus, and effective use of data. KM will enable colleges to increase student retention and graduation rates, retain a technology workforce, expand Web-based offerings, analyze the cost effective use of technology, and do other things necessary to compete in an environment where institutions cross state and national borders to meet students' needs. Leveraging knowledge capital, using stories in decision making, and becoming an "infomediary" are aspects of implementing KM. Some of the challenges in KM implementation are also outlined. (Contains 19 references.) (SLD)