Termed as the creation of a strategy for KMS. This level involves a process where the Best Practices of the organization are listed and accumulated. A strategy is evolved for accumulation of entire gamut of the organizational and personal knowledge. Identify organizational needs/objectives in line with the systems needs/ objectives. Establish policies, which are to be adhered to.

Instead of putting the entire process to be unpredictable, we create a process, which makes the organization run on a particular schedule. Performance of the system is gauged by the capability of the individuals and the organization collectively with their innate skills, knowledge and motivations. Policies for managing the system, implementation procedures are established. An effective process can be characterized as practiced, documented, enforced, trained, measur, and able to improve.