Knowledge management has the potential to develop strategic advantage and enhance the performance of an organization in terms of productivity and business process efficiency. For this reason, organizations are contributing significant resources to knowledge management; investing in information location and implementing knowledge management processes and systems. However, most of these processes and systems focus only on knowledge management and omit the critical element of value. This paper examines intellectual capital and knowledge management within the not-for-profit environment of higher education. The research is focused on intellectual capital and is framed by the perspective of the strategic importance of knowledge. It is argued that the understanding and application of knowledge management within institutions of higher education is underdeveloped which resulted in a model and framework being proposed.