Successful organisations are knowledge-creating organisations, which produce, disseminate and embody new knowledge in new products and services. To this end, knowledge management enables organisations to improve efficiency and effectiveness mainly by decoding tacit knowledge into explicit information. This article focuses on the role of knowledge management in the improvement of higher education institutions. Firstly, a distinction is drawn between data, information, knowledge, and learning. Thereafter, different models of knowledge management are discussed. The relationship between models of knowledge management, which focus on social construction and the creation and maintenance of a learning organisation is indicated. The importance of an explicit, systematic and comprehensive institutional approach to knowledge management is stressed. This implies an equal emphasis on people, technology and structures. Guidelines are proposed for implementing a knowledge management programme in higher education institutions. Finally, the benefits of knowledge management in higher education during a period of transformation are highlighted.