This paper reports on research conducted to explore the problems that organisations have with respect to a key first step in effective Knowledge Management: Knowledge Identification. The paper reports on the results from an exploratory, interpretive investigation on the problems organisations have with respect to identifying what knowledge exists within their boundaries. The research conducted 17 interviews of Knowledge Management practitioners, the data from which were analysed using domain analysis and cognitive mapping. The research identified 25 lower-level problems with Knowledge Identification and 4 higher-level factors that potentially explain Knowledge Identification Effectiveness: Knowledge Needs Identification, Knowledge Recording, KI Methods Effectiveness and KI Operationalisation. The paper explains the four factors and formulates them into a nascent (untested) theory that explains Knowledge Identification Effectiveness, which is further hypothesised to influence Knowledge Management Effectiveness.