Knowledge has become one of the most important assets for companies nowadays. Knowledge Management (KM) uses organizational knowledge as a resource to make companies more competitive. Knowledge Management Systems (KMS) are gaining popularity, however, the failure rate remains high, with many projects not achieving their goals or being shut down early. KMS are often underestimated and treated as normal systems. IS practices do not cover certain aspects specific to KMS, aspects that do not show in other IS (e.g. socio-cultural issues). There are many studies concerning the KMS failures but they just focus on the symptoms and do not provide a solution to the problem. The goal of this master’s dissertation is to generate a preventive tool that will help the KM field. With The experience gained by working in a real KMS project within a textile agency in Sweden and relevant literature, an Information Systems Design Theory (ISDT) for KMS was developed. As some authors suggest, KM needs an ISDT of it’s own. An ISDT will guide practitioners through the process by restricting practices and features of the system to a more effective set. It will also encourage the academia to work on this theory for its improvement, completion, and validation