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Tacit Knowledge in
Organizations
Anne Heinrichs, Saskia Bercht & Silvia Grimmsmann
June 24th 2003
Communication in Organizations
0
Agenda
A. Tacit Knowledge: An Introduction
I. What is Tacit Knowledge?
II. Types of Knowledge
III. History of Tacit Knowledge
A) Francis Bacon – Novum Organum
B) Michael Polanyi – The Tacit Dimension
IV. Making Tacit Knowledge Explicit
A) Knowledge Management
B) Nonaka; Takeuchi – The Knowledge Creating Company
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I. What is Tacit Knowledge?
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I. What is Tacit Knowledge?
Have you ever noticed how easily you speak your mother tongue?
Have you ever noticed how easily you recognize faces?
Why is that so?
Because of your tacit knowledge!
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I. What is Tacit Knowledge?
What does "tacit" mean?
According to the Oxford Advanced Learner`s Dictionary:
tacit – understood without words; implied
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I. What is Tacit Knowledge?
What is knowledge?
According to Webster`s Dictionary:
The fact or condition of knowing something with familiarity
gained
through experience or association. […] K. may be
recorded in an
individual brain or stored in organizational
processes, products, facilities, systems and documents.
But there is more to it…
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II. Types of Knowledge
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II. Types of Knowledge
Tacit Knowledge
"Automatic" knowledge
"Subconscious knowledge" of an individual
e.g. intuitions, unarticulated mental models, embodied technical
skills
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II. Types of Knowledge
Explicit Knowledge
K. that is encoded or even recorded in documents or information
systems or embodied in values, methods and procedures
Meaningful set of information articulated in clear language
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III. History of Tacit Knowledge
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III. History of Tacit Knowledge
A) Francis Bacon : Novum Organum
Francis Bacon (1561-1626)
English lawyer, statesman, essayist, historian, intellectual reformer,
philosopher and champion of modern science
1620 Novum Organum
– new method to replace that of Aristotle
1623 De Augmentis Scientiarum
– "For why should a few received authors stand up like Hercules
columns, beyond which there should be no sailing or
discovering…"
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III. History of Tacit Knowledge
A) Francis Bacon : Novum Organum
Francis Bacon (1561-1626): "Knowledge is Power"
"a light that would eventually disclose and bring into sight all that
is most hidden and secret in the universe"
– method involved the collection of data, their
judicious interpretation, the carrying out of experiments
laid ground for modern science and the triumph of
technology
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III. History of Tacit Knowledge
B) Michael Polanyi
Michael Polanyi (1891-1976)
Hungarian scientist turned philosopher
Father of Tacit Knowledge
1966 The Tacit Dimension
Account of what tacit knowledge actually means
– Main thesis: "we can know more than we can tell"
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III. History of Tacit Knowledge
B) Michael Polanyi
1) Characteristics of Tacit Knowledge
There are actions and judgments, which we spontaneously know
how to carry out without having to think prior to or during their
performance.
We often find ourselves doing these things without being aware of
having learned them.
The knowledge revealed by our actions can usually not be
described, and we may never have been really aware of it.
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III. History of Tacit Knowledge
B) Michael Polanyi
2) Properties of Tacit Knowledge
1. The proximal term
- part that is closer to us
2. The distal term
- part that is further away
Tacit knowledge is the understanding of the unity of this
proximal/distal pair.
(Polanyi 1966: 10)
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III. History of Tacit Knowledge
B) Michael Polanyi
3) Tacit Knowledge in Action
In an act of tacit knowing we attend from the proximal term to
the distal term.
(Polanyi 1966: 11)
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III. History of Tacit Knowledge
B) Michael Polanyi
3) Tacit Knowledge in Action
Playing a complicated musical piece by heart, a musician
concentrates on the melody without concentrating on where to
put his hands.
He attends from the melody in his head to where to put his
hands.
Stock market
A stock broker attends from ? to when to buy or sell shares.
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IV. Making Tacit Knowledge Explicit
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IV. Making Tacit Knowledge Explicit
A) Knowledge Management or
"If we only knew what we know"
Creating
Securing
Capturing
Coordinating
Combining
Retrieving
Distributing
Knowledge
Idea: "Sharing knowledge is power"
vs.
"Knowledge is power"
(Liebowitz 2000: 1)
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IV. Making Tacit Knowledge Explicit
B) Nonaka; Takeuchi (1995)
The Knowledge Creating Company
Nonaka and Takeuchi, 1995: 62)
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IV. Making Tacit Knowledge Explicit
B) Nonaka; Takeuchi (1995)
The Knowledge Creating Company
Socialization
Process of transforming individual tacit knowledge into group tacit
knowledge through shared experiences
Technical Dimension
traditional
apprenticeship
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Cognitive Dimension
informal meetings outside
of the workplace
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IV. Making Tacit Knowledge Explicit
B) Nonaka; Takeuchi (1995)
The Knowledge Creating Company
Externalization/Articulation
Process of articulating tacit knowledge into explicit knowledge
through the use metaphors, analogies, concepts, hypotheses or
models
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IV. Making Tacit Knowledge Explicit
B) Nonaka; Takeuchi (1995)
The Knowledge Creating Company
Combination
Process of assembling new and existing explicit knowledge into
systemic explicit knowledge in order to create a new archetype
e.g. A new business procedure is introduced along with the
prototype for a new product and justification has to be
promoted throughout the company.
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IV. Making Tacit Knowledge Explicit
B) Nonaka; Takeuchi (1995)
The Knowledge Creating Company
Internalization
Process of converting explicit knowledge into tacit operational
knowledge such as know-how
e.g. Engineering case studies help novice engineers to internalize
the explicit knowledge that has been externalized from veteranbased tacit knowledge.
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Summary
Bacon: new learning method, that lay ground for modern science
Polanyi: father of tacit knowledge
Nonaka: The Knowledge Creating Company
- How can tacit knowledge be made explicit?
- Socialization, Externalization, Combination, Internalization
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Agenda
B. Tacit Knowledge in Different Cultures
I.
Matsushita Electric Industrial Co.: home bakery
II. Contrasting Eastern and Western cultures
III. The Q of sapphire
IV. Crouching Tiger, Hidden Dragon
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Agenda
I. Matsushita Electric Industrial Co.
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I. Matsushita Electric Industrial Co.
Home Bakery
Matsushita Electric Industrial Co.:
bread-baking machine for home use
Possible with help of the tacit
knowledge of a master baker
Great international success
http://www.amazon.com/exec/obidos/ASIN/B00004S56Y/102-4111837-3408169
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I. Matsushita Electric Industrial Co.
Conclusion
1. Socialization: learn tacit knowledge from baker
2. Articulation: tacit knowledge into explicit knowledge
3. Combination: Tanaka and team
4. Internalization: team knowledge bases enriched
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Agenda
III. Contrasting Eastern and Western Cultures
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III. Contrasting Eastern and Western Cultures
Key points about Japanese management
Mentorship and network creation
Life-time employment
Seniority-based promotion
Consensus decision-making (collectivism)
Asiatic, but westernised (in a Japanese way!)
Education: patriotic duty and learning by repetition
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III. Contrasting Eastern and Western Cultures
Ba
Ba: roughly means "place" or "interaction field"
Industrial history of Japan
Concept of ba
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III. Contrasting Eastern and Western Cultures
West
1. Explicit knowledge
2. Measuring & managing existing knowledge
3. Few people carry out knowledge management initiatives
4. Organization: machine for information processing
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III. Contrasting Eastern and Western Cultures
Japan
1. Tacit knowledge
2. Knowledge involves emotions, values, and hunches
3. Companies "manage" & "create" knowledge
4. Everyone involved in creating organizational knowledge
(middle managers = key knowledge engineers)
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III. Contrasting Eastern and Western Cultures
History
Japan
West
Cartesian Split:
separation of the body
and mind (Descartes)
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"iemoto": school run
by masters of a craft
Zen Buddhism:
"the oneness of body
and mind"
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III. Contrasting Eastern and Western Cultures
USA
Future-oriented
Adventure
Unlimited progress
Pragmatism
Individualism
Short-term planning
Community not so important
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III. Contrasting Eastern and Western Cultures
Europe
Individualism, priority on the human being
Intern negotiations
International diversity
Management between extremes
Strong product-orientation
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III. Contrasting Eastern and Western cultures
Zen and the Art of Innovation
Innovation management techniques
Are there any lessons the West can learn from Japan?
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Agenda
IV. The Q of sapphire
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IV. The Q of sapphire
Sapphire used for laser-building
Russian measurements better than Scottish ones
Problems: lack of tacit knowledge and trust
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Agenda
V. Crouching Tiger, Hidden Dragon
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V. Crouching Tiger, Hidden Dragon
USA / China: different
responses to the film
Tacit expectation shapes
the audiences‘ attitudes
http://www.owlnet.rice.edu/~kileen/chin311/CrouchingSummEng.html
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V. Crouching Tiger, Hidden Dragon
Taoism
TK as an important element
in Taoism
Influence of Taoist TK on
Chinese culture, mentality
www.dance-centre.com/ workshops.htm
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Summary
The Culture Compass
Rational
Practical
Holistic
Humanistic
Kalthoff, Otto; Nonaka, Ikujiro; Nueno, Pedro (1999)
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Agenda
C. Making it Happen: Tacit Knowledge in Organizations
I.
Why is Tacit Knowledge Important Today?
II. Mobilizing Knowledge in Organizations
a) General Concepts
b) Enabling Knowledge
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Agenda
I. Why is Tacit Knowledge Important Today?
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I. Why is Tacit Knowledge Important Today?
A) General Concepts
Fragmentation
Company
Department A
Department B
Department C
Adapted from Kalthoff and Nonaka (1999)
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I. Why is Tacit Knowledge Important Today?
A) General Concepts
Information Technology versus a New Sense of Emotional
Knowledge
Emphasis on: -How people treat each other
-Facilitate relationships
Emphasis taken away from: "Cutthroat attitude"
Von Krogh, Ichijo, Nonaka (2000)
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I. Why is Tacit Knowledge Important Today?
a) General Concepts
Different Concepts of Knowledge: West and East
The Western philosophy
Knowledge is context specific
Plato
It is dynamically created
Knowledge is unchanging
It has a subjective nature
Von Krogh, Ichijo, Nonaka 2000
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Agenda
II. Mobilizing Knowledge in Organizations
A) General Concepts
B) Enabling Knowledge
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II. Mobilizing Knowledge in Organizations
A) General Ideas
B) Enabling Knowledge
"Knowledge cannot be managed, only enabled."
Management implies something can be controlled.
Von Krogh, Ichijo, Nonaka 2000
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What do you think?
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II. Enabling Knowledge in Organizations
A) General Concepts
Tacit Knowledge is Dynamic
A constant state of becoming
Groups create knowledge until they are disbanded
Articulation and Documentation
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II. Mobilizing Tacit Knowledge in Organizations
B) Enabling Knowledge
A Company`s Atmosphere
Opportunities for interactions
A Caring Management
Dismantling Barriers
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II. Mobilizing Tacit Knowledge in Organizations
B) Enabling Knowledge
The Knowledge Enablers
Manage Conversations
Mobilize Knowledge Activists
Von Krogh, Ichijo, Nonaka 2000
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II. Mobilizing Tacit Knowledge in Organizations
B) Enabling Knowledge
Manage Conversations
"Good conversations are the cradle of social knowledge in
any organization."
Four guiding principles for good conversation
Von Krogh, Ichijo, Nonaka 2000
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II. Mobilizing Tacit Knowledge in Organizations
B) Enabling Knowledge
Mobilizing Knowledge Activists
Emerge in situations of conflict
Reduce time and cost for solution finding
"Spread the word"
Von Krogh, Ichijo, Nonaka 2000
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We are the best knowledge activists a company could ask for!
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