June 24th 2003Communication in Organizations0 Tacit Knowledge in Organizations Anne Heinrichs, Saskia Bercht & Silvia Grimmsmann

June 24th 2003 Communication in Organizations 1

Tacit Knowledge in Tacit Knowledge in OrganizationsOrganizations

Anne Heinrichs, Saskia Bercht & Silvia Grimmsmann


AgendaAgenda

I. What is Tacit Knowledge?I. What is Tacit Knowledge?

II. Types of KnowledgeII. Types of Knowledge

III. History of Tacit KnowledgeIII. History of Tacit Knowledge

A) Francis Bacon – Novum OrganumA) Francis Bacon – Novum Organum

B) Michael Polanyi – The Tacit DimensionB) Michael Polanyi – The Tacit Dimension

IV. Making Tacit Knowledge ExplicitIV. Making Tacit Knowledge Explicit

A) Knowledge ManagementA) Knowledge Management

B) Nonaka; Takeuchi – The Knowledge Creating CompanyB) Nonaka; Takeuchi – The Knowledge Creating Company

A. Tacit Knowledge: An Introduction


I. What is Tacit I. What is Tacit Knowledge?Knowledge?


Have you ever noticed how easily you speak your mother Have you ever noticed how easily you speak your mother tongue?tongue?

Have you ever noticed how easily you recognize faces?Have you ever noticed how easily you recognize faces?

Why is that so? Why is that so?

Because of your tacit knowledge!Because of your tacit knowledge!

I. What is Tacit Knowledge?


What does "tacit" mean?What does "tacit" mean?

According to the Oxford Advanced Learner`s According to the Oxford Advanced Learner`s

Dictionary:Dictionary:

tacit – understood without wordstacit – understood without words; implied; implied



What is knowledge?What is knowledge?

According to Webster`s Dictionary:According to Webster`s Dictionary:

The fact or condition of knowing something with The fact or condition of knowing something with familiarity familiarity gained gained through experience or association. through experience or association. […] K. may be […] K. may be recorded in an recorded in an individual brain or stored in individual brain or stored in organizational organizational processes, products, processes, products, facilities, systems and facilities, systems and documents.documents.

But there is more to it…But there is more to it…



II. Types of Knowledge


Tacit KnowledgeTacit Knowledge

II. Types of Knowledge

"Automatic" knowledge"Automatic" knowledge

"Subconscious knowledge" of an individual"Subconscious knowledge" of an individual

e.g. intuitions, e.g. intuitions, unarticulatedunarticulated mental models, embodied mental models, embodied

technical skillstechnical skills


II. Types of KnowledgeII. Types of Knowledge

K. that is encoded or even recorded in documents or K. that is encoded or even recorded in documents or information systems or embodied in values, methods and information systems or embodied in values, methods and proceduresprocedures

Meaningful set of information Meaningful set of information articulated articulated in clear languagein clear language

Explicit KnowledgeExplicit Knowledge


III. History of Tacit Knowledge


III. History of Tacit KnowledgeIII. History of Tacit KnowledgeA) Francis Bacon : Novum OrganumA) Francis Bacon : Novum Organum

English lawyer, statesman, essayist, historian, intellectual English lawyer, statesman, essayist, historian, intellectual reformer, philosopher and champion of modern sciencereformer, philosopher and champion of modern science

1620 1620 Novum OrganumNovum Organum– nnew method to replace that of Aristotleew method to replace that of Aristotle

1623 1623 De Augmentis ScientiarumDe Augmentis Scientiarum– "For why should a few received authors stand up like "For why should a few received authors stand up like

Hercules columns, beyond which there should be no Hercules columns, beyond which there should be no sailing or discovering…"sailing or discovering…"

Francis Bacon (1561-1626)Francis Bacon (1561-1626)


"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

Francis Bacon Francis Bacon (1561-1626): "Knowledge is Power"Knowledge is Power"

III. History of Tacit KnowledgeA) Francis Bacon : Novum Organum


Michael Polanyi (1891-1976)Michael Polanyi (1891-1976)

Hungarian scientist turned philosopherHungarian scientist turned philosopher

Father of Tacit KnowledgeFather of Tacit Knowledge

1966 1966 The Tacit DimensionThe Tacit Dimension

Account of what tacit knowledge actually meansAccount of what tacit knowledge actually means– Main thesis: "we can know more than we can tell"Main thesis: "we can know more than we can tell"

III. History of Tacit Knowledge

B) Michael Polanyi


III. History of Tacit KnowledgeB) 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.



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)



3) Tacit Knowledge in Action

In an act of tacit knowing we In an act of tacit knowing we attend fromattend from the proximal the proximal term term to to the distal term.the distal term.

(Polanyi 1966: 11)(Polanyi 1966: 11)


Playing a complicated musical piece by heart, a musician Playing a complicated musical piece by heart, a musician concentrates on the melody without concentrating on concentrates on the melody without concentrating on where to put his hands.where to put his hands.

He He attends fromattends from the melody in his head the melody in his head to to where to put where to put his hands.his hands.

Stock marketStock market

A stock broker A stock broker attends fromattends from ?? toto when to buy or sell when to buy or sell shares.shares.


3) Tacit Knowledge in Action


IV. Making Tacit Knowledge Explicit


IV. Making Tacit Knowledge ExplicitA) Knowledge Management or

Creating Creating Securing Securing Capturing Capturing Coordinating Coordinating

Combining Combining Retrieving Retrieving

DistributingDistributing

Idea: "Sharing knowledge is power"vs.

"Knowledge is power"

KnowledgeKnowledge

(Liebowitz 2000: 1)(Liebowitz 2000: 1)

"If we only knew what we know"


IV. Making Tacit Knowledge ExplicitB) Nonaka; Takeuchi (1995)

Nonaka and Takeuchi, 1995: 62)

The Knowledge Creating Company


Socialization

Process of transforming individual tacit knowledge into group tacit knowledge through shared experiences

Technical DimensionTechnical Dimension Cognitive DimensionCognitive Dimension

traditionaltraditional

apprenticeshipapprenticeship

informal meetings informal meetings outside of the workplaceoutside of the workplace




Externalization/Articulation

Process of articulating tacit knowledge into explicit

knowledge through the use metaphors, analogies, concepts,

hypotheses or models




Process of assembling new and existing explicit Process of assembling new and existing explicit knowledge into systemic explicit knowledge in order to knowledge into systemic explicit knowledge in order to create a new archetypecreate a new archetype

e.g. A new business procedure is introduced along with e.g. A new business procedure is introduced along with the prototype for a new product and justification has to the prototype for a new product and justification has to be promoted throughout the company.be promoted throughout the company.

Combination




Process of converting explicit knowledge into tacit Process of converting explicit knowledge into tacit operational knowledge such as know-howoperational knowledge such as know-how

e.g. Engineering case studies help novice engineers to e.g. Engineering case studies help novice engineers to internalize the explicit knowledge that has been internalize the explicit knowledge that has been externalized from veteran- based tacit knowledge.externalized from veteran- based tacit knowledge.

Internalization




Bacon: new learning method, that lay ground for modern Bacon: new learning method, that lay ground for modern sciencescience

Polanyi: father of tacit knowledgePolanyi: father of tacit knowledge

Nonaka: Nonaka: The Knowledge Creating CompanyThe Knowledge Creating Company

- How can tacit knowledge be made explicit?How can tacit knowledge be made explicit?- Socialization, Externalization, Combination, InternalizationSocialization, Externalization, Combination, Internalization

Summary


Agenda

I. Matsushita Electric Industrial Co.: home bakery

II. Contrasting Eastern and Western cultures

III. The Q of sapphire

IV. Crouching Tiger, Hidden Dragon

B. Tacit Knowledge in Different Cultures


Agenda

I. Matsushita Electric Industrial Co.



Matsushita Electric Industrial Co.: Matsushita Electric Industrial Co.: bread-baking machine for home bread-baking machine for home useuse

Possible with help of the tacit Possible with help of the tacit knowledge of a master bakerknowledge of a master baker

Great Great internationalinternational success success

http://www.amazon.com/exec/obidos/ASIN/B00004S56Y/102-4111837-3408169

Home Bakery


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



Agenda

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



Ba

BaBa: roughly means "place" or "interaction field": roughly means "place" or "interaction field"

Industrial history of JapanIndustrial history of Japan

Concept of baConcept of ba



West

1. Explicit knowledge

2. Measuring & managing existing knowledge

3. Few people carry out knowledge management initiatives

4. Organization: machine for information processing



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)



History

West

Cartesian Split:

separation of the body and mind (Descartes)

Japan

"iemoto": school run by masters of a craft

Zen Buddhism: "the oneness of body and mind"



USA

Future-oriented Adventure Unlimited progress Pragmatism Individualism Short-term planning Community not so important



EuropeEurope

Individualism, priority on the human being

Intern negotiations

International diversity

Management between extremes

Strong product-orientation



Zen and the Art of Innovation

Innovation management techniques

Are there any lessons the West can learn from Japan?

III. Contrasting Eastern and Western cultures


Agenda

IV. The Q of sapphire


IV. The Q of sapphire

Sapphire used for laser-building

Russian measurements better than Scottish ones

Problems: lack of tacit knowledge and trust


Agenda

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


TK as an important element in Taoism

Influence of Taoist TK on Chinese culture, mentality


www.dance-centre.com/ workshops.htm

Taoism


The Culture Compass

Kalthoff, Otto; Nonaka, Ikujiro; Nueno, Pedro (1999)

Rational

Practical

Holistic

Humanistic

Summary


I. Why is Tacit Knowledge Important Today?

II. Mobilizing Knowledge in Organizations

a) General Concepts

b) Enabling Knowledge

Agenda

C. Making it Happen: Tacit Knowledge in Organizations



Agenda



A) General Concepts

Fragmentation

Adapted from Kalthoff and Nonaka (1999)

Department A Department B Department C

Company



A) General Concepts

Information Technology versus a New Sense of Emotional Knowledge

Von Krogh, Ichijo, Nonaka (2000)

Emphasis on: -How people treat each other

-Facilitate relationships

Emphasis taken away from: "Cutthroat attitude"



a) General Concepts

The Western philosophy

Plato

Knowledge is unchanging

Knowledge is context

specific

It is dynamically created

It has a subjective nature

Von Krogh, Ichijo, Nonaka 2000

Different Concepts of Knowledge: West and East



A) General Concepts

B) Enabling Knowledge

Agenda



A) General Ideas


"Knowledge cannot be managed, only enabled."


Management implies something can be controlled.


What do you think?


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


II. Mobilizing Tacit Knowledge in Organizations


Opportunities for interactions

A Caring Management

Dismantling Barriers

A Company`s Atmosphere




Manage Conversations

Mobilize Knowledge Activists


The Knowledge Enablers




"Good conversations are the cradle of social knowledge in any organization."

Four guiding principles for good conversation


Manage Conversations




Mobilizing Knowledge Activists


Emerge in situations of conflict

Reduce time and cost for solution finding

"Spread the word"


We are the best knowledge activists a company could ask for!

Documents

June 24th 2003Communication in Organizations0 Tacit Knowledge in Organizations Anne Heinrichs, Saskia Bercht & Silvia Grimmsmann