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

2. June 24th 2003Communication in Organizations1 Agenda I. What is Tacit Knowledge? II. Types of Knowledge III. History of Tacit Knowledge A) Francis Bacon – Novum Organum A) Francis Bacon – Novum Organum B) Michael Polanyi – The Tacit Dimension B) Michael Polanyi – The Tacit Dimension IV. Making Tacit Knowledge Explicit A) Knowledge Management B) Nonaka; Takeuchi – The Knowledge Creating Company A. Tacit Knowledge: An Introduction

3. June 24th 2003Communication in Organizations2 I. What is Tacit Knowledge?

4. June 24th 2003Communication in Organizations3 Have you ever noticed how easily you speak your mother tongue? Have you ever noticed how easily you speak your mother 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! I. What is Tacit Knowledge?

5. June 24th 2003Communication in Organizations4 What does "tacit" mean? According to the Oxford Advanced Learner`s Dictionary: tacit – understood without words; implied According to the Oxford Advanced Learner`s Dictionary: tacit – understood without words; implied I. What is Tacit Knowledge?

6. June 24th 2003Communication in Organizations5 What is knowledge? According to Webster`s Dictionary: 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… But there is more to it… I. What is Tacit Knowledge?

7. June 24th 2003Communication in Organizations6 II. Types of Knowledge

8. June 24th 2003Communication in Organizations7 Tacit Knowledge II. Types of Knowledge "Automatic" knowledge "Automatic" knowledge "Subconscious knowledge" of an individual "Subconscious knowledge" of an individual e.g. intuitions, unarticulated mental models, embodied technical skills e.g. intuitions, unarticulated mental models, embodied technical skills

9. June 24th 2003Communication in Organizations8 II. Types of Knowledge K. that is encoded or even recorded in documents or information systems or embodied in values, methods and procedures 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 Meaningful set of information articulated in clear language Explicit Knowledge

10. June 24th 2003Communication in Organizations9 III. History of Tacit Knowledge

11. June 24th 2003Communication in Organizations10 III. History of Tacit Knowledge A) Francis Bacon : Novum Organum English lawyer, statesman, essayist, historian, intellectual reformer, philosopher and champion of modern science English lawyer, statesman, essayist, historian, intellectual reformer, philosopher and champion of modern science 1620 Novum Organum 1620 Novum Organum –new method to replace that of Aristotle 1623 De Augmentis Scientiarum 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…" Francis Bacon (1561-1626)

12. June 24th 2003Communication in Organizations11 "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 Knowledge is Power" Francis Bacon (1561-1626): "Knowledge is Power" III. History of Tacit Knowledge A) Francis Bacon : Novum Organum

13. June 24th 2003Communication in Organizations12 Michael Polanyi (1891-1976) Hungarian scientist turned philosopher Hungarian scientist turned philosopher Father of Tacit Knowledge Father of Tacit Knowledge 1966 The Tacit Dimension 1966 The Tacit Dimension Account of what tacit knowledge actually means Account of what tacit knowledge actually means –Main thesis: "we can know more than we can tell" III. History of Tacit Knowledge B) Michael Polanyi

14. June 24th 2003Communication in Organizations13 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.

15. June 24th 2003Communication in Organizations14 III. History of Tacit Knowledge B) Michael Polanyi 2) Properties of Tacit Knowledge 1. 1. The proximal term - part that is closer to us 2. 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)

16. June 24th 2003Communication in Organizations15 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. In an act of tacit knowing we attend from the proximal term to the distal term. (Polanyi 1966: 11)

17. June 24th 2003Communication in Organizations16 Playing a complicated musical piece by heart, a musician concentrates on the melody without concentrating on where to put his hands. 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.  He attends from the melody in his head to where to put his hands. Stock market Stock market  A stock broker attends from ? to when to buy or sell shares. III. History of Tacit Knowledge B) Michael Polanyi 3) Tacit Knowledge in Action

18. June 24th 2003Communication in Organizations17 IV. Making Tacit Knowledge Explicit

19. June 24th 2003Communication in Organizations18 IV. Making Tacit Knowledge Explicit A) Knowledge Management or Creating Creating Securing Securing Capturing Capturing Coordinating Coordinating Combining Combining Retrieving Retrieving Distributing Distributing Idea: "Sharing knowledge is power" vs. "Knowledge is power" Knowledge (Liebowitz 2000: 1) "If we only knew what we know"

20. June 24th 2003Communication in Organizations19 IV. Making Tacit Knowledge Explicit B) Nonaka; Takeuchi (1995) Nonaka and Takeuchi, 1995: 62) The Knowledge Creating Company

21. June 24th 2003Communication in Organizations20 Socialization Process of transforming individual tacit knowledge into group tacit knowledge through shared experiences Technical Dimension Cognitive Dimension traditional traditional apprenticeship apprenticeship informal meetings outside of the workplace informal meetings outside of the workplace IV. Making Tacit Knowledge Explicit B) Nonaka; Takeuchi (1995) The Knowledge Creating Company

22. June 24th 2003Communication in Organizations21 Externalization/Articulation Process of articulating tacit knowledge into explicit knowledge through the use metaphors, analogies, concepts, hypotheses or models IV. Making Tacit Knowledge Explicit B) Nonaka; Takeuchi (1995) The Knowledge Creating Company

23. June 24th 2003Communication in Organizations22 Process of assembling new and existing explicit knowledge into systemic explicit knowledge in order to create a new archetype 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. 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. Combination IV. Making Tacit Knowledge Explicit B) Nonaka; Takeuchi (1995) The Knowledge Creating Company

24. June 24th 2003Communication in Organizations23 Process of converting explicit knowledge into tacit operational knowledge such as know-how 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 veteran- based tacit knowledge. e.g. Engineering case studies help novice engineers to internalize the explicit knowledge that has been externalized from veteran- based tacit knowledge. Internalization IV. Making Tacit Knowledge Explicit B) Nonaka; Takeuchi (1995) The Knowledge Creating Company

25. June 24th 2003Communication in Organizations24 Bacon: new learning method, that lay ground for modern science Bacon: new learning method, that lay ground for modern science Polanyi: father of tacit knowledge Polanyi: father of tacit knowledge Nonaka: The Knowledge Creating Company Nonaka: The Knowledge Creating Company -How can tacit knowledge be made explicit? -Socialization, Externalization, Combination, Internalization Summary

26. June 24th 2003Communication in Organizations25 Agenda I. I.Matsushita Electric Industrial Co.: home bakery II. II.Contrasting Eastern and Western cultures III. III.The Q of sapphire IV. IV.Crouching Tiger, Hidden Dragon B. Tacit Knowledge in Different Cultures

27. June 24th 2003Communication in Organizations26 Agenda I. I.Matsushita Electric Industrial Co.

28. June 24th 2003Communication in Organizations27 I. Matsushita Electric Industrial Co.  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 Home Bakery

29. June 24th 2003Communication in Organizations28 Conclusion 1. 1.Socialization: learn tacit knowledge from baker 2. 2.Articulation: tacit knowledge into explicit knowledge 3. 3.Combination: Tanaka and team 4. 4.Internalization: team knowledge bases enriched I. Matsushita Electric Industrial Co.

30. June 24th 2003Communication in Organizations29 Agenda III. III. Contrasting Eastern and Western Cultures

31. June 24th 2003Communication in Organizations30 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 III. Contrasting Eastern and Western Cultures

32. June 24th 2003Communication in Organizations31 Ba  Ba: roughly means "place" or "interaction field"  Industrial history of Japan  Concept of ba III. Contrasting Eastern and Western Cultures

33. June 24th 2003Communication in Organizations32 West 1. 1.Explicit knowledge 2. 2.Measuring & managing existing knowledge 3. 3.Few people carry out knowledge management initiatives 4. 4.Organization: machine for information processing III. Contrasting Eastern and Western Cultures

34. June 24th 2003Communication in Organizations33 Japan 1. 1.Tacit knowledge 2. 2.Knowledge involves emotions, values, and hunches 3. 3.Companies "manage" & "create" knowledge 4. 4.Everyone involved in creating organizational knowledge (middle managers = key knowledge engineers) III. Contrasting Eastern and Western Cultures

35. June 24th 2003Communication in Organizations34 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" III.Contrasting Eastern and Western Cultures

36. June 24th 2003Communication in Organizations35 USA   Future-oriented   Adventure   Unlimited progress   Pragmatism   Individualism   Short-term planning   Community not so important III. Contrasting Eastern and Western Cultures

37. June 24th 2003Communication in Organizations36 Europe   Individualism, priority on the human being   Intern negotiations   International diversity   Management between extremes   Strong product-orientation III.Contrasting Eastern and Western Cultures

38. June 24th 2003Communication in Organizations37 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

39. June 24th 2003Communication in Organizations38 Agenda IV. IV.The Q of sapphire

40. June 24th 2003Communication in Organizations39 IV. The Q of sapphire   Sapphire used for laser-building   Russian measurements better than Scottish ones   Problems: lack of tacit knowledge and trust

41. June 24th 2003Communication in Organizations40 Agenda V. V.Crouching Tiger, Hidden Dragon

42. June 24th 2003Communication in Organizations41 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

43. June 24th 2003Communication in Organizations42 TK as an important element in Taoism Influence of Taoist TK on Chinese culture, mentality V. Crouching Tiger, Hidden Dragon www.dance-centre.com/ workshops.htm Taoism

44. June 24th 2003Communication in Organizations43 The Culture Compass Kalthoff, Otto; Nonaka, Ikujiro; Nueno, Pedro (1999) Rational PracticalHolistic Humanistic Summary

45. June 24th 2003Communication in Organizations44 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

46. June 24th 2003Communication in Organizations45 I. Why is Tacit Knowledge Important Today? Agenda

47. June 24th 2003Communication in Organizations46 I.Why is Tacit Knowledge Important Today? A) General Concepts Fragmentation Adapted from Kalthoff and Nonaka (1999) Department A Department BDepartment C Company

48. June 24th 2003Communication in Organizations47 I.Why is Tacit Knowledge Important Today? 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"

49. June 24th 2003Communication in Organizations48 I.Why is Tacit Knowledge Important Today? 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

50. June 24th 2003Communication in Organizations49 II. Mobilizing Knowledge in Organizations A) General Concepts B) Enabling Knowledge Agenda

51. June 24th 2003Communication in Organizations50 II. Mobilizing Knowledge in Organizations A) General Ideas B) Enabling Knowledge "Knowledge cannot be managed, only enabled." Von Krogh, Ichijo, Nonaka 2000  Management implies something can be controlled.

52. June 24th 2003Communication in Organizations51 What do you think?

53. June 24th 2003Communication in Organizations52 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

54. June 24th 2003Communication in Organizations53 II. Mobilizing Tacit Knowledge in Organizations B) Enabling Knowledge  Opportunities for interactions  A Caring Management  Dismantling Barriers A Company`s Atmosphere

55. June 24th 2003Communication in Organizations54 II. Mobilizing Tacit Knowledge in Organizations B) Enabling Knowledge  Manage Conversations  Mobilize Knowledge Activists Von Krogh, Ichijo, Nonaka 2000 The Knowledge Enablers

56. June 24th 2003Communication in Organizations55 II. Mobilizing Tacit Knowledge in Organizations B) Enabling Knowledge  "Good conversations are the cradle of social knowledge in any organization."  Four guiding principles for good conversation Von Krogh, Ichijo, Nonaka 2000 Manage Conversations

57. June 24th 2003Communication in Organizations56 II. Mobilizing Tacit Knowledge in Organizations B) Enabling Knowledge Mobilizing Knowledge Activists Von Krogh, Ichijo, Nonaka 2000  Emerge in situations of conflict  Reduce time and cost for solution finding  "Spread the word"

58. June 24th 2003Communication in Organizations57 We are the best knowledge activists a company could ask for!