What is Tacit Knowledge and How to Capture and Disseminate Organizational Know-how?

Imagine a seasoned software developer who can instinctively identify and resolve complex coding issues, or a skilled project manager who can navigate intricate stakeholder dynamics with finesse. Their tacit knowledge is invaluable, yet it's also incredibly fragile – if not captured and shared effectively, it can be lost forever when they leave the organization.

Understanding the significance of tacit knowledge, in this article, Smart Tribune will be arming leaders with:

• Definition of tacit knowledge,
• Guide to preserving tacit knowledge,
• Benefits of tacit knowledge within business,
• Comparison of tacit knowledge vs explicit knowledge,
• Frequently asked questions about organizational know-how.

If you're pumped and so am I, let's get cracking!

What is Tacit Knowledge?

First thing first, we will walk you through the fundamentals of this sort of institutional knowledge. 

Tacit knowledge definition

While explicit knowledge – the kind that can be easily codified, documented, and shared – is crucial, it's the tacit knowledge that often holds the key to unlocking true competitive advantage.                               

Tacit knowledge is the deep-rooted, intuitive understanding and expertise that resides within individuals – the hard-won lessons, insights, and experiences that cannot be easily articulated or transferred. It's the secret sauce that separates merely good organizations from truly great ones.

Top 3 typical examples of tacit knowledge

Unfamiliar as it may sound, tacit knowledge exists in loads of situations in the daily operation of an organization. Let's dissect the following tacit knowledge examples to further understand how it can make a difference in a business. 

• De-escalating frustrated customers: A customer service representative might have a playbook for handling complaints, but truly calming an irate customer often relies on tacit knowledge. His or her capability is shown in reading body language, using empathetic language, and knowing when to apologize or offer concessions. Apparently, this sensibility is honed through experience and intuition.
• Identifying underlying needs: Many customer inquiries aren't always straightforward. A skilled rep can pick up on cues and implicit requests, understanding what the customer truly needs even if not explicitly stated. This could involve asking probing questions, analyzing purchase history, or suggesting alternative solutions – all based on experience and a keen understanding of customer behavior.
• Building rapport and trust: Explicit knowledge can teach you product features, but building trust and rapport with customers is a different story. A customer service rep with strong tacit knowledge can connect with customers on a personal level, listen actively, and genuinely care about their concerns. This intangible skill comes from experience in human interaction and emotional intelligence. 

We can tell at a glance that experience and in-depth insights into customers or domains are the keys to success. That's why it's essential yet challenging for a company to preserve tacit knowledge. 

Strategies for Capturing and Sharing Tacit Knowledge within Organization?

Before kicking off any procedure, crafting a detailed strategic plan is a must. So, we highly recommend that leaders dig deep into a knowledge transfer plan and proper knowledge management metrics and KPIs to make sure the whole company is on the same boat and aware of where we are sailing. Now, it's time to access the comprehensive guide on how to secure and disseminate organizational know-how. 

How to capture tacit knowledge?

1. Create a knowledge-friendly culture

A culture that values and encourages knowledge sharing is fundamental. Leaders should foster an environment where employees feel comfortable sharing their experiences and insights without fear of criticism or judgment. This can be achieved by:

• Promoting open communication: Encourage open dialogue and regular interactions among employees across different levels and departments.
• Recognizing and rewarding: Acknowledge and reward employees who actively share their knowledge, setting an example for others to follow.

2. Design mentorship and apprenticeship programs

Mentorship and apprenticeship programs are effective in transferring tacit knowledge. Pairing less experienced employees with seasoned mentors allows for the transfer of skills and insights through close, hands-on collaboration.

• Structured mentorship: Develop formal mentorship programs with clear goals, regular check-ins, and defined outcomes.
• On-the-job training: Implement apprenticeship models where employees learn by doing, guided by experienced practitioners.

3. Leverage storytelling and case studies

Storytelling is a powerful tool for capturing and sharing tacit knowledge. Stories and case studies can convey complex ideas and experiences in a relatable and memorable way.

• Storytelling sessions: Organize regular sessions where employees can share their experiences and insights through storytelling.
• Documenting case studies: Create a repository of case studies that highlight key lessons learned from various projects and experiences.

4. Exploit internal knowledge base

Leverage technology to facilitate knowledge sharing. Implementing knowledge management platforms can provide a centralized space for capturing, storing, and sharing tacit knowledge.

• Collaborative tools: Use tools like Smart Knowledge - the #1 knowledge management platform in Europe to encourage collaboration and knowledge exchange. By leveraging a platform like Smart Knowledge, any company can develop a knowledge repository where employees can document knowledge base articles and access critical insights and best practices.

5. Conduct after-action reviews

After-action reviews (AARs) are structured discussions conducted after a project or major activity. They provide an opportunity to capture lessons learned and share tacit knowledge.

• Regular AARs: Integrate AARs into the project lifecycle to ensure continuous learning and improvement.
• Inclusive participation: Involve all team members in the review process to gather diverse perspectives and insights.

Strategies to share tacit knowledge

Preserving tacit knowledge is not complete without sharing it. Here come techniques for businesses to productively spread tacit skills and close knowledge gaps.

1. Create cross-functional teams

Creating cross-functional teams can help in the dissemination of tacit knowledge across divergent parts of the organization.

• Diverse team composition: Form teams with members from various departments to facilitate knowledge exchange and collaboration.
• Rotational programs: Implement job rotation programs to expose employees to different roles and responsibilities, enhancing their overall understanding and skills.

2. Establish communities of practice

Communities of practice (CoPs) are groups of people who share a common interest or expertise. They provide a platform for ongoing knowledge exchange and learning.

• Establishing CoPs: Create CoPs focused on key areas of expertise within the organization.
• Regular meetings: Encourage regular meetings and discussions within these communities to share insights and experiences.

3. Organize workshops and seminars

Organize workshops and seminars to grease the wheels of sharing tacit knowledge. These events provide opportunities for employees to learn from subject-matter experts (SMEs) and each other.

• Interactive workshops: Design workshops that enable active participation and hands-on learning.
• Expert seminars: Invite internal and external experts to share their knowledge and insights through seminars.

Above are suggestions for safeguarding organizational wisdom. Bear in mind that capturing and sharing tacit knowledge is not a one-time endeavor; rather, it's an ongoing journey that requires sustained commitment, resources, and continuous adaptation.

Learn more about tacit knowledge management within workplace:

• The fundamentals of knowledge transfer
• How to develop a knowledge management framework that benefits your business?
• How to successfully develop a Knowledge management strategy?

Why Enable Tacit Knowledge Transfer in the Workplace?

Companies of all sizes are mapping out knowledge transfer plans and developing knowledge management strategy with a view to ensuring institutional knowledge retention to gain a competitive edge. Let's demystify.

Enhance teamwork and collaboration

Sharing tacit knowledge fosters a collaborative environment. Employees learn from each other's experiences, combine diverse skillsets, and develop innovative solutions together. This synergy leads to improved team performance, faster project completion, and a more positive work atmosphere.

Reduce learning curves for new hires

By capturing the wisdom of experienced employees through mentorship programs and knowledge-sharing initiatives, organizations can shorten the time it takes for new hires to become proficient. Effective training allows them to contribute meaningfully to the team sooner, boosting overall productivity.

Fuel innovation and creativity

Tacit knowledge often sparks creative thinking. When employees share their unique experiences and perspectives, they can spark new ideas, develop innovative solutions, and identify opportunities for improvement. This can lead to breakthrough products, services, and processes, giving the organization a competitive edge.

Improve customer service 

Customer service representatives with strong tacit knowledge can build rapport with customers, identify underlying needs even if not explicitly stated, and handle challenging situations with empathy and understanding. This leads to higher customer satisfaction, loyalty and customer advocacy.

Provide a competitive advantage

Organizations that effectively capture and leverage tacit knowledge create a more knowledgeable, adaptable, and innovative workforce. This translates to significant benefits like cost savings, improved customer satisfaction, and a stronger competitive edge in the marketplace.

Difference between Tacit and Explicit Knowledge?

Both tacit and explicit knowledge are valuable and complementary. The ideal situation is to have a good balance of both for effective learning and performance.

Explore more: Implicit Knowledge - What is It & How to Effectively Transfer It in The Workplace

FAQs about Tacit Knowledge

1. What does tacit knowledge mean?

Tacit knowledge is the knowledge you gain through experience and intuition, often difficult to express in words. It's the "know-how" that complements explicit knowledge.

2. How is tacit knowledge best acquired?

Tacit knowledge is best acquired through hands-on experience, observation, and mentorship. It's like learning to ride a bike - you can read instructions, but true understanding comes from practice.

Final Thoughts on Tacit Knowledge

Capturing and sharing tacit knowledge is an investment in your organization's future. By empowering employees to share their unique wisdom, managers can create a culture of continuous learning and innovation. This, in turn, translates to a more resilient, adaptable, and ultimately, a more successful organization.

Hope that after reading this article, you get a broad picture of tacit knowledge and its significance in the workplace. Should you have any further inquiries related to knowledge management, drop us a line for assistance.