Eight to Late

Sensemaking and Analytics for Organizations

Inexplicit knowledge: what people know, but won’t tell

with 2 comments

Introduction

Much of the knowledge that exists in organisations remains unarticulated, in the heads of those who work at the coalface of business activities. Knowledge management professionals know this well, and use the terms explicit and tacit knowledge to distinguish between knowledge that can and can’t be communicated via language.  Incidentally, the term tacit knowledge was coined by Michael Polanyi  – and it is important to note that he used it in a sense that is very different from what it has come to mean in knowledge management. However, that’s a topic for another post.  In the present post I look at a related issue that is common in organisations: the fact that much of what people know can be made explicit, but isn’t.  Since the  discipline of knowledge management is in dire need of more jargon, I call this inexplicit knowledge. To borrow a phrase from Polanyi, inexplicit knowledge is what people know, but won’t tell.   Below, I discuss reasons why potentially explicit knowledge remains inexplicit and what can be done about it.

Why inexplicit knowledge is common

Most people would have encountered work situations in which they chose “not to tell” – remaining silent instead of sharing knowledge  that would have been helpful. Common reasons for such behaviour include:

  1. Fear of loss of ownership of the idea: People are attached to their ideas. One reason for not volunteering their ideas is the worry that someone else in the organisation (a peer or manager) might “steal” the idea. Sometimes such behaviour is institutionalised in the form of an “innovation committee” that solicits ideas, offering monetary incentives for those that are deemed the best (more on incentives below). Like most committee-based solutions, this one is a dud. A better option may be to put in place mechanisms to ensure that those who conceive and volunteer ideas are encouraged to see them through to fruition.
  2. Fear of loss of face and/or fear of reprisals: In organisational cultures that are competitive, people may fear that their ideas will be ridiculed or put down by others. Closely related to this is the fear of reprisals from management. This happens often enough, particularly when the idea challenges the status quo or those in positions of authority. One of the key responsibilities of management is to foster an environment in which people feel psychologically safe to volunteer ideas, however controversial or threatening the ideas may be.
  3. Lack of incentives:  Some people may be willing to part with their ideas, but only at a price. To address this, organisations may offer extrinsic rewards (i.e. material items such as money, gift vouchers etc) for worthwhile ideas.  Interestingly, research has shown that non-monetary extrinsic rewards (meals, gifts etc.) are more effective than monetary ones. This makes sense – financial rewards are more easily forgotten; people are more likely to remember a meal at a top-flight restaurant than a 500$ cheque. That said, it is important to note that extrinsic rewards can also lead to unintended side effects. For example, financial incentives based on quantity of contributions might lead to a glut of low-quality contributions. See the next point for a discussion of another side effect of extrinsic rewards.
  4. Wrong incentives: As I have discussed at length in my post on motivation in knowledge management projects, people will contribute their hard earned knowledge only if they are truly engaged in their work.  Such people are intrinsically motivated (i.e. internally motivated, independent of material rewards); their satisfaction comes from their work (yes, such people do exist!).  Consequently they need little or no supervision. Intrinsic rewards are invariably non-material and they cannot be controlled by management. A surprising fact is that, intrinsically motivated people can actually be turned off – even offended – by material rewards.

Psychological safety and incentives are important factors, but there is an even more important issue: the relationships between people who make up the workgroup.

Knowledge sharing and the theory of cooperative action

The work of Elinor Ostrom on collective (or cooperative) action is relevant here because knowledge sharing is a form of cooperation. According to the theory of cooperative action, there are three core relationships that promote cooperation in groups: trust, reciprocity and reputation.  Below I take a look at each of these in the context of knowledge sharing:

Trust: In the end, whether we choose to share what we know is largely a matter of trust: if we believe that others will respond positively – be it through acknowledgement or encouragement via tangible or intangible rewards –  then the chances are that we will tell what we know.  On the other hand, if the response is likely to be negative, we may prefer to remain silent.

Reciprocity: This refers to strategies that are based on treating people in the way we believe they would treat us. We are more likely to share what we know with others if we have reason to believe that they would be just as open with us.

Reputation: This refers to the views we have about the individuals we work with.  Although such views may be developed by direct observation of peoples’ behaviours, they are also greatly influenced by opinions of others. The relevance of reputation is that we are more likely to be open with people who have a good reputation.

According to Ostrom, these core relationships can be enhanced by face-to-face communication and organisational rules/ norms that promote openness. See my post on Ostrom’s work and its relevance to project management for more on this.

Summing up

One of the key challenges that organisations face is to get people working together in a cooperative manner.  Among other things this includes getting people to share their knowledge; to “tell what they know.” Unfortunately, much of this potentially explicit knowledge remains inexplicit, locked away in peoples’ heads, because there is no incentive to share or, even worse, there are factors that actively discourage people from sharing what they know. These issues can be tackled by offering employees the right incentives and creating the right environment. As important as incentives are, the latter is the more important factor:   the key to unlocking inexplicit knowledge lies in creating an environment of trust and openness.

2 Responses

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  1. “…institutionalised in the form of an “innovation committee” that solicits ideas, offering monetary incentives for those that are deemed the best (more on incentives below). Like most committee-based solutions, this one is a dud”

    How would you rate the Japanese method of “kaizen”? The company I work for has got this going in all our factories with varying degrees of success. (By success I mean – the quality of ideas and the numbers getting implemented). The team which comes up with an idea which gets implemented gets a token monetary prize given away by any visiting HQ VIP. The year end company conference also invites the teams which have given the best, most innovative, significant ideas. The teams are usually a mix of staff and workmen (unionised). I have observed that the numbers and quality are best from our factory with the strongest unions and the most autonomous workmen.

    Like

    Ravin Kurian

    June 17, 2011 at 11:17 am

  2. Ravin,

    Thanks for your comment. I admit, my remark on innovation committees is a bit over the top – they can work if done right.

    Ideally Kaizen should be driven by those who work with the process that is being improved, free from managerial pressure. This ties in with your observation that the best results are from your factory that has the strongest unions and most autonomous workforce.

    There seems to be considerable confusion about what exactly Kaizen entails. As stated in this paper on Kaizen in Japanese firms

    …Not only is there great diversity amongst companies, but each organisation’s practice is the result of a complex and specific history. We take from this that operations management research must increasingly look to contextualise against a shifting economic background. As employment systems and socio-political contexts change, so will the practice of operations management…

    Moreover, the authors also state that the transfer of organisational practices (such as Kaizen) is complex, and should be based on reinterpretation and reinvention in the new context. This is a problem with “best practices” in general, a point I have discussed at length in this post. It would be great if you could share your organisation’s experience in tackling this – specifically to what extent you had to adapt and customise Kaizen principles to suit local conditions.

    Regards,

    K.

    Like

    K

    June 17, 2011 at 10:19 pm


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