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Want to manage tacit knowledge?

Communities of practice offer a versatile solution

Shawn Callahan [email protected] Managing tacit knowledge with communities of practice

Introduction a growing awareness that tacit knowledge makes up a substantial proportion of this vital knowledge— Th is paper off ers some tips for fostering informal perhaps as much as 80%. Th e imperative to manage communities to manage tacit knowledge in a rapidly tacit knowledge more eff ectively has become more changing business environment. Recent business pressing in recent times—as developments have increased the diffi culties in experienced ‘baby-boomers’ managing this important type of knowledge. We do not have the retire, as clients increasingly time or resources to • ‘Baby-boomers’ are retiring—and years of document what we present novel problems (for ‘know how’ are walking out the door. know—even if it were which ‘cookbook answers’ “possible to do so. • Clients are demanding more answers to increasingly complex questions—and they are both inappropriate and want those answers now. unavailable), and as market cycles accelerate and • Companies cannot aff ord to make response times are reduced. Th ese dramatic changes inadvertent mistakes, and they must mean that we do not have the time or resources” to therefore capitalise on the ingenious document what we know—even if it were possible to solutions that remain hidden in every quiet do so. corner of their organisations. Tacit knowledge is personal knowledge. It is Th ese business problems have created a diffi cult to discern and diffi cult to express. Examples signifi cant challenge for companies today: How can include ‘intuition’, ‘hunches’, ‘heuristics’, and ‘inherent organisations create a work environment that enables talent’. It enables people to have ‘gut feelings’ that knowledgeable people to learn, adapt, and respond something is wrong or missing. It is knowing how to eff ectively to novel circumstances? ride a bike, how to recognise the smell of coff ee, how to A common (but misinformed) strategy is to develop lasting client relationships, when to buy and extract and record what people know—and then sell, and which new venture store it in a database. Th e problem is that much of is likely to work. It is not Tacit knowledge is this ‘know how’ is not amenable to this treatment. personal knowledge … ‘book knowledge’; rather, diffi cult to discern and It cannot be captured or converted easily. Much of it it is knowledge developed diffi cult to express. is unspoken and unrecorded. So how do we manage through experience. “ this unspoken (or tacit) knowledge? Communities of According to Boisot, there are three types of practice off er an eff ective and versatile solution. tacit knowledge to consider:1 Th is paper therefore provides guidance on how • things that are not said because everyone” to identify and foster such communities of practice understands them and takes them for in your organisation. It explains why communities granted; of practice are eff ective in managing tacit knowledge, • things that are not said because nobody describes how to ‘map’ communities, and provides fully understands them; and suggestions for garnering management support. Finally, • thing that are not said because, although the paper describes three common traps to avoid. some people understand them, they cannot costlessly articulate them. The nature of tacit knowledge It is possible to adopt individual strategies to Organisations recognise that knowledge provides the manage each type of tacit knowledge. Narrative, for only sustainable market diff erentiator. And there is example, is useful for discovering the things that

2 Managing tacit knowledge with communities of practice

are taken for granted. Techniques for developing of settings. Th is is where the real learning intuition can be employed to enhance the things occurs—on the job, with real problems.

that nobody fully understands. Organisations might Peter was a great mentor for the other decide that certain critical (but members of the group. He was generous A comprehensive complicated) knowledge should with his time and knew what questions to strategy involves ask. Even more importantly, he knew when the identifi cation be more generally known. to ask them. Although we will miss his acid and nurturing of Although such individual communities of wit, we will not be left in a hole—because “ strategies can be useful, this practice. we have learnt from each other. Almost by paper presents a comprehensive accident, we have built resilience into our strategy that addresses the management of all three workplace—resilience that will help us to types of tacit knowledge. Th is comprehensive strategy cope when people come and go. Th is type of group is called a ‘community of practice’. involves the” identifi cation and nurturing of communities of practice. Managing tacit knowledge What is a community of through communities of practice? practice So how does a strategy of supporting communities Th e key features of a community of practice are of practice help organisations to manage their tacit encapsulated and communicated in the following knowledge more eff ectively? anecdote. First, these groups enrich the context around Peter was not only the organisation’s most their area of interest. Th ey enhance the artefacts (such gifted policy analyst, but also one of those as documents and tools) guys who just ‘knew’ how to get things that already exist; and they … enhancing the done around the place. Regardless of the artefacts that already job at hand, Peter would successfully create new artefacts. Th ese exist; and creating navigate the organisation’s labyrinth of artefacts (old and new) take new artefacts. requests, approvals, offi ce politics, and on enhanced meaning for “ hierarchy. He knew when something was the group and, as they do, more knowledge becomes missing; he knew when the picture just unspoken—more tacit knowledge is created. did not ‘seem right’. And like many other ‘baby-boomers’, Peter was retiring—next Secondly, the increasing interaction ” among week to his rural vineyard. members of the group, together with the enriched context described above, enables members to respond Fortunately for us, Peter was an active quickly to unusual and unpredictable requests. Th is member of our ‘policy-analysis brigade’. is because the community of practice has been in the Th is was the name we had given to our informal group that met in the boardroom habit of posing (and exploring) novel questions. on the third Th ursday of every month. It Th irdly, the existence of a community of had begun as a small group of people who practice means that there is a deeper and wider took ‘time out’ to learn the fi ner points of pool of expertise from which to draw. Th rough the good policy development; it ended up as a active processes of the community, tacit knowledge is forum for testing a whole range of ideas. More importantly, we worked out ways in shared—thus ensuring that it is not ‘locked up’ in one which we could work together in a variety individual.

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Fourthly, members of the community Identifying communities develop an intuitive understanding of how to Th ere are many places to search for evidence of tackle issues in their fi eld of expertise. Th ey existing communities. Like David Attenborough, the develop this intuitive knowledge by undertaking job entails tracking the telltale signs that will lead you tasks, refl ecting, asking questions of one another, and to your quarry. listening to the stories of other community members. In the modern corporation, computer systems Finally, and most importantly, new members are a good place to start. You can begin by asking the of the community are eff ectively ‘given permission’ system administrator whether email groups have been to associate with the more set up or whether specifi c collaboration spaces have … asking questions experienced and more senior of one another, been established. Both of these tracks can lead directly members of the organisation. and listening to the to existing communities. In addition, if you have an stories of others. Th is is what it means to be “ online meeting-room booking system, check whether part of a community. regular meetings have been scheduled. Th ese groups are focused on improving their practice—how they do their work. Th ey are You can also include community mapping as an therefore constantly” striving to develop new tools and exercise within a wider knowledge-mapping project. techniques. Consequently, community members know An eff ective technique involves augmenting the which knowledge can be sensibly codifi ed and which Cynefi n knowledge-mapping technique at the point 2 knowledge should be shared using other means—such where anecdotes are being collected. At the end of as simply listening to the stories of others, helping an anecdote circle, ask the participants to brainstorm each other out on the job, or identifying a mentor to four types of communities: (i) committees and formal assist with a personal career. communities; (ii) expert communities; (iii) informal Th ese informal groups already exist in or shadow communities; and (iv) communities that organisations. Th e challenges for those responsible emerge only in a crisis. Th is exercise generates a long for harnessing an organisation’s list of potential communities to investigate. … constantly tacit knowledge are to identify Experience has also shown that the following striving to develop and nurture these groups. approach is eff ective. Provide a technological platform new tools and techniques. Indeed, an adroit manager will that supports community activities. Th en advertise its “ go further—he or she will also existence, provide some information on how to use it, create the conditions that facilitate the emergence of and see who comes. In one instance we had worked new communities of practice. hard to establish three communities of practice while, ” on the periphery, a group of simulation modellers Fostering communities of had discovered the collaboration platform that we practice had established—and they promptly made use of its It is diffi cult to build a community of practice functionality. We became aware of this community from scratch. In fact, the construction metaphor of for the fi rst time when we discovered them on- ‘building’ a community is inappropriate. Rather, it is line. It should be noted, however, that the business important to ‘foster’ communities—and the fi rst step case for the collaborative infrastructure had already is to fi nd the communities that already exist in your been established before it was implemented and organisation. subsequently discovered by the modellers.

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Th ere are also activities and events during Arguments such as these can be useful. But the which cohorts can develop—and such a cohort can two most powerful techniques to persuade reluctant become the basis of a new community of practice. managers to invest in communities are: Training events, induction courses, and management • stories of success from similar organisations retreats can all provide the essential fi rst ingredients that already foster communities of practice; for a community of practice—social networks and a and topic of interest. When an • making a link between project work Cohorts can important event is scheduled, and communities of practice (using the develop—and the chances that a community metaphor of ‘the arrow and the cloud’). such a cohort can become the basis of of practice emerges can be Each of these is explored below. “a new community enhanced by getting people of practice. ‘connected’ before the event. Stories of success Collaboration software with Stories about how other organisations have facilitated online discussions can achieve this initial implemented communities of practice have a connection, and the discussions can be continued after signifi cant impact in infl uencing decision-makers to the event. If there” is enough energy and passion for adopt the strategy. Robert the topic, a new community of practice can emerge. Cialdini calls this ‘social Social proof is proof’.4 most likely to be effective when there Getting support from Social proof describes is considerable management and members the human tendency to do “uncertainty. Reluctant managers what everyone else is doing. If a person walks into a meeting room in which Many managers do not perceive the tangible business everyone is standing up, the new arrival is likely to benefi ts that will come from supporting communities remain standing. Social proof is a shortcut to knowing of practice. Even managers who have embraced the ” what to do when people do not have all the facts. Th e concepts of ‘teams’ and ‘teamwork’ can have diffi culty principle of social proof is most likely to be eff ective in perceiving the benefi ts of communities of practice. when there is considerable uncertainty, and when Such communities of practice those being imitated are similar to ourselves. Communities of can appear to be nebulous to practice can appear managers who are accustomed Th e fi rst ingredient in developing a compelling to be nebulous to more immediate and direct case for communities of practice is the eff ective use of to managers who stories as ‘social proof’. Stories “are accustomed to benefi ts. are powerful. Telling stories more immediate Wenger and colleagues Facts are certainly and direct benefi ts. about people, organisations, important, but have provided a useful table of stories provide the and work is a natural way business benefi ts that accrue emotion required to make a decision. 3 for people to transfer what “ from communities of practice. Th ese include short- they know in the workplace. term benefi ts (such as improved business outcomes, Facts are certainly important, but stories provide the improved quality” of decision-making and innovative emotion required to make a decision. perspectives on long-standing problems) and long- term benefi ts (such as increased retention of talent and I was talking about the ‘power of story’ to ” the ability to foresee technological developments). a client who worked in the defence forces.

5 Managing tacit knowledge with communities of practice

Th e client was prompted to recount an enhance current projects, commitment from middle interesting incident. His division had managers increases signifi cantly. proposed a new force structure to the chief Middle managers are under great pressure to of the army. Th e recommendations were the product of extensive analysis and were ‘get the job done’, and if they believe that an initiative supported by an impressive array of facts for a community of practice is merely a distraction, and fi gures. Th e general and his advisors they will mount a great deal of passive resistance. After were considering the proposal in his offi ce. six months of eff ort you will wonder why nothing has Th e recommendation seemed to make happened. It is a good idea to introduce the simple sense to him, but he was uneasy about something that he could not ‘put his fi nger idea of ‘the arrow and the cloud’ to describe how on’. A colonel, who had recently returned teams provide direction for communities and how from East Timor, happened to pass by his communities can support teams (see Figure 1, below). door. Th e general invited him in to give his opinion on the proposal. Th e colonel then regaled the group with a story that demonstrated how the recommended force Projects and Teams structure would have made a signifi cant improvement in fi eld operations in East Timor. With that story, the general turned Questions Answers Problems Innovations to the rest of the group and said bluntly: ‘Make it happen’.

A handful of stories about the eff ective use Communities of communities of practice from organisations that of Practice most resemble your own will be an invaluable tool in building your business case. Figure 1 Arrow and cloud Why aren’t we Th ere are many case studies doing this? and examples from companies such as IBM, GE, the US Army, “and legal fi rms, among many others. Whenever Th e arrow represents projects that must be completed an opportunity arises, tell these stories. Your own by a specifi c date and that must deliver a specifi c organisation” will soon begin to ask: ‘Why aren’t we outcome. A successful project has a clear direction and doing this?’. defi nite deadlines to meet. Most organisations focus A community is more interested in Arrow and cloud their resources on the arrow. the learning journey Th e second ingredient is to make a link between project Th e cloud represents than the destination. a community of practice. It “ work and communities of practice. It is common to hear people lament: ‘But my people are so busy just is more interested in the learning journey than the getting the job done. We don’t have time to sit around destination. Outcomes are less clear. Although the and chat about these things.’ Th is attitude certainly arrow and the cloud are quite diff erent organisational” makes it diffi cult to get a community off the ground entities, one informs the other. from scratch. However, in our experience, if you For example, every project invariably faces can describe how this new organisational entity will challenges and problems that must be overcome. If the

6 Managing tacit knowledge with communities of practice

project team knows that a community of practice exists (and to those participating in the group) within the organisation, the team can pose questions that the community is truly valued. to this community—which represents a network of • Although a community of practice is an experts and expertise. Moreover, by receiving ‘real- eff ective organisational form for managing world’ problems from a ‘real-world’ project team, tacit knowledge, a community-of-practice the community of practice can focus its eff orts on a initiative is more likely to be successful if subject that is valued by the it begins with the organisation providing overt content that can be discussed, shared, Ideally, project-team organisation. Communities and improved. members should of practice can inform project also be community members, and teams by briefi ng them on “vice versa. new thinking, models, and Summary and next steps tools relevant to the project. Organisations are becoming more complex, and the However, a balance must be struck—too much pace of change is accelerating. Employees come and direction from project teams or other management go more frequently. And there is a growing reliance on teams can result” in the a community resisting such tacit knowledge as a competitive advantage. Faced with direction, and, at worst, disbanding its activities these realities, organisations altogether. Th e key to the ‘arrow’ and the ‘cloud’ have been forced to adapt their A loss of tacit knowledge exposes working together is that each must be aware of the organisational forms to avoid organisations to existence of the other—ideally, project-team members having their knowledgeable signifi cant risks. should also be community members, and vice versa. employees leave with no-one “ capable of taking their places until new employees get Three traps to avoid ‘up to speed’. Such a loss of tacit knowledge exposes Although the guidance provided above appears to have organisations to signifi cant risks. ” a bias towards an organic, undirected, and ‘bottom– Communities of practice off er an eff ective and up’ technique, it is also important to incorporate other fl exible approach to the diffi cult task of managing tacit approaches if common mistakes are to be avoided. Here knowledge. Th is is not achieved by command and are some hints on avoiding three common ‘traps’. control, or by embarking on a program of converting • Although it is important to identify tacit knowledge to overt knowledge that can be existing communities, a successful program stored in a database. Rather, the approach proceeds must also gain support from the most by fostering the collaborative senior business leader who is willing to eff orts that already exist in the Fostering the participate. One approach is to get senior organisation, and by providing collaborative efforts people active by inviting them to chair that already exist the support that nurtures this community review boards or practice … and providing new organisational form. the support that review boards. “ Community mapping nurtures. • Although each community will invest its is an important fi rst step in own time and energy to sustain the group, a successful program requires the provision developing a program of activities. Th is identifi es of real resources in terms of budget and the myriad communities that already exist in the time. Such a commitment of resources organisation. In addition, a business case ” for such demonstrates to the wider organisation a community should be built, and the value of

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communities of practice should be communicated to senior leaders, middle managers, and potential participants in the community. With these foundations in place, a wider program can then be developed.

About the author Shawn Callahan is managing director of Anecdote Pty Ltd, a management consulting company based in Melbourne, Australia. Shawn specialises in managing tacit knowledge using techniques derived from complexity, narrative, and knowledge management. If you have comments or questions about this paper, please contact Shawn at [email protected]

Notes 1. Boisot, M. H. 1999, Knowledge Assets: Securing Competitive Advantage in the Information Economy, Oxford University Press, Oxford. 2. Snowden, D. 2000, Organic Knowledge Management - Part 1. Knowledge Management, 3: 14–17. 3. Wenger, E., McDermott, R. & Snyder, W. M. 2002, Cultivating Communities of Practice: A Guide to Managing Knowledge, Harvard Business School Press, Boston. 4. Cialdini, R. B. 1998, Infl uence: Th e Psychology of Persuasion, Perennial Currents.

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