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The Nonaka-Takeuchi Model of Knowledge Management

“In an economy where the only certainty is uncertainty, the one sure source of lasting competitive advantage is knowledge.”

I. Nonaka

The problem is that few managers understand how to manage the knowledge-creating company

Focus on ‘hard’ or quantifiable knowledgeSee KM as information processing machine

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Nonaka & Takeuchi/2

The authors studied successful Japanese companies to try to identify how they achieved creativity and innovation Found it was more than mechanistically processing

objective information Depending on highly subjective insights

Slogans, metaphors, symbols Holistic model of knowledge creation and management

of “serendipity”

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Nonaka & Takeuchi: The Spiral of Knowledge

Knowledge creation always begins with the individual Brilliant researcher has an insight that leads to a new patent Middle manager has intuition of market trends and becomes

the catalyst for an important new product concept Shop floor worker draws on years of experience to come up

with a process innovation that saves $$$$ In each case, an individual’s personal knowledge is

translated into valuable organizational knowledge

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The Basis for the Nonaka – Takeuchi Model

Making personal knowledge available to others in the company is at the core of this model of KM It takes place continuously It takes place at all levels of the organization

Individual Groups Company-wide

Can be unexpected E.g. home bread-making machine innovation

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Explicit vs. Tacit Knowledge

files

Tacit Knowledge

Explicit Knowledge

80-85% 15-20%

active passive

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Tacit

Explicit

Tacit Explicit

....

Nonaka and Takeuchi Model

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Nonaka & Takeuchi – the Knowledge Spiral Model

Tacit

Explicit

Tacit Explicit

SocializationSocializationBrainstorming

Coaching

Combination:Combination:SystemizingClassifying

ExternalizationExternalizationCapturingSharing

InternalizationInternalization:Understanding

Learning

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Tacit to Tacit Transformation

Individual to individual(s) Apprenticeship Mentoring Observation Shadowing

Imitation Practice Brainstorming Coaching

Apprentice may learn from the master, but the knowledge remains tacit & is not leveraged across the organization

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Tacit to Explicit Transformation

Able to articulate the knowledge, know-how Can be written, videotape, audiotape format Often need intermediary to capture this

knowledge – a journalist, a workshop… It now exists in a tangible form It can now be more easily shared with others and

leveraged throughout the organization

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Explicit to Explicit Transformation

Can combine discrete pieces of tangible knowledge into a new form E.g. a synthesis in the form of a report, a

comparative evaluation, a new database Simply a new combination of existing

knowledge – no new knowledge is created

It is easiest to convert from the same type of knowledge – tacit to tacit and explicit to explicit – harder to change the type

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Explicit to Tacit Transformation

As new knowledge is shared throughout the organization, employees now begin to internalize it They use it, broaden it, extend it and reframe

their own existing tacit knowledge base They learn – they do their jobs differently now

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The KM Spiral

First we learn something through socialization (e.g. being apprenticed to a master)

Next we translate this into a tangible format that can be more easily communicated to others (externalization)

This knowledge is then standardized using templates, coding rules etc (new combination)

Finally, team members enrich their own tacit knowledge bases by adding new knowledge and skills (internalization)

They then share this new knowledge tacitly (back to socialization and the spiral continues)

Tacit to Explicit and Explicit to Tacit are the key steps

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From Metaphor to Model

Externalization (tacit to explicit) and Internalization (explicit to tacit) both require a high degree of personal commitment

Involves Mental models Personal beliefs and values Re-inventing yourself as well as the organization

Metaphor is a good way of expressing the “inexpressible” Slogans, symbols Fables, stories, allegories analogies Models – final step, no contradictions, consistent, systematic, logical “two ideas in a single phrase”

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From Chaos to Concept

How to structure metaphors, models and analogies in an organizational KM design

1st principle: Built-in redundancy – make sure there is shared

overlapping information Easier to articulate Easier to share Easier to internalize

Can be done with internal competing groups, built-in rotational strategy and free access to company information via single integrated database or k-base

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From Chaos to Concept (con’t)

Need to orient ensuring chaos created by the inevitable discrepancies in meaning that occur Provide a conceptual framework that helps them make

sense of their experiences Conceptual umbrella for key concepts Domain ontology – categorization of the organization’s

knowledge base Standards set by the company re. strategic value of

knowledge

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Recommended Solution

Tacit

Explicit

Tacit Explicit

Recommendations1. 2. 3.

Recommendations1. 2. 3.

Recommendations1. 2. 3.

Recommendations1. 2. 3.