Understanding implicit and explicit knowledge

Knowledge is a valuable resource within a company. Understanding the difference between explicit and tacit knowledge is crucial for using it effectively. Both types of knowledge are essential for comprehensive knowledge management. This article explains what explicit and implicit knowledge are, why their distinction is essential, and how to design knowledge transfers effectively.

Explicit and implicit knowledge: What is behind it?

Explicit knowledge

Explicit knowledge comprises all information that is documented and easily accessible. It is clearly defined, structured, and can be easily shared with others. Typical forms of explicit knowledge are:

  • Manuals: These contain detailed instructions and process descriptions that guide employees step by step through various tasks.
  • Documentation: Technical specifications, project reports and company guides fall into this category. They provide precise information and serve as reference works for specific issues.
  • Reports and databases: Standardized and structured information that is systematically collected and stored in databases for easy retrieval and analysis.

Implicit knowledge

Implicit (tacit) knowledge is less tangible and acquired through experience and practice. It is deeply rooted in employees’ minds and is often difficult to articulate. Typical forms of tacit knowledge include:

  • Experience-based knowledge: This includes intuitive problem-solving skills developed through years of practice. Employees know how to complete certain tasks efficiently, often without having to think about it.
  • Interpersonal skills: Social competencies and team dynamics essential for effective collaboration and communication within a team.
  • Practical skills: Craftsmanship and technical expertise acquired through repeated practice and on-the-job learning.
  • Relationships with key stakeholders: Knowledge of important internal and external contacts and how to maintain these relationships.
  • Knowledge of preferences and pitfalls: Awareness of specific preferences of supervisors or customers as well as informal rules and pitfalls to avoid.

This knowledge is often passed on through observation, imitation, and informal learning. Since it is deeply rooted and personal, capturing and sharing implicit knowledge poses a challenge. Through targeted knowledge management, you can ensure that your company effectively secures and utilizes the knowledge of various individuals in the long term.

The knowledge management theories of Michael Polanyi

Michael Polanyi was a Hungarian-British scientist and philosopher who significantly contributed to the knowledge management theory. In the 1960s, he coined “tacit knowledge” and emphasized the importance of non-codifiable knowledge deeply rooted in human behavior and experiences.

Polanyi argued that we often know more than we can express, an insight that has significantly influenced our understanding of tacit knowledge and the challenges in its transfer. His work has shown that tacit knowledge is central to practice and decision-making.

Polanyi’s theories highlight the need to systematically capture and transfer explicit and tacit knowledge in organizations to secure and expand the knowledge base.

Why tacit knowledge is particularly important

While explicit knowledge is generally easily accessible through manuals and documentation, tacit knowledge offers a deeper understanding of daily workflows and company culture. Therefore, it plays a crucial role in onboarding new employees. New employees can become more productive and adapt better to their roles when they have access to tacit knowledge.

Reducing Early Turnover through Knowledge Transfer

A practical knowledge transfer can also significantly reduce early turnover during onboarding. When new employees feel well-integrated and informed, they are less likely to leave the company prematurely. Studies show that unclear communication, unstructured onboarding processes, and a lack of integration often cause early turnover.

Companies can significantly reduce early turnover by implementing transparent recruitment processes, structured preboarding measures, and comprehensive onboarding programs with position-specific knowledge transfer.

The Importance of Context for Successful Outcomes

Context plays a crucial role in knowledge transfer, as information can easily be understood or misapplied with the proper context. It helps new employees understand the background and reasons for specific workflows and decisions, making their onboarding smoother and more effective.

Comments and annotations on documents and processes are particularly effective in conveying context. These additional pieces of information provide valuable insights and background knowledge beyond what is found in standardized manuals. They enable new employees to integrate more quickly and thoroughly.

Challenges and solutions in the transfer of tacit knowledge

Tacit knowledge includes elements such as intuitive problem-solving skills, interpersonal competencies, and specific knowledge about stakeholder relationships and organizational preferences. Unlike explicit knowledge, tacit knowledge is often not formally documented.

Companies often notice the loss of tacit knowledge only when their employees retire or leave the company for external opportunities. By that time, it is usually too late. This challenge can only be addressed through structured offboarding processes and early knowledge capture.

Practical Approaches to Conveying Tacit Knowledge

  • Interviews: Structured interviews with experienced employees provide deeper insights into work processes and practical tips not found in official documents. Targeted questions can capture specific situations and problem-solving approaches in detail.
  • Mentoring: Mentoring programs that connect new employees with experienced colleagues promote continuous knowledge transfer. Mentors offer professional support and help newcomers understand the company culture and informal networks.
  • Job Shadowing: During job shadowing, new employees accompany experienced colleagues in their daily work. This allows them to observe work processes directly and ask real-time questions. This practice provides comprehensive insights into workflows and promotes understanding of the implicit aspects of the job.
  • Documentation: Systematic documentation of tacit knowledge is crucial. It involves capturing experienced scenarios, case studies, and best practices. Video recordings and detailed instructions can make complex work processes and experiences understandable.

Companies can ensure that tacit knowledge is effectively captured and transferred by applying these strategies. This promotes the integration of new employees and secures the retention of valuable knowledge within the organization.

Digital support for sustainable knowledge management with great2know

Our great2know platform provides a digital solution for efficiently capturing and utilizing knowledge in various formats such as text, audio, and video. Knowledge can be inputted by typing or spoken into the platform. The speech-to-text feature allows for automatic transcription, significantly simplifying documentation.

Additionally, texts can be optimized or summarized using our AI-powered systems. Our digital corporate memory allows for structured storage of information and enables easy retrieval through keyword search, ensuring accessibility at any time.

Our conclusion on implicit and explicit knowledge

Implicit and explicit knowledge are two essential pillars of effective business knowledge management. While explicit knowledge is easy to document and share, deeply rooted experiential tacit knowledge poses a unique challenge. However, this implicit knowledge is crucial for successfully onboarding new employees, reducing early turnover, and fostering long-term employee retention.

By strategically using interviews, mentoring, job shadowing, and systematic documentation, companies can secure and pass on their employees’ valuable knowledge assets. Digital tools like great2know support this process by enabling structured and context-rich knowledge transfer. Thoughtful knowledge management not only ensures the transfer of knowledge but also enhances your company’s efficiency and innovation capabilities.

about the author
Lenita Behncke
Lenita writes for great2know as a content creator, producing articles on knowledge transfer and management.