What Is Tacit Knowledge? Examples, Importance & Best Practices

The knowledge possessed by your team members is one of your organization's greatest assets. The more they understand your products, services, customer needs, and industry, the more productive and successful your company becomes.

While some knowledge can be easily documented and shared as explicit knowledge—such as step-by-step instructions, FAQs, and customer records—other knowledge held by your employees may be more challenging to communicate or capture. However, it is not impossible.

In this article, we delve into the concept of tacit knowledge. We define its importance in driving organizational success and explore strategies for effectively capturing and sharing this valuable knowledge. By the end, you will have a comprehensive understanding of how to unlock the power of tacit knowledge within your organization.

What is Tacit Knowledge?

Tacit knowledge is a type of knowledge that individuals acquire through their experiences, observations, and interactions. It refers to the skills, abilities, and insights that are often difficult to put into words or explicitly communicate. Unlike explicit knowledge, which can be easily documented and shared through written instructions or manuals, tacit knowledge is deeply rooted in personal beliefs, values, and experiences.

An interesting term often used to describe tacit knowledge is "tribal knowledge." This term signifies the informal nature of this type of knowledge as it spreads throughout an organization without being formally documented or actively discussed. It exists within the collective consciousness of a group or community and is passed down from one generation to another through observation and imitation.

Difference Between Explicit, Implicit, and Tacit Knowledge

In the business world, tacit knowledge is a silent superpower that propels companies to succeed. It's derived from personal experiences and resides within employees' minds. Alongside tacit knowledge, there are other types, including explicit and implicit knowledge. Understanding their differences is essential before investing in knowledge management. By harnessing these types effectively, you can unlock their power in work and personal life.

Explicit Knowledge  

In simple words, explicit knowledge is knowledge that can be easily documented and articulated in a formal manner. This knowledge is mostly related to facts, processes, techniques, best practices, etc. This is precisely why you can easily write, store, and share this knowledge with your employees. Research reports, data sheets, employee handbooks, and manuals are all examples of explicit company knowledge.

Implicit Knowledge  

Implicit knowledge represents subconscious understanding or assumptions that individuals may not immediately be aware of but influence their actions and decisions. It is a blend of both tacit and explicit knowledge, where certain aspects are known and understood without conscious effort.

Tacit Knowledge  

Tacit knowledge is subjective and highly personal. It encompasses intangible aspects such as intuition, judgment, creativity, and emotional intelligence. Examples of tacit knowledge include learning a new language fluently, innovative problem-solving techniques, having a keen aesthetic sense in design or artistry, effective leadership skills that inspire others, and the ability to excel in sales by understanding customer needs intuitively.

Examples of Explicit Knowledge

To truly understand tacit knowledge, it's important to recognize that it cannot be obtained through conventional courses or training. It is acquired through personal experiences and the quality of projects over time, making it invaluable and enduring. Now, let's delve into some examples that illustrate how tacit knowledge is gained and its subsequent advantages.

1. Acquiring Proficiency in a New Language

When you embark on the journey of learning a completely new language, you are venturing into the realm of tacit knowledge. Achieving fluency in a language requires prolonged study, practice, and immersion. While articulating or writing down the rules of a new language may prove challenging and time-consuming, it is a fundamental step in acquiring tacit knowledge.

2. Cultivating Effective Leadership Abilities

Interpersonal skills, such as empathy, active listening, and conflict resolution, are essential in building strong relationships and effective communication. While one can learn about these skills through books or training, truly embodying them requires tacit knowledge. It involves understanding and responding to subtle social cues, adapting communication styles to different individuals, and navigating complex human interactions. Tacit knowledge helps individuals develop authentic connections and establish rapport with others.

3. Developing Interpersonal Skills

Interpersonal skills, such as empathy, active listening, and conflict resolution, are essential in building strong relationships and effective communication. While one can learn about these skills through books or training, truly embodying them requires tacit knowledge. It involves understanding and responding to subtle social cues, adapting communication styles to different individuals, and navigating complex human interactions. Tacit knowledge helps individuals develop authentic connections and establish rapport with others.

4. Navigating Complex Situations and Decision-Making

Tacit knowledge plays a critical role in navigating complex situations and making sound decisions. Professionals in fields like medicine, engineering, or law often encounter intricate and ambiguous scenarios that require expertise beyond textbook knowledge. Tacit knowledge, acquired through years of experience and exposure, enables individuals to recognize patterns, anticipate outcomes, and make informed judgments. It provides valuable insights that go beyond explicit information and aids in tackling complex challenges effectively.

Importance of Tacit Knowledge

Tacit knowledge plays a vital role in organizations, contributing to enhanced productivity, efficient onboarding and learning processes, and the retention of valuable expertise. Understanding the importance of tacit knowledge can help businesses harness its power and unlock its potential for success.

1. Enhancing Productivity and Success

One of the key benefits of tacit knowledge is its ability to enhance productivity and contribute to overall organizational success. When employees possess deep understanding and expertise in their respective roles, they are better equipped to perform their tasks efficiently and exceed expectations.

Tacit knowledge allows individuals to tap into their experiences, insights, and intuition, enabling them to make informed decisions quickly. For example, a salesperson with tacit knowledge about customer preferences can tailor their approach effectively, leading to increased sales and customer satisfaction. Similarly, employees who possess tacit knowledge about the products or services offered by the organization can provide better support to customers, resulting in improved customer loyalty.

Furthermore, when teams collectively possess a wealth of tacit knowledge about the industry as a whole, they are better positioned to anticipate market trends, identify opportunities for innovation, and stay ahead of competitors. The more organizational knowledge your team has about your products/services and customers' needs, the more productive and successful your company will be.

2. Efficient Onboarding and Learning

Capturing tacit knowledge is essential for efficient onboarding processes within organizations. When new employees join a team or organization, they often lack the experience and insights that come with time spent in a particular role or industry. By capturing tacit knowledge from existing team members through various means such as mentorship programs or documentation practices, new employees can benefit from the collective wisdom accumulated within the organization.

Sharing tacit knowledge enables effective communication between team members by providing them with valuable insights gained from past experiences. It allows individuals to learn from others' successes and failures while valuing different perspectives within the organization. This exchange of tacit knowledge fosters a culture of continuous learning and improvement, leading to enhanced problem-solving capabilities and innovation.

Moreover, capturing and sharing tacit knowledge can differentiate an organization from its competitors. When employees possess unique insights and expertise, it gives the organization a competitive advantage. Customers appreciate interacting with knowledgeable professionals who understand their needs and can provide tailored solutions. By leveraging tacit knowledge, organizations can create a distinct identity in the market, attracting customers who value expertise and personalized experiences.

3. Retaining Expertise and Preventing Knowledge Loss

As experienced employees retire or move on to other opportunities, organizations face the challenge of transferring their valuable tacit knowledge to newer employees. The loss of experienced professionals without effective knowledge transfer mechanisms can result in a significant loss of expertise within the organization.

Retaining tacit knowledge becomes crucial as technology advances rapidly, potentially leaving older personnel behind. Organizations must ensure that valuable expertise is not lost but rather transferred to newer generations within the company. By capturing tacit knowledge through various methods such as mentorship programs, documentation practices, or creating communities of practice, organizations can preserve critical insights gained over time.

Furthermore, preventing knowledge loss is essential for maintaining organizational resilience. Tacit knowledge often includes lessons learned from past successes and failures, industry-specific nuances, and unwritten rules that guide decision-making processes. By retaining this valuable expertise within the organization, businesses can navigate challenges more effectively and adapt to changing circumstances.

Best Practices to Convert Tacit Knowledge Into Explicit Knowledge

The extent to which your employees innovate and their productivity at work largely depends on the tacit knowledge available to them. Capturing and utilizing tacit knowledge can be challenging, but the following best practices will make it easier for you to do so.

Let's explore these strategies:

1. Establish an Internal Knowledge Base

An internal knowledge base serves as a centralized repository for both explicit and tacit knowledge held by employees. This cloud-based platform allows employees to effortlessly share and access knowledge from anywhere, at any time. With easy accessibility across devices, employees can share their insights, observations, and experiences without being limited by geographical or temporal constraints. Additionally, they can continuously update the knowledge base to keep it relevant and incorporate feedback from teams across departments, fostering a culture of continuous learning.

2. Cultivate a Culture of Mentorship

Since tacit knowledge is often difficult to document, mentorship programs can be valuable in transferring this knowledge from experienced employees to newcomers. By shadowing senior colleagues and working alongside them, junior employees can learn invaluable tricks of the trade. Through sharing experiences and observations, mentors assist new team members in overcoming challenges and gaining a deep understanding of their roles. Regular guidance boosts confidence and aligns employees with the company's goals.

3. Making Employee Training a Priority

Employee training plays a crucial role in developing tacit knowledge through personal experiences. Regular training sessions on task execution, process implementation, and customer handling equip employees with the necessary skills for their responsibilities. Providing on-the-job training, practical exposure, and expert-led workshops expose employees to diverse perspectives and approaches. Online courses and training documentation, designed by company experts, offer self-paced learning opportunities that cater to individual convenience, progress tracking, and assessment.

Read More: Effective Customer Service Training for Better Experience: The Ultimate Guide

4.  Foster Collaboration in the Workplace

Collaboration is essential for teams across departments to work together cohesively towards business objectives. A collaborative work environment encourages employees to voice their opinions, share experiences, and communicate insights freely. Open channels of communication enable collective contributions towards organizational goals. To establish a culture of collaboration, it is essential for senior management to lead by example and ensure that collaboration is embraced at all levels. Tools like Slack can facilitate project collaboration and promote a strong collaborative culture within the organization.

5. Establish a Forum for Healthy Discussions

Creating a dedicated forum or online platform for employees to engage in discussions related to their areas of expertise promotes the sharing of tacit knowledge. This forum serves as a space for exchanging ideas, raising questions, and participating in meaningful conversations that drive innovation and creativity. Active participation, respect for diverse viewpoints, and open dialogue encourage the exchange, refinement, and expansion of tacit knowledge. This fosters a culture of intellectual curiosity, continuous learning, and collaboration in problem-solving.

By implementing these strategies, you can effectively capture and leverage the tacit knowledge within your workforce, fostering a culture of knowledge sharing, innovation, and growth.

Challenges in Capturing Tacit Knowledge

Capturing tacit knowledge presents unique challenges due to its subjective and experiential nature. Unlike explicit knowledge, which can be easily articulated and documented, tacit knowledge resides within an individual's mind and is often difficult to express in words. However, there are methods and tools that organizations can employ to effectively capture and utilize this valuable resource.

Difficulty in Articulating and Capturing Tacit Knowledge

Tacit knowledge is deeply rooted in personal experiences, beliefs, values, and intuition. It encompasses skills, insights, and understanding that individuals have acquired over time but may struggle to put into words or explicitly communicate. This poses a challenge when attempting to capture tacit knowledge for the benefit of others within the organization.

One solution to this challenge is the use of immersive documentation techniques. Instead of relying solely on written instructions or manuals, organizations can employ storytelling techniques that convey the nuance of tacit knowledge more effectively. Storytelling allows individuals to share their experiences, lessons learned, and insights in a narrative format that engages the listener or reader. By using vivid descriptions, real-life examples, and relatable anecdotes, tacit knowledge can be made more memorable and easier to understand.

Additionally, creating opportunities for dialogue and open discussions within teams or departments can help uncover tacit knowledge that might otherwise go unnoticed. Encouraging employees to share their experiences, ask questions, and engage in meaningful conversations fosters an environment where tacit knowledge can be expressed more freely.

Methods and Tools for Capturing Tacit Knowledge

To capture tacit knowledge effectively, organizations can leverage various methods and tools across different areas of their operations:

Marketing Tools: Marketing tools such as email marketing campaigns, newsletters, blogs, or social media platforms provide avenues for documenting and sharing tacit knowledge related to marketing strategies and customer insights. These platforms allow marketers to articulate their experiences with specific campaigns or target audiences while providing valuable insights into consumer behavior.

Customer Service Tools: Customer service interactions are rich sources of tacit knowledge about customer preferences, common issues faced by customers, effective problem-solving techniques, etc. Tools like call logging/recording systems enable organizations to capture these interactions for future reference. Live chat features facilitate real-time communication with customers while also capturing valuable insights from those conversations. FAQ databases serve as repositories of frequently encountered problems along with solutions developed through experience.

Sales Tools: Sales professionals possess significant amounts of tacit knowledge about sales strategies that have proven successful in engaging customers effectively. Deal trackers allow sales teams to document their experiences with different types of deals – what worked well versus what didn't – enabling others within the organization to learn from those experiences.  

Management Tools: Management tools play a crucial role in capturing and organizing tacit knowledge across various departments within an organization. Knowledge base softwares serve as repositories where employees can contribute articles or case studies based on their experiences or expertise. Timelines/Gantt charts help visualize project management processes while capturing critical milestones achieved through past projects/experiences. Campaign management tools provide a centralized platform for documenting campaign strategies employed by marketing teams along with results achieved.

By utilizing these methods and tools strategically throughout an organization's processes and workflows, it becomes possible to capture valuable tacit knowledge that would otherwise remain hidden or lost.

Effortlessly Manage Your Tacit Knowledge with HelpLook

Experience seamless knowledge management of your tacit knowledge with HelpLook. HelpLook offers a wide range of features designed to elevate your management system to new heights. With its collection of stunning premade templates, intuitive built-in customizer, and more, HelpLook empowers you to create an attractive and organized documentation page. Additionally, HelpLook boasts an AI-powered chatbot, documentation analytics, and other valuable features for an enhanced user experience.

We hope you found this comprehensive guide to tacit knowledge beneficial for your knowledge base management within your company. Take action now and begin building it with HelpLook's free trial. Experience the power of HelpLook's features and see how it can transform your knowledge management.