Unpacking Tacit Information: How to Identify and Leverage It in Your Business
The Importance of Tacit Information
In business, information is power. However, not all information is created equal. Explicit information, such as data and statistics, is easy to identify and transfer from one individual to another. Tacit information, on the other hand, is more challenging to define or transfer. Tacit information refers to knowledge that is held by individuals but is not explicitly expressed or easily written down. Tacit information includes skills, experience, intuition, and expertise, and it is often the key to competitive advantage.
Identifying Tacit Information
Identifying tacit information can be challenging, as it tends to be subjective and hard to quantify. One approach to identifying tacit information is to observe an individual’s behavior over time and look for patterns. Pay attention to how they react to different situations, the types of decisions they make, and how they solve problems. It can also be helpful to ask questions, engage in conversation, and actively listen to what the individual has to say.
Leveraging Tacit Information
Once tacit information has been identified, the next step is to leverage it effectively. This can involve several different strategies, including:
- Cross-training: By cross-training employees, businesses can share tacit information and expertise across different individuals and teams. This can help to build a more diverse and knowledgeable workforce, improving overall business performance.
- Mentorship: Pairing experienced employees with those who are newer to the organization can help to transfer tacit information from one generation to the next. Mentoring relationships can allow for the sharing of insights, experience, and best practices, strengthening the overall knowledge base of the organization.
- Communities of Practice: Creating communities of practice can help to facilitate the transfer of tacit information and create opportunities for collaboration, problem-solving, and innovation. These communities can bring together individuals from different departments, functions, or levels of the organization, promoting cross-functional learning and development.
Examples of Tacit Information in Action
A classic example of tacit information in action is the story of the “Taco Bell Tantrum.” In the early days of the fast-food chain, a new CEO was appointed to lead the organization. Upon taking the role, the CEO made a series of changes to the menu items, ingredients, and pricing structure. As a result, sales began to decline. In response, a group of mid-level managers staged a “Taco Bell Tantrum” in which they were able to convince the CEO to bring back the original menu items and pricing. This action helped to turn around the business and showed the power of tacit information in action.
Another example of tacit information in action is the case of Pixar Animation Studio. At Pixar, the company culture values sharing knowledge and expertise, thus creating an environment that fosters creativity and innovation. By doing this, the studio is constantly able to create successful films that often lead to winning Academy awards.
Conclusion
Tacit information can be a valuable resource for organizations seeking to gain a competitive advantage. By identifying and leveraging tacit information, businesses can strengthen their knowledge base, build a more diverse and knowledgeable workforce, and drive innovation and creativity. With the right approach, tacit information can be a powerful tool for achieving organizational success.
