The next step in systemic change

Over the course of 2016, Marcus and I worked on a piece of research on systemic change in market systems development, funded by the BEAM Exchange. In this work, we question the utility of the concep…

Source: The next step in systemic change, an update on our research written by Marcus Jenal on the website

Post 1 of 3: Organisational knowledge and innovation: the difference between tacit and explicit knowledge

Knowledge in organisations can either be explicit or tacit, or a mixture of the two. Let us first try and sort out the difference between explicit knowledge and tacit knowledge.

Explicit knowledge is easier to identify and is typically captured in processes, systems, routines, documents, guidelines and so on. Some explicit knowledge from outside the organisation can also shape the internal environment, such as regulations, standards, professional codes and broadly accepted practices. Explicit knowledge flows in society, over organisational borders through channels like the media, the education system, professional bodies, accepted good practices, conferences, manuals, trade journals or the appointment of new staff, and so on.

Tacit knowledge is much harder to detect, capture and disseminate. It spreads slower, both because of the difficulties of detecting and transmitting it, as well as the challenges of absorbing it and figuring out how to use it. Most people are not fully aware of the value or perhaps even the existence of this kind of knowledge. What you do and why you do it in a particular way is shaped not only by the task at hand, but by your experience, your own values, your education and the current environment. Often when you ask a person how they knew what to do in a unique situation, they merely shrug and say “it felt right”. Tacit knowledge is often hard to explain and even harder to document or capture.

We gain, absorb, leverage and integrate these two kinds of knowledge in rather different ways. For leaders this distinction is important, as it provides clues on how knowledge that enables adaptation, improvement and innovation can be created or harnessed.

We pick up explicit knowledge from our environment, even if this process is imperfect and prone to all kinds of errors. For instance, we may misinterpret rules, overlook a regulation, or use the wrong form. With the dramatically increased amount of information that is now available in many organisations, we find that people often simply don’t know which explicit or codified knowledge to use. This applies to individuals, organisations and in some cases even industries. We can simply become overwhelmed by contradictory information, even if it is well articulated or explained in detail. The fact that it is sometimes very difficult to know which explicit knowledge to use gives rise to the use of brokers and gatekeepers, which could be a good thing or a bad thing. For instance, when rules are not clear, or are inconsistent, individuals might use their insight into the workings of the system to their advantage in return for favours.

But here is the rub. Tacit knowledge, as far as I can tell, starts mainly within individuals, and then spreads to teams. If we draw an arrow representing knowledge flow, we see that the arrow moves from the individual to the organisation, that is if the organisation is aware of the existence and of this knowledge and is attentive to its value. Many organisations are managed in such a way that tacit knowledge is suppressed, even if this is unintentional. Tacit knowledge is personal, although some of it may be shared with some close co-workers or trusted people. Tacit knowledge mostly spreads through personal exchange, trust, close observation or working closely with colleagues. For instance, one way in which tacit knowledge spreads is by mimicry, where you copy how other people behave or carry out a task. When people are able to express their insight into tacit knowledge, they do so conditionally, depending on their assessment of the intent and trustworthiness of the person asking for advice.

Many organisations have no way to determine the value of the tacit knowledge of their employees, and often the value of an employee’s contribution is only realised when they leave. It is these people who are sorely missed when they leave. Neither is it as simple as merely asking people to write down what they know – we’ll discuss this in more detail in the next post.

New series: Organisational knowledge and innovation

In the next few posts I will elaborate on the role of knowledge in enabling learning organisations. In a previous post (here), I have concentrated mainly on how knowledge for innovation is generated in organisations. The response from readers was very positive, and as I worked with management teams to strengthen their innovative culture I realised that there are some further concepts that I must elaborate on. It is not only about what workers do, it is also about the environment created by leaders.

The first post in this series will look at the difference between tacit and explicit knowledge, and how both are formed. The second post explores why explicit knowledge dominates organisations. The third post will discuss how leaders can embrace tacit knowledge and encourage their teams to create new knowledge together.

“By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.” 
― Confucius

Radio interview on technology

Following the interview on two weeks ago on innovation during The Leadership Platform show, I was asked to return. This time the conversation was about technology. You can download the podcast here.


Richard, Shawn and Daniel (left to right)


After 30 minutes, the attention switched to a small and medium enterprise. I had invited Daniel Paulus, one of my clients, to the show to be interviewed. Daniel is one of the founders of the Louie Daniel jewellery company, a speciality retailer of custom made jewellery and diamonds. They are one of the leadership teams that I have been coaching on technology, innovation, strategy and culture.

I promise to reveal more about my formal coaching programme shortly.


Linking: Changing the world and no one notices

If you want to feel inspired by a great story of innovation, then take a look at the great post by Morgan Housal. It is about the Wright Brothers and the consequences of their innovation and also their vision. If you are inspired by this story, you will also enjoy the Knowledge Project Podcast where Shane Parish from the Farnhamstreet blog interviews Morgan about his way of reading, writing and doing research before writing. You can find the podcast here . From his writings I have learned how to filter a lot of information, and how to supplement what trusted sources claim by my own research. For instance, I have unsubscribed from many newsletters and now only read curated news sources that I trust.

Interview on knowledge for innovation

I had the privilege of being interviewed by Richard Angus (CEO The Finance Team) on the Business Masterclass programme on The topic of the interview was about concepts on knowledge and knowledge management that are relevant for business leaders. Listen to the podcast here.

During this 30 minute interview we talk about several knowledge concepts, like the distinction between tacit knowledge and codified knowledge and why this matters. I explained my favourite concept of how knowledge creation can be enhanced to improve innovation.

This interview is based on the article that I wrote earlier this year for the University of Stellenbosch Business School Executive Education newsletter.


Thank you to Richard and the show host Adriaan Groenewald from the Leadership Platform for this opportunity to talk about a topic that I love so much.




Unlocking knowledge in organisations

A favorite topic that I love to talk, think and write about is the knowledge that is lurking around in organisations, often untapped.

Last week, the University of Stellenbosch Business School, where I am a member of faculty in the Executive Development programme, published an article I wrote in its thought leader newsletter. It is titled “Unlocking knowledge in organisations to enable innovation”. What started off as a 1200 word article was reduced to 700 words by Linton Davies, the wordsmith that always helps me to better express my ideas when I write formal publications. I think this article as it stands now must be the most I have ever said in only 700 words!

I am really proud of this article in its current short form. It started off many years ago as a much a more complicated module in my innovation systems training session. Now it is a practical workshop format that I use often in organisations supporting innovation, but increasingly in businesses, government programmes and even NGOs.

It is informed by evolutionary and complexity thinking, and is thus in line with my current research and the principles that I now pursue and value. Of course, a lot of extremely important theory is left out in this form, but by helping managers become more aware of how the inhibit or promote knowledge generation in their organisations is for me already a great start.


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