Experts in Hiding: The Nature of Knowledge in Companies

Most companies contain rich and diverse veins of knowledge that they mine ineffectively. Just about every company contains people who possess both implicit and explicit knowledge. Although some of the explicit knowledge has been captured, a great deal of the tacit expertise exists only in people’s heads. Most companies do not realize that they may have overlooked expertise that would have helped them deal with critical business issues.

The smartest, savviest people frequently spend their time with their functions or departments and rarely have time and opportunity to brainstorm with a diverse group of experts, such as their colleagues performing other functions or working in other departments.  In every organization, people possess astonishing expertise and insights, yet they are often allowed or encouraged to apply their knowledge to only a narrow range if topics. As a result, companies do not take full advantage of all the information, ideas, and creativity that resides inside their enterprises.

Organizations are often astute about using visible knowledge to achieve business goals, but the challenge is knowing how to leverage both visible and invisible knowledge effectively across traditional boundaries to meet these goals. Part of the problem is the company’s smartest people share their knowledge reluctantly. They guard their knowledge jealously, fearful that if they tell others their secrets, their value to the company will be diminished.

Just as significantly, knowledge remains lodged in people’s brains or in a company’s nooks and crannies because the knowledge exchange system is ineffective. Although technology enables people to send data with astonishing speed, in amazing volume, and organized in a mindboggling number of ways, it lacks the human capacity to turn data into knowledge and knowledge into actionable insights.

Today, as the threat of disruption is on top management’s minds, leveraging expertise to brainstorm solutions and chart new paths is more critical than ever before. Talented specialists are interacting across functional boundaries to solve difficult problems without high costs. With the rise of companies that provide on-demand specialist industry experts, successful organizations are tapping into both internal and external expertise as a means to sustainable prosperity.