Unlocking the Power of Knowledge Creation in Companies

Unlocking the Power of Knowledge Creation in Companies

In today's uncertain economy, where competition is fierce and constant innovation is necessary for survival, the one true advantage that companies can possess is knowledge. The ability to continuously create new knowledge is what sets apart the "knowledge-creating" company from the rest. This concept, deeply ingrained in the traditions of Western management, is now being embraced by Japanese companies, who have recognized the significance of tapping into the tacit knowledge of their employees.

The Japanese approach to knowledge creation goes beyond simply processing objective information. It involves harnessing the subjective insights, intuitions, and hunches of individual employees and making them available for testing and use by the entire organization. This process relies on personal commitment and a strong sense of identity with the company and its mission. The knowledge-creating company is as much about ideals as it is about ideas, and this fuels innovation.

Creating new knowledge starts with the individual. It requires moving from tacit knowledge, which is deeply rooted in action and personal commitment, to explicit knowledge, which is formal and systematic. This movement can occur through direct sharing between individuals or through the articulation and internalization of knowledge within the organization. Articulation involves converting tacit knowledge into explicit knowledge, while internalization involves using explicit knowledge to broaden one's own tacit knowledge base.

Metaphor and analogy play crucial roles in the process of knowledge creation. Metaphor triggers the creative process by merging two distant areas of experience into a single, inclusive image or symbol. It fosters direct commitment to the creative process. Analogy, on the other hand, reconciles contradictions and makes distinctions. It clarifies how two seemingly contradictory ideas are alike and not alike. By harmonizing the contradictions incorporated into metaphors, analogy acts as an intermediate step between pure imagination and logical thinking.

Building redundancy within an organization is another essential aspect of managing the knowledge-creating company. Redundancy involves consciously overlapping company information, business activities, and managerial responsibilities. It spreads new explicit knowledge throughout the organization, allowing it to be internalized by employees. Redundancy can be achieved through strategic rotation between different areas of technology and functions such as R&D and marketing. Free access to company information also fosters redundancy by challenging employees to reexamine what they take for granted.

In times of crisis or breakdown, when traditional categories of knowledge no longer work, ambiguity can be a valuable source of alternative meanings and fresh perspectives. New knowledge is often born in chaos, and companies that embrace ambiguity are better equipped to navigate uncertain times.

Top management plays a crucial role in guiding the knowledge-creating company. By categorizing the company's knowledge base and setting clear standards for justifying the value of knowledge, they provide employees with a sense of direction. However, a more equivocal vision can also empower employees and work groups to set their own goals and contribute to knowledge creation.

Teams play a central role in the knowledge-creating company as they provide a shared context for interaction and dialogue. Effective reflection and collaboration within teams are essential for knowledge creation to thrive.

In conclusion, the knowledge-creating company embraces the power of continuous innovation through the creation of new knowledge. By tapping into the tacit knowledge of individual employees, fostering personal commitment, and utilizing metaphors and analogies, companies can unlock their full potential. Building redundancy, embracing ambiguity, and empowering teams are actionable steps that companies can take to foster a culture of knowledge creation. In an ever-changing business landscape, the knowledge-creating company has a competitive advantage that cannot be easily replicated.